Ardee Industries IPO: The initial public offering (IPO) of Ardee Industries, a company engaged in the secondary metals industry, is all set to open for subscription on Thursday (August 6). This is the first mainboard IPO opening this week.
Ardee Industries IPO is a book-built issue worth Rs 425.87 crore. The issue comprises a fresh issue of 6.04 crore shares and an offer for sale (OFS) of 2 crore shares.
As of August 5, the GMP for the IPO stands at Rs 8, translating into an estimated listing price of Rs 61 against the upper issue price of Rs 53. This implies an estimated profit of Rs 2,248 per lot of 281 shares.
The IPO has also witnessed an improving trend in the unlisted market, with the GMP rising consistently since August 2. However, it had earlier slipped to Rs 13 from its higher levels on July 29.
Ardee Industries IPO Allotment Date
The basis of allotment is expected to be finalised on August 10, 2026. Investors can check their allotment status on the official websites of the NSE, BSE, and KFin Technologies, the registrar to the issue.
Should you subscribe to the Ardee Industries IPO?
Ahead of the IPO opening for its three-day subscription window, brokerages including SMIFS Ltd and SBI Securities have issued recommendations on the public issue.
The IPO has received a ‘Subscribe for Long Term’ recommendation from both SMIFS and SBI Securities, backed by strong earnings growth, capacity expansion, and improving profitability. However, investors should also consider risks such as customer concentration, dependence on imported scrap, and the long-term shift towards lithium-ion batteries before investing.
SMIFS suggests ‘Subscribe for Long Term’
SMIFS has recommended ‘Subscribe for Long Term’ for Ardee Industries’ IPO, citing its strong positioning in India’s recycled lead industry—a sector protected by high regulatory barriers and supported by rising demand.
Ardee Industries IPO Pros
The brokerage highlighted the company’s nearly threefold capacity expansion to 156,950 MTPA, revenue CAGR of 58.8 per cent, and PAT CAGR of over 207 per cent during FY24-FY26. It also noted Ardee’s dual listing on the MCX and the London Metal Exchange (LME), disciplined commodity hedging practices, rising exports, an improving balance sheet, and plans to diversify into plastic granules, copper, and tin recycling.
Ardee Industries IPO Risks
On the downside, the brokerage noted that the business remains exposed to volatile lead prices despite its hedging strategy. Capacity utilisation is still below optimal levels, while operations depend heavily on imported battery scrap and regulatory approvals. The company also faces customer concentration risk, with a significant portion of its revenue generated from a limited number of buyers.
SBI Securities remains optimistic
SBI Securities has also assigned a ‘Subscribe for Long Term’ rating, driven by Ardee Industries’ strong financial growth, expanding manufacturing capacity, and attractive valuation.
Ardee Industries IPO Pros
The brokerage expects capacity utilisation to improve from current levels, while the recently added capacity is likely to support volume growth. It also believes the company’s expansion into plastic granules, copper, and tin recycling will diversify its revenue streams.
In addition, SBI Securities highlighted Ardee’s LME-linked hedging framework, strategic plant location near battery manufacturers and ports, and robust financial performance, with revenue, EBITDA, and PAT posting CAGRs of 58.8 per cent, 129 per cent, and 207.5 per cent, respectively, during FY24-FY26. The issue is valued at around 19.7 times its post-issue earnings at the upper price band.
Ardee Industries IPO Risks
However, SBI Securities flagged key risks, including heavy dependence on a few customers, the rising adoption of lithium-ion batteries that could reduce long-term demand for lead-acid batteries, reliance on imported raw materials, and a potential conflict of interest with group company Pilot Industries until the proposed consolidation is completed.
(Disclaimer: The above article is meant for informational purposes only and should not be construed as investment advice. ET NOW DIGITAL advises its readers to consult their financial advisors before making any investment decisions.)
