Indobell Insulation shares hit 5% upper circuit after listing, IPO investors’ money doubles

Indobell Insulation Ltd shares were listed at a premium of 90% on the BSE SME platform on Monday, making its robust debut on the exchange.

More than 9 lakh equity shares changed hands in early trade. The total turnover stood at ₹7.86 crore. The market valuation of the company reached ₹52 crore.

Shares of the company moved between ₹83.03 per share and ₹91.77 per share in early deals. The stock later traded at ₹85 per share, still up by 84%from the listing price.

At the listing price of ₹87.4 per share, the value of a single lot of shares bagged by investors in the IPO share allotment stood at ₹2,62,200 (₹87.4 x 3,000). IPO investors could have made a profit of ₹1,24,200 against the minimum investment of ₹1,38,000 per single lot of shares.

Indobell Insulation IPO details

The ₹10.14-crore Indobell Insulation IPO was open for subscription on BSE SME platform from January 6 to 8. Riding on strong demand, the IPO was subscribed more than 54 times at the close of bidding on January 8.

According to the stock exchange data, the fixed-priced IPO attracted applications for more than 11.34 crore shares against 20.94 lakh shares on offer for subscription, resulting in an oversubscription of 54.1 times.

Retail individual investors’ quota was booked 52.4 times. The retail investors placed bids for 5.48 crore shares compared to 10.47 lakh shares on offer.

The Non-Institutional Investors’ category was subscribed 51.4 times with bids for more than 5.38 crore shares pouring in against 10.47 lakh shares on offer. The Qualified Institutional Buyers (QIBs) placed bids for 48 lakh shares.

Indobell Insulation’s IPO comprised a fresh issue of 22.05 lakh shares. The IPO price was fixed at ₹46 per share. The minimum lot size was 3,000 shares for the retail investors.

Indobell Insulations Ltd is involved in the manufacturing of various insulation products. The company manufactures high-quality nodulated and granulated wool such as mineral fibre nodules, prefabricated thermal insulation jackets and ceramic fibre.

These insulation products have applications in residential and commercial buildings and industrial plants. Indobell focuses on the power industry for the supply of these products. It also offers insulation services such as scaffolding, refractory, surface protection, borosilicate lining for chimneys and passive fire protection.

Indobell Insulations has proposed to utilise IPO proceeds for the purchase of additional plants and machinery, funding working capital needs and general corporate purposes.

According to its RHP, the company will use ₹41 lakh for buying machinery at its facility in Kolkata. IPO funds of ₹7.75 crore will be used for meeting working capital requirements and the rest for general corporate purposes.

Indobell posted revenue of ₹5.56 crore for the April-September period of FY 2024-25. The net profit was ₹42.39 lakh in the first half of FY25.

Indobell Insulations’ revenue stood at ₹17.98 crore in 2023-24 against ₹21.05 crore in FY 2022-23. The net profit was ₹1.03 crore in FY2024 against ₹90 lakh in FY23.