Readymix Construction Lists Flat at Issue Price, Hits Lower Circuit Post Listing on NSE SME

Readymix Construction Machinery Limited, a multidisciplinary manufacturer in the construction equipment sector operating since 2012, made a flat debut followed by weakness in the public markets on Thursday, February 13, 2025. The company, which specializes in engineering solutions for plant machinery and equipment, commenced trading on NSE SME at par with its issue price despite moderate IPO subscription numbers.

Readymix Construction Listing Details 

The company's market debut presented a divergence between opening price and subsequent trading:

• Listing Time & Price: When trading commenced at market open, Readymix Construction shares debuted at ₹123 on NSE SME, exactly at par with the issue price of ₹123. This flat opening came after the IPO's moderate subscription of 4.61 times.
• Issue Price Context: The company had fixed the IPO price at ₹123 per share. The market's initial response through flat listing suggests investors were cautious about the pricing given the company's recent profit growth pattern.
• Price Evolution: By 10:53 AM IST, the stock hit the lower circuit, trading at ₹116.85 after touching an intraday high of ₹123.00, representing a loss of 5% from the issue price.

First-Day Trading Performance of Readymix Construction

The trading activity showed active participation with bearish sentiment:

• Volume and Value: Within the first few hours, trading volume reached 4.12 lakh shares, generating a turnover of ₹5.04 crore, with 100% of traded quantity marked for delivery.
• Demand Dynamics: The stock's trading pattern showed no visible buy orders against sell orders for 4,90,000 shares, indicating significant selling pressure at current levels.

Market Sentiment and Analysis

• Market Reaction: Flat opening followed by lower circuit
• Subscription Rate: The IPO had been subscribed 4.61 times overall
• Category-wise Response: QIB portion subscribed 5.1 times, NII 4.76 times, and retail 4.26 times

Growth Drivers and Challenges 

Expected drivers of future performance:

• Diversified product range
• Wide industry coverage
• Strong after-sales network
• Established customer relationships
• Experienced management team
• End-to-end solutions capability

Potential challenges:

• Profit growth sustainability
• Working capital intensity
• Project execution risks
• Competitive pressures
• Cyclical nature of business
• High valuation concerns

Utilisation of IPO Proceeds 

The ₹37.66 crore raised through fresh issue will be used for:

• Repayment of borrowings
• Working capital requirements
• General corporate purposes
   

Financial Performance of Readymix Construction 

The company has shown mixed results:

• Revenue of ₹69.84 crore in FY2024
• 9M FY2025 (ended December 2024) showed revenue of ₹35.50 crore with PAT of ₹1.04 crore
• Net Worth of ₹19.80 crore as of December 2024
• Total borrowings of ₹16.68 crore
• Total assets of ₹52.43 crore as of December 2024

As Readymix Construction begins its journey as a listed entity, market participants will closely monitor its ability to maintain growth momentum and profit margins. The flat listing followed by lower circuit suggests investors are concerned about valuation multiples and recent profit growth sustainability. The company's ability to execute its order book efficiently while managing working capital will be crucial for potential price recovery and long-term investor confidence.