Ardee Industries IPO Day 1: Issue booked 1.53x so far. Check key dates, review. Apply or skip?

The Ardee Industries IPO subscription will open on Wednesday, August 5, and close on Friday, August 7. The Ardee Industries IPO price band has been fixed at ₹50 to ₹53 per equity share with a face value of ₹2.

Ahead of the public issue, Ardee Industries raised ₹128 crore from anchor investors on Tuesday by allotting 2.41 crore equity shares at ₹53 per share, the upper end of the IPO price band, according to a BSE circular.

The anchor book attracted participation from Bank of India Mutual Fund, Bengal Finance & Investment Pvt. Ltd. (led by Ashish Kacholia), Winro Commercial (India) Ltd. (led by Rohit Kothari), The Wealth Company Alternates Trust, India Max Investment Fund Ltd., Cognizant Capital Dynamic Opportunities Fund, IMAP India Capital Investment Trust, and Catalyst New India Fund.

The Ardee Industries IPO lot size has been fixed at 281 equity shares and in multiples of 281 shares thereafter.

Under the allocation structure, not more than 50% of the issue is reserved for Qualified Institutional Buyers (QIBs), not less than 15% for Non-Institutional Investors (NIIs), and not less than 35% for Retail Individual Investors (RIIs).

As per the tentative schedule, the Ardee Industries IPO allotment is expected to be finalised on Monday, August 10. Refunds are likely to be initiated on Tuesday, August 11, while shares will be credited to the demat accounts of successful applicants on the same day. The Ardee Industries share price is scheduled to list on the BSE and NSE on Wednesday, August 12.

Ardee Industries IPO GMP today

Ardee Industries IPO GMP today is +8. Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of the Ardee Industries share was ₹61 apiece, which is 15.09% higher than the IPO price of ₹53.

According to grey market trends observed over the past 13 sessions, the IPO's GMP is showing an upward trend today, suggesting anticipation of a successful listing. Throughout this timeframe, the GMP fluctuated between ₹0.00 and ₹13, according to experts.

Ardee Industries IPO review

Swastika Investmart has recommended subscribing to the Ardee Industries IPO, citing its attractive valuation and strong financial metrics. The brokerage noted that the issue is priced at a P/E multiple of 15.96x, offering nearly a 50% discount to listed recycling peers that trade at 32x-35x P/E. It also highlighted the company's Return on Net Worth (RoNW) of 57.46%, significantly higher than peers such as Gravita (15.43%) and Pondy Oxides (16.73%). According to Swastika, the fresh issue proceeds will strengthen the balance sheet by expanding net worth and reducing debt, bringing the debt-to-equity ratio down to around 0.35x. The brokerage believes the IPO is suitable for investors seeking both listing gains and long-term value.

BP Equities has also assigned a 'Subscribe' rating to the issue for the long term. The brokerage expects improved capacity utilisation at the company's expanded facility, a higher contribution from exports, operational benefits from the transition to the FOB procurement model, and diversification into plastic, tin, and copper recycling to drive earnings growth over the medium term. It added that structural demand from the automotive, renewable energy, telecom, and data centre sectors, along with the implementation of the Battery Waste Management Rules, 2022 and the Extended Producer Responsibility (EPR) framework, should accelerate the shift towards organised recyclers. BP Equities believes the company's integrated business model, improving financial profile, and attractive valuation relative to peers support a positive long-term outlook.

SBICAP Securities has recommended that investors subscribe to the Ardee Industries IPO for the long term. The brokerage said the company plans to diversify into new business verticals through its recently acquired 5.56-acre land parcel, which is expected to reduce its dependence on a single revenue stream. At the upper end of the price band of ₹53, SBICAP values the IPO at a post-issue P/E multiple of 19.7x, which it considers reasonable given the company's growth prospects and expansion plans.

Ardee Industries IPO details

The Ardee Industries IPO comprises a fresh issue of up to ₹320 crore worth of equity shares and an offer for sale (OFS) of 1.99 crore equity shares by the company's promoters.

According to the Red Herring Prospectus (RHP) filed on July 27, promoters Sandeep Aggarwal and Nikunj Aggarwal will each offload 99.87 lakh equity shares through the OFS.

The company intends to utilise ₹220 crore from the net proceeds of the fresh issue to meet its incremental working capital requirements. It has also earmarked ₹20 crore for the repayment of debt, while the remaining proceeds will be used for general corporate purposes.

Pantomath Capital Advisors Pvt. Ltd. is the book-running lead manager to the issue, while KFin Technologies Ltd. has been appointed as the registrar to the Ardee Industries IPO.

Ardee Industries IPO subscription status

Subscription for the public issue will open at 10:00 IST during Wednesday's deals.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.