Manilam Industries IPO Makes Weak Debut with 20% Discount, Lists at ₹55.20 Against Moderate 6.25x Subscription

Manilam Industries India Ltd, a company incorporated in 2015 engaged in manufacturing and sale of decorative laminates and plywood having developed and launched several laminate collections including Artistica Collection, Vogue Collection, Dwar Collection, Magnificent Collection, Chromatic Tales, Flute, ECP, Wood & Veneer, and Wall Cladding catering to both residential and commercial application with integrated setup combining Service Depots with Experience Centres offering display, stock, dispatch, and customer interaction from single location employing 152 individuals as of February 10, 2026, made a weak debut on NSE SME on Friday, February 27, 2026. After closing its IPO bidding between February 20-24, 2026, the company commenced trading with a steep discount of 20% opening at ₹55.20 and touched low of ₹52.45 (down 24% from issue price).

Manilam Industries Listing Details

Manilam Industries launched its IPO at ₹69 per share with minimum investment of 4,000 shares costing ₹2,76,000. The IPO received moderate response with subscription of 6.25 times - individual investors at 5.88 times, NII at 12.49 times, QIB at 2.24 times, total applications of 3,739.

First-Day Trading Performance

Listing Price: Manilam Industries opened at ₹55.20 representing steep discount of 20% from issue price of ₹69.00, touched low of ₹52.45 (down 24%), trading around ₹54.95 (down 20.36%), with VWAP at ₹53.42, traded volume of 7.28 lakh shares, and market capitalisation declining to ₹120.05 crore against pre-IPO market cap of ₹150.75 crore with 99.42% sell-side visible in order book indicating complete absence of buying interest.

Growth Drivers and Challenges

Growth Drivers:

Diverse Product Portfolio: Wide range of decorative laminate collections including Artistica, Vogue, Dwar, Magnificent, Chromatic Tales, Flute, ECP, Wood & Veneer, and Wall Cladding catering to both residential and commercial applications with plywood trading in different grades and sizes for industrial and commercial sectors.

Improving Profitability: PAT growing from ₹1.53 crore in FY23 to ₹7.38 crore in FY25, ROCE of 13.50%, PAT margin of 5.33%, EBITDA margin improving to 14.39%.
Challenges:

Severe Market Rejection: Despite 6.25x subscription, opening discount of 20% followed by decline to 24% below issue price demonstrating complete market rejection and massive investor losses with 99.42% sell-side in order book.

Inconsistent Performance: Analyst notes inconsistency in top and bottom lines with revenue of ₹148.82 crore in FY23 declining to ₹138.04 crore in FY24 before recovering to ₹142.16 crore in FY25, boosted margins from FY24 onwards raising sustainability concerns.

High Leverage: Total borrowings of ₹58.05 crore against net worth of ₹43.08 crore indicating significant financial leverage in highly competitive and fragmented decorative laminates segment.

Small Scale Operations: Small company with only 152 employees, significant promoter dilution from 78.79% to 61.85% post-IPO, OFS component indicating promoter exit alongside fresh capital raise.

Utilisation of IPO Proceeds

Working Capital: ₹16.65 crore for working capital requirements representing largest allocation supporting laminates manufacturing and plywood trading operations.

Debt Repayment: ₹3.50 crore for repayment of certain loans availed by the company strengthening balance sheet.

Solar Panel Installation: ₹2.20 crore for purchase and installation of solar panel at manufacturing plant reducing power costs.

Equipment/Machinery: ₹1.25 crore for capital expenditure towards purchase of equipment/machineries enhancing manufacturing capabilities.

General Corporate Purposes: Remaining amount for general corporate purposes.

Financial Performance

Revenue: ₹60.53 crore for H1 FY26, ₹142.16 crore for FY25, versus ₹138.04 crore in FY24 and ₹148.82 crore in FY23.

Net Profit: ₹3.16 crore in H1 FY26, ₹7.38 crore in FY25, growth from ₹3.10 crore in FY24 and ₹1.53 crore in FY23, demonstrating improving but sustainability-questionable profitability with post-IPO EPS of ₹2.89 and P/E of 23.85x.