New Delhi, 21 January (H.S.): Brass manufacturer Narmedesh Brass Industries stunned IPO investors Wednesday with a dismal BSE SME debut, listing at a 3.88% discount to the ₹515 issue price at ₹495 before plunging to the lower circuit limit of ₹470.25 under heavy selling pressure, resulting in an 8.69% first-day loss.
The ₹44.87 crore IPO, open for subscription from January 12 to 16, garnered a tepid overall response with just 1.25x oversubscription. Non-institutional investors (NIIs) subscribed 1.92x their reserved portion, while retail investors managed a meager 0.44x.
The issue comprised 8,71,200 shares of ₹10 face value, including 6,55,200 fresh shares worth ₹34 crore and 1,70,400 offer-for-sale shares valued at ₹9 crore, with proceeds earmarked for working capital needs and general corporate purposes.SEBI-filed Draft Red Herring Prospectus (DRHP) reveals financial volatility.
Net profit climbed from ₹89 lakh in FY23 to ₹7.10 crore in FY24 before slipping to ₹5.72 crore in FY25 and reaching ₹4.01 crore in H1 FY26 (April-September 2025).Revenue showed steady growth: ₹60.09 crore (FY23), ₹79.06 crore (FY24), ₹88.05 crore (FY25), and ₹34.21 crore (H1 FY26).Debt burden escalated from ₹5.94 crore (end-FY23) to ₹22.43 crore (FY24) and ₹24.73 crore (FY25), easing slightly to ₹19.21 crore by September 2025.
Reserves and surplus rose from ₹6.97 crore (FY24) to ₹12.69 crore (FY25) and ₹23.30 crore (H1 FY26). EBITDA peaked at ₹11.41 crore (FY24) from ₹2.13 crore (FY23), moderated to ₹9.34 crore (FY25), and stood at ₹6.24 crore (H1 FY26).
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Hindusthan Samachar / Jun Sarkar
