NewsIPOSundrex Oil Makes NSE SME Debut Today with Zero Grey Market Premium Despite Strong FY25 GrowthSundrex Oil Makes NSE SME Debut Today with Zero Grey Market Premium Despite Strong FY25 Growth
Sundrex Oil Company debuts on NSE SME platform on December 30 with zero grey market premium despite strong FY25 performance showing 41% revenue growth and 112% PAT surge. The ₹32.25 crore IPO was subscribed 1.53 times with retail investors leading at 1.90 times subscription. The lubricants manufacturer achieved 8.10% PAT margin and 13.68% EBITDA margin in FY25, with IPO proceeds earmarked for working capital and debt repayment.
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Sundrex Oil Company is making its market debut on the NSE SME platform on December 30, with the stock showing zero grey market premium ahead of listing. Despite solid financial fundamentals and moderate investor response during the IPO period, market expectations for listing-day gains remain subdued.
IPO Performance and Valuation
The company's public offering details reflect a measured market response:
| Parameter: | Details |
|---|---|
| IPO Size: | ₹32.25 crores |
| Issue Type: | Entirely fresh issue |
| Pre-IPO Valuation: | ₹115 crores |
| Overall Subscription: | 1.53 times |
| Grey Market Premium: | Zero |
The subscription pattern revealed varying investor sentiment across categories. Retail investors demonstrated the strongest interest with their portion subscribed 1.90 times, while non-institutional investors bid 1.01 times their allocation. Qualified institutional buyers subscribed exactly 1.00 times their small allocation, indicating limited institutional conviction in the offering.
Business Operations and Product Portfolio
Sundrex Oil operates in the manufacturing and wholesale segment of industrial and automotive lubricants. The company's diverse product range includes hydraulic oil, gear oil, diesel engine oil, transformer oil, refrigeration oil, and rust preventive oil. The business model is primarily B2B-focused, with the company supplying products under its own brand while also engaging in contract manufacturing, toll blending, and private labelling arrangements.
Strong Financial Performance in FY25
The company delivered impressive financial results that contrast with the muted market reception:
| Financial Metric: | FY25 Performance |
|---|---|
| Revenue Growth: | 41% year-on-year |
| Profit After Tax Growth: | 112% year-on-year |
| PAT Margin: | 8.10% |
| EBITDA Margin: | 13.68% |
The substantial profit growth was supported by margin expansion, demonstrating the company's operational efficiency improvements and pricing power in its market segments.
IPO Proceeds Utilization
The funds raised through the public offering will be allocated toward strengthening the company's financial position rather than aggressive expansion. The primary uses include working capital requirements, partial repayment of existing borrowings, and a small component for capital expenditure. This allocation strategy reflects management's focus on balance sheet optimization and operational efficiency rather than capacity expansion initiatives.
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