Nanta Tech Limited Makes Strong Debut with 6.36% Premium, Lists at ₹234.00 Against Solid Subscription

Nanta Tech Limited, incorporated in 2023 specializing in audio visual integration, AV product supply and distribution, service robots, and software development offering end-to-end AV solutions including system design, integration, management, and on-site support tailored for corporates, education, hospitality, manufacturing supplying LED screens, professional displays, digital signage, video conferencing equipment, speakers, microphones, amplifiers, UC devices under NANTA brand procuring and selling service robots under ALLBOTIX brand with in-house software team developing customized solutions for robotics, AI tools, mobile apps, websites serving clients through dealer and distributor network, made a strong debut on BSE SME on December 31, 2025. After closing its IPO bidding between December 23-26, 2025, the company commenced trading with a premium of 6.36% opening at ₹234.00 and hit upper circuit at ₹245.70 (up 11.68%).

Nanta Tech Limited Listing Details

Nanta Tech launched its IPO at ₹220 per share with minimum investment of 1,200 shares costing ₹2,64,000. The IPO received solid response with subscription of 6.43 times - individual investors at 2.91 times, QIB at 12.98 times, NII at 7.03 times.

First-Day Trading Performance

Listing Price: Nanta Tech opened at ₹234.00 representing premium of 6.36% from issue price of ₹220.00, quickly hit upper circuit at ₹245.70 (up 11.68%), with VWAP at ₹235.57.

Growth Drivers and Challenges

Growth Drivers:

Strong Growth Trajectory: Revenue increased 93% and PAT surged 84% between FY24 and FY25, exceptional ROE of 47.12%, ROCE of 50.66%, RoNW of 33.66%, PAT margin of 9.29%, EBITDA margin of 12.65%, minimal debt-to-equity of 0.04.

Diversified Business Model: Wide product portfolio across AV integration, AV product supply and distribution, service robots under ALLBOTIX brand, software development services, having applications across various customer segments including corporates, education, hospitality, manufacturing.

Operational Capabilities: End-to-end AV solutions from system design to integration, management, and on-site support, strong network of dealer and distribution channel, well-established relationships with clients, in-house software team for customized solutions.

Challenges:

Valuation Concerns: Analyst categorically states issue appears exorbitantly priced recommending investors skip this pricey and dicey issue, post-issue P/E of 29.19x appears extremely elevated, price-to-book of 5.73x.

Financial Inconsistency: Analyst highlights posted erratic financial performance with surprisingly boosted profits for FY25 raising sustainability concerns, incorporated only in 2023 providing extremely limited operating history of just 2 years.

Operational Risks: Operating in highly competitive and fragmented AV integration and distribution segment, tiny post-IPO paid-up equity capital indicating longer gestation period for mainboard migration, significant promoter holding at 79.88%, limited scale with just 23 permanent employees, vulnerable to technology changes and pricing pressures in consumer electronics.

Utilisation of IPO Proceeds

Experience Center: ₹14.05 crore for funding capital expenditure requirements towards setting up experience center cum product display area enhancing customer engagement.

Working Capital: ₹10.50 crore for funding working capital requirements supporting AV integration, product distribution, and service robot operations.

General Corporate Purposes: Remaining proceeds for general corporate purposes supporting operational needs and strategic initiatives.

Financial Performance

Revenue: ₹51.24 crore for FY25, growth of 93% from ₹26.60 crore in FY24.

Net Profit: ₹4.76 crore in FY25, growth of 84% from ₹2.59 crore in FY24, demonstrating strong profitability improvement though analyst questions sustainability given erratic historical performance.

Financial Metrics: Exceptional ROE of 47.12%, minimal debt-to-equity of 0.04, ROCE of 50.66%, PAT margin of 9.29%, price-to-book of 5.73x, post-issue EPS of ₹7.54, extreme P/E of 29.19x, borrowings of ₹0.50 crore, and market capitalisation of ₹126.05 crore representing strong listing premium of 6.36% hitting upper circuit at 11.68% despite analyst calling issue exorbitantly priced and recommending investors skip.