New Delhi, June 5 (HS): Aureate Tradde’s IPO Disappoints as Flat Listing Slides to Lower Circuit

Shares of chemical trading company Aureate Tradde disappointed IPO investors on their stock market debut today, entering the market with a flat listing. The company had offered its shares at ₹70 apiece under its initial public offering (IPO).

On listing day, the stock debuted at the same issue price of ₹70 on the BSE SME platform, providing no listing gains to investors. Selling pressure emerged soon after listing, dragging the stock down to its lower circuit limit of ₹66.50. As a result, IPO investors incurred a loss of 5 percent on the very first day of trading.

Aureate Tradde’s ₹27.29 crore IPO was open for subscription from May 29 to June 2. The issue received a lukewarm response from investors and was subscribed only 1.43 times overall. The portion reserved for Non-Institutional Investors (NIIs) was subscribed merely 0.45 times, while the retail investor category received subscriptions amounting to 2.42 times the shares on offer.

Under the IPO, the company issued 3.898 million fresh equity shares with a face value of ₹10 each. The proceeds raised through the issue will be utilized for reducing existing debt, meeting working capital requirements, and supporting general corporate purposes.

According to claims made in the Draft Red Herring Prospectus (DRHP) submitted to market regulator SEBI, the company’s financial position has strengthened steadily despite some fluctuations.

The company reported a net profit of ₹1.13 crore in the financial year 2022–23, which increased to ₹1.45 crore in FY 2023–24. In FY 2024–25, net profit rose significantly to ₹2.57 crore. During the period from April 2025 to December 31, 2025, corresponding to FY 2025–26, the company had already recorded a net profit of ₹4.36 crore.

Revenue, however, showed a mixed trend during the same period. The company generated total revenue of ₹211.60 crore in FY 2022–23, which declined to ₹172.19 crore in FY 2023–24 before recovering to ₹176.62 crore in FY 2024–25. Between April and December 2025, revenue stood at ₹102.79 crore.

The company's debt burden continued to rise overall despite minor fluctuations. Outstanding debt stood at ₹22.73 crore at the end of FY 2022–23, increasing to ₹32.46 crore in FY 2023–24. It declined marginally to ₹32.17 crore in FY 2024–25 but climbed again to ₹38.07 crore during the April–December 2025 period.

During the same timeframe, the company's reserves and surplus also improved. These stood at ₹5.10 crore in FY 2022–23 and increased to ₹10.49 crore in FY 2023–24. In FY 2024–25, reserves and surplus rose further to ₹12.85 crore. By December 31, 2025, the figure had increased substantially.

Similarly, EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) improved significantly over the years. It stood at ₹8 lakh in FY 2022–23, rose to ₹3.25 crore in FY 2023–24, and increased further to ₹5.07 crore in FY 2024–25. During the April–December 2025 period, EBITDA reached ₹7.33 crore.

Despite improvements in profitability and operating performance, the company’s weak IPO subscription and lackluster listing reflected cautious investor sentiment, resulting in a disappointing debut for shareholders.

Hindusthan Samachar / Jun Sarkar