Readymix Construction Machinery makes muted debut, shares list flat on NSE SME

Engineering solutions provider Readymix Construction Machinery made a muted debut on the NSE SME platform, on Thursday, with its shares listing flat.

The company’s shares started trading at ₹123 per piece, the same as the issue price, reflecting a flat listing on the NSE Emerge platform.

More than 3.96 lakh equity shares changed hands on the bourse immediately after listing. The total turnover stood at ₹4.85 crore. The company’s market valuation reached ₹128.21 crore.

Soon after listing the stock plunged as much as 5% to hit the lower circuit limit of ₹116.85 apiece on the NSE.

After the flat opening of the stock, the IPO investors would have not faced any listing gain or loss. However, at the 5% lower circuit, the IPO investors faced a potential loss of ₹6,150 per lot size compared to the minimum investment of ₹1,23,000 (₹123 x 1,000).

Readymix Construction Machinery IPO details

The engineering solutions provider, last week, launched the IPO to raise ₹37.66 crore. The public offer was entirely a fresh issue of 30.62 lakh shares. The IPO received decent demand and ended with an overall subscription of 4 times on the final day of bidding on February 10. The issue attracted bids for 95.41 lakh shares against 20.37 lakh shares on offer.

The IPO opened for bidding on February 6 and the share allotment status was finalised on February 11.

The retail portion was overbooked 4.25 times. The Non-Institutional Investors (NIIs) quota was booked 5.11 times while the Qualified Institutional Buyers (QIBs) segment was booked 5.1 times.

Readymix Construction Machinery provides solutions for design, fabrication and installation of plant and machinery. The company also supplies related equipment like readymix concrete plant, artificial sand plants (crusher), dry mix mortar plant, high-capacity silos and other customised products.

The company meets requirements of various industrial users dealing with concrete, construction, cement, crushing and building materials.

The company employed 13 designers and 14 workers in the research and development segment as of December 31, 2024.

According to the RHP, Readymix Construction Machinery will utilise the IPO proceeds of ₹24 crore for meeting working capital requirements. The company needs additional working capital with the expansion of business. The capital will be put in trade receivables, inventories and payment to trade payables and meet day to day operations.

Another ₹5.25 crore from the IPO proceeds will be used to repay or pre-pay debt availed by it. The company had total outstanding fund-based debt of ₹16.67 crore as of December 31, 2024.

Readymix Construction Machinery Financials

Readymix Construction Machinery reported a profit after tax (PAT) of ₹1.04 crore for the first nine months (April-December) of FY 2024-25. Revenue from operations stood at ₹35.48 crore in the period under review.

The company’s net profit stood at ₹12.32 crore in FY 2023-24 compared to ₹3.71 crore in FY 2022-23. Readymix Construction Machinery’s revenue increased to ₹69.79 crore in FY24 compared to ₹54.99 crore in the preceding financial year.