CKK Retail Mart IPO Makes Flat Debut, Lists at ₹163 Against Tepid 1.63x Subscription

CKK Retail Mart Ltd, a company incorporated in 2005 engaged in distribution of packaged agro-commodities like sugar, rice, pulses, ghee along with packaged products such as milk powder and soft drinks including carbonated as well as fruit-based beverages following "Farm-to-Fork" approach with agro products under brands like Braunz and Jivanam and soft drinks like Jeera and Lemon Soda along with recently launched "Fruitzzzup" fruit pulp-based juice brand in April 2025 operating through three-tier distribution model supplying to stockists who distribute to distributors as well as direct to distributors model catering to retail, wholesale businesses, and e-commerce segment, made a flat debut on NSE SME on Friday, February 6, 2026. After closing its IPO bidding between January 30 - February 3, 2026, the company commenced trading flat at issue price of ₹163.00, touched high of ₹165.00 (up 1.23%) and trading around ₹163.40 (up 0.25% from issue price).

CKK Retail Mart Listing Details

CKK Retail Mart launched its IPO at ₹163 per share with minimum investment of 1,600 shares costing ₹2,60,800. The IPO received tepid response with subscription of only 1.63 times - individual investors at 2.12 times, NII at 1.52 times (bNII at 1.28 times, sNII at 1.99 times), QIB at 1.12 times with only 3 applications.

First-Day Trading Performance

Listing Price: CKK Retail Mart opened at ₹163.00 representing flat listing at issue price of ₹163.00, touched high of ₹165.00 (up 1.23%) before trading around ₹163.40 (up 0.25%), with VWAP at ₹163.01, reflecting neutral market sentiment with price stability near issue price as investors assessed valuation concerns with turnover of ₹29.71 crore, traded volume of 18.22 lakh shares, and market capitalisation of ₹316.47 crore marginally above pre-IPO market cap of ₹315.70 crore with healthy buying interest visible in order book.

Growth Drivers and Challenges

Growth Drivers:

Zero Debt Balance Sheet: Company operates with zero borrowings providing complete financial flexibility for growth investments and working capital requirements with strong net worth of ₹51.12 crore.

Consistent Financial Growth: Revenue growing from ₹109.93 crore in FY23 to ₹301.85 crore in FY25, PAT growing from ₹4.51 crore to ₹16.36 crore in same period, healthy ROE of 18.34%, strong ROCE of 22.58%.

Well-Established Distribution Network: Wide channel of sales and distribution network with established relationships with suppliers following three-tier distribution model and direct to distributors model with recent penetration in e-commerce segment.

Challenges:

Margin Concerns: Profit margins outperforming industry average raises eyebrows and concerns over sustainability in highly competitive agro-commodities distribution segment.

Weak Subscription: IPO barely subscribed at 1.63 times with QIB receiving only 3 applications at 1.12 times indicating institutional concerns over valuations.

Promoter Dilution: Significant promoter dilution from 100% to 72.12% post-IPO, small post-IPO equity capital indicating longer gestation for mainboard migration.

Utilisation of IPO Proceeds

Working Capital: ₹43.00 crore for funding working capital requirements representing largest allocation supporting agro-commodities distribution operations.

Warehouse Acquisition: ₹10.20 crore for funding acquisition of leasehold plots along with warehouses constructed upon said leasehold plots expanding storage infrastructure.

General Corporate Purposes: ₹9.70 crore for general corporate purposes.

Warehouse Refurbishment: ₹1.90 crore to undertake repair and refurbishment of warehouses situated on leasehold plots enhancing storage capabilities.

Financial Performance

Revenue: ₹159.93 crore for H1 FY26, ₹301.85 crore for FY25, significant growth from ₹233.35 crore in FY24 and ₹109.93 crore in FY23.

Net Profit: ₹8.59 crore in H1 FY26, ₹16.36 crore in FY25, growth from ₹12.67 crore in FY24 and ₹4.51 crore in FY23, demonstrating consistent profitability with post-IPO EPS of ₹8.87 and P/E of 18.38x.