Indo-MIM shares extend rally, surge 60% above IPO price in two trading sessions

Indo-MIM shares continued their strong momentum on Friday, gaining nearly 5% in the second trading session after their market debut. The stock climbed 4.74% to Rs 776.90, extending the sharp gains witnessed on listing day.

The precision engineering company made a blockbuster entry into the stock market on Thursday, with its shares debuting at around a 45% premium to the issue price of Rs 485. The two-day rally has now lifted the stock nearly 60% above its IPO price, rewarding investors with significant listing gains.

However, 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 Shivani Nyati, Head of Wealth at Swastika Investmart Ltd., Indo-MIM’s impressive listing performance was supported by strong participation from qualified institutional buyers (QIBs) and high-net-worth investors, along with the company’s leadership position in the global Metal Injection Moulding (MIM) industry.

“Indo-MIM listed at Rs 700 on the NSE and Rs 703 on the 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 prospects,” Nyati said.

She 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 Rs 595-600 to protect gains while allowing room for normal market fluctuations.

Indo-MIM IPO details

Indo-MIM’s Rs 3,811.21 crore initial public offering (IPO) was launched with a price band that set the issue price at Rs 485 per share. The issue comprised a fresh equity sale of Rs 499.10 crore and an offer-for-sale (OFS) component worth Rs 3,311.21 crore.

About Indo-MIM

Founded in 1996, Indo-MIM is among the world’s leading manufacturers of precision-engineered components using Metal Injection Moulding (MIM) technology. The company provides integrated manufacturing solutions covering mould design, tooling, machining, finishing, and assembly.

Over the years, Indo-MIM has diversified beyond its core MIM operations by expanding into advanced manufacturing technologies, including investment casting, precision machining, ceramic injection moulding, and 3D metal printing.

Its products cater to a wide range of industries, including automotive, aerospace, defence, medical devices, and consumer goods, positioning the company as a key player in the global precision manufacturing ecosystem.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)