Grey market premium at 85 rupees signals 21% listing gains, as EV mandates drive demand for catalytic converters.
The emissions technology provider's initial public offering, priced at 378-397 rupees, garnered 42% subscription on debut, with grey market premiums reaching 85 rupees—a 21% implied pop. The 2,900 crore rupee issue, closing November 14, allocates 55 billion rupees for capacity expansion amid India's 2030 net-zero push.
Market impact bolsters the Nifty Auto components index up 1.5%, as the firm's 50% market share in exhaust systems benefits from 20% subsidies under the Electric Mobility Scheme. Q2 revenues rose 15%, though margins at 12% face 10% raw material hikes from global tariffs.
Policy tailwinds include the 2025 Auto PLI scheme, injecting 25,000 crore rupees for localization, potentially adding 0.5% to sector GDP. Consumer trends shift: 60% fleet operators seek compliant tech for urban diesel bans, per federation data.
Innovation in nano-coated catalysts cuts emissions 30%, positioning the firm for 40% export growth to Europe. Economically, the IPO funds 5,000 jobs in precision manufacturing, supporting a 200 billion rupee ancillary chain. As anchors bid today, the premium reflects bets on a 15% annual sector expansion.
