New Delhi, 11 June (H.S.): Shares of B2B travel services provider UHM Vacation made a disappointing debut on the stock market on Thursday, delivering losses to its IPO investors on the very first day of trading. The company's shares were issued at an IPO price of ₹166 per share but were listed on the BSE SME platform at ₹132.80, reflecting a discount of 20 percent to the issue price.

Selling pressure intensified immediately after listing, pushing the stock to its lower circuit limit of ₹126.20 within a short period. As a result, IPO investors incurred a loss of ₹39.80 per share, or approximately 23.98 percent, compared to the issue price.

UHM Vacation's ₹36 crore initial public offering was open for subscription from June 4 to June 8. The issue received a moderate response from investors and was subscribed 2.36 times overall.

The Qualified Institutional Buyers (QIB) portion was fully subscribed. The Non-Institutional Investors (NII) segment received 86 percent subscription, while the retail investor category was subscribed 3.86 times.

The IPO comprised fresh shares worth ₹29 crore with a face value of ₹10 each, along with an Offer for Sale (OFS) of 420,000 shares. The company stated that proceeds from the fresh issue would be used for marketing and promotional activities, meeting working capital requirements, and general corporate purposes.

According to the Draft Red Herring Prospectus (DRHP) filed with the Securities and Exchange Board of India (SEBI), the company's financial performance has shown consistent improvement in recent years.

UHM Vacation reported a net profit of ₹11 lakh in the financial year 2022-23. The profit rose sharply to ₹5.27 crore in FY 2023-24 and further increased to ₹7.18 crore in FY 2024-25. During the period from April 2025 to February 28, 2026, the company had already recorded a net profit of ₹8.05 crore.

Revenue growth also remained strong during the period under review. Total revenue increased from ₹20.49 crore in FY 2022-23 to ₹30.66 crore in FY 2023-24 and further to ₹40.20 crore in FY 2024-25. Between April 2025 and February 28, 2026, the company generated revenue of ₹45.29 crore.

The company's debt levels witnessed fluctuations over the years. It had no debt at the end of FY 2022-23. Borrowings stood at ₹38 lakh in FY 2023-24 and increased to ₹48 lakh in FY 2024-25. However, debt declined significantly to ₹6 lakh during the period from April 2025 to February 28, 2026.

UHM Vacation also reported steady growth in reserves and surplus. These stood at ₹87 lakh in FY 2022-23, rose to ₹12.62 crore in FY 2023-24, and further increased to ₹19.86 crore in FY 2024-25. By February 28, 2026, reserves and surplus had reached ₹25.15 crore.

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation) improved substantially as well. EBITDA increased from ₹18 lakh in FY 2022-23 to ₹5.87 crore in FY 2023-24 and climbed further to ₹8.26 crore in FY 2024-25. During the period from April 2025 to February 28, 2026, EBITDA stood at ₹9.19 crore.

Despite the company's improving financial metrics and growth trajectory, investor sentiment remained weak on listing day, resulting in a discounted debut and immediate lower-circuit trading.

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Hindusthan Samachar / Jun Sarkar