The shares of Sunita Tools made their debut on the BSE SME platform, listing at Rs 155, which marked a 6.8 percent premium over the issue price of Rs 145. However, shortly after being listed, the stock triggered the lower circuit with a 5 percent decline. By 10:30 am, the shares were trading at Rs 147.25.
Sunita Tools specializes in the production of mold base and machining parts, serving various sectors, including automotive, pharmaceutical, electronics, consumer goods, and manufacturing.
According to the company’s prospectus, it operates a manufacturing unit in Vasai, Mumbai, capable of producing large dimensional products ranging from 200×200 mm to 4000×2000 mm, weighing up to 30 tonnes.
The IPO received strong investor interest and was subscribed 13.24 times. At the issue price, the company’s market capitalization amounted to Rs 81.56 crore, with a trailing price-to-earnings ratio of 16.88x.
In the fiscal year 2023, the company reported a significant 59 percent year-on-year growth in revenue, reaching Rs 14.17 crore. Its net profit also increased to Rs 3.37 crore from Rs 81 lakh in the previous fiscal year. The company’s net worth improved to Rs 3.20 crore, a remarkable recovery from being in the negative in the fiscal years 2021 and 2020.
The book-running lead manager for the Sunita Tools IPO was Aryaman Financial Services Limited, with Kfin Technologies Limited acting as the registrar for the issue.