Sotefin Bharat IPO sees weak day one demand despite profit surge
Automated parking systems provider Sotefin Bharat opened its ₹90 crore SME IPO to muted initial demand, testing market appetite for a company that has nearly tripled its profit over two years.
Sotefin Bharat opened its ₹90 crore initial public offering on the BSE SME platform on Thursday to subdued investor interest. By early afternoon, the overall subscription stood at just 0.12 times, with retail investors bidding for 0.20 times their allocated shares. Qualified institutional buyers had yet to place any orders.
The lacklustre primary market response contrasts with a modest premium in the unregulated grey market. Unofficial trading indicated a premium of ₹27 over the upper price band of ₹187, suggesting a potential listing price of ₹214 and a 14% gain for initial allottees.
The company supplies mechanised parking infrastructure, including robotic, puzzle, and tower systems, to commercial real estate developers and state authorities. This niche positioning has driven rapid financial expansion. Revenue climbed from ₹56.28 crore in fiscal year 2024 to ₹116.75 crore in fiscal year 2026. Over the same two-year window, profit after tax nearly tripled, accelerating from ₹6.25 crore to ₹17.37 crore.
The share sale is a purely fresh issue of 48 lakh shares without an offer-for-sale component. Ahead of the public subscription, the company secured ₹25.58 crore from anchor investors. Retail investors must bid for a minimum of 1,200 shares, requiring a minimum outlay of ₹2,24,400 at the top end of the price band.
Sotefin Bharat plans to deploy the net proceeds to establish a dedicated manufacturing facility in Kolkata. The capital will also cover capital expenditure for new office premises and supplement working capital. Shifting toward in-house manufacturing represents a notable operational pivot for a business that has historically focused on end-to-end system design, installation, and after-sales services. "Our key offerings include fully automated robotic parking systems, puzzle parking systems, tower parking systems, and stack parking systems," the company stated in its red herring prospectus.
"Our order book reflects a diversified customer base, comprising private real estate developers as well as government bodies across various Indian cities," the prospectus adds.
The subscription window closes on Monday. Choice Capital Advisors is managing the book, while Bigshare Services is acting as registrar. Shares are expected to be allotted on Tuesday, with trading on the BSE SME platform commencing on July 23.
