Ardee Industries has raised ₹127.76 crore from seven anchor investors ahead of its ₹425.9 crore IPO. The subscription period for the lead recycling company opens on August 5 and closes on August 7, with a price band of ₹50-53 per share. Investors will track the company's ability to manage working capital and debt repayment after the share sale.
Ardee Industries, a New Delhi-based firm engaged in lead recycling, has completed its anchor investor round, securing ₹127.76 crore. This event precedes the company's Initial Public Offering (IPO), which is scheduled to open for public subscription on August 5 and remain active until August 7. The company has fixed a price band of ₹50 to ₹53 per share for the offering, which aims to raise a total of ₹425.9 crore.
The anchor allocation saw the distribution of 2.41 crore equity shares at the upper price band of ₹53. Notable participants included Bank of India Small Cap Fund, Bengal Finance & Investment, and Winro Commercial, each investing approximately ₹25 crore. Other participants, such as Bharat Value Fund and India Max Investment Fund, contributed ₹20 crore each, while Catalyst New India Fund and Cognizant Capital Dynamic Opportunities Fund invested ₹6.37 crore each.
The IPO structure consists of a fresh issue of shares worth ₹320 crore and an Offer-for-Sale (OFS) of 1.99 crore shares by promoters, amounting to ₹105.9 crore. The company intends to use ₹220 crore from the fresh issue to support its incremental working capital needs, which is a significant portion of the total proceeds. Additionally, ₹20 crore is allocated toward the repayment of existing debt, with the remainder of the funds designated for general corporate purposes.
Ardee Industries operates in the recycling sector, specifically focusing on recovering non-ferrous metals from end-of-life energy storage products. Its products, including pure lead and various lead alloys, are supplied to the automotive, e-mobility, and energy storage industries. Because the business is dependent on the availability and pricing of scrap, the efficiency of its recycling operations and management of raw material costs will be important factors for shareholders to track.
As the company moves through the IPO process, investors will likely monitor how effectively it utilizes the new funds to scale its operations. While the proceeds are earmarked for working capital and debt reduction, the company's future performance will depend on its ability to manage the risks associated with volatile lead prices and the competitive landscape of the recycling industry. The merchant banker overseeing this issuance is Pantomath Capital Advisors. Following the close of the subscription on August 7, the focus will shift to the share allotment status and the subsequent listing of the stock on the exchanges.