Gabion Technologies India Limited Makes Strong Debut with 9.88% Premium, Lists at ₹89.00 Against Phenomenal Subscription

Gabion Technologies India Limited, incorporated in 2008 manufacturing steel gabions and providing geosynthetics, geotechnical engineering, and ground improvement services globally producing Double Twisted Hexagonal Steel Wire Mesh Gabions, Defence Gabions, PP Rope Gabions, Hi-tensile Rockfall Protection Nettings, Reinforced Geomat, and High Strength Flexible Geogrid supplying products and services for government entities, contractors, private customers, consultants across infrastructure, retaining walls, slopes, rockfall protection, irrigation, and mining sectors completing 76 projects worth ₹127.61 crore including 36 in roads, 12 in railways, 8 in private commercial, 9 in energy, 3 in mining, 3 in airports, 3 in defence, and 2 in water resources, made a strong debut on BSE SME on January 13, 2026. After closing its IPO bidding between January 6-8, 2026, the company commenced trading with a premium of 9.88% opening at ₹89.00 and hit lower circuit at ₹84.55 (up 4.38%).

Gabion Technologies India Limited Listing Details

Gabion Technologies launched its IPO at ₹81 per share with minimum investment of 3,200 shares costing ₹2,59,200. The IPO received phenomenal response with subscription of 826.00 times - individual investors at 867.23 times, QIB at 271.13 times, NII at 1,467.78 times.

First-Day Trading Performance

Listing Price: Gabion Technologies opened at ₹89.00 representing premium of 9.88% from issue price of ₹81.00,quickly hit lower circuit at ₹84.55 (up 4.38%), with VWAP at ₹87.99.

Growth Drivers and Challenges

Growth Drivers:

Profitability Improvement: PAT increased 14% from ₹5.82 crore to ₹6.63 crore between FY24 and FY25, RoNW of 30.05%, ROCE of 19.17%, PAT margin of 6.60%, EBITDA margin of 14.89%.

Specialized Manufacturing: In-house experienced design and execution team, produces high-quality products for specialized contracts as manufacturer and contractor, comprehensive product portfolio including gabion boxes, revet mattresses, DT mesh netting, high-tensile rockfall protection netting, 3D geo-composite geomats, rockfall barriers, geotextiles, geomembranes, geogrids.

Operational Strengths: Wide customer base, competitive pricing, quality products, adoption of new products and technologies, adequate inventory ensuring timely delivery, serves government entities, contractors, private customers across infrastructure, irrigation, mining sectors.

Challenges:

Revenue Inconsistency: Analyst highlights top line marked inconsistency across reported periods with revenue declining 4% from ₹104.97 crore to ₹101.17 crore between FY24 and FY25, issue appears fully priced.

Operational Risks: Operating in highly competitive and fragmented geotechnical engineering and gabion manufacturing segment, thin PAT margin of 6.60%, significant EPS dilution from ₹6.65 to ₹4.75.

Utilisation of IPO Proceeds

Working Capital: ₹22.11 crore for working capital requirements representing majority of proceeds supporting manufacturing operations and project execution.

Capital Expenditure: ₹1.06 crore for meeting capex requirements for purchasing plant and machinery.
General Corporate Purposes: ₹3.00 crore for general corporate purposes supporting operational needs.

Financial Performance

Revenue: ₹101.17 crore for FY25, decline of 4% from ₹104.97 crore in FY24, reflecting revenue inconsistency despite strong project execution track record across 76 projects.

Net Profit: ₹6.63 crore in FY25, growth of 14% from ₹5.82 crore in FY24, demonstrating profitability improvement despite top line decline indicating operational efficiency.

Financial Metrics: RoNW of 30.05%, extreme debt-to-equity of 2.12, ROCE of 19.17%, thin PAT margin of 6.60%, EBITDA margin of 14.89%, price-to-book of 3.67x, post-issue EPS of ₹4.75 (versus pre-issue ₹6.65), P/E of 17.04x, borrowings of ₹46.71 crore increasing to ₹52.05 crore, and market capitalisation of ₹114.78 crore representing opening premium of 9.88% followed by lower circuit hit at 4.38% up validating phenomenal subscription of 826.00 times despite analyst concerns about revenue inconsistency and competitive segment.