FX Multitech IPO Day 1: Subscribed 0.07x; NII bHNI doubles, Retail falls to zero
- FX Multitech IPO ends Day 1 with 0.07x overall subscription.
- NII (bHNI) demand doubled intraday to 0.04x, leading all categories.
- Retail participation fell to 0.00x after peaking at 0.03x midday.
- QIBs and Employees recorded zero bids throughout the session.
*this image is generated using AI for illustrative purposes only.
FX Multitech IPO ended Day 1 at 0.07x overall subscription. NII (bHNI) led the session with a 100% intraday jump to 0.04x, while Retail demand fell to zero — a sharp reversal from morning levels.
Subscription Status
The issue saw volatile interest on its first day of subscription. Total subscription declined from 0.08x at the 11:15 IST snapshot to 0.07x by the end of the day, a drop of 12.5%. NII (bHNI) emerged as the most active category, doubling from 0.02x to 0.04x during the session. In contrast, Retail demand evaporated, falling from 0.03x at midday to 0.00x by the close. QIBs and Employees recorded zero participation throughout the day.
| Day | Date | QIB | NII (bHNI) | NII (sHNI) | Retail | Total |
|---|---|---|---|---|---|---|
| Day 1 | 21-09-2026 | 0.00x | 0.04x | 0.49x | 0.00x | 0.07x |
Intra-day Timeline — 21-09-2026
NII (bHNI) was the only category to show positive momentum, jumping 100% between snapshots. Retail participation vanished after the 12:15 IST mark, dragging down the overall subscription multiple.
| Time (IST) | QIB | NII (bHNI) | Retail | Total |
|---|---|---|---|---|
| 11:15 | 0.00x | 0.02x | 0.02x | 0.08x |
| 12:15 | 0.00x | 0.02x | 0.03x | 0.09x |
| 13:15 | 0.00x | 0.04x | 0.00x | 0.07x |
Offer Details
FX Multitech has priced its IPO in the band of ₹110.00000 to ₹116.00000 per share. The issue size ranges from ₹264000 lakhs to ₹500000 lakhs. The minimum bid quantity is set at 2400 shares. The book opened on September 21, 2026, and closes on September 23, 2026.
| Detail | Info |
|---|---|
| Price Band | ₹110.00000 – ₹116.00000 per share |
| Issue Size | ₹264000 lakhs – ₹500000 lakhs |
| Minimum Bid Quantity | 2400 shares |
| Open Date | September 21, 2026 |
| Close Date | September 23, 2026 |
| Allotment Date | September 24, 2026 |
| Listing Date | September 28, 2026 |
About the Company
FX Multitech Limited, incorporated in 2008 and headquartered in Ahmedabad, Gujarat, is engaged in the distribution and export of products for the HVAC and Industrial Refrigeration industry. The company offers compressors, refrigeration controls, variable frequency drives, heat exchangers, refrigerants, and ancillary products sourced from globally recognised brands such as Danfoss, Honeywell, and Testo. It operates through five warehouses across India — in Ahmedabad, Kolkata, Thane, Bangalore, and Hyderabad — and holds a 51% equity stake in Everestt Chillers Private Limited, which manufactures customised industrial and glycol chillers. The company is led by Managing Director Mr. Subhash Agarwal and COO Mr. Selvaraj Rangaswamy, who collectively bring over six decades of industry experience.
Financial Highlights
For FY2025-26, FX Multitech reported consolidated revenue from operations of ₹12,613.93 lakhs (₹126.14 crores), an EBITDA margin of 15.35%, and a PAT of ₹1,210.39 lakhs. Domestic sales contributed approximately 99% of total revenue.
| Metric | FY 2025-26 | FY 2024-25 |
|---|---|---|
| Revenue from Operations (₹ crores) | 126.14 | 102.01 |
| Profit Before Tax (₹ crores) | 16.27 | 12.81 |
| Total Profit (₹ crores) | 11.80 | 9.55 |
| Total Assets (₹ crores) | 85.88 | 69.27 |
| Cash Flow from Operations (₹ crores) | -0.99 | -1.93 |
Objects of the Issue
- Repayment/Pre-payment of Borrowings: ₹10.00 crores towards pre-payment of working capital borrowings from The Hongkong and Shanghai Banking Corporation Limited.
- Investment in Subsidiary (Everestt Chillers Private Limited): ₹6.26 crores for purchase of additional machinery to expand manufacturing capacity.
- Funding of Working Capital Requirements: ₹14.83 crores to fund incremental working capital needs.
- General Corporate Purposes: Remaining proceeds capped at 15% of amount raised or ₹10 crores, whichever is lower.
Risk Factors
- High Dependence on a Single Supplier: Approximately 74.11% of total purchases in FY2025-26 were sourced from a single supplier, creating significant concentration risk.
- Absence of Long-Term Customer Agreements: Operations are conducted on purchase orders with no binding long-term contracts, limiting revenue visibility.
- Negative Cash Flows: Reported negative cash flows from operating activities of ₹(99.23) lakhs in FY2025-26 and ₹(192.99) lakhs in FY2024-25.
- Geographical Revenue Concentration: Approximately 77.96% of domestic revenue in FY2025-26 was derived from just three states.
- Working Capital Intensity: Inventories represented 44.55% of total assets as of March 31, 2026.
Given the complete lack of QIB and Retail interest on Day 1, what specific corrective measures might the book runners implement to salvage the issue before the close on September 23?
How might the significant concentration risk of sourcing 74% of purchases from a single supplier impact institutional investor confidence and future valuation multiples post-listing?
With negative operating cash flows reported for two consecutive years, will investors view the IPO proceeds allocated to debt repayment as a necessary stabilization measure or a sign of underlying liquidity stress?
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