Admach Systems SME IPO made a weak debut on the stock market on Wednesday, December 31, with its shares listing at a sharp discount to the issue price. The SME stock opened at ₹191.20 on the BSE SME platform, marking a nearly 20% decline from the IPO issue price of ₹239.
However, the stock recovered part of its early losses during the session and moved higher to hit its upper price band of ₹200.75. Despite the rebound, the stock continued to trade around 16% below its issue price.
The listing performance fell short of grey market expectations, as informal market indicators had suggested a premium listing, with the stock expected to debut near the ₹250 level.
Admach Systems is engaged in designing and manufacturing machinery for the Indian as well as global engineering industries. According to the Red Herring Prospectus (RHP), the company provides customised engineering solutions to multiple sectors, including steel, automobile, food processing, tooling, and other engineering segments.
The company specialises in the development of special-purpose machines, automation systems, assembly and packaging machines, product design, and robotic material handling solutions.
Admach Systems IPO Details
The SME IPO opened for subscription on Tuesday, December 23, and closed on Friday, December 26. The basis of allotment was finalised on Monday, December 29.
As per media reports, the issue was subscribed over four times overall, with the retail investor segment seeing nearly four times subscription.
The IPO was priced in the range of ₹227 to ₹239 per equity share and aimed to raise ₹42.60 crore through a fresh issue of 18 lakh shares.
Aftertrade Broking acted as the book-running lead manager for the issue, while Maashitla Securities served as the registrar.
Disclaimer: Investments in SME IPOs are subject to high risk. This article is for informational purposes only.
