Anubhav Plast IPO Lists at ₹80, Trading Lower by 5% Post Listing

Anubhav Plast Ltd, incorporated in 1987 as a manufacturer of Electric Resistance Welding (ERW) steel pipes and tubes in round and square hollow sections as well as swaged steel tubular poles serving diverse sectors including electricity transmission and distribution, street lighting, telecom infrastructure, construction, irrigation, water supply, and general engineering operating two manufacturing units in Kanpur Dehat, Uttar Pradesh.

Anubhav Plast IPO Listing Details

Anubhav Plast IPO launched its fresh issue IPO at ₹77-80 per share with minimum investment of 3,200 shares costing ₹2,56,000 raising ₹24.00 crore including ₹6.78 crore from anchor investors. The IPO received weak response with subscription of just 2.18 times - retail investors at 2.60 times, NII at 2.49 times (bNII 2.34 times, sNII 2.78 times), QIB barely at 1.23 times, total applications of only 919 indicating limited investor confidence.

First-Day Trading Performance

Listing Price: Anubhav Plast stock price opened flat at ₹80.00 at par with issue price, immediately hit lower circuit at ₹76.00 (down 5.00%), with VWAP at ₹79.91. The weak listing resulted in losses for IPO investors with turnover of ₹5.70 crore, traded volume of 7.14 lakh shares, delivery of 100%, and market capitalisation of ₹83.60 crore against pre-IPO market cap of ₹88.00 crore.

Anubhav Plast IPO Growth Drivers and Challenges

Growth Drivers:

• Government Infrastructure Exposure: Strong presence in government tender-based projects across multiple Indian states for electricity transmission, street lighting, and telecom infrastructure benefiting from infrastructure spending push.
• Product Diversification: IPO proceeds funding new manufacturing facility for Crash Barriers and Solar Panel Structures expanding product portfolio into high-growth infrastructure and renewable energy segments.
• Backward Integration: Established manufacturing infrastructure with capacity of 90,000 MT/year for ERW steel pipes and 1,50,000 units/year for swaged steel tubular poles enabling operational efficiencies and customization capabilities.

Challenges:

• Boosted Profits Raise Concerns: Analyst flags boosted profits from FY24 onwards (PAT jumping from ₹0.74 crore in FY23 to ₹6.00 crore in FY25) raising sustainability concerns in highly competitive and fragmented steel segment.
• High Leverage: Debt/equity of 1.67 with total borrowings of ₹34.81 crore against net worth of ₹20.85 crore indicates elevated leverage requiring careful working capital management.

Utilisation of IPO Proceeds

• Working Capital: ₹13.75 crore for meeting working capital requirements to support government tender-based project execution.
• Capital Expenditure: ₹2.20 crore for establishment of new manufacturing facility for Crash Barriers and Solar Panel Structures within existing premises.
• General Corporate Purposes: Residual amounts.

Financial Performance

• Revenue: ₹80.60 crore for 9 months ended December 2025 (82% of full FY25), ₹98.31 crore for FY25, growth from near static levels of ₹87.41 crore in FY24 and ₹87.21 crore in FY23, reflecting improved project execution in electricity transmission, street lighting, and telecom infrastructure segments.
• Net Profit: ₹5.30 crore for 9 months FY26 (88% of full FY25), ₹6.00 crore in FY25 representing 188% growth from ₹2.08 crore in FY24 and 8x expansion from ₹0.74 crore in FY23, with post-IPO EPS of ₹6.42 and P/E of 12.46x. Investors tracking Anubhav Plast share price should note weak 2.18x subscription with only 919 applications, one broker recommending AVOID citing aggressively priced valuation and poor merchant banker track record, high debt/equity of 1.67, and boosted profit sustainability concerns in competitive steel segment resulting in 5% listing day loss at lower circuit.