New Delhi, October 3(HS): EarKart Limited, a manufacturer of hearing aids and related accessories, entered the stock market today with a muted listing but soon witnessed strong buying interest, leaving IPO investors in profit. The company had priced its shares at ₹135 during the public issue.

On debut at the BSE SME platform, the stock listed with a marginal premium of 0.37% at ₹135.50. However, post-listing demand quickly pushed the price to the upper circuit limit of ₹142.25, giving investors gains of 5.37% on the very first day of trade.

IPO Subscription Performance

The company’s public offering, worth ₹49.26 crore, was open for subscription between September 25 and 29. Unlike many recent IPOs, it received only a modest response, being oversubscribed 1.28 times overall. Within this, the Non-Institutional Investor (NII) segment was subscribed 1.63 times, while the Retail portion managed only 0.35 times subscription.The IPO comprised a fresh issue of 31,30,000 equity shares with a face value of ₹10 each. Additionally, 3,34,000 shares were offered through the Offer for Sale window. Proceeds from the fresh issue will be utilized to support working capital requirements and general corporate purposes.

Financial Performance

Financial disclosures in the company’s prospectus highlight a steady improvement in profitability over recent years. Net profit stood at ₹1.31 crore in FY 2022-23, which rose to ₹3.06 crore in FY 2023-24, and further jumped to ₹6.88 crore in FY 2024-25. Revenue too expanded at a compound annual growth rate of over 35%, reaching ₹43.19 crore by FY 2024-25.

However, borrowings also increased during the period. Total debt, which was at ₹1.21 crore at the close of FY 2022-23, rose to ₹4 crore by FY 2023-24, and further to ₹4.96 crore by the end of FY 2024-25.As for reserves and surplus, the company reported ₹6.49 crore at the end of FY 2022-23, which rose substantially to ₹12.97 crore in FY 2023-24 but later declined to ₹9.48 crore by the end of FY 2024-25.

Hindusthan Samachar / Jun Sarkar