Ardee Industries shares slip after strong listing; what investors should do

Shares of Ardee Industries Ltd slipped on Wednesday following a strong market debut, with the stock listing at a premium of 38.87 per cent over its initial public offering (IPO) price of Rs 53.

The stock debuted at Rs 73.60 on BSE and subsequently pared some of its gains. At the time of writing, Ardee Industries shares were trading at Rs 67.29, up 26.96 per cent over the IPO price.

The company's IPO was open for subscription from August 5 to August 7. The issue was subscribed 133.66 times overall, with nearly 41.2 lakh applications. The issue received bids worth more than Rs 41,300 crore.

The portion reserved for qualified institutional buyers (QIBs) was subscribed 197.77 times, while the non-institutional investor (NII) and retail portions were subscribed 255.25 times and 45.71 times, respectively.

Commenting on the listing, Shivani Nyati, Head of Wealth at Swastika Investmart, said, "Ardee Industries made a strong stock market debut. The post-listing outlook remains positive, supported by attractive valuations, strong RoNW of 57.46 per cent, healthy profitability and its presence in the growing circular economy and recycling space. However, after a sharp listing gain, investors should avoid chasing the stock at higher levels and watch for profit-booking. IPO allottees can continue to hold with a stop-loss of Rs 65 on a closing basis, while fresh investors may consider buying only on meaningful dips."

Mahesh M Ojha, Vice-President Research & Business Development at Kantilal Chagganlal Securities, noted, "We believe the company offers a reasonable valuation, established market positioning and scope for balance-sheet improvement. The structural growth in battery recycling and increasing emphasis on resource recovery provide a favourable long-term industry backdrop."

For IPO allottees, he said, "Investors primarily targeting listing gains may consider booking profits on listing, subject to market conditions. We estimate a potential 20–25 per cent listing gain."

Ojha also said, "Investors with a longer investment horizon may hold the stock, given the company's positioning in the organised recycled lead market, improving balance sheet and potential growth opportunities in the circular economy."

New Delhi-based Ardee Industries operates in India's circular economy, focusing on the recycling of end-of-life energy storage products, particularly used lead-acid batteries, along with non-ferrous scrap.

The company recovers metals from waste streams and serves applications across the battery and metal industries.