New Delhi, October 6(HS): The SME segment of the Bombay Stock Exchange witnessed contrasting fortunes today as two newly listed companies made their market debut — polymer manufacturer Bhavik Enterprises Ltd surged, rewarding its IPO investors, while agri-foods trader Rukmani Devi Garg Agro Impex Ltd stumbled sharply, leaving subscribers in the red.
Bhavik Enterprises Off to a Strong Start
Bhavik Enterprises, engaged in the polymer business, listed with resilience, delighting its IPO investors. Shares were issued at ₹140 apiece under the IPO, and debuted on the BSE SME platform at ₹143 — more than 2% above the issue price. A wave of post-listing buying pushed the stock further upward, with shares trading at ₹146 by 1:30 p.m.The company’s ₹77 crore IPO was open for subscription from September 25 to 30, receiving a modest overall response with 1.07 times subscription.
The non-institutional investor category was subscribed 1.30 times, while the retail investor category saw a 0.67 times subscription. The offering comprised 42 lakh new shares of ₹10 face value and an Offer for Sale of 10 lakh shares. Proceeds from the fresh issue are earmarked for working capital requirements and general corporate purposes.
Financially, the company’s performance has seen fluctuations. Net profit fell from ₹15.56 crore in FY2022-23 to ₹7.89 crore in FY2023-24, and further to ₹5.68 crore in FY2024-25, even as revenue steadily rose from ₹491.09 crore to ₹500.35 crore and then ₹531.46 crore over the same period.
Rukmani Devi Garg Agro Impex Disappoints Investors
In stark contrast, Rukmani Devi Garg Agro Impex Ltd, a company engaged in the agricultural foods trade, made a dismal debut. Issued at ₹99 per share, the stock opened on the BSE SME platform at ₹79.20, a steep 20% discount to the IPO price. Heavy selling post-listing drove the stock straight to its lower circuit of ₹75.24, inflicting an immediate 24% loss on IPO shareholders.
The ₹23.52 crore IPO was open from September 26 to 30, receiving an extraordinary overall subscription of 29.59 times. Qualified Institutional Buyers (QIBs) subscribed 8.24 times, non-institutional investors 77.12 times, and retail investors 39.73 times. The offer comprised 23.76 lakh new shares of ₹10 face value, with proceeds intended for working capital needs and other corporate purposes.
Despite strong subscription figures, the market reaction reflected concerns. The company’s net profit jumped from ₹47 lakh in FY2022-23 to ₹5.02 crore in FY2023-24 and ₹7.57 crore in FY2024-25, while revenue fluctuated from ₹248.50 crore to ₹245.02 crore, then surging to ₹327.32 crore.
However, debt levels have consistently risen — from ₹25.13 crore at the end of FY2022-23 to ₹26.84 crore the next year, and further to ₹49.21 crore by FY2024-25. Reserves and surplus also increased from ₹13.34 crore to ₹25.93 crore over the same period.
Analysts noted that while Bhavik Enterprises’ steady revenue growth supported investor sentiment, Rukmani Devi Garg Agro’s valuation and debt profile may have triggered cautious selling, leading to the sharp first-day fall.
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Hindusthan Samachar / Jun Sarkar
