DOMS, India Shelter see bumper debut but pare listing gains

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₹1,400 apiece on the National Stock Exchange (NSE), a 77% premium over its issue price. It hit an intraday high of ₹1,434.25 before settling at ₹1,326.05, down almost 7% on the NSE. India Shelter listed at ₹620 per share on the NSE, a 25% premium over its issue price.

However, the initial surge was short-lived as profit-taking dragged the stock lower by over 8%. Despite the decline, the shares ended at ₹544.7, which is still above its issue price but 10% lower than the listing price. The fall in the stocks was in line with the over 1% drop in the benchmark share indices.

This was the biggest decline in the Indian markets since mid-March with the Nifty 50 closing 1.41% lower at 21,150.15. The S&P BSE Sensex plunged 1.30% to settle at 70,506.31, with small and mid-cap stocks also seeing significant declines. Analysts have advised caution due to the stretched valuations of the stocks.

“We recommend allotted investors to book profits while those investors who failed to get allotments in the public offer can wait and watch for reasonable dips post listing to accumulate for decent long-term returns," said Prashanth Tapse, senior vice-president (research), Mehta Equities Ltd. DOMs Industries Ltd and India Shelter Finance Corporation Ltd IPOs were oversubscribed 93.52 times and 36.71 times, respectively, at the end of day three. DOMS had set the price band for the IPO at ₹750-790 per share, while India Shelter priced it in the range of ₹469-493 per share.

DOMS’ IPO included a fresh offering of ₹350 crore and an offer for sale (OFS) of ₹850 crore. India Shelter’s fresh offering was ₹800 crore and an OFS of ₹400 crore. DOMS plans to use a portion of its IPO proceeds for two key initiatives: building a new manufacturing facility to