Exim Routes Limited Makes Strong Debut with 25.00% Premium, Lists at ₹110.00 Against Outstanding Subscription

Exim Routes Limited, incorporated in 2019 as global platform facilitating exchange of recyclable paper materials offering end-to-end services to Indian paper mills from sourcing wastepaper to quality assurance and logistics operating through proprietary AI-powered business-to-business platform ERIS connecting buyers and sellers streamlining procurement, supply-chain, and delivery with operations spanning India, Singapore, USA, UK, Germany, and South Africa offering comprehensive services including sourcing, quality assurance, logistics, and trade execution, made a strong debut on NSE SME on December 19, 2025. After closing its IPO bidding between December 12-16, 2025, the company commenced trading with a premium of 25.00% opening at ₹110.00 and touched ₹114.50 (up 30.11%).

Exim Routes Limited Listing Details

Exim Routes launched its IPO at ₹88 per share with minimum investment of 3,200 shares costing ₹2,81,600. The IPO received outstanding response with subscription of 15.23 times - individual investors at 9.94 times, QIB at 19.11 times, NII at 22.43 times.

First-Day Trading Performance

Listing Price: Exim Routes opened at ₹110.00 representing premium of 25.00% from issue price of ₹88.00, touched high of ₹114.50 (up 30.11%), with VWAP at ₹109.29, reflecting exceptional market enthusiasm with strong listing gains despite analyst concerns about aggressive pricing and Q1-FY26 declining trends.

Growth Drivers and Challenges

Growth Drivers:

Strong Growth Trajectory: Revenue increased 67% and PAT surged 80% between FY24 and FY25, exceptional ROE of 53.14%, ROCE of 35.53%, RoNW of 42.28%, PAT margin of 6.27%, EBITDA margin of 8.24%, minimal debt-to-equity of 0.20.

Technology Platform: AI-enabled business-to-business platform ERIS facilitates efficient buyer-seller matching and transaction coordination, end-to-end service model including procurement, logistics, and delivery reducing complexity for Indian paper mills.

Global Network: Globally oriented sourcing network for recyclable paper materials enabling access to international supply, operations spanning India, Singapore, USA, UK, Germany, and South Africa, experienced promoters with expertise in trade and supply chain.

Challenges:

Recent Performance Decline: Q1-FY26 indicates declined trends according to analyst review raising sustainability concerns, issue appears aggressively priced despite strong historical growth.

Valuation Concerns: Analyst categorically states only well-informed, cash surplus, and risk seekers may invest while others can skip this pricey and dicey issue, post-issue P/E of 35.18x appears elevated, price-to-book of 7.77x.

Operational Risks: Small paid-up equity capital post-IPO indicating longer gestation for mainboard migration, just 18 employees limiting operational scale, incorporated only in 2019 providing limited operating history, significant promoter dilution from 71.35% to 52.44%, vulnerable to commodity price volatility in recyclable paper markets.

Utilisation of IPO Proceeds

Platform Development: ₹11.87 crore for development and maintenance of ERIS platform. Working Capital: ₹9.00 crore for working capital to fund business growth. Infrastructure: ₹7.13 crore for investment in office space to accommodate new hires. General Corporate Purposes: ₹6.54 crore.

Financial Performance

Revenue: ₹120.99 crore for FY25, growth of 67% from ₹72.39 crore in FY24. 

Net Profit: ₹7.56 crore in FY25, growth of 80% from ₹4.20 crore in FY24. 

Financial Metrics: ROE of 53.14%, debt-to-equity of 0.20, PAT margin of 6.27%, post-issue EPS of ₹2.50, P/E of 35.18x, and market capitalisation of ₹196.90 crore.