The much-awaited Readymix Construction Machinery Limited IPO was listed on the NSE SME at its issue price of ₹123 per share, registering no listing gains. The IPO GMP had indicated a ₹5 premium before the listing, but the stock failed to reflect this on debut.

IPO Subscription and Financials

The Readymix Construction Machinery IPO was subscribed 1.59 times during its bidding period from February 6 to February 10, 2025. The IPO comprised a fresh issue of 30.62 lakh shares, amounting to ₹37.66 crore.

The anchor investor portion raised ₹10.71 crore, with 8.71 lakh shares allocated at ₹123 per share. The company's market capitalization post-listing stood at ₹134.78 crore, with a lot size of 1,000 shares.

Company Overview & Financial Performance

Founded in 2008 in Pune, Readymix Construction Machinery Limited is a manufacturer and supplier of construction equipment, catering to diverse industry needs.

Financially, the company reported:

• Revenue of ₹6,984.48 lakh in FY24, up from ₹5,500.94 lakh in FY23
• EBITDA of ₹1,384.29 lakh in FY24, compared to ₹494.32 lakh in FY23
• Profit after tax (PAT) of ₹928.48 lakh in FY24, rising from ₹277.95 lakh in FY23

The company's pre-issue EPS stood at ₹11.76, while post-issue EPS settled at ₹8.47. The P/E ratio post-issue was 14.52x, indicating that the stock was fully priced at its IPO valuation.

Grey Market Premium (GMP) & Investor Sentiment

Despite a GMP of ₹5 before listing, the stock debuted flat at ₹123. Analysts had suggested a neutral-to-avoid stance on the IPO for listing gains, given its valuation and financial metrics.

IPO Objectives & Fund Utilization

The company intends to use the IPO proceeds for:

• ₹5.25 crore for debt repayment
• ₹24.05 crore for working capital needs
• General corporate purposes

Should You Invest in Readymix Construction Machinery IPO?

With no listing gains and a high valuation post-IPO, investors are advised to monitor the stock’s performance before making any long-term investment decisions.

The Upcoming IPOs in this week and coming weeks are Quality Power Electrical Equipments, L.K. Mehta, Shanmuga Hospital.

The Current active IPO are PS Raj Steels, Voler Car, Maxvolt Energy, Hexaware Technologies, Ajax Engineering, Chandan Healthcare.

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