The initial public offering (IPO) for Ardee Industries commenced subscription today, August 5, with the issue set to close on August 7. The New Delhi-based company, a significant player in recycling end-of-life energy storage products and non-ferrous scrap, is offering its shares in a price band of Rs 50-53 apiece.
Investors can apply for a minimum of 281 equity shares. The primary offer seeks to raise a total of Rs 426 crore, comprising a fresh issue of Rs 320 crore and an offer-for-sale (OFS) of up to 1,99,75,000 equity shares valued at Rs 106 crore. Proceeds from the fresh issue are earmarked for funding working capital requirements, debt repayment, and general corporate purposes.
Company Profile and Financial Performance
Established in 1993, Ardee Industries specializes in the sustainable recovery and recycling of materials, producing high-purity lead and various specialized lead alloys. These products are crucial for industries such as energy storage, e-mobility, automotive, and chemicals.
Financially, Ardee Industries reported a net profit of Rs 84.68 crore on revenues of Rs 1,168.88 crore for the fiscal year ended March 31, 2026. This marks substantial growth from FY25, where the company recorded a net profit of Rs 33.27 crore with revenues of Rs 743.53 crore.
IPO Structure and Grey Market Premium
Ahead of the IPO, Ardee Industries secured Rs 127.76 crore from seven anchor investors, allocating 2,41,05,584 equity shares at Rs 53 each. Notable anchor investors included Bank of India MF, Ashish Kacholia's Bengal Finance & Investment, and India Max Investment Fund.
The IPO allocation reserves 50 percent for Qualified Institutional Bidders (QIBs), 15 percent for Non-Institutional Investors (NIIs), and 35 percent for retail investors. As of the latest update, the Grey Market Premium (GMP) for Ardee Industries stood at Rs 8 apiece, indicating a potential listing gain of approximately 15 percent for investors. Shares of Ardee Industries are expected to list on both BSE and NSE on Wednesday, August 12.
Analyst Recommendations and Outlook
Several brokerage firms have issued recommendations for the Ardee Industries IPO, largely suggesting a 'Subscribe' rating:
- SBI Securities: Recommended 'Subscribe' for the long term, citing Ardee's strong financial growth (revenue, EBITDA, PAT CAGR of 58.8%, 129%, and 207.5% respectively over FY24-FY26) and plans for diversification into new verticals.
- Marwadi Financial Services: Assigned a 'Subscribe with Caution' rating. While acknowledging Ardee as a leading player in the circular economy with reasonable valuations, concerns were raised regarding high client concentration, weak cash conversion, and elevated debt levels.
- Swastika Investmart: Recommended 'Subscribe,' highlighting the IPO's attractive pricing at 15.96 times P/E, which is a significant discount compared to listed peers. They noted the company's exceptional Return on Net Worth (RoNW) of 57.46% and the positive impact of fresh issue proceeds on net worth and debt reduction.
- Choice Broking: Advised 'Subscribe for long-term,' pointing to Ardee's reasonable valuation relative to its established position in India's recycled lead industry. They emphasized planned capacity expansion, integration of Pilot Industries' recycling business, and diversification into plastic granules, recycled tin, and copper as long-term growth drivers.
- Canara Bank Securities: Recommended 'Subscribe,' citing the company's operation in a niche segment with strong growth drivers, integrated recycling model, and improving profitability. They acknowledged risks from lead price volatility and high working capital but found the valuation attractive.
- BP Equities: Recommended 'Subscribe for long-term,' expecting earnings growth from better capacity utilization, increased export contribution, and diversification into other recycling segments. They noted the positive impact of Battery Waste Management Rules, 2022.
- Ventura Securities: Recommended 'Subscribe,' highlighting the company's strong revenue and profit surge (FY24-FY26) and benefits from rising demand for organized battery recycling. Key risks included high customer concentration.
- Sushil Finance: Gave a confident 'Subscribe,' praising Ardee's strong fundamental setup and an unusually high and improving RoNW of 57.46%, indicative of efficient capital use.
Pantomath Capital Advisors is the sole book-running lead manager for the issue, with Kfin Technologies Ltd serving as the registrar.