Shah Investor’s Home launched its Rs 90.17-crore IPO on Monday, recording 7% subscription by early afternoon. Retail interest stands at 11%, while grey market premiums indicate a cautious sentiment among investors. The company's recent fiscal year results showed a decline in both profit and revenue, which remains a key focus for participants before the listing on October 6.
The initial public offering of Ahmedabad-based retail brokerage Shah Investor’s Home opened for subscription on Monday, witnessing a cautious start. By the early afternoon, the total subscription reached 7% of the shares on offer. Participation from retail investors was slightly higher at 11%, while the non-institutional segment saw 7% interest.
The company is looking to raise Rs 90.17 crore through this issue, with a price band set between Rs 159 and Rs 167 per share. At the upper end of this range, the company is valued at Rs 353.25 crore. According to early trends in the grey market, the stock is commanding a premium of about 7%, or roughly Rs 12 per share, suggesting that expectations for a high-profit listing at the moment are modest.
A significant factor for investors to consider is the company's recent financial performance. For the fiscal year ended March 2026, the brokerage reported a net profit of Rs 13.2 crore, marking a 43.5% drop from the Rs 23.4 crore profit reported in the previous year. Revenue figures followed a similar path, declining by 24.2% to Rs 71.5 crore. This performance stands in contrast to established peers in the industry, such as SMC Global Securities, Share India Securities, and Arihant Capital Markets, and will likely be a primary point of discussion among potential shareholders.
The capital raised from the IPO is primarily aimed at funding the company's daily operational needs. The company has earmarked Rs 60 crore specifically for working capital requirements, while the remainder of the funds will be used for general corporate purposes. For brokerage firms, maintaining sufficient working capital is essential to handle daily trading operations, and this allocation suggests the company needs cash to support its existing business model in a competitive environment.
Looking at the timeline, the share allotment process is scheduled to be finalized by October 1. The stock is expected to make its debut on the exchanges on October 6. In the coming days, market participants will likely watch for any increase in subscription numbers, as well as management's future plans to address the recent decline in profitability.