New Delhi, August 18 (HS): Shares of ANB Metal Cast, a manufacturer of high-quality aluminium products, made a stellar debut in the stock market on Monday, rewarding IPO investors with quick gains.

The company had issued its shares at ₹156 under the IPO. On the NSE SME platform, the stock debuted with a 5.13% premium at ₹164. Strong buying momentum soon pushed the price to the upper circuit of ₹172.20 within hours, where it eventually closed — delivering investors an impressive 10.38% return on the very first day of listing.

The ₹130-crore IPO was open for subscription between August 8 and 12, receiving a mixed yet decent response. Overall, it was subscribed 2.22 times. While the Qualified Institutional Buyers (QIBs) segment saw a muted response with 1.04x subscription, the Non-Institutional Investors (NIIs) category showed stronger interest at 4.29x. The retail portion was subscribed 2.39x. Under the IPO, the company issued 32 lakh fresh equity shares of face value ₹10 each.

Proceeds from the issue will be utilised for expansion of the company’s existing manufacturing facility, funding working capital requirements, and fulfilling general corporate purposes.

On the financial front, ANB Metal Cast has showcased consistent growth in recent years. According to the prospectus, the company’s net profit rose from ₹1.85 crore in FY 2022-23 to ₹5.34 crore in FY 2023-24 and further jumped to ₹10.25 crore in FY 2024-25. Its revenue also expanded at a CAGR of over 38%, reaching ₹162.64 crore.

However, the company’s borrowings also increased during this period. Total debt, which stood at ₹15.92 crore at the end of FY 2022-23, climbed to ₹34.13 crore by FY 2023-24 and marginally further to ₹34.33 crore by FY 2024-25.

Despite the rising debt, ANB Metal Cast’s strong growth trajectory and solid market debut have made it a stock to watch closely among SME listings.

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Hindusthan Samachar / Jun Sarkar