B.D. Industries Lists with Minimal Premium Despite Weak Subscription Response

The rotationally molded plastic products manufacturer, B.D. Industries (Pune) Limited, made a modest debut on BSE SME on August 6, 2025. After closing its IPO bidding between July 30 - August 1, 2025, the company commenced trading with a minimal 0.83% premium at ₹108.30, reflecting cautious investor sentiment despite strong financial growth trajectory and established presence in the automotive plastics sector.

First-Day Trading Performance Outlook

B.D. Industries Limited launched its IPO at ₹108 per share with a minimum investment of 2,400 shares costing ₹2,59,200. The IPO received weak response with a subscription of only 1.81 times - NII leading at 3.66 times, whilst individual investors at 1.32 times and QIB participation remained subdued at 1.27 times, indicating limited investor interest in the plastic manufacturing business model.

Listing Price: The B.D. Industries share price opened at ₹108.30 on BSE SME, representing a minimal premium of 0.83% from the issue price of ₹108, delivering modest gains for investors despite weak subscription response, highlighting market equilibrium and realistic pricing expectations in the manufacturing sector.

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Growth Drivers and Challenges

Growth Drivers:

Strong Financial Performance: Revenue surged 52% to ₹84.13 crore in FY25 with PAT jumping 156% to ₹8.15 crore, reflecting robust demand for plastic automotive components and operational efficiency improvements.

Diversified Manufacturing Setup: Operating three manufacturing facilities in Pune, Dewas, and Hoshiarpur with fourth under construction in Zaheerabad, Telangana, ensuring geographic diversification and production scalability.

Comprehensive Product Portfolio: Manufacturing plastic fuel tanks, urea tanks, fenders, hydraulic tanks, air ducts, mudguards, cabin roofs, and products for safety, healthcare, and marine industries providing multiple revenue streams.

Established Client Relationships: Long-standing relationships with customers across automotive, agricultural, industrial, and marine sectors providing stable revenue base and repeat business opportunities.

Challenges:

High Debt Leverage: Significant debt-to-equity ratio of 1.05 with total borrowings of ₹22.19 crore, creating financial leverage concerns and interest payment obligations affecting cash flows.

Weak Market Reception: Poor subscription response of only 1.81 times indicates limited investor confidence in the business model and growth prospects in the competitive plastics sector.

Profitability Sustainability Concerns: Dramatic PAT surge from FY24 onwards raises questions about sustainability of current profit levels in the competitive automotive components market.

Market Competition: Operating in competitive plastic manufacturing sector with established players and pricing pressures affecting margins and market positioning.
 

Utilisation of IPO Proceeds

Debt Reduction: ₹18.40 crore for repayment of borrowings across company and subsidiaries, improving capital structure and reducing financial leverage burden for future growth.

Working Capital Funding: ₹14.60 crore for funding working capital requirements supporting inventory management and business operations in the manufacturing sector.

Machinery Purchase: ₹5.40 crore for purchase of machinery enhancing production capabilities and operational efficiency at manufacturing facilities.
 

 Financial Performance of Takyon Networks

Revenue: ₹84.13 crore for FY25, showing impressive 52% growth from ₹55.33 crore in FY24, reflecting strong demand recovery and market expansion in the plastic automotive components segment.

Net Profit: ₹8.15 crore in FY25, representing exceptional 156% growth from ₹3.18 crore in FY24, indicating substantial operational efficiency improvements despite competitive market conditions.

Financial Metrics: Strong ROE of 43.86%, impressive ROCE of 43.50%, high debt-to-equity of 1.05, solid RoNW of 35.97%, healthy PAT margin of 9.23%, moderate EBITDA margin of 18.92%, high Price to Book Value of 6.42, and market capitalisation of ₹153.47 crore.