Ardee Industries IPO subscribed over 2x on opening day, NIIs lead demand

Ardee Industries witnessed an overwhelmingly successful initial public offering on its first day of trading, with subscription rates significantly exceeding the offering size. Non-institutional investors led the demand, subscribing three and a half times the allotted shares, while retail investors also showed strong interest, subscribing two and a half times the available shares.

Qualified institutional buyers, however, contributed less, subscribing only once the offered shares. The company priced its ₹426-crore IPO within a range of ₹50-53 per share, with the potential to raise up to ₹320 crore through a fresh issue, supplemented by an offer for sale of up to 1.99 crore equity shares by its promoters. Upon allotting 2,41,05,584 shares at ₹53 per share, Ardee Industries managed to raise ₹127.75 crore from seven anchor investors, including prominent entities such as Bank of India Small Cap Fund, Bengal Finance & Investment Pvt Ltd, and The Wealth Company Alternates Trust – Bharat Value Fund.

The proceeds from the fresh issue will be utilized for various purposes, including funding incremental working capital needs, debt repayment, and general corporate expenses. Additionally, the company recently completed a pre-IPO secondary transaction worth ₹115 crore at ₹53 per share. Pantomath Capital Advisors Private Limited served as the lead manager for the IPO.