Hy-Tech Engineers share price was locked in a 5% upper circuit on Tuesday, 1 September, after making a strong debut on the stock exchanges.
On the NSE, Hy-Tech Engineers share price opened at ₹75 per share, marking a 41.51% premium over its IPO issue price of ₹53. On the BSE, the stock opened at ₹72, representing a 35.85% gain over the issue price.
Following the sharp debut, Hy-Tech Engineers share price on the NSE was up 48.58% from the IPO price, while the stock gained 42.62% on the BSE from its issue price. Hy-Tech Engineers share price was trading at ₹78 . 75 apiece on the NSE, and at ₹75.59 apiece on the BSE.
Ahead of the listing, the Hy-Tech Engineers IPO GMP today stood at ₹35 in the grey market. Based on the upper end of the IPO price band and the prevailing grey market premium, the estimated listing price was around ₹88 per share, implying a potential 66.04% listing gain over the IPO price of ₹53.
The Hy-Tech Engineers IPO received an overwhelming response, with the issue subscribed 244.41 times on the final day of bidding. The QIB portion was subscribed 255.77 times, while the NII segment received 402.29 times subscription. The retail investor portion was subscribed 170.58 times.
The Hy-Tech Engineers IPO date of subscription was 24 August to 27 August. The Hy-Tech Engineers IPO price band was fixed at ₹50– ₹53 per equity share, with a face value of ₹5.
Under the IPO allocation, not more than 50% of the issue was reserved for QIBs, not less than 15% for NIIs, and not less than 35% for retail investors.
Hy-Tech Engineers share price – Should you buy, sell or hold?
According to Shivani Nyati, Head of Wealth at Swastika Investmart, Hy-Tech Engineers emerged as the strongest performer among the three recent listings, debuting at ₹75 on the NSE, a 41.51% premium over its ₹53 issue price. On the BSE, the stock opened at ₹72, gaining 35.85%. The strong debut was supported by overwhelming investor demand, with the IPO subscribed nearly 244 times.
Nyati highlighted the company’s healthy fundamentals, including operating margins of around 22% and net margins above 11.5%, supported by its own forging unit in Nashik. She also noted that the company’s debt has declined from ₹43.5 crore to ₹29.8 crore, with further debt repayment planned, which could support improvement in profitability.
According to Nyati, Hy-Tech Engineers is also trading at a relatively reasonable valuation of around 22x P/E, compared with valuations of more than 40x seen in several comparable engineering IPOs. Its ROCE of around 24% further provides room for potential valuation expansion.
“If you got an allotment, this looks worth holding rather than selling immediately,” Nyati said. She suggested keeping a stop-loss around ₹64, allowing room for normal post-listing volatility, while holding the stock as long as it remains above that level.
According to Mahesh M. Ojha, Vice President – Research & Business Development at Kantilal Chhaganlal Securities Pvt Ltd, investors who received an allotment can hold Hy-Tech Engineers shares from a medium- to long-term perspective.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
