Ardee Industries IPO Day 2: Strong Demand with GMP at 29% and 3.08 Times Subscription – Is It Time to Invest?

The Rs 425.87 crore IPO of Ardee Industries has witnessed a strong start, entering its second day of bidding with a robust subscription rate. The initial response has shown promising investor interest, with the IPO being subscribed 3.08 times on the first day, receiving bids for over 17.98 crore shares against a total of 5.84 crore shares on offer. The shares are currently commanding a 29% premium in the grey market, reflecting positive sentiment among investors regarding the company’s debut on the stock exchanges. The retail investor segment is particularly enthusiastic, with a subscription of 3.22 times for the reserved shares, indicating strong demand across the board.

Ardee Industries, which operates in the lead recycling and non-ferrous metals sector, has set a price band of Rs 50–53 per share for its public issue. Notably, the company’s IPO comprises a fresh issue of 6.04 crore shares worth Rs 320 crore and an offer for sale (OFS) of 2 crore shares valued at Rs 105.87 crore. The funds from the IPO are planned to be utilized for strengthening the company’s balance sheet, enhancing working capital requirements, and general corporate purposes. With the basis of allotment expected to be finalized by August 10 and shares likely to be listed on the NSE and BSE on August 12, this timeline adds to the excitement surrounding the IPO.

For Indian investors, the Ardee Industries IPO presents a noteworthy opportunity to engage with a business positioned in a vital sector of metal recovery and recycling. Given the company’s recent financial performance—demonstrating a 57% increase in total income and a 155% jump in Profit After Tax—alongside its strategic expansion plans, the investment case appears compelling. Analysts from Choice Broking have assigned a “Subscribe for Long-Term” rating, highlighting reasonable valuations and the company’s growth potential driven by the expanding circular economy. However, potential risks, including lead price volatility and environmental regulations, should also be considered by investors as they assess their risk appetite in this burgeoning market segment.

Source: The Economic Times

(Expert Note: This report was prepared by the Wealthova IPO team.)