Ardee Industries Lists At 39% Premium; Shares Trim Gains After Strong Debut

Ardee Industries shares made a strong stock market debut on Wednesday, listing at a premium of nearly 39% over their IPO issue price, outperforming grey market expectations despite weakness in the broader market.

The shares opened at ₹72 on the NSE, up ₹19 or 35.85% from the IPO price of ₹53. On the BSE, the stock debuted at ₹73.60, a gain of ₹20.60 or 38.87% over the issue price.

However, the early rally lost momentum as investors booked profits. The stock slipped around 9% from its listing price to trade at ₹66.82 at around 10:35 am.

Following the listing, Ardee Industries commanded a market capitalisation of ₹2,319.88 crore, according to BSE data.

The debut was stronger than grey market estimates, which had indicated a listing premium of around 28-30%.

The robust listing came even as benchmark indices traded lower. The BSE Sensex was down about 250 points, while the Nifty 50 declined around 78 points in morning trade, reflecting cautious sentiment in the broader market.

IPO Saw Robust Investor Demand

Investor interest in the IPO was exceptionally strong, with the issue subscribed 133.66 times overall.

The ₹425.87 crore public issue received bids for 7,80,88,19,433 shares against 5,84,22,516 shares on offer, according to NSE data.

The Qualified Institutional Buyers (QIB) portion was subscribed 197.77 times, the Non-Institutional Investors (NII) category 255.24 times, while the retail investors' quota was subscribed 45.71 times.

IPO Details And Fund Utilisation

Ardee Industries' IPO comprised a fresh issue of 6.04 crore shares worth ₹320 crore and an offer for sale (OFS) of 2 crore shares aggregating ₹105.87 crore.

The company plans to utilise ₹220 crore from the fresh issue proceeds towards incremental working capital requirements, ₹20 crore for repayment of certain borrowings, while the remaining amount will be used for general corporate purposes.

Ardee Industries operates in the circular economy segment, focusing on the recovery and recycling of end-of-life energy storage products and non-ferrous scrap. It also manufactures pure lead and lead alloys used across industries including energy storage, e-mobility, automotive and chemicals.