Apollo Techno Industries Limited Makes Strong Debut with 11.54% Premium, Lists at ₹145.00 Against Outstanding Subscription

Apollo Techno Industries Limited, incorporated in 2016 specializing in trenchless technology and foundation equipment for construction industry offering products including Horizontal Directional Drilling rigs, Diaphragm Drilling Rigs, Rotary Drilling Rigs, and spare parts with in-house design and engineering capabilities, made a strong debut on BSE SME on December 31, 2025. After closing its IPO bidding between December 23-26, 2025, the company commenced trading with a premium of 11.54% opening at ₹145.00 and touched ₹149.00 (up 14.62%).

Apollo Techno Industries Limited Listing Details

Apollo Techno Industries launched its IPO at ₹130 per share with minimum investment of 2,000 shares costing ₹2,60,000. The IPO received outstanding response with subscription of 50.63 times - individual investors at 44.81 times, QIB at 25.26 times, NII at 98.00 times.

First-Day Trading Performance

Listing Price: Apollo Techno Industries opened at ₹145.00 representing premium of 11.54% from issue price of ₹130.00, touched high of ₹149.00 (up 14.62%) and low of ₹140.00 (up 7.69%), with VWAP at ₹144.92, reflecting positive market sentiment with solid listing gains supported by outstanding subscription of 50.63 times despite analyst concerns about erratic performance and sustainability.

Growth Drivers and Challenges

Growth Drivers:

Exceptional Growth Trajectory: Revenue increased 44% and PAT surged 327% between FY24 and FY25, exceptional ROE of 74.75%, ROCE of 30.98%, RoNW of 54.45%, healthy PAT margin of 13.84%, strong EBITDA margin of 18.31%.

Specialized Technology: Focus on trenchless technology with horizontal directional drilling for installing pipes, cables, and utilities with minimal environmental impact, diaphragm drilling for structural support and deep excavation, rotary drilling rigs for piling supporting infrastructure projects including metro, bridges, and construction.

Operational Capabilities: In-house engineering and design capabilities with five-member design team, strong market presence across key regions with Gujarat leading at 34.52%, focus on quality and customer service, customer-centric approach building long-term relationships, experienced promoters and management team.

Challenges:

Profit Quality Concerns: Analyst highlights posted erratic financial performances across reported periods, though marked setback in top line for FY24 yet posted higher bottom line surprising all, record performance for FY25 (pre-IPO year) raises eyebrows and concern over sustainability.

Valuation Concerns: Issue appears fully priced according to analyst, extreme price-to-book of 11.27x, post-issue P/E of 41.16x appears extremely elevated versus pre-issue 9.43x, extreme dilution in EPS from ₹13.79 to ₹3.16 post-issue.

High Leverage: Extreme debt-to-equity of 3.74 representing severe financial leverage, total borrowings of ₹31.75 crore versus net worth of ₹25.32 crore in FY25, significant promoter dilution from 100% to 73.05%, operating in capital-intensive construction equipment manufacturing segment.

Utilisation of IPO Proceeds

Working Capital: ₹38.50 crore for meeting working capital requirements supporting manufacturing operations, inventory management, and business expansion representing majority of net proceeds.
General Corporate Purposes: Remaining proceeds for general corporate purposes supporting operational needs and strategic initiatives.

Financial Performance

Revenue: ₹99.66 crore for FY25, growth of 44% from ₹69.28 crore in FY24.

Net Profit: ₹13.79 crore in FY25, phenomenal growth of 327% from ₹3.23 crore in FY24.

Financial Metrics: Exceptional ROE of 74.75%, extreme debt-to-equity of 3.74, ROCE of 30.98%, PAT margin of 13.84%, extreme price-to-book of 11.27x, post-issue EPS of ₹3.16 (versus pre-issue ₹13.79), extreme P/E of 41.16x, borrowings of ₹31.75 crore, and market capitalisation of ₹194.38 crore representing strong listing premium of 11.54% touching 14.62% high validating outstanding subscription of 50.63 times despite concerns about sustainability.