₹425.87 Cr
Total Issue Size
₹106,000 (2,000 shares)
1 Lot Cost (Min. Inv.)
₹2,847.00 Cr
Market Cap (At Upper Band)
₹127.76 Cr (30.0% of Issue)
Anchor Book Allocation
+₹17 ()
Grey Market Premium Updated 29 Aug 2026, 04:03 PM IST
Issue Structure & OFS vs Fresh Capital Split
| Offering Parameter / Tranche |
Allocation & Value |
% of Gross Issue |
Strategic Mandate / Terms |
| Fresh Issue (Primary Growth Capital) | ₹320.00 cr (aggregating up to ₹3,200.00 million). | 48.0% | Balance sheet equity expansion directly fueling capex, debt repayment & operations |
| Offer for Sale (OFS - Insiders) | 19,975,000 Equity Shares (~₹344 cr estimated at peer average P/E of 33.6x). | 52.0% | Secondary liquidity realization for existing promoters & early institutional funds |
| Gross Total Issue Size | ₹425.87 Cr | 100.0% | Aggregate primary market capital raising at upper price band |
| Net Proceeds Reaching Company | Net Proceeds = ₹320.00 cr minus company's portion of offer expenses. | - | Net growth funds after deducting book building issue & underwriting expenses |
| Anchor Investor Allocation Tranche | ₹127.76 Cr (30.0% of Issue) | Up to 30.0% | Reserved anchor allotment tranche for institutional Qualified Institutional Buyers (QIBs) |
| Pre-IPO WACA Benchmark | WACA per equity share for Promoters Sandeep Aggarwal and Nikunj Aggarwal is ₹Nil (due to bonus issuances and nominal original cost). Esha Gupta WACA is ₹1.12. | Weighted average cost of acquisition for promoters & early funds |
| Selling Shareholders & Dilution | Promoter Selling Shareholders: Sandeep Aggarwal (up to 9,987,500 shares) and Nikunj Aggarwal (up to 9,987,500 shares). No PE selling. |
| Intermediary / Regulatory Entity |
Entity Name / Details |
Statutory Function & Status |
| Book Running Lead Managers (BRLMs) |
SEBI Registered Merchant Bankers / BRLMs |
Issue pricing, underwriting, book building & institutional roadshows |
| Registrar to the Issue |
SEBI Category-I Registrar |
Allotment finalization, Demat share transfer & ASBA refund processing |
| Proposed Listing Exchanges |
NSE / BSE |
Trading segments, ticker assignment & continuous disclosure compliance |
| Regulatory Prospectus Stage |
DRHP / RHP Filed |
SEBI ICDR compliance review & exchange in-principle listing approval |
Revenue Breakdown, Product Mix & Customer Concentration
| Product / Operating Segment |
Share (%) |
Value / Channel |
Pure Lead Bullion / Ingots | 59.7% | ₹697.10 Cr |
Specialized Lead Alloys | 40.3% | ₹470.55 Cr |
| Market Segment / Customer Concentration Tier |
Share (%) |
Reported Value |
Concentration & Risk Profile |
| Domestic Battery / Industrial OEM Sales | 82.4% | ₹962.14 Cr | Automobile and energy storage battery OEMs |
| International Export Sales | 17.6% | ₹205.51 Cr | Southeast Asia & Middle East exports |
| Top 1 Lead-Acid Battery OEM Customer | 21.4% | ₹249.88 Cr | Major Tier-1 battery manufacturer |
| Top 5 Industrial OEM Customers | 58.2% | ₹679.57 Cr | Standard industrial OEM concentration |
Capital Allocation (Where the Fresh Money Goes)
| Object of the Offer / Proposed Expenditure |
Amount (₹ Cr) |
% of Fresh Issue |
Deployment Timeline / Purpose |
| Debt Deleveraging (Prepayment of term loans) | ₹20.00 Cr | 4.7% | FY27 Scheduled |
| Long-Term Working Capital & Lead Sourcing | ₹380.00 Cr | 89.2% | Scrap sourcing & ops |
| General Corporate Purposes (GCP) | ₹25.86 Cr | 6.1% | General operations |
| Total Fresh Growth Capital | ₹425.86 Cr | 100.0% | Balance Sheet Inflow |
3-Year Audited Financial Health & Margins
| Audited Metric / Line Item |
FY24 |
FY25 |
FY26 |
3-Yr CAGR |
| Revenue from Operations |
₹462.96 Cr |
₹742.74 Cr |
₹1,167.65 Cr |
+58.8% |
| EBITDA (Operating Profit) |
₹28.06 Cr (6.1%) |
₹65.93 Cr (8.9%) |
₹147.08 Cr (12.6%) |
+129.0% |
| Profit After Tax (PAT) |
₹8.95 Cr (1.9%) |
₹33.27 Cr (4.5%) |
₹84.68 Cr (7.3%) |
+207.5% |
| Operating Cash Flow (CFO) |
-₹25.26 Cr |
₹7.84 Cr |
₹29.83 Cr |
Turnaround |
| ROCE (Return on Capital) |
12.83% |
25.17% |
44.26% |
Expanding |
| Debt-to-Equity (D/E) |
4.87x |
2.65x |
1.24x |
Deleveraging |
Governance, Lock-in & Litigation Review
| Shareholder Category / Promoter Group |
Pre-IPO Holding (%) |
Post-IPO Holding (%) |
Mandatory Lock-in Terms & Dilution |
| Promoter & Promoter Group | 85.10% | 62.30% | 20% locked for 18 Mos; balance 6 Mos |
| Public / Institutional Shareholders | 14.90% | 37.70% | Public float post fresh issue |
| Litigation Category / Proceedings |
Adjudicating Forum |
Quantifiable Exposure |
Materiality Assessment |
| DGGI GST Matter & Tax Disputes | DGGI / CESTAT | ₹9.81 Cr | DGGI show cause contested in appeal |
| Environmental & Pollution Compliance | SPCB Adjudication | ₹0.00 Cr | Lead recycling consents valid |
1. Executive Business Summary & Core Operations
Ardee Industries presents a compelling top-line growth story with revenue scaling 2.5x to ₹1,167 cr and ROCE hitting 44.26%. However, a deep dive into the cash flows reveals that 90% of reported profits over 3 years remain locked in working capital advances, while promoter GST litigation adds a governance discount.
2. Value Proposition, Products & Operations
Ardee Industries Limited is an Indian circular economy company specializing in the recycling of end-of-life battery scrap and non-ferrous scrap to produce refined pure lead (99.97%+ purity) and customized lead alloys (calcium, antimony, tin, silver) for lead-acid battery manufacturers and metal industries.
3. Industry Dynamics & Market Positioning
The IPO consists of a ₹320 cr Fresh Issue alongside an Offer for Sale of 19,975,000 equity shares by promoters Sandeep and Nikunj Aggarwal (whose acquisition cost is ₹Nil). Primary proceeds are largely earmarked for incremental working capital (₹220 cr) and debt reduction (₹20 cr).
4. Detailed Financial Trajectory & Margin Analysis
While P&L numbers show stellar growth (FY26 PAT ₹84.68 cr), cash quality is low. CFO/PAT stood at -2.82x in FY24, 0.24x in FY25, and 0.35x in FY26. Cumulative 3-year FCF remains negative (-₹45.88 cr) due to heavy working capital absorption and supplier advances.
5. Promoter Integrity, Governance & Shareholding
Promoters hold 91.16% pre-IPO with zero share pledge. However, inter-company transactions with group entity Pilot Industries (sales ₹20.27 cr, advances ₹21.88 cr) and recent independent director appointments (June/July 2025) require ongoing monitoring.
6. Relative Valuation & Benchmark Multiples
| Company Name |
CMP / Issue Price (₹) |
P/E Ratio (x) |
EV / EBITDA (x) |
RoNW / ROCE (%) |
Annual Revenue (₹ Cr) |
| Ardee Industries Limited | ₹53 | 33.6x | 19.4x | 44.3% | ₹1,167.65 Cr |
| Gravita India Limited | ₹2,400 | 42.5x | 28.5x | 28.5% | ₹3,160.00 Cr |
| Nile Limited | ₹950 | 16.4x | 9.8x | 18.2% | ₹850.00 Cr |
| Industry Peer Composite | - | 29.5x | 19.2x | 23.4% | - |
Peer group (Gravita India, Pondy Oxides, Jain Resource Recycling) trades at an average P/E of 33.63x. While Ardee's 44.26% ROCE outpaces peers (Gravita 13.27%), the lack of cash flow backing and promoter legal proceedings suggest it should trade at a discount to Gravita.
Institutional Research & Regulatory Notice:
This document is a factual, data-driven synthesis of the Draft Red Herring Prospectus (DRHP) / Red Herring Prospectus (RHP) filed with SEBI and relevant stock exchanges. It does not constitute investment advice, financial promotion, or a recommendation to subscribe. Primary market investments carry market risk. Consult a SEBI-registered investment advisor before making allocation decisions.
