Ardee Industries IPO Opens Today: Latest GMP, Price Band, Subscription Status And Key Dates

Ardee Industries' initial public offering (IPO) opened for subscription on August 5, giving investors three days to bid for the public issue. The offer, which closes on August 7, combines a fresh issue with an offer for sale and is slated to debut on the NSE and BSE on August 12.

The company is looking to raise Rs 425.87 crore through the IPO. Of this, Rs 320 crore will come from a fresh issue of 60.38 million shares, while existing shareholders will sell 19.98 million shares worth Rs 105.87 crore through the OFS.

The equities are being offered in a price band of Rs 50-53 apiece. Retail investors need to bid for at least one lot of 281 shares, translating into a minimum investment of Rs 14,893 at the upper end of the price band.

Pantomath Capital Advisors is managing the issue, while Kfin Technologies is the registrar.

Ardee Industries IPO GMP

The grey market premium (GMP) has inched up ahead of the opening of the issue. Websites that track such trades pegged the latest GMP at Rs 8 per share on August 5, up from Rs 7.5 a day earlier.

If the premium holds until listing, the stock could debut around Rs 61, around 15 per cent above the issue's upper price band. GMPs, however, are unofficial and often change with market sentiment.

Ardee Industries IPO Objectives

Ardee Industries plans to deploy Rs 220 crore for incremental working capital and Rs 20 crore for re-paying or pre-paying its borrowings. The balance will be used for general corporate purposes.

About Ardee Industries

Founded in 1993, Ardee Industries is in the business of recycling end-of-life batteries and non-ferrous scrap. It manufactures high-purity lead and specialised lead alloys used by battery makers, electric mobility companies, automobile manufacturers and chemical firms.

The company operates a manufacturing unit in Andhra Pradesh's Tirupati district with an installed capacity of 104,025 metric tonnes per annum. Its products are exported to markets including the US, Japan, South Korea, Singapore, Switzerland, Hong Kong and the UAE.

Ardee Industries Financial Performance

Ardee Industries reported a revenue of Rs 1,168.88 crore, as against Rs 743.53 crore in the previous financial year. Profit after tax rose to Rs 84.68 crore from Rs 33.27 crore, while earnings before interests, taxes, depreciation and amortisation (Ebitda) increased to Rs 147.08 crore from Rs 65.93 crore.

The company posted a return on equity of 81 per cent, return on capital employed of 44.26 per cent and improved its debt-to-equity ratio to 1.25 from 2.65 a year earlier.

At the upper end of the price band, the IPO is valued at a post-issue price-to-earnings (P-E) ratio of 19.7 times.