INDO SMC IPO Makes Flat Debut, Lists at ₹149 Against Strong 110.49x Subscription

INDO SMC Ltd, a Gujarat-based company engaged in design and manufacturing of diversified range of products catering to electrical, industrial, and infrastructural applications including enclosure boxes for energy meters, high tension current transformers (HTCT), high tension potential transformers (HTPT), low tension current transformers (LTCT), LT/HT distribution boxes and panels, fiberglass reinforced plastic (FRP) grating, junction boxes, feeder pillars and other power distribution and circuit protection switchgears, made a flat debut on BSE SME on Tuesday, January 21, 2026. After closing its IPO bidding between January 13-16, 2026, the company commenced trading at issue price of ₹149 before slipping into negative territory touching ₹141.55 (down 4.99%).

INDO SMC Listing Details

INDO SMC launched its IPO at ₹149 per share with minimum investment of 2,000 shares costing ₹2,98,000. The IPO received exceptional response with subscription of 110.49 times - individual investors at 96.13 times, NII at 164.59 times, QIB at 94.94 times..

First-Day Trading Performance

Listing Price: INDO SMC opened at ₹149.00 representing flat listing at issue price of ₹149.00, touched high of ₹149.00 before declining to lower circuit at ₹141.55 (down 4.99%), with VWAP at ₹148.32, reflecting cautious market sentiment despite stellar subscription numbers with the stock trading around ₹146.60 (down 1.61%) during early hours with turnover of ₹29.96 crore and market capitalisation of ₹335.06 crore.

Growth Drivers and Challenges

Growth Drivers:

Strategic Manufacturing Base: Four manufacturing facilities across Gujarat, Maharashtra, and Rajasthan with Ahmedabad facility equipped with variety of machinery for SMC and FRP products.

Product Diversification: Wide range of electrical products including energy meter enclosures, HTCT, HTPT, LTCT, distribution boxes, panels, FRP grating, junction boxes, feeder pillars, and power distribution switchgears catering to diverse industrial applications.

Quality Assurance: In-house testing laboratories ensuring products meet quality requirements and suitable material composition with robust quality control systems.

Financial Performance: Revenue of ₹112.62 crore in H1 FY26, ROE of 27.66%, ROCE of 17.50%, PAT margin of 10.18%, EBITDA margin of 15.27%, strong order book of ₹111+ crore as of November 2025.

Challenges:

Aggressive Pricing: Analyst notes issue appears aggressively priced based on recent financial data, recommending only well-informed investors may park funds for medium term.

Competitive Segment: Operating in highly competitive electrical equipment segment with multiple established players.

Leverage Position: Debt-to-equity ratio of 1.05 with total borrowings of ₹49.35 crore indicating moderate leverage, significant promoter dilution from 82.30% to 60.07% post-IPO.

Listing Performance: Flat listing despite 110.49x subscription followed by decline to lower circuit raises concerns about near-term price performance.

Utilisation of IPO Proceeds

Plant and Machinery: ₹25.71 crore for funding capital expenditure to purchase plant and machinery enhancing manufacturing capabilities.

Working Capital: ₹52.00 crore for funding working capital requirements supporting electrical equipment manufacturing operations.

General Corporate Purposes: Remaining amount for general corporate purposes.

Financial Performance

Revenue: ₹112.62 crore for H1 FY26, ₹138.78 crore for FY25, significant growth from ₹28.06 crore in FY24, reflecting rapid expansion in electrical equipment manufacturing operations.

Net Profit: ₹11.46 crore in H1 FY26, ₹15.44 crore in FY25, growth from ₹3.00 crore in FY24, demonstrating strong profitability improvement with post-IPO EPS of ₹10.02 and P/E of 14.86x.