Hy-Tech Engineers lists on Indian bourses with 66% grey market premium

Hy-Tech Engineers Limited will commence trading on the Bombay Stock Exchange and National Stock Exchange today at 10:00 IST. The equity shares will enter the market under the 'T' Group of Securities following a special pre-open session. Allotment for the initial public offering was finalized on August 28.

Grey market indicators point to a strong debut, with the premium currently standing at ₹35. This positions the estimated listing price at ₹88 per share, representing a 66.04% increase over the upper end of the ₹53 IPO price band. Market observers note this premium has trended upward over the last 13 trading sessions.

The listing follows overwhelming demand during the offer period. The ₹135.73 crore IPO was subscribed 244.41 times by the closing date on Thursday. Non-Institutional Investors led the charge with a 402.29 times subscription, followed by Qualified Institutional Buyers at 255.77 times and retail investors at 170.58 times.

This robust demand reflects broader investor confidence in India’s capital goods and hydraulic fittings sectors. Mahesh M. Ojha, Vice President of Research and Business Development at Kantilal Chhaganlal Securities, notes the company is reasonably valued. At the upper price band, the firm trades at a price-to-earnings multiple of 22.25x based on FY26 earnings, with an EV/EBITDA of 12.15x.

These multiples imply a post-issue market capitalization of approximately ₹5,027 million. Ojha highlights that the company has maintained EBITDA margins near 22% and achieved a revenue compound annual growth rate of 17.28% over the past two years. This profitability profile exceeds that of most industry peers.

The company’s operational efficiency further supports its valuation. Hy-Tech Engineers generates nearly three times the business from its investments, compared to an industry average of two times. It serves approximately 170 customers, with 90% being repeat clients and relationships spanning roughly 25 years.

The current valuation remains attractive against an industry average P/E of 148.55x. Ojha stated, “Considering the current industry tailwinds, the growing capital goods sector, the company’s market share, strong margins and established customer relationships, Hy-Tech Engineers is likely to perform well over the long term. We expect a good listing gain, and allotted investors can consider holding the stock for the medium to long term.”