Publish the company listing actions rose a little over 3% and is currently trading 45% above its IPO price at Rs 770.
Investors who participated in the IPO are likely reaping healthy profits, but analysts said it is important to remain cautious and continue to monitor the company’s performance and market conditions.“Despite the promising listing, factors such as industry trends, competition and global economic conditions can still influence the long-term trajectory. For those considering holding the position, they can keep a stop loss at 675,” said Shivani Nyati, Head of Wealth at Swastika Investmart.
The proceeds of the fresh issue will be used for setting up a new facility at Vallam-Vadagal for manufacturing of high strength fasteners and hexagon bolts, financing capital expenditure requirements for purchase of equipment, plant and machinery at Wada, Palghar, repayment of debt and general corporate purposes.
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The company is a manufacturer of precision engineering spring components such as disc and strip springs (DSS) including wedge lock washers; spiral and helical springs (CSS) and special fastening solutions (SFS) supplying original equipment manufacturers (OEM), Tier 1 and channel partners.
Their high-strength technical springs and fasteners have been supplied to customers in countries such as Germany, Denmark, China, Italy, Brazil, USA, Sweden, Switzerland, etc. As a result, they are a key link in the global supply chain for OEMs.
The business primarily comprises the spring technology division, under which DSS, including wedge safety washers, are manufactured.
(WLW), CSS and SFS where they manufacture anchor bolts, studs and nuts.
Analysts anticipate increasing demand for its products from end-consumer sectors such as renewable energy, industry and railways.
In FY24, the company’s operating income increased 22% to Rs 202 crore, driven by incremental DSS sales on account of new customer additions and higher demand from renewable energy, railways and industrial sectors as well as incremental CSS sales. Profit after tax for the same period stood at Rs 22.33 crore.
(Disclaimer:The recommendations, suggestions, views and opinions of the experts are their own and do not represent the views of the Economic Times)
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