Indo-MIM shares extended their post-listing rally on Friday, rising nearly 5% to ₹776.90 and climbing over 60% above the ₹485 IPO price in two trading sessions. The stock started trading at ₹703 on BSE and ₹700 on NSE, with shares jumping 44.94% to ₹725.15 on BSE and 49.51% to ₹725.15 on NSE on listing day. The ₹3,811.21-crore IPO, which was fully subscribed at 72.34 times during the July 23-27 subscription period, significantly outperformed grey market expectations of around ₹184 premium, indicating an expected listing gain of nearly 39%. According to The Economic Times, the company's market valuation stood at ₹35,132.87 crore following the strong debut. The IPO comprised ₹499.10 crore fresh issue and ₹3,311.21 crore OFS, with shares priced between ₹461-485 per share and a minimum application size of 30 shares.
The non-institutional investor category closed at 50.63 times overall, with the larger NII bucket (above ₹10 lakh) subscribed 57.68 times and the smaller bucket at 36.54 times. According to LiveMint, retail individual investors subscribed 6.67 times their reserved portion, a significant jump from 1.89 times at end of Day 2. The employee reservation category closed at 9.44 times, while the retail portion showed exceptional demand at 32.44 times subscription. Mutual funds subscribed for 31,63,06,770 shares, and the Others QIB category accounted for 39,14,59,260 shares. The QIB portion received a massive 296.13 times subscription, while the non-institutional investor portion was booked 50.63 times. The ₹3,811.21-crore IPO comprises ₹499.10 crore fresh issue and ₹3,311.21 crore OFS, with proceeds primarily allocated towards repayment of outstanding borrowings.
Chief Financial Officer P. Balasubramanian confirmed the company expects defence and medical businesses to outperform other segments over the coming years, as reported by ET Now. The CFO noted that the company operates across three core technologies - metal injection moulding (MIM), investment casting and 3D printing - and serves customers in automotive, medical, defence, aerospace and consumer industries. "We are seeing great growth as a company and as an industry, we are seeing great growth in defence and medical. We expect these industries to outperform other industries that we are in," Balasubramanian stated. According to the company, defence, medical, aerospace and land-based gas turbines are currently witnessing the strongest demand. The CFO emphasized that the government's Production Linked Incentive (PLI) scheme has created opportunities in the consumer manufacturing space, with more companies setting up operations in India. He noted that the company sees stability in long-term profitability as volumes increase and that business conditions have remained stable so far despite monitoring logistics.
Indo-MIM CFO expressed strong confidence about execution capabilities, stating the company does not foresee any execution-related challenges despite ambitious expansion plans. According to ET Now, the company's main capacity utilization is about 45% to 50% currently and it's growing up. The CFO highlighted that Indo-MIM is the largest manufacturer of metal injection moulded components in the world and has sufficient capacity to handle projected growth. "We have good capacity utilization number. Our main capacity utilization is about 45% to 50% currently and it's growing up. We have sufficient capacity inside the company and we have the capability," he stated. He noted that as far as investment casting and aerospace machining concerned, the company has established itself as a good player in this industry and world leading customers look to them for more products. The CFO pointed to aerospace industry expanding at an average rate of around 40% and gas turbine segment expected to grow by nearly 50%, driven by rising power demand from data centres.
Indo-MIM currently manufactures around 6,400 components every month and adds 35-40 new components to its product library on an average each month, as reported by ET Now. The CFO emphasized that the growth trajectory continues to be strong and the company feels that growth will continue in days to come. The company's diversified product portfolio across MIM technology provides multiple growth avenues. "As far as MIM concerned, we have a robust library of about 6,400 components which we are executing month on month. And we are adding at an average of about 35 to 40 new components which is also mentioned in our prospectus," he concluded. The company plans to utilize ₹400 crore from the fresh issue proceeds towards pre-payment or repayment of certain outstanding borrowings, while the remaining amount will be used for general corporate purposes. Incorporated in 1996, Indo-MIM manufactures precision engineering components using Metal Injection Moulding (MIM) technology and provides end-to-end manufacturing solutions.
Market experts have advised investors to remain cautious after the steep surge, warning that profit booking could emerge in the near term as valuations have moved into a premium range. According to The Economic Times, Shivani Nyati, Head of Wealth at Swastika Investmart Ltd., noted that while the company's fundamentals and market position have attracted investors, the sharp post-listing rally has pushed valuations higher. The stock was already commanding a premium valuation based on FY26 earnings expectations, and the recent surge has further stretched those levels. "Given the sharp listing gains, some profit booking may take place in the near term. Existing investors may consider booking partial profits at current levels," Nyati advised. For investors continuing to hold the stock, she recommended maintaining a stop-loss range of ₹595-600 to protect gains while allowing room for normal market fluctuations. The two-day rally has now lifted the stock nearly 60% above its IPO price, rewarding investors with significant listing gains but also raising concerns about near-term profit booking.
