Ardee Industries IPO: Strong listing likely as GMP stands at 28%

Ardee Industries IPO GMP today: Ardee Industries shares currently trade at ₹68 apiece in the unlisted market, reflecting a grey market premium of ₹15 or nearly 28 per cent over the issue price of ₹53.

Ardee Industries IPO GMP today: Ardee Industries shares are set to debut on the bourses on Wednesday (August 12) at 10 AM. The latest grey market trends indicate that Ardee Industries IPO investors could see a strong listing gain.

 

As of 2 PM today, Ardee Industries shares were trading at ₹68 apiece in the unlisted market, implying a premium of ₹15 or nearly 28 per cent over the issue price of ₹53.

 

The ₹426 crore IPO of Ardee Industries had received strong participation from investors, with the issue getting subscribed 133.66 times. The company received bids for 7,80,88,19,433 shares against 5,84,22,516 shares on offer, as per data available with the NSE.

 

 

The non-institutional investors subscribed their category 255.24 times. The Qualified Institutional Buyers (QIBs) segment was booked 197.77 times, and the retail quota was subscribed 45.71 times.

 

The IPO of Ardee Industries, a leading firm in secondary metals and circular economy sectors, comprised a fresh issue of equity shares worth up to ₹320 crore and an offer-for-sale (OFS) of up to 1.99 crore shares by promoters.

 

The price band for the IPO was fixed at ₹50-53 per equity share, valuing the company at ₹1,671 crore. 

 

Ardee Industries IPO: Listing day strategy   At the upper price band, the IPO is valued at 19.7x P/E Post IPO (Pre – IPO 15.96X), which appears reasonable given the company’s established position in India’s recycled lead industry, said Mahesh M Ojha, vice president, research & business development, Kantilal Chagganlal Securities.

 

Ardee Industries is among the top six organised recycled lead producers in India, with an estimated ~2 per cent market share, providing a relatively strong platform for growth in a market supported by increasing battery consumption, recycling requirements and the transition towards a circular economy.

 

Mahesh noted that the fresh issue proceeds are expected to strengthen the balance sheet, with a portion of the proceeds being utilised to reduce debt. This should improve the company’s net worth and further lower its Debt-to-Equity ratio, providing greater financial flexibility for future growth and capacity expansion.

 

"Investors primarily targeting listing gains may consider booking profits on listing, subject to market conditions. We estimate a potential 20–25 per cent listing gain," he said.

 

However, he said that long-term investors may hold the stock, given the company’s positioning in the organised recycled lead market, improving balance sheet and potential growth opportunities in the circular economy. 

 

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