Adroit Industries IPO Day 3: Subscribed 176.09x; QIB demand hits 195.04x
- Adroit Industries IPO subscribed 176.09x overall on Day 3
- QIB category saw massive surge to 195.04x subscription
- bHNI demand reached 304.13x; sHNI hit 345.97x
- Retail investors subscribed 98.44x times the offer size
- Allotment date set for September 28, 2026
*this image is generated using AI for illustrative purposes only.
Adroit Industries IPO concluded its subscription period with a robust overall oversubscription of 176.09x, propelled by a dramatic late-session surge in institutional interest where QIB demand reached 195.04x.
Subscription Status
The issue witnessed extraordinary momentum on the final day, with total demand accelerating from 34.07x at the morning snapshot to 176.09x by close. The cumulative subscription progression shows a steady build-up: Day 1 ended at 5.17x, Day 2 at 18.07x, and Day 3 concluded at 176.09x. The final session alone recorded a 416.8% increase in total demand compared to the day's opening snapshot.
| Day | Date | QIB | NII (bHNI) | NII (sHNI) | Retail | Total |
|---|---|---|---|---|---|---|
| Day 1 | 23-09-2026 | 0.05x | 10.28x | 5.66x | 7.23x | 5.17x |
| Day 2 | 24-09-2026 | 1.82x | 36.51x | 22.55x | 23.43x | 18.07x |
| Day 3 | 25-09-2026 | 195.04x | 304.13x | 345.97x | 98.44x | 176.09x |
Category-wise Breakdown
Non-Institutional Investors (NII) dominated the issue, with the High Net-worth Individual (HNI) category showing exceptional appetite. The bHNI segment closed at 304.13x, while sHNI stood at 345.97x. Retail investors also participated strongly, ending with a subscription of 98.44x. However, the most dramatic shift occurred in the Qualified Institutional Buyer (QIB) category, which transformed from a subdued start into the primary driver of the final-day surge, jumping from 1.87x to 195.04x.
Intra-day Timeline on 25-09-2026
The QIB segment exhibited the most significant growth, adding +193.17x (+10329.9%) from the first snapshot to the last. bHNI demand increased by +224.31x (+281.0%), and Retail subscriptions rose by +61.17x (+164.1%) during the same period.
| Time (IST) | QIB | NII (bHNI) | Retail | Total |
|---|---|---|---|---|
| 11:15 | 1.87x | 79.82x | 37.27x | 34.07x |
| 12:15 | 1.91x | 115.31x | 47.31x | 46.88x |
| 13:15 | 15.20x | 152.57x | 57.70x | 64.77x |
| 14:15 | 47.31x | 200.12x | 68.86x | 92.72x |
| 15:15 | 119.84x | 258.77x | 81.28x | 135.76x |
| 16:15 | 150.29x | 187.84x | 53.90x | 119.44x |
| 17:15 | 195.04x | 304.13x | 98.44x | 176.09x |
Offer Details
| Parameter | Details |
|---|---|
| Price Band | ₹126.00000 – ₹134.00000 |
| Issue Size | ₹14,874 crore – ₹5,00,000 crore |
| Min Bid Qty | 111 shares |
| Opening Date | 2026-09-23 |
| Closing Date | 2026-09-25 |
What's Next
Allotment is scheduled for September 28, 2026, and shares are expected to list on September 30, 2026.
About the Company
Adroit Industries (India) Limited is a vertically integrated manufacturer and supplier of propeller shafts (drive shafts/cardan shafts) and torque-transmission components. Founded in 1966 and incorporated in 1995, the company operates three manufacturing facilities in Madhya Pradesh and offers over 5,000 SKUs across forging, precision machining, heat treatment, assembly, balancing, and testing operations. Approximately 95% of its revenue is derived from exports to over 32 countries across North America, Europe, Latin America, the Middle East, Africa, and Asia-Pacific. The company serves both automotive (commercial and passenger vehicles) and non-automotive sectors including defence, heavy equipment, and industrial machinery. MD Saurabh Sangla brings over 18 years of experience in the torque-transmission industry.
Financial Highlights
| Metric (₹ crore) | FY 2026 | FY 2025 | FY 2024 |
|---|---|---|---|
| Revenue from Operations | 139.94 | 133.89 | 124.53 |
| Profit Before Tax | 32.90 | 22.82 | 17.96 |
| Net Profit | 26.16 | 18.14 | 14.53 |
| Total Equity | 128.62 | 103.49 | 87.76 |
The company reported an EBITDA margin of 27.66% and a PAT margin of 18.69% in FY 2026, with RoCE improving to 19.01% and the debt-to-equity ratio reducing to 0.41 over the three-year period.
Objects of the Issue
Proceeds from the fresh issue are earmarked for:
- Funding capital expenditure at the Dewas Facility (₹19.91 crore).
- Investment in subsidiary Adroit Driveshafts Private Limited for capital expenditure at the Pithampur Facility (₹43.96 crore).
- Investment in subsidiary for loan repayment (₹24.12 crore).
- General corporate purposes.
Risk Factors
Key risks disclosed include heavy dependence on export sales, with the U.S. market accounting for 53.76% of export revenue in FY 2026 and an additional 25% Section 232 tariff applying to U.S. exports. Significant customer concentration is another factor, with the top 10 customers contributing 60.86% of revenue from sale of products in FY 2026, with no long-term supply commitments in place. The company has no hedging policy, leaving substantially all foreign currency exposure unhedged, resulting in net foreign exchange losses of ₹38.15 million and ₹53.78 million in FY 2025 and FY 2024 respectively. Additionally, 46+ instances of delayed statutory filings with the Registrar of Companies — with delays extending up to 3,771 days — expose the company to potential penalties and regulatory actions. The company's credit rating was downgraded from BWR BBB/Stable to BWR BB-/Stable and has been classified as 'Issuer Not Cooperating' since FY 2023.
How might the 25% Section 232 tariff on U.S. exports impact Adroit Industries' margins post-listing, given that the U.S. accounts for over half of its export revenue?
Will the sudden surge in QIB interest to 195x sustain momentum during the September 30 listing, or is it indicative of short-term speculative trading?
What strategic steps will Adroit Industries take to mitigate its lack of a hedging policy and reduce exposure to foreign currency fluctuations after raising capital?
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