New Delhi, October 14(HS): Shares of Mittal Sections, a manufacturer of steel products including flat bars and round bars, disappointed IPO investors with a weak stock market debut on Tuesday. The stock listed at ₹114.40 on the BSE’s SME platform, a sharp 20% discount to its issue price of ₹143 per share.
Following the poor opening, the share price saw no recovery and remained locked at ₹114.40 in early trading.The company’s ₹52.91 crore IPO, which was open for subscription from October 7 to 9, had received a lukewarm response, subscribing just 2.25 times overall.
The portion reserved for Qualified Institutional Buyers (QIBs) was subscribed 1.13 times, while the Non-Institutional Investors (NII) category was undersubscribed at 0.55 times. However, the retail portion saw healthy interest, subscribing 4.08 times. The IPO comprised a fresh issue of 37 lakh equity shares.Proceeds from the public issue are intended for purchasing land for a new factory, building construction, machinery acquisition, debt repayment, and meeting working capital needs.
Financial PerformanceAccording to its prospectus, the company has shown a mixed financial trajectory.
Profitability: Net profit grew from ₹56 lakh in FY23 to ₹1.89 crore in FY24 and further to ₹3.61 crore in FY25. For the first quarter of FY26 (April-June 2025), the company posted a net profit of ₹1.47 crore.
Revenue: Despite rising profits, the company’s revenue has declined, falling from ₹167.53 crore in FY23 to ₹137.07 crore in FY25. Revenue for Q1 FY26 stood at ₹28.17 crore.
Debt: The company’s debt has fluctuated, standing at ₹20.70 crore as of June 2025, after rising to ₹21.09 crore at the end of FY25 from ₹15 crore in FY24.
Reserves: Reserves and surplus were recorded at ₹3.94 crore at the end of Q1 FY26.
Hindusthan Samachar / Jun Sarkar
