New Delhi, September 2(HS): NIS Management, a Kolkata-based security and facility management services firm, had a lackluster debut on the BSE SME platform today, disappointing IPO investors. The shares, issued at ₹111 per share, opened at a discount of 2.70 percent at ₹108 and swiftly declined to hit the lower circuit at ₹102.60, resulting in an immediate paper loss of ₹8.40 per share, or 7.48 percent, for IPO subscribers.

The company’s ₹60.01 crore IPO, open for subscription from August 25 to 28, saw a moderate response, closing with an overall subscription of 3.13 times. Non-institutional investors led the demand at 9.15 times, qualified institutional buyers subscribed 2.12 times, and retail investors 1.10 times. The IPO consisted of fresh issuance worth ₹51.75 crore alongside an offer for sale of 7.44 lakh shares.

Proceeds from the fresh issue are earmarked primarily for working capital needs, amounting to ₹36 crore, with the rest allocated to general corporate purposes. Financially, the company has displayed steady growth, with net profits rising from ₹16.14 crore in FY 2022-23 to ₹18.67 crore in FY 2024-25, alongside revenue growth at a compound annual growth rate exceeding 8 percent, reaching ₹405.33 crore. Despite some fluctuations in debt levels, the company reduced its borrowings to ₹83.78 crore by FY 2024-25 end.

Today’s weak listing and quick descent to the lower circuit underscore cautious investor sentiment towards NIS Management in the SME segment, raising questions about its market reception despite promising fundamentals.

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Hindusthan Samachar / Jun Sarkar