Gabion Technologies India experienced a volatile trading debut on January 13, 2025, as shares listed on BSE SME with a strong premium but quickly hit the lower circuit limit due to selling pressure.

Market Performance and Listing Details

The geotechnical engineering company's shares opened at ₹89 per share on BSE SME, marking a 9.87% premium over the issue price of ₹81. However, the initial enthusiasm was short-lived as the stock faced immediate selling pressure and declined to hit the 5% lower circuit.

At 10:30 AM, Gabion Technologies shares were locked at the 5% lower circuit of ₹84.55, though this price still represented a 4.38% gain from the original issue price.

IPO Subscription and Market Expectations

The listing performance fell short of market expectations as indicated by grey market premium trends. Prior to listing, Gabion Technologies IPO commanded a grey market premium of ₹31 per share, suggesting a potential debut at over 38% premium to the issue price.

Company Profile and Business Operations

Gabion Technologies India operates as a manufacturer of steel gabions while providing comprehensive geosynthetics, geotechnical engineering, and ground improvement services on a global scale. The company's product portfolio includes specialized engineering solutions for infrastructure and construction applications.

Key products manufactured by the company include:

• Double Twisted Hexagonal Steel Wire Mesh Gabions
• Defence Gabions
• PP Rope Gabions
• Hi-tensile Rockfall Protection Nettings
• Reinforced Geomat
• High Strength Flexible Geogrid

IPO Structure and Financial Details

The public offering was structured as a book-building issue that raised ₹29.16 crores entirely through a fresh issue of 36 lakh shares. The price band was set between ₹76 to ₹81 per share, with the final issue price at the upper end of the range.

The company serves a diverse client base including government entities, contractors, private customers, consultants, and authorities requiring geosynthetics, geotechnical engineering, and ground improvement solutions.

Gabion Technologies India made a measured market debut on January 13, listing at ₹89.00 per share on the BSE SME platform. The listing represents a 9.88% premium over the company's IPO price of ₹81.00 per share, giving it a market capitalization of ₹120.82 crore upon debut.

Listing Performance vs Market Expectations

The actual listing premium significantly underperformed grey market estimates. Prior to listing, unlisted shares were trading at ₹112.00 per share, indicating a grey market premium of over 38% above the IPO price. This substantial gap between market expectations and actual performance highlights the unpredictable nature of SME listings.

IPO Details and Subscription Response

Gabion Technologies raised ₹29.16 crore entirely through a fresh issue of 36 lakh shares, with no offer for sale component. The IPO was priced in the band of ₹76.00-₹81.00 per share and witnessed exceptional investor interest during its three-day bidding period from January 6 to January 8.

The subscription numbers reflected strong market appetite:

Fund Utilization Strategy

The company has outlined a clear deployment plan for the IPO proceeds. The majority of funds will address operational requirements, with ₹22.10 crore allocated for working capital needs. Additionally, ₹1.05 crore will be invested in plant and machinery purchases, while the remaining amount will support general corporate purposes.

Company Profile and Financial Performance

Incorporated in 2008 and promoted by Madhusudan Sarda, Gabion Technologies manufactures gabions, rockfall protection nettings, and geosynthetic materials. These products serve critical applications in civil engineering, infrastructure development, and environmental protection projects.

The company's recent financial performance shows mixed results:

Business Outlook and Order Book

Gabion Technologies has set ambitious revenue targets, expecting to achieve approximately ₹120.00 crore in revenue for FY26. As of October 2024, the company secured confirmed service work orders worth ₹84.62 crore, providing visibility for future operations.

The company's revenue strategy encompasses two main divisions:

• Service Work: Earned ₹19.98 crore up to September 2024, with expectations of additional ₹45.00 crore in remaining months, targeting total service revenue of ₹64.98 crore
• Supply of Goods: Achieved ₹25.12 crore up to September 2024, expecting ₹29.90 crore by March 2026, for total supply revenue of ₹55.02 crore

GYR Capital Advisors served as the book running lead manager for the IPO, facilitating the company's entry into the public markets.