New Delhi, October 14 (Daily Kiran): Steel products manufacturer Mittal Sections made a weak debut on the stock market on Monday, disappointing investors as its shares listed at a steep discount of 20 percent on the BSE SME platform.
The company’s shares, issued at ₹143 per share under its IPO, opened at ₹114.40, well below the issue price. As of 10:45 a.m., the stock remained unchanged at the listing level, showing no recovery in early trade.
The ₹52.91 crore IPO of Mittal Sections was open for subscription from October 7 to 9, and received a mixed investor response, being subscribed 2.25 times overall. The Qualified Institutional Buyers (QIB) portion was subscribed 1.13 times, the Non-Institutional Investors (NII) segment 0.55 times, and the retail investor portion 4.08 times.
Under the IPO, the company issued 37 lakh fresh shares of face value ₹10 each. The funds raised will be used for purchasing land and constructing a new factory building, buying machinery, reducing debt, meeting working capital requirements, and general corporate purposes.
As per the company’s prospectus, Mittal Sections’ financial performance has shown growth in profits but a decline in revenue. The company’s net profit rose from ₹56 lakh in FY 2022-23 to ₹1.89 crore in FY 2023-24, and further to ₹3.61 crore in FY 2024-25. However, revenue fell from ₹167.53 crore in FY 2022-23 to ₹161.65 crore in FY 2023-24, and further down to ₹137.07 crore in FY 2024-25.
In the first quarter of FY 2025-26 (April–June 2025), the company reported a net profit of ₹1.47 crore on revenue of ₹28.17 crore.
Mittal Sections’ debt position fluctuated over the years — from ₹20.39 crore in FY 2022-23, it declined to ₹15 crore in FY 2023-24, rose again to ₹21.09 crore in FY 2024-25, and stood at ₹20.70 crore at the end of the first quarter of FY 2025-26.
The company’s reserves and surplus stood at ₹2.21 crore in FY 2022-23, increased to ₹4.11 crore in FY 2023-24, then fell to ₹2.47 crore in FY 2024-25, before improving to ₹3.94 crore by June 2025.
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