The excitement around new listings, particularly among retail investors, has been a defining feature of 2025. Several Small and Medium Enterprises (SME) issues have seen subscriptions levels exceed 100 times, despite stricter regulations from the market regulator. However, the post-listing performance of these SMEs has been a mixed bag, with Austere Systems being a notable example of a company that failed to sustain its initial enthusiasm.
Austere Systems made a grand debut on the stock market in September, listing with a 37.3% premium at ₹75.5 per share. However, the stock price quickly lost momentum and has remained lower since then. In fact, the stock has never crossed its listing-day highs and has faced severe pressure, with a further decline of 2.15% to ₹49.51 per share in recent trade. This downward trend has resulted in a 37.16% drop from its recent high of ₹79.32 and a 10% decline below its Initial Public Offering (IPO) price of ₹55.
Market experts warn that while SME IPOs offer high growth potential, they also come with significant risks due to lower liquidity and the potential for speculative bubbles. The Austere Systems IPO is a case in point, having raised ₹15.57 crore through a fully fresh issue of 28 lakh equity shares. The issue was priced in a band of ₹52-55 per share, with a lot size of 2,000 shares, and saw an overwhelming response from investors, with a subscription level of 1,000 times overall.
The retail portion of the IPO saw a staggering 1,097 times subscription, while Non-Institutional Investors (NIIs) subscribed 2,149.19 times. Qualified Institutional Buyers (QIBs) also showed strong participation, with 236.50 times subscription. As per the company's Red Herring Prospectus (RHP) report, the proceeds from the issue will be used to meet working capital requirements and for general corporate purposes. The shareholding pattern of Austere Systems reveals that retail shareholders collectively own 27.6% of the company, while the promoters hold a majority stake of 66.9%.
Austere Systems Limited (ASL) is a technology company founded in 2013, offering end-to-end IT services and solutions for startups and enterprises. Its portfolio includes software development, SaaS, mobile applications, database management, e-commerce, ERP solutions, AI-driven process automation, digital transformation, and data/document management.
Remember, this is a perspective, not a prediction. It's essential to do your own research and consult with certified experts before making any investment decisions.
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