The launch of the Archit Nuwood Industries Limited IPO has encountered a delay due to queries raised by the exchange regarding the company’s profitability compared to its peers. Despite a robust Profit After Tax (PAT) margin exceeding 20% for FY 2024, the margins of competitors remain in the single digits, prompting scrutiny from regulators.
This delay is significant as it comes just before the IPO was set to open for subscription on August 30, 2024, and close on September 3, 2024. The allotment is expected to be finalized on September 4, with shares anticipated to list on the BSE SME by September 6. It is important to note that while the issue is delayed, it has not been withdrawn, countering any false reports suggesting otherwise.
🚨 Due to unforeseen circumstances, the launch of the Archit Nuwood Industries Limited IPO is briefly delayed due to certain fresh queries raised from exchnage.
Please note, the issue is delayed, not withdrawn, despite false reports.
We’ll update you on the next steps soon.
— Share India (@shareindiasec) August 28, 2024
Archit Nuwood IPO has been Delayed as Queries are said to be raised by Exchange.
As per info, Queries were raised on Profitability v/s the Peers.
For FY 24 Archit's PAT Margin was >20% while Margin of Peers was in single Digit.
Thank God, Whatever happened was Done on time… pic.twitter.com/HKE9KwPgJ3
— G K AGARWAL (@ipo_agarwal) August 28, 2024
The IPO’s initial pricing band is set between ₹257 and ₹270 per share, with a total issue size of ₹168.48 crores. The presence of notable SME investors has led to speculation that the shares could list at a premium, with some estimates suggesting a listing around 90%. This could attract retail investors, who often follow the lead of larger institutional players.
The queries raised by the exchange have led to a temporary postponement of the IPO, but the company remains committed to proceeding with the offering once the issues are resolved.
