Admach Systems IPO Eyes Steady Dec 31 Listing with 5% Grey Market Premium
Admach Systems is set for December 31 listing on BSE SME platform with grey market indicating 5% premium over ₹239 issue price. The Pune-based automation systems manufacturer raised ₹42.6 crore through IPO subscribed 4.13 times, with strong participation from NIIs at 7x and retail investors at 3.9x. The company achieved 170% revenue growth to ₹53.52 crore and operates at full capacity in specialized automation solutions for steel, automobile and engineering industries.
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Admach Systems is preparing for its stock market debut on December 31 on the BSE SME platform, with grey market indicators suggesting a modest 5% premium over the issue price. The automation systems manufacturer raised ₹42.6 crore through its initial public offering, which concluded on December 26 after receiving a measured but positive response from investors.
IPO Performance and Subscription Details
The Admach Systems IPO was priced in the band of ₹227-₹239 per share, with the final issue price set at ₹239. The company achieved an overall subscription of 4.13 times during the three-day bidding period from December 23-26.
| Investor Category: | Subscription Multiple |
|---|---|
| Non-Institutional Investors (NIIs): | 7.00x |
| Retail Investors: | 3.90x |
| Qualified Institutional Buyers (QIBs): | 1.50x |
| Overall Subscription: | 4.13x |
The issue comprised entirely of fresh shares, with 18 lakh shares offered to raise funds for business expansion. At the issue price of ₹239, the company commands a pre-IPO market capitalisation of approximately ₹162 crore.
Company Profile and Operations
Incorporated in 2008, Admach Systems operates in the specialized segment of customized special purpose machines and automation systems. The Pune-based company designs, manufactures, and supplies automation and robotic material-handling solutions primarily serving the steel, automobile, food, tooling, and general engineering industries across India and overseas markets.
| Business Parameters: | Details |
|---|---|
| Manufacturing Location: | Pune, Maharashtra |
| Annual Capacity: | 100 machines |
| Capacity Utilization: | 100% (achieved in recent period) |
| Primary Markets: | Steel, automobile, food, tooling, engineering |
The company's product portfolio includes black bar handling systems, bar chamfering and straightening machines, bright bar solutions with ultrasonic testing, grinding solutions, and super-finishing systems.
Strong Financial Performance
Admach Systems has demonstrated robust financial growth in recent periods. The company's revenue surged 170% to ₹53.52 crore, while profit after tax increased 82% to ₹6.10 crore. For the quarter ended June, the company reported revenue of ₹23.06 crore and PAT of ₹3.02 crore.
Grey Market Premium and Listing Expectations
The grey market is indicating a premium of approximately 5% over the issue price, suggesting a potential listing price range of ₹250-₹252. This modest premium reflects cautious optimism among investors ahead of the December 31 debut.
| Listing Details: | Information |
|---|---|
| Issue Price: | ₹239 |
| Grey Market Premium: | ~5% |
| Expected Listing Price: | ₹250-₹252 |
| Listing Date: | December 31 |
The company secured ₹5.03 crore from anchor investors prior to the public issue, providing institutional backing to the offering. IPO proceeds will be utilized for capital expenditure on new machinery, working capital requirements, and general corporate purposes to support future growth and order execution capabilities.
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