Ardee Industries IPO: Shares Surge 39% on Debut

Ardee Industries made a strong market debut, with its shares listing up to 39% above the initial public offering (IPO) price of Rs 53 per share. The company’s market capitalization immediately reached Rs 2,319.88 crore following the successful listing.

Listing Performance

Shares commenced trading with substantial premiums on both major Indian exchanges. On the National Stock Exchange (NSE), the stock opened at Rs 72.

• NSE debut marked a 35.85% gain over the IPO price.
• On the BSE, shares debuted at Rs 73.60, an increase of 38.87%.

Expert Commentary

Shivani Nyati, Head of Wealth at Swastika Investmart, noted a positive post-listing outlook for Ardee Industries. She cited attractive valuations, a robust 57.46% return on net worth (RoNW), healthy profitability, and the company’s engagement in the expanding circular economy and recycling sector.

• IPO allottees should hold their shares with a stop-loss of Rs 65 on a closing basis.
• New investors are advised to consider purchasing shares only during significant price dips.

IPO Details

The IPO was open for subscription from August 5 to August 7, with a price band set between Rs 50-53 per share. The offering successfully raised Rs 426 crore, valuing the company at approximately Rs 1,671 crore at the upper end of its price band.

• The fresh issue comprised 6.04 crore equity shares, raising Rs 320 crore.
• The Offer for Sale (OFS) component involved 2 crore shares, valued at Rs 105.9 crore.
• Ahead of the IPO, 2.41 crore equity shares were allotted to seven anchor investors at Rs 53 per share.

Proceeds from the fresh issue are earmarked for specific objectives. These include funding incremental working capital requirements of Rs 220 crore, facilitating debt repayment of Rs 22 crore, and addressing general corporate purposes.

Business Model & Growth

Ardee Industries operates within the circular economy, specializing in the recovery and recycling of end-of-life energy storage products and non-ferrous scrap. The company extracts critical resources from waste streams to produce pure lead and lead alloys, vital for industries like energy storage, e-mobility, automotive, and chemicals.

The company has demonstrated robust financial growth across recent fiscal years. Revenue from operations more than doubled, increasing from Rs 463 crore in FY24 to Rs 1,167.7 crore in FY26, while profit after tax surged from Rs 9 crore in FY24 to Rs 84.7 crore in FY26.