Aztec Fluids and Machinery makes strong debut, shares list at 34% premium to IPO price

Shares of Aztec Fluids and Machinery Ltd, a leading printing solutions provider to businesses, listed at a 34% premium on the BSE SME platform on Friday, May 17.

The Aztec Fluids and Machinery stock opened the session at ₹90 per share compared with its initial public offering (IPO) price of ₹67. However, the stock soon slipped to hit the 5% lower circuit and was locked at ₹85.5 levels.

Given the fact that the lot size of the Aztec Fluids and Machinery IPO was 2,000 shares, successful bidders who were allotted shares in the primary issue would have been sitting on a profit of at least ₹37,000 (₹18.5 x 2,000) even as the stock hit the 5% lower circuit.

The Aztec Fluids and Machinery IPO, which was open for subscription during May 10 to May 14, had received a thunderous response from investors across categories. The IPO was subscribed by a whopping 218 times, with investors placing bids for 52.35 crore shares compared to just 25.78 lakh shares on offer, according to data available on exchanges.

The retail investors’ quota received a subscription of around 228 times. The non-institutional investors’ (NII) quota was oversubscribed by around 253 times. The quota reserved for qualified institutional buyers (QIB) was also booked around 108 times.

To recall, the 100% book-built Aztec Fluids and Machinery IPO aimed to raise a total of ₹24.12 crore. The issue consisted of fresh issuance of 36 lakh shares, with no offer-for-sale (OFS) component.

The price band of the IPO was set between ₹63 and ₹67, with the minimum lot size for an application of 2,000 shares.

Just ahead of the launch of the IPO, Aztec Fluids and Machinery also raised ₹6.85 crore from anchor investors by allotting 10.22 lakh shares at ₹67 per share.

The company said that it planned to use the proceeds of the net issue to fund the proposed acquisition of equity shares of Jet Inks Pvt Ltd, the repayment of a portion of certain borrowing and general corporate purposes.

Founded in April 2010, Aztec Fluids and Machinery provides an assortment of printers, printer consumables, and printer spares to a diverse range of industries.

The company specialises in providing coding and marking solutions to companies operating in sectors such as personal care, food and beverage, pharmaceuticals, construction materials, cables, wires, and pipes, metals, automotive and electronics, agrochemicals, chemicals, and petrochemicals, among others.

Aztec Fluids and Machinery’s product range includes printers like thermal transfer over (TTO), laser, NIJ (piezoelectric), and continuous inkjet (CIJ) printers, along with printer inks and consumables such as makeup and cleaning solvents.

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