Bhadora Industries IPO Lists at 2% Discount

The industrial cable manufacturer, Bhadora Industries Limited, made a weak debut on NSE SME on August 11, 2025. After closing its IPO bidding between August 4-6, 2025, the company commenced trading with a 1.94% discount at ₹101, reflecting cautious investor sentiment despite strong financial growth and established presence in the electrical cables sector.

Bhadora Industries Listing Details

Bhadora Industries Limited launched its IPO at ₹103 per share with a minimum investment of 2,400 shares costing ₹2,47,200. The IPO received poor response with a subscription of only 0.96 times - NII leading at 1.28 times whilst individual investors at 0.98 times and QIB participation remained weak at 0.68 times, indicating limited investor confidence in the cable manufacturing business model.

Don’t Miss Out on the Next Big IPO – Invest With Just a Few Clicks!

Open Account Now

First-Day Trading Performance Outlook

Listing Price: The Bhadora Industries share price opened at ₹101 on NSE SME, representing a discount of 1.94% from the issue price of ₹103, delivering modest losses for investors and highlighting market concerns about the competitive cable manufacturing sector.

Growth Drivers and Challenges

Growth Drivers:

Strong Financial Performance: Revenue surged 33% to ₹110.69 crore in FY25 with PAT jumping 118% to ₹10.79 crore, reflecting robust demand for industrial cables and operational efficiency improvements.

Established Brand Presence: Operating under "Vidhut Cables" brand with BIS accreditation and ISO certifications, serving state electricity boards and EPC companies across 18 states in India.

Manufacturing Expansion Plans: Setting up new facility in Khargone, Madhya Pradesh to expand production capabilities and meet growing demand for electrical infrastructure.

Government Vendor Status: Approved vendor in government schemes with established relationships with state electricity boards providing stable revenue streams.

Challenges:

Weak Market Reception: Poor subscription response of only 0.96 times indicates limited investor confidence in business prospects and growth potential.

High Debt Leverage: Significant debt-to-equity ratio of 0.94 with total borrowings of ₹19.67 crore creating financial leverage concerns affecting cash flows.

Competitive Market Environment: Operating in highly competitive and fragmented cable manufacturing sector with pricing pressures and margin challenges.

Profitability Sustainability: Quantum jump in financial performance from FY24 raises questions about sustainability of current profit levels in competitive environment.

Utilisation of IPO Proceeds

Manufacturing Expansion: ₹22.32 crore for establishing new manufacturing facility in Khargone, Madhya Pradesh to expand production capabilities and market reach.

Working Capital Funding: ₹20 crore for funding working capital requirements supporting inventory management and business operations in the cable manufacturing sector.

General Corporate Purposes: ₹7.88 crore allocated for general corporate purposes supporting business development and strategic initiatives.

Financial Performance of Bhadora Industries

Revenue: ₹110.69 crore for FY25, showing strong 33% growth from ₹83.27 crore in FY24, reflecting demand recovery and market expansion in the industrial cables segment.

Net Profit: ₹10.79 crore in FY25, representing exceptional 118% growth from ₹4.96 crore in FY24, indicating improved operational efficiency and margin expansion.

Financial Metrics: Strong ROE of 51.51%, impressive ROCE of 42.41%, moderate debt-to-equity of 0.94, solid RoNW of 51.51%, healthy PAT margin of 9.80%, moderate EBITDA margin of 15.42%, high Price to Book Value of 6.49, and market capitalisation of ₹191.58 crore.