Craftsman Automation IPO listing: Can the weak market sentiment hit company's debut today?

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26 Aug, 2025 12:21

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Autocomponent maker Craftsman Automation is expected to see a muted listing on the bourses on March 25 given the volatile market conditions and tepid IPO subscription, according to experts.

The Rs 823.7-crore initial public offering was subscribed 3.82 times during March 15-17 as the portion set aside for qualified institutional buyers witnessed 5.21 times subscription, non-institutional investors 2.84 times and that of retail 3.44 times.

Craftsman Automation, promoted by first-generation entrepreneur Srinivasan Ravi, operates in three segments - automotive powertrain and others which contributed 51 percent to revenue, automotive aluminum castings that segment contributed 21 percent to revenue, and industrial & engineering segment with 28 percent revenue contribution.

"For Craftsman, we expect status quo on listing day," Astha Jain, Senior Research Analyst at Hem Securities told Moneycontrol.

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Prashanth Tapse, AVP Research at Mehta Equities also feels the volatile market conditions and lower-than-expected subscription demand to its initial public offering (IPO) may affect listing sentiments.

"Investors can expect lower single-digit listing gain between 1-5 percent as risk concerns weigh more over positive investment rationales," he said, adding at the upper price band of Rs 1,490 per share, the valuations were not so attractive compared to its peers on fundamentals with high debt on books and high competition in domestic as well as in global markets resulting in low-profit margins.

The public issue was comprised a fresh issue of Rs 150 crore and offer for sale of Rs 673.69 crore by existing investors such as Marina, IFC and K Gomatheswaran. The company will utilise fresh issue proceeds for debt repayment.

Disclaimer: The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.