The Initial Public Offering (IPO) of Adroit Industries (India) commenced bidding on Wednesday, September 23, seeking to raise ₹151 crore. By the end of its first three hours, the issue garnered significant investor interest, achieving a subscription rate of 2.15 times.
IPO Details and Subscription Breakdown
Adroit Industries (India) is offering its shares within a price band of ₹126 to ₹134 apiece. Investors are required to apply for a minimum of 111 shares and in multiples thereof. The total offering comprises a fresh issue of shares worth ₹133 crore and an Offer-for-Sale (OFS) of up to 1,350,000 equity shares.
Subscription data from the first day revealed robust demand from specific investor categories. The portion designated for retail individual investors (RIIs) was subscribed 3.25 times, while non-institutional investors (NIIs) showed strong interest with a 2.60 times subscription. However, the allocation for qualified institutional bidders (QIBs) had not yet seen any bids.
Company Profile and Financial Performance
Established in 1995, Thane-based Adroit Industries (India) operates as a vertically integrated manufacturer and supplier of critical driveline components, including propeller shafts and torque-transmission components. The company boasts a portfolio of over 5,000 Stock Keeping Units (SKUs), encompassing precision-machined parts, complete propeller shaft assemblies, and forged components.
Financially, Adroit Industries reported a net profit of ₹26.16 crore on a revenue of ₹143.04 crore for the fiscal year ending March 31, 2026. This marks an improvement from the previous fiscal year (2024-25), where it posted a net profit of ₹18.14 crore on revenues of ₹136.61 crore.
Analyst Views and Risks
Brokerage firms have offered mixed reviews on the IPO. Swastika Investmart noted that while Adroit has a strong export-oriented business, 95% of its product revenue from exports exposes it to risks related to US demand, tariffs, currency fluctuations, and global automotive cycles. They suggested a small-to-moderate allocation for the medium to long term but advised caution for those seeking immediate listing gains due to valuation and export risks.
Religare Broking assigned a 'neutral' rating, highlighting Adroit Industries' premium valuation despite improving financial performance and favorable operational efficiency. They pointed out that revenue growth has been relatively slow, adding to valuation concerns.
Conversely, SBI Securities recommended 'subscribe for long-term,' citing healthy financial performance, high operational efficiency (FY26 RoE of 20.3% and RoCE of 20.7%), and an improved Debt-to-Equity ratio of 0.4 times. They believe the planned use of fresh issue proceeds for capacity expansion and debt prepayment will enhance operational capabilities and reduce interest costs. The issue is valued at an attractive FY26 P/E multiple of 23 times, considering its superior margins, return metrics, and strong entry barriers.
Pre-IPO Fundraising and Listing Details
Prior to its public offering, Adroit Industries (India) successfully raised ₹45.21 crore from six anchor investors, allocating 3,374,100 equity shares at ₹134 apiece. The company has reserved 50% of the issue for qualified institutional bidders (QIBs), 15% for non-institutional investors (NIIs), and 35% for retail investors.
Market observers noted a Grey Market Premium (GMP) for Adroit Industries (India) shares in the range of ₹26-30, indicating a potential listing gain of 19-22% for investors. Choice Capital Advisors is serving as the book running lead manager, with Bigshare Services as the registrar. The company's shares are slated for listing on both BSE Ltd and NSE on Wednesday, September 30.