Pro FX Tech IPO Lists at 9% Premium, Falls Short of GMP Buzz

The audio-visual products distributor, Pro FX Tech Limited, made a firm debut on the NSE SME platform on July 3, 2025. After closing its IPO bidding between June 26 - June 30, 2025, the company commenced trading with a solid 9.20% premium to its issue price, though falling short of grey market expectations, reflecting measured investor confidence in the AV distribution sector. This book-building IPO raised ₹40.30 crore with strong subscription of 25.42 times, demonstrating substantial investor interest in the audio-visual distribution market as the company seeks to expand its showroom network and strengthen working capital for continued growth across India's entertainment technology sector.

Pro FX Tech Listing Details

Pro FX Tech Limited launched its IPO at ₹87 per share with minimum investment of 1,600 shares costing ₹1,39,200. The IPO received strong response with subscription of 25.42 times - NII segment leading at impressive 56.36 times, QIB at 22.03 times, and retail at 14.09 times, demonstrating solid investor enthusiasm across categories. The share price listed at ₹95 on NSE SME, delivering decent 9.20% premium from issue price, subsequently reaching day's high of ₹99.75 before trading around ₹99, though underperforming grey market expectations of ₹100.

Listing Price: The Pro FX Tech share price opened at ₹95 on NSE SME on July 3, 2025, representing a premium of 9.20% from issue price of ₹87, later reaching ₹99.75 intraday high though below grey market expectations of 15% premium.

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First-Day Trading Performance Outlook

Pro FX Tech delivered solid debut performance with decent premium and continued strength during trading, though falling short of grey market expectations which had indicated ₹13 GMP suggesting 15% listing gains. The company, established in 2006, distributes AV products including amplifiers, processors, speakers, and sound bars for brands like Denon, Polk, and JBL, operating seven showrooms and two experience centres across six Indian cities with 104 employees including 49 in sales and marketing.

Growth Drivers

Growth Drivers:

• Established Brand Partnerships: Strong distribution relationships with leading AV brands including Denon, Polk, and JBL ensuring access to latest innovations and quality products
• Comprehensive Retail Network: Seven showrooms and two experience centres across six major cities providing extensive market reach and customer engagement
• Growing AV Market: Positioned to benefit from expanding home entertainment and corporate AV solutions market in India with increasing disposable income
• Strong Financial Performance: Revenue growth of 17% and impressive PAT growth of 30% in FY25 with excellent ROE of 39.71% and ROCE of 45.55%

Utilisation of IPO Proceeds

• Debt Repayment: ₹2.00 crore for repayment of certain borrowings to improve capital structure and reduce financial leverage
• Showroom Expansion: ₹7.18 crore for capital expenditure towards setting up three new showroom cum experience centres to enhance market presence
• Working Capital: Remaining funds for meeting working capital requirements to support business operations and inventory management
• General Corporate Purposes: Balance for strategic initiatives and operational requirements

Financial Performance of Pro FX Tech

Revenue: ₹130.05 crore for FY25, showing solid 17% growth from ₹110.94 crore in FY24, reflecting strong business expansion in AV distribution market

Net Profit: ₹12.24 crore in FY25, demonstrating impressive 30% growth from ₹9.44 crore in FY24, showcasing operational efficiency improvements and margin expansion

Financial Metrics: Exceptional ROE of 39.71%, outstanding ROCE of 45.55%, minimal debt-to-equity of 0.06, healthy PAT margin of 9.41%, and EBITDA margin of 13.19%

Pro FX Tech represents a solid investment opportunity in the audio-visual distribution sector with decent listing performance delivering a 9% premium backed by strong financial metrics and established brand partnerships. Despite underperforming grey market expectations and concerns over fully priced valuation, the company's comprehensive retail network, growing AV market opportunity, and consistent financial performance provide reasonable growth potential in India's expanding entertainment technology landscape.