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Ic Electricals is an SME company operating in the electrical sector, focusing on manufacturing and related services. The company has demonstrated consistent revenue and profit growth over the last three fiscal years, supported by strong return ratios and a healthy market sentiment for its IPO.
The company demonstrates robust financial growth, with impressive revenue and profit CAGRs and strong return ratios. The IPO is attractively valued compared to its peer, and market sentiment is overwhelmingly positive, as evidenced by high GMP and significant oversubscription across all categories. While some detailed operational and risk data are not available from the DRHP, the strong fundamentals and market demand make it a compelling 'Strong Apply' for listing gains and short-term, with good long-term potential.
| Category | Shares Offered | % of Issue | Share |
|---|---|---|---|
| QIB Shares Offered | 22,86,000 | 47.24% | |
| NII (HNI) Shares Offered | 6,98,400 | 14.43% | |
| Retail Shares Offered | 16,12,800 | 33.33% | |
| Market Maker Shares Offered | 2,42,400 | 5.01% |
| Investor | Shares | Amount | Anchor % |
|---|---|---|---|
| PINE OAK GLOBAL FUND-CLASS B | 2,01,600 | ₹2 Cr | 14.74% |
| SAGEONE-FLAGSHIP GROWTH OE FUND | 4,03,200 | ₹3.99 Cr | 29.47% |
| BENGAL FINANCE & INVESTMENT PVT.LTD. | 5,04,000 | ₹4.99 Cr | 36.84% |
| AKALPYA INDIA INVESTMENT TRUST | 1,57,200 | ₹1.56 Cr | 11.49% |
| ARTHASANCHAY INVESTMENT TRUST-ARTHASANCHAY GROWTH FUND | 1,02,000 | ₹1.01 Cr | 7.46% |
Premium gain of 42.42% over issue price.
Consistent and strong revenue growth (20.66% CAGR) and exceptional profit growth (74.06% CAGR).
Improving EBITDA and PAT margins, indicating enhanced operational efficiency.
Strong return ratios: ROE 23.88%, ROCE 18.18%, and RoNW 23.88% in FY26.
Attractive post-IPO valuation with a P/E of 12.82x, significantly lower than its peer.
Overwhelmingly positive market sentiment, reflected by a 42.42% GMP and 420.09x overall subscription.
Experienced management team with a proven track record and strong focus on Research & Development.
Well-equipped manufacturing facilities and an extensive Sales & Service Network.
Healthy promoter holding of 60.94% post-issue.
Strong demand in the electrical sector, successful R&D leading to new product launches, and significant market share gains through network expansion.
Steady industry growth, efficient operations, stable raw material prices, and effective execution of business strategies.
Intensified competition, significant raw material price volatility, and an economic slowdown impacting demand for electrical products.
Exceptional subscription numbers across all categories and a high GMP indicate strong listing day gains, making it a compelling opportunity for short-term investors.
Robust financials, attractive valuation, and overwhelmingly positive market sentiment suggest continued positive performance post-listing, offering good short-term returns.
Consistent growth, strong competitive strengths, and a reasonable valuation provide a good foundation for long-term value creation. However, industry-specific risks and the absence of detailed cash flow data warrant ongoing monitoring.
Ic Electricals SME IPO presents a compelling investment opportunity driven by robust financial performance, attractive valuation, and overwhelming market demand.
The company's consistent growth in revenue and profits, coupled with strong return ratios, underscores its operational efficiency and potential for sustained profitability.
While some detailed operational and risk data are not explicitly available from the DRHP, the overall picture suggests a well-managed entity poised for continued growth in the electrical sector.
The significant oversubscription across all investor categories and a high Grey Market Premium (GMP) further de-risk the listing and short-term prospects, indicating strong investor confidence.