IC Electricals IPO subscribed 65.94x, retail investors lead
IC Electricals Company Limited's IPO was subscribed 65.94 times, led by retail investors at 90.85x and Non-Institutional Buyers. The company reported revenue growth to ₹143.04 crore in FY26 and PAT of ₹14.08 crore. Proceeds will fund working capital requirements.
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IC Electricals Company Limited's Initial Public Offering (IPO) was subscribed 65.94 times, driven by exceptional demand from retail investors and Non-Institutional Buyers. The issue, which opened on 03-Jul-2026 and closed on 07-Jul-2026, aimed to raise capital for working capital requirements and general corporate purposes. The New Delhi-based manufacturer specializes in electronic equipment and engineering solutions for the Indian Railways, operating under a Business-to-Government (B2G) model where the Ministry of Railways contributes 82.01% of total revenues.
Subscription Details
Retail individual investors led the subscription figures, subscribing 90.85 times their allotted portion. Non-Institutional Buyers followed closely, with the bHNI category subscribed 98.94 times and the sHNI category subscribed 75.15 times. Qualified Institutional Buyers (QIB) subscribed 3.12 times, while the employee category saw no subscription (0 x).
| Category | Subscription Status |
|---|---|
| Non-Institutional Buyers (bHNI) | 98.94 x |
| Non-Institutional Buyers (sHNI) | 75.15 x |
| Retail | 90.85 x |
| Qualified Institutional Buyers (QIB) | 3.12 x |
| Employees | 0 x |
| Total Subscribed | 65.94 x |
Financial Performance
The company has reported consistent top-line growth over the past three fiscal years. Revenue from operations increased from ₹99.25 crore in FY24 to ₹121.89 crore in FY25, and further to ₹143.04 crore in FY26. This represents a Compound Annual Growth Rate (CAGR) of approximately 20.01% over the two-year period from FY24 to FY26. Profitability has also expanded, with Profit After Tax (PAT) rising from ₹4.53 crore in FY24 to ₹9.37 crore in FY25, and reaching ₹14.08 crore in FY26. The PAT margin improved to 9.78% in FY26 from 4.54% in FY24.
| Financial Year | Revenue from Operations (₹ Crore) | PAT (₹ Crore) | PAT Margin (%) |
|---|---|---|---|
| FY2024 | 99.25 | 4.53 | 4.54% |
| FY2025 | 121.89 | 9.37 | 7.66% |
| FY2026 | 143.04 | 14.08 | 9.78% |
Objects of the Issue
The IPO proceeds are earmarked for specific operational needs. A total of ₹33.60 crore from the fresh issue is allocated for funding working capital requirements. This capital will support trade receivables, trade payables, and margin money for Performance and Security Deposit Bank Guarantees across the company's three divisions: Electronics, Rotating Machines, and Contracts (EPC). Additionally, the company plans to utilize funds for general corporate purposes, capped at the lower of 15% of gross proceeds or ₹10 crore.
Operational Risks and Concerns
Despite the revenue growth, the financials indicate significant working capital intensity and cash flow constraints. Working capital requirements increased by approximately 94.10% over two years, rising from ₹6,128.87 lakhs in FY24 to ₹11,896.73 lakhs in FY26. Consequently, the company has reported negative cash flows from operations for all three years: ₹(1.47) crore in FY24, ₹(9.65) crore in FY25, and ₹(11.10) crore in FY26. As of 31-Mar-2026, total outstanding borrowings stood at ₹7,542.45 lakhs, with interest rates ranging from 7.55% to 18.75%.
Will the IPO proceeds be sufficient to sustain operations if working capital requirements continue to grow at nearly 94% biennially?
How will the company manage its high-interest debt burden, which peaks at 18.75%, now that it is publicly listed?
Can IC Electricals diversify its revenue stream to reduce the significant concentration risk associated with the Ministry of Railways contributing over 82% of total income?
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