Delhi, 8 October (H.S.): Three companies from diverse sectors made their stock market debut today, delivering contrasting fortunes to their initial public offering (IPO) investors. While Sheel Biotech and Advance Agrolife began trading with strong gains, logistics firm Om Freight Forwarders disappointed investors with a sharp discount listing.
Sheel Biotech Delivers Over 51% Gains on Debut
Biotechnology company Sheel Biotech made a resounding entry on the National Stock Exchange’s SME platform, listing at ₹91 per share — a 44.44% premium over its issue price of ₹63. Strong buying interest drove the stock to its upper circuit level of ₹95.55 before closing at the same price, securing IPO investors a first-day gain of 51.67%.
Sheel Biotech’s ₹34.02 crore IPO, open from September 30 to October 3, witnessed robust demand, oversubscribed 15.97 times overall. Qualified Institutional Buyers subscribed 19.73 times, Non-Institutional Investors 25.92 times, and Retail Investors 9.56 times. The issuance comprised 54 lakh new shares of a face value ₹10 each, aimed at funding working capital requirements and general corporate purposes.
The company’s net profit rose steadily from ₹5.08 crore in FY 2022–23 to ₹10.64 crore in FY 2024–25, with revenue crossing ₹102.27 crore at an annual compounded growth rate above 11%. Debt levels fluctuated, decreasing to ₹17.36 crore in FY 2024–25 from ₹23.54 crore in the previous year, while reserves increased to ₹68.90 crore.
Om Freight Forwarders Lists at 39% Discount, Investors Lose Over 36%Logistics service provider Om Freight Forwarders entered the bourses with a weak performance, listing at ₹82.50 on the BSE and ₹81.50 on the NSE — about 39% below its issue price of ₹135. Despite hitting the upper circuit during intraday trading (₹86.60 BSE, ₹85.57 NSE), the stock ended the day reflecting a 36.61% loss for IPO investors.Its ₹122.31 crore IPO, open between September 29 and October 3, was subscribed only 3.88 times overall. QIBs booked 3.97 times their quota, NIIs 7.39 times, Retail Investors 2.77 times, and Employees 0.57 times.
The offer included both fresh equity shares worth ₹24.44 crore (face value ₹10) and 72.50 lakh shares through an offer for sale. Funds from fresh issuance will be used to acquire commercial vehicles and heavy equipment, meet working capital needs, and for general corporate purposes.
Financial performance showed volatility, with net profit dropping from ₹27.16 crore in FY 2022–23 to ₹3.63 crore in FY 2023–24 before rebounding to ₹21.19 crore in FY 2024–25. Revenue reached ₹494.05 crore with a CAGR above 17%, while debt surged steadily to ₹26.95 crore by FY 2024–25. Reserves grew to ₹173.47 crore.
Advance Agrolife Posts Moderate First-Day Gains Despite Lower Circuit Close
Agrochemical manufacturer Advance AgrOlife began trading at a premium — ₹113 on the BSE (13% higher) and ₹114 on the NSE (14% higher) against the issue price of ₹100. However, selling pressure pushed the stock down to its lower circuit of ₹108.30 mid-session, where it closed.
Despite the intraday fall, IPO investors enjoyed a 8.30% first-day gain.The ₹392.86 crore IPO, open September 30 to October 3, saw stellar demand with 56.90 times oversubscription. QIBs subscribed 27.31 times, NIIs a massive 175.30 times, Retail Investors 23.14 times, and Employees 38.42 times. The offering included 1,92,85,720 new shares of ₹10 face value, with proceeds earmarked for working capital and general corporate purposes.
Financial results were consistent, with net profit rising from ₹14.87 crore in FY 2022–23 to ₹25.64 crore in FY 2024–25. Revenue climbed above ₹502.88 crore with a CAGR over 12%, though debt increased to ₹80.45 crore by FY 2024–25. Reserves fell slightly to ₹55.87 crore in the same period after peaking at ₹70.76 crore in the previous year.
Hindusthan Samachar / Jun Sarkar
