Dixon Technologies stock trading over 2% higher post stellar listing

Dixon Technologies, which made a positive listing on the BSE and NSE on Monday, opened higher in early trade today.

The Noida-based firm made a stellar listing at Rs 2725 or 54 percent premium over the offer price of Rs 1,766 on the BSE.

At 10:31 am, the stock was trading 2.36 percent or 68.20 points higher at 2961 level on the BSE. It closed at 2,892 level or nearly 63 percent higher to the issue price yesterday.  

Dixon Technologies' listing is the fifth-best stock market debut in the past seven years. The previous best listing was that of Avenue Supermart, the parent firm of D-Mart stores, which made a blockbuster debut with 102% premium over its offer price in March this year.  

The firm plans to spend the proceeds of the IPO on capacity expansion and debt repayment.

"In the primary raise, the money will be spent on setting up LED TV capacity in Tirupati, expansion of our backward integration of lighting business, debt repayment, IT infrastructure and the rest will be used for general corporate purposes," Dixon Technologies Managing Director Atul B Lall said.

It would also be used for repayment of loans and for general corporate purposes. IDFC Bank, IIFL Holdings, Motilal Oswal Investment Advisors and Yes Securities are the book running lead managers to the issue.

The firm raised Rs 179.8 crore by allotting 10.18 lakh shares to anchor investors at the higher end of IPO price band of Rs 1760 to Rs 1766 per share.