New Delhi: Vishal Nirmiti Limited and Nityas Gems & Jewellery made their stock market debuts on Thursday, with the two newly listed companies delivering contrasting performances on their first day of trading.
Shares of Vishal Nirmiti made a weak debut, listing at Rs 215 on both the NSE and BSE against an issue price of Rs 220. The listing represented a discount of Rs 5 per share, or around 2.3 per cent, to the IPO price.
Nityas Gems & Jewellery, in contrast, opened above its issue price of Rs 75. The stock listed at Rs 80 on the NSE and Rs 82 on the BSE, translating into a premium of 6.7 per cent on the BSE and 9.3 per cent on the NSE.
The divergent listings came as both companies entered the secondary market following their respective initial public offerings.
Vishal Nirmiti shares list at 2.3% discount
Vishal Nirmiti Limited had fixed a price band of Rs 208 to Rs 220 per equity share for its IPO.
At the upper end of the price band, the public issue comprised a fresh issue of up to 69.71 lakh equity shares, which was expected to raise around Rs 145 crore.
The IPO also included an offer for sale of 15 lakh shares valued at approximately Rs 33 crore at the upper price band.
The overall issue size therefore stood at around Rs 178 crore at the upper end of the price range.
Despite the company’s public issue pricing, its shares failed to match the IPO price at the time of listing. The stock debuted at Rs 215 on both major exchanges, resulting in an immediate discount for investors who received shares at the issue price of Rs 220.
The listing performance indicates relatively muted initial market sentiment towards the company, although the first-day listing price alone does not determine its longer-term stock market performance.
What does Vishal Nirmiti do?
Vishal Nirmiti is involved in the manufacturing and dealing of pre-stressed concrete, or PSC, sleepers used in railway infrastructure.
The company also manufactures pre-cast and pre-stressed concrete products and is involved in the fabrication of mild steel pipes, MS liners and pre-stressed pipes used in pumped storage projects.
Its business extends beyond manufacturing. Vishal Nirmiti also provides engineering, procurement, infrastructure and construction services.
The company works on railway infrastructure as well as civil engineering, irrigation and other infrastructure projects.
Its exposure to infrastructure-related activities gives the business a connection to India’s broader railway and construction ecosystem.
How Vishal Nirmiti plans to use IPO proceeds
The fresh capital raised through the IPO is intended to support several corporate requirements.
The company plans to use the proceeds towards funding its working capital needs and repaying loans.
A portion of the funds is also intended for general corporate purposes.
The use of IPO proceeds towards working capital is relevant for an infrastructure-linked manufacturing company because such businesses can require significant funds to support procurement, production and project execution.
Debt repayment, meanwhile, can help the company manage its financial obligations, although the eventual impact will depend on the company’s overall financial performance and borrowing levels.
Nityas Gems makes premium debut
Nityas Gems & Jewellery delivered a stronger listing performance than Vishal Nirmiti.
The company had fixed its IPO price band at Rs 70 to Rs 75 per share, with the issue priced at the upper end at Rs 75.
Its shares listed at Rs 80 on the NSE, representing a gain of Rs 5 per share or around 6.7 per cent over the issue price.
On the BSE, the stock debuted at Rs 82, giving investors an initial premium of Rs 7 per share, or approximately 9.3 per cent.
The positive listing indicates that demand for the company’s shares remained above the IPO price after the stock entered the secondary market.
However, listing gains can change during the trading session as investors buy and sell the shares based on market conditions, company fundamentals and broader sentiment.
Nityas Gems raised Rs 108.35 crore
Nityas Gems & Jewellery launched its IPO to raise Rs 108.35 crore through a book-built issue.
The public offering consisted entirely of a fresh issue of 1.45 crore equity shares.
The company set the price band at Rs 70 to Rs 75 per share.
Investors were required to bid for a minimum of 200 shares. At the upper end of the price band, the minimum investment for one lot was Rs 15,000.
The IPO opened for subscription on September 30 and closed on October 5.
The basis of allotment was expected to be finalised on October 6, followed by the listing of the shares on the NSE and BSE on October 8.
What does Nityas Gems & Jewellery do?
Nityas Gems & Jewellery is a manufacturer of gold jewellery studded with lab-grown diamonds.
The company operates in the jewellery segment at a time when lab-grown diamonds have emerged as an alternative to naturally mined diamonds in several consumer markets.
The company’s business model combines gold jewellery manufacturing with the use of lab-grown diamonds.
The listing gives public-market investors an opportunity to participate in the company’s future growth, while the company gains access to equity-market capital following the IPO.
As with other newly listed companies, the stock’s performance after listing will depend on factors including revenue growth, profitability, demand for its products, industry conditions and investor sentiment.
Nityas Gems IPO subscription and listing
The IPO process began with the issue opening on September 30.
Investors could subscribe to the offer until October 5, after which the allotment process was scheduled to take place.
The shares were subsequently listed on the NSE and BSE on October 8.
Choice Capital Advisors Pvt. Ltd. acted as the book-running lead manager for the issue, while Bigshare Services Pvt. Ltd. served as the registrar.
The roles of the lead manager and registrar are part of the standard IPO process, covering areas such as issue management, investor applications, allotment and related administrative procedures.
Two IPOs, contrasting market debuts
The first-day performance of Vishal Nirmiti and Nityas Gems & Jewellery highlights the different reception that newly listed stocks can receive even when they debut on the same trading day.
Vishal Nirmiti opened below its issue price of Rs 220, with the Rs 215 listing on both exchanges translating into a 2.3 per cent discount.
Nityas Gems, meanwhile, opened above its Rs 75 issue price, reaching Rs 80 on the NSE and Rs 82 on the BSE.
The difference between the two listings reflects the market’s initial pricing of the companies after their IPOs. However, the opening or listing price is only an early indicator and does not by itself establish the long-term performance of either stock.
What investors should watch after listing
Following the debut, investors will be able to track both companies through regular market trading.
For Vishal Nirmiti, attention is likely to remain on its ability to execute infrastructure-related projects, manage working capital and use the IPO proceeds effectively.
The company’s exposure to railway and civil infrastructure could make order execution and project activity important factors for its future performance.
For Nityas Gems, investors may focus on demand for its gold jewellery and lab-grown diamond products, margins, revenue growth and the company’s ability to expand its business after raising fresh capital.
Both stocks will also remain exposed to broader equity-market conditions.
A strong listing does not guarantee sustained gains, just as a discounted listing does not necessarily determine a company’s long-term prospects. Investors generally assess newly listed companies on their financial performance, business model, valuations and growth prospects over a longer period.
The contrasting debuts of Vishal Nirmiti and Nityas Gems & Jewellery therefore provide an early snapshot of investor sentiment, but their subsequent trading performance and business results will be more important in determining how the two IPOs fare in the public market.