Systematic Industries, a manufacturer of steel wires, made its debut on the BSE SME platform today, with a grey market premium indicating a listing close to its issue price of ₹195 per share. The company's initial public offering (IPO) had garnered significant interest from various investor categories.

IPO Performance

The ₹115.60 crore IPO of Systematic Industries witnessed an overall subscription of 6.2 times, demonstrating strong investor interest across different segments:

• Qualified Institutional Buyers (QIBs): Subscribed nearly 10 times their allotted portion
• Non-Institutional Investors (NIIs): Subscribed 7.9 times
• Retail Investors: Subscribed 3.3 times

Additionally, the company successfully raised ₹32.91 crore from anchor investors prior to the public issue.

Company Profile

Systematic Industries, incorporated in 2000, specializes in manufacturing steel wires for various sectors including:

• Power transmission
• Infrastructure
• Telecom
• Agriculture

The company operates four factories located in Daman & Diu and Gujarat, with a total production capacity of one lakh MTPA (Metric Tonnes Per Annum). Systematic Industries has established a global presence, exporting its products to over 30 countries.

Financial Performance

Recent financial results highlight the company's growth:

Valuation

At the upper price band of the IPO, Systematic Industries is valued at a post-issue Price-to-Earnings (P/E) ratio of approximately 23.6 times.

Market Debut

The stock's debut on the BSE SME platform was accompanied by a modest grey market premium of 1%, suggesting that the listing price is expected to be close to the issue price of ₹195 per share.

This listing marks an important milestone for Systematic Industries as it joins the ranks of publicly traded companies on the BSE SME platform, potentially opening up new avenues for growth and capital access.

Systematic Industries, a manufacturer of steel wires and cables, has opened its Initial Public Offering (IPO) for subscription, aiming to raise Rs 116 crore from the market. The company has set the price band for its shares at Rs 185-195 per share, offering investors an opportunity to participate in its growth story.

IPO Details

• Total Issue Size: Rs 116.00 crore
• Fresh Issue: Rs 107.80 crore
• Offer-for-Sale: Rs 7.80 crore
• Price Band: Rs 185-195 per share
• Subscription Period: Open now, closing on September 26
• Listing Venue: BSE SME platform

Company Overview

Systematic Industries operates in the critical infrastructure sector, specializing in the manufacture of:

• Steel wires
• Cables for power transmission
• Infrastructure components
• Telecom sector supplies
• Agricultural sector products

The company boasts a significant manufacturing capacity with four factories, capable of producing 1,00,000 MTPA (Metric Tonnes Per Annum).

Financial Performance

Systematic Industries has demonstrated strong financial growth:

IPO Objectives and Financials

• Anchor Investment: The company has successfully raised Rs 32.90 crore from anchor investors.
• Utilization of Proceeds: A significant portion of the IPO proceeds (approximately Rs 95.00 crore) will be used to repay existing borrowings.

Market Sentiment

The grey market is showing a positive response to Systematic Industries' IPO:

• Grey Market Premium: Rs 14.00
• Expected Listing Gains: Approximately 7%

This initial market reaction suggests investor confidence in the company's prospects.

Systematic Industries' IPO presents an opportunity for investors to participate in the growth of a company operating in crucial infrastructure sectors. With its diverse product portfolio and strong financial performance, the company aims to strengthen its balance sheet by reducing debt through this public offering. As always, potential investors should conduct their own research and consider their risk appetite before making investment decisions.