Established in 2008 and based in Pune, Readymix Construction Machinery Limited has made its mark in the construction equipment sector. The company offers a comprehensive range of construction machinery, including tailor-made products for diverse industry needs. It is now ready to raise funds through an IPO amounting to ₹37.66 Crores, with the subscription period running from February 6, 2025, to February 10, 2025.

The price band for the Readymix Construction Machinery IPO is set between ₹121 and ₹123 per equity share, with a market capitalization of ₹134.78 Crores at the upper price band. Retail investors are required to invest a minimum of ₹1,23,000, while High Net-Worth Individuals (HNIs) need to invest at least ₹2,46,000 (2 lots).

IPO Details:

• Subscription Period: February 6, 2025 – February 10, 2025
• IPO Price: ₹121 to ₹123 per share
• Market Capitalization: ₹134.78 Crores at the upper price band
• Lot Size: 1,000 shares (₹1,23,000 for retail investors)
• Minimum Investment: ₹1,23,000 for retail investors, ₹2,46,000 for HNIs
• Listing Date: Expected on February 13, 2025

Grey Market Premium (GMP) and Subscription Status
As of February 6, 2025, the IPO has been subscribed 0.14 times, reflecting low demand at the start of the subscription period. The Grey Market Premium (GMP) is ₹0, which suggests that no significant listing gains are expected, and trading is inactive in the unorganized market. This neutral GMP signals limited early interest in the shares.

IPO Allotment and How to Check Allotment Status
The allotment is scheduled for February 11, 2025. To check your allotment status:

1. Go to the IPO allotment status page.
2. Select Readymix Construction Machinery IPO from the dropdown list.
3. Enter your application number, PAN, or DP Client ID.
4. Submit to check the status.

Objectives of the IPO
The funds raised through the IPO will be used for the following purposes:

1. ₹525 Lakhs for the repayment and/or pre-payment of borrowings.
2. ₹2,405 Lakhs to meet the company’s working capital requirements.
3. General corporate purposes to support future expansion and operational needs.

Financial Performance and Analysis
Readymix Construction Machinery has shown a steady growth trajectory over the years. For the fiscal year ending December 31, 2024, the company reported ₹3,550.02 Lakh in revenue, an increase from previous years. Its EBITDA stood at ₹311.74 Lakh, with a Profit After Tax (PAT) of ₹104.41 Lakh. This consistent performance highlights its stable growth.

The pre-issue EPS is ₹11.76, while the post-issue EPS stands at ₹8.47, reflecting a P/E ratio of 10.46x (pre-issue) and 14.52x (post-issue). Compared to the industry average P/E ratio of 36x, the company appears to be priced attractively. However, its ROCE of 48.96% and ROE of 65.90% indicate strong efficiency in using capital.

Investment Recommendations
Despite the attractive valuation and steady performance of Readymix Construction Machinery, the Grey Market Premium of ₹0 and low initial subscription numbers suggest limited listing gains. Therefore, we recommend investors approach this IPO with caution, especially if seeking quick listing gains. Investors with a long-term horizon may find the company’s consistent growth and market presence a solid opportunity.

The Upcoming IPOs in this week and coming weeks are Eleganz Interiors, PS Raj Steels, Chandan Healthcare, Ajax Engineering, Hexaware Technologies.

The Current active IPO are Readymix Construction, Solarium Green, Ken Enterprises, Amwill Healthcare,Chamunda Electricals.

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