Indo-MIM made a stellar stock market debut on Thursday, with its shares listing nearly 45% above the IPO price, delivering hefty gains to investors. Despite the strong debut, market experts advise caution, citing the possibility of near-term profit booking as the sharp rally has pushed valuations to premium levels. While the company's long-term growth prospects remain intact, they believe the scope for immediate upside may be limited.
The stock opened at Rs 703 on the BSE and Rs 700 on the NSE, compared with its issue price of Rs 485 per share — translating into a premium of around 44.95%. The impressive debut reflected strong investor confidence, particularly from institutional buyers, and highlighted the company’s strong position in the global Metal Injection Moulding (MIM) industry.
Indo-MIM’s Rs 3,811.21 crore IPO was launched at a price band that valued the company at Rs 485 per share. The issue included a fresh share sale of Rs 499.10 crore and an offer for sale (OFS) worth Rs 3,311.21 crore.
The IPO, which remained open for subscription from July 23 to July 27, received an overwhelming response, with the issue being subscribed 98.47 times overall. Institutional investors showed the strongest appetite, with the Qualified Institutional Buyers (QIB) portion receiving bids 296.13 times the shares on offer. The Non-Institutional Investor (NII) category was subscribed 50.63 times, while the Retail Individual Investor (RII) segment recorded 6.67 times subscription.
Expert View: Partial Profit Booking Recommended
According to Shivani Nyati, Head of Wealth at Swastika Investmart Ltd., Indo-MIM’s strong debut was driven by robust demand from QIBs and high-net-worth investors, along with the company’s leadership position in the global MIM market.
“Indo-MIM listed at Rs 700 on NSE and Rs 703 on BSE, delivering a premium of nearly 45% over its Rs 485 issue price. The listing reflects strong investor interest and confidence in the company’s growth story,” Nyati said.
However, she cautioned that valuations have moved into a premium zone following the sharp rally. The stock was already trading at an elevated valuation based on FY26 earnings expectations, and the post-listing surge has pushed valuations even higher.
“Given the sharp listing pop, profit booking is likely in the near term. Existing investors can consider booking partial profits at current levels,” she advised.
For investors choosing to hold the remaining shares, Nyati suggested maintaining a stop-loss level around Rs 595-600, which would help protect listing gains while allowing room for normal market volatility.
About Indo-MIM
Established in 1996, Indo-MIM is one of the world's leading manufacturers of precision engineering components using Metal Injection Molding (MIM) technology. The company offers end-to-end manufacturing capabilities, including mould design, tooling, machining, finishing, and assembly.
Over the years, Indo-MIM has expanded beyond its core MIM business by adding advanced manufacturing technologies such as investment casting, precision machining, ceramic injection moulding, and 3D metal printing. Its products serve a diverse range of industries, including automotive, aerospace, defence, medical devices, and consumer goods.
In FY26, the company manufactured more than 6,400 products, highlighting the scale and diversity of its engineering capabilities.
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Financial Performance
Indo-MIM delivered a strong financial performance in FY26, supported by healthy growth in both revenue and profitability. Total income rose 28.1% year-on-year to Rs 4,320.70 crore, compared with Rs 3,373.97 crore in FY25. Profit after tax (PAT) increased 25.9% to Rs 533.54 crore, up from Rs 423.73 crore in the previous financial year.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
