Acme Universal Safezone 9 IPO Day 2: Subscribed 0.23x; Retail demand ticks up
- Acme Universal Safezone 9 IPO subscribed 0.23x overall by Day 2 close.
- QIB participation remained at 0.00x, indicating a lack of institutional interest.
- NII sHNI category led demand with 1.27x subscription, while bHNI stood at 1.02x.
- Retail subscription ticked up to 0.20x, showing minor improvement from Day 1.
*this image is generated using AI for illustrative purposes only.
Acme Universal Safezone 9 IPO closed Day 2 with a tepid response, recording a cumulative subscription of 0.23x. The issue saw zero participation from Qualified Institutional Buyers, with Non-Institutional Investors providing the sole momentum at 1.27x in the sHNI category.
Subscription Status
The demand for Acme Universal Safezone 9 remained subdued through the second day of the offer. While the overall subscription rate improved slightly from Day 1, it remains well below the fully subscribed threshold. The progression highlights a lack of institutional conviction, with Retail investors showing minimal uptake compared to the Non-Institutional segment.
| Day | Date | QIB | NII (bHNI) | NII (sHNI) | Retail | Total |
|---|---|---|---|---|---|---|
| Day 1 | 28-09-2026 | 0.00x | 0.81x | 0.38x | 0.16x | 0.13x |
| Day 2 | 29-09-2026 | 0.00x | 1.27x | 1.02x | 0.20x | 0.23x |
Category-wise Breakdown
Non-Institutional Investors emerged as the primary contributors to the subscription tally. The sHNI category registered the highest multiple at 1.27x, followed closely by bHNI at 1.02x. In contrast, the Retail category saw a marginal increase to 0.20x, indicating limited retail appetite for the safety footwear manufacturer's debut.
Qualified Institutional Buyers recorded no bids throughout the first two days, maintaining a 0.00x subscription level. This absence of anchor-like institutional support has kept the overall demand metrics significantly below the one-times mark.
Intra-day Timeline
The final snapshot for Day 2, captured at 12:15 IST, reflects the end-of-day status as the market moved into the final hours of the trading session.
| Time (IST) | QIB | NII (bHNI) | Retail | Total |
|---|---|---|---|---|
| 11:15 | 0.00x | 1.25x | 0.18x | 0.23x |
| 12:15 | 0.00x | 1.27x | 0.20x | 0.23x |
Offer Details
The IPO is open for subscription from September 28, 2026, to September 30, 2026. Investors can bid within the price band of ₹65.00 to ₹71.00 per share. The minimum bid quantity is set at 3,200 shares. The issue size ranges between ₹2,08,000 crore and ₹5,00,000 crore based on the final price determination.
About the Company
Acme Universal Safezone 9 Limited is an ISO-certified manufacturer and supplier of industrial safety footwear under the brand 'ACME'. Operating in the PPE segment, the company serves sectors including construction, oil & gas, mining, and automotive. It operates four manufacturing facilities in Madhya Pradesh and Uttar Pradesh, offering 15 product lines compliant with IS 15298, EN ISO 20345, and ASTM F2413 standards.
The company distributes products through direct institutional sales, regional distributors, and e-commerce channels across 40+ locations in India, with exports to the UAE, Bahrain, Saudi Arabia, Nigeria, and other markets.
Financial Highlights
The company reported steady revenue growth but modest profitability margins in its recent financial years.
| Metric (₹ Crores) | FY2024 | FY2025 | FY2026 |
|---|---|---|---|
| Revenue from Operations | 178.94 | 187.36 | 205.90 |
| Total Revenue | 181.67 | 191.31 | 211.16 |
| Profit Before Tax | 10.10 | 3.11 | 7.82 |
| Profit After Tax | 7.56 | 0.80 | 5.86 |
| Total Equity | 41.96 | 46.91 | 52.77 |
Objects of the Issue
The company intends to utilize the net proceeds from the issue for the following purposes:
- Funding Capital Expenditure for Installation of Solar Power Plant: ₹3.62 crores towards installing solar power plants at three manufacturing facilities to optimize energy consumption.
- Funding Capital Expenditure for Installation of Additional Machinery: ₹8.96 crores for procuring advanced plant and machinery, including Knife Cutting Machines and Foaming Pouring Machines.
- Funding Incremental Working Capital Requirements: ₹8.00 crores to meet working capital needs arising from raw material procurement and operational expenses.
- Funding Inorganic Growth: A portion of net proceeds towards unidentified acquisitions and strategic initiatives, subject to SEBI ICDR Regulations limits.
Risk Factors
Investors should note the following material risks disclosed by the company:
- High Customer Concentration Risk: Top 10 customers account for approximately 47.71% of total sales in FY2026. Loss of key clients could disrupt revenue.
- BIS Certification Risk: Products must comply with IS 15298 standards. Non-renewal of BIS licenses would disqualify the company from government tenders.
- Raw Material Price Volatility: Reliance on PU/PVC compounds linked to crude oil derivatives without long-term fixed-price contracts may compress EBITDA margins.
- Geopolitical Risks: US tariffs on Indian leather exports and Middle East conflicts affect pricing competitiveness and trade routes.
- Leased Premises Risk: Key manufacturing facilities are on leased arrangements from promoters and third parties, posing relocation risks if leases are not renewed.
How might the complete absence of QIB bids influence the final price band determination and potential for a cut-off price allotment?
What impact could the high customer concentration risk have on the company's ability to secure future institutional interest if top clients reduce orders?
Given the modest profit margins and reliance on volatile raw materials, how will the company mitigate EBITDA compression risks post-listing?
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