Gabion Technologies IPO Soars to 244.51x Subscription; GMP Rises to ₹30
Gabion Technologies India Limited's ₹29.16 crore IPO concluded with exceptional 244.51x subscription, led by retail investors at 333.21x and non-institutional investors at 325.42x. The grey market premium strengthened to ₹30 per share, suggesting 37.04% listing gains with estimated listing price of ₹111. Despite revenue decline to ₹101.17 crore in FY25, the company demonstrated improved operational efficiency with EBITDA rising 14.44% to ₹15.06 crore and profit after tax increasing 13.92% to ₹6.63 crore.
*this image is generated using AI for illustrative purposes only.
Gabion Technologies India Limited's initial public offering worth ₹29.16 crore has concluded with exceptional investor response, achieving a remarkable subscription of 244.51 times on the final day. The infrastructure solutions provider's IPO, which opened on January 6 and concluded on January 8, witnessed unprecedented demand across all investor categories, with retail investors leading the charge at over 333 times subscription.
IPO Structure and Pricing Framework
The IPO comprises entirely fresh issue of 36 lakh equity shares at a price band of ₹76-81 per share. The company has set a lot size of 1,600 shares, requiring retail investors to apply for a minimum of two lots or 3,200 shares.
| IPO Parameter: | Details |
|---|---|
| Issue Size: | ₹29.16 crore |
| Price Band: | ₹76-81 per share |
| Subscription Period: | January 6-8 |
| Listing Date: | January 13 |
| Platform: | BSE SME |
| Minimum Investment: | ₹2,59,200 |
The issue allocation reserves approximately 47% for qualified institutional buyers, around 33% for retail investors, and the balance for non-institutional investors. Share allotment is expected to be finalized on January 9, with GYR Capital Advisors serving as book-running lead manager and Kfin Technologies as registrar.
Final Subscription Performance and Grey Market Premium
The IPO concluded with overwhelming demand across all investor categories, with investors bidding for 50,21,90,400 shares against the 25,77,600 shares on offer, demonstrating exceptional market confidence in the company's prospects.
| Investor Category: | Final Subscription |
|---|---|
| Total Subscription: | 244.51x |
| Retail Investors: | 333.21x |
| Qualified Institutional Buyers: | 6.47x |
| Non-Institutional Investors: | 325.42x |
The grey market premium for the IPO has remained strong at ₹30 per share, representing a 20% increase since January 2. With the upper price band of ₹81, the estimated listing price stands at approximately ₹111 per share, indicating expected listing gains of around 37.04%.
Business Operations and Financial Performance
Incorporated in 2008, Gabion Technologies India Limited specializes in manufacturing steel gabions and providing geosynthetics, geotechnical engineering, and ground improvement services globally. The company's product portfolio includes hexagonal wire mesh gabions, defence gabions, rockfall protection nettings, reinforced geomats and flexible geogrids.
| Financial Metric: | FY25 | FY24 | Change |
|---|---|---|---|
| Total Income: | ₹101.17 crore | ₹104.97 crore | -3.62% |
| EBITDA: | ₹15.06 crore | ₹13.16 crore | +14.44% |
| Profit After Tax: | ₹6.63 crore | ₹5.82 crore | +13.92% |
Despite revenue decline, the company achieved significant improvement in EBITDA and profit after tax, indicating enhanced operational efficiency and better margin management.
Investment Outlook and Fund Utilization
The company plans to utilize net proceeds primarily for working capital requirements, with approximately ₹1.06 crore allocated for capital expenditure and remaining funds for general corporate purposes. The exceptional subscription response of over 244 times, combined with strong grey market premium of ₹30, reflects robust investor confidence in Gabion Technologies' specialized geotechnical solutions business and growth potential in infrastructure development sector.
15
