New Delhi. The shares of Sundrex Oil Company, a manufacturer of industrial and automotive lubricants, entered the stock market today with a huge decline and caused huge loss to its IPO investors. Under the IPO, the company’s shares were issued at a price of Rs 86.
Today it was listed on NSE’s Emerge platform at Rs 68.80 with a discount of 20 percent. Due to selling that started after listing, within a short time the shares of the company fell to the lower circuit level of Rs 65.40. In this way, the IPO investors of the company suffered a loss of 20.60 paise i.e. 23.95 percent on the first day itself.
Sundrex Oil Company’s Rs 32.25 crore IPO was open for subscription between December 22 and 24. This IPO received a tepid response from investors, due to which it was subscribed 1.53 times overall. Of these, the reserve portion for Qualified Institutional Buyers (QIB) was fully subscribed.
There was 1.01 times subscription in the reserve portion for Non-Institutional Investors (NIIs). Similarly, the reserve portion for retail investors was subscribed 1.90 times. Under this IPO, 37,50,400 new shares with face value of Rs 10 have been issued.
The company will use the money raised through the IPO to reduce its old debt burden, meet its working capital requirements and for general corporate purposes. Talking about the financial position of the company, as per the claim made in the Draft Red Herring Prospectus (DRHP) submitted to the capital market regulator SEBI, its financial health has continuously strengthened.
The company had a net profit of Rs 40 lakh in the financial year 2022-23, which increased to Rs 2.57 crore in the next financial year 2023-24 and jumped to Rs 5.44 crore in 2024-25. Talking about the current financial year, the company has made a net profit of Rs 1.94 crore during the first quarter of 2025-26 i.e. April to June.
During this period, the company’s income increased to the level of Rs 69.12 crore at a compound annual growth rate of more than 41 percent per annum. During the first quarter of the current financial year 2025-26 i.e. from April to June, the company has earned an income of Rs 19.18 crore. During this period, the debt burden on the company also increased. At the end of the first quarter of 2025-26 i.e. April to June, the company had a debt of Rs 17.13 crore.
Talking about the reserves and surplus of the company during this period, it was at the level of Rs 41 lakh at the end of the financial year 2022-23, which increased to Rs 2.97 crore at the end of the financial year 2023-24 and jumped to Rs 5.63 crore at the end of the financial year 2024-25. At the end of the first quarter of 2025-26 i.e. April to June, the reserve and surplus of the company had reached the level of Rs 7.57 crore.
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