New Delhi, 27 July (H.S.): Gulf Lloyds (India) Ltd, a company providing third-party auditing, inspection, certification and training services to various industries, delivered a disappointing market debut on Monday as its shares listed flat and quickly slipped to the lower circuit, leaving IPO investors with immediate losses.

The company's shares were issued at ₹100 apiece under the initial public offering (IPO). They made their debut on the BSE SME platform at the same issue price of ₹100, with no listing gains. However, heavy selling pressure emerged soon after listing, dragging the stock down to its 5 per cent lower circuit limit of ₹95. As a result, IPO investors incurred a loss of ₹5 per share, or 5 per cent, on the very first day of trading.

Gulf Lloyds (India) Ltd had launched its ₹18.19 crore IPO for subscription between July 20 and July 22. The public issue received a healthy response from investors and was subscribed 10.85 times overall. The portion reserved for Non-Institutional Investors (NIIs) was subscribed 2.86 times, while the retail investors' quota attracted subscriptions of 18.83 times.

Under the IPO, the company issued 1,819,200 fresh equity shares with a face value of ₹10 each. The proceeds from the issue will be utilised for capital expenditure on office premises, repayment or reduction of existing borrowings, meeting working capital requirements, and other general corporate purposes.

According to the company's Draft Red Herring Prospectus (DRHP) filed with the Securities and Exchange Board of India (SEBI), Gulf Lloyds reported a strong financial performance during the financial year 2025-26. The company posted a net profit of ₹4.30 crore and generated revenue of ₹35.97 crore during the fiscal.

The company's net worth stood at ₹13.48 crore at the end of FY2025-26, while its reserves and surplus amounted to ₹8.71 crore. Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) for the year stood at ₹7.90 crore. However, Gulf Lloyds also carried total borrowings of ₹15.68 crore as of the end of FY2025-26.

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Hindusthan Samachar / Jun Sarkar