Strong Demand, Muted debut: Gabion Technologies lists at 10% premium, Despite 826X Subscription

Mumbai, January 13:
Shares of Gabion Technologies India made a muted debut on the BSE SME platform on Tuesday, listing at ₹89 per share, a premium of about 9.9% over the IPO issue price of ₹81, despite one of the most heavily subscribed SME offerings in recent months.

The listing gain was significantly lower than grey market expectations, where the stock had been trading at a premium of over 38% ahead of debut.

Listing performance vs Grey market premiums

The IPO had generated strong buzz in the unlisted market, with grey market prices indicating a potential listing around ₹112. However, the actual debut fell well short of these estimates, highlighting the growing divergence between grey market sentiment and SME listing outcomes.

Note: Grey market premium (GMP) is unofficial and indicative only. It does not guarantee listing gains.

IPO subscription details

Gabion Technologies’ ₹29.16-crore IPO, which comprised an entirely fresh issue of 36 lakh shares, was subscribed an extraordinary 826 times during the bidding period from January 6 to January 8.

• Retail investors: 867.23x
• Non-institutional investors: 1467.8x
• Qualified institutional buyers: 271.13x

The strong subscription reflected aggressive bidding across categories, particularly from high-net-worth and retail investors.

Use of IPO proceeds

The company plans to deploy the bulk of the IPO proceeds towards working capital and capacity support:

• ₹22.1 crore for working capital requirements
• ₹1.05 crore for purchase of plant and machinery
• Balance for general corporate purposes

Business overview

Incorporated in 2008, Gabion Technologies manufactures gabions, rockfall protection systems and geosynthetic materials, which are widely used in civil engineering, infrastructure development and environmental protection projects. The company caters to a mix of government and private-sector infrastructure requirements.

Financial performance

For the eight-month period ended November 2025, the company reported:

• Revenue: ₹60.4 crore
• Net profit: ₹4.3 crore

In FY25, Gabion’s net profit rose to ₹6.6 crore, up nearly 15% year-on-year, even as revenue declined 4.2% to ₹100.4 crore.

Order book and outlook

Gabion said it has already generated nearly ₹20 crore from service work up to September 2025 and expects additional execution in the remaining months of the financial year. Its goods supply division is also projected to contribute meaningfully to FY26 revenues.

Key takeaway

While Gabion Technologies attracted exceptional subscription interest, its modest listing gain underscores investor caution in the SME space, particularly amid volatile broader market conditions.

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