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Salient features of the IPO:

• Ardee Industries Ltd. (AIL): Incorporated in Sept. 1993, it is one of India's leading circular economy companies engaged in the environmentally responsible recycling of end-of-life energy storage products and nonferrous scrap. It manufactures high-purity pure lead and customized lead alloys catering to industries such as energy storage, e-mobility, automotive, and chemicals. The company operates a manufacturing facilities located in the Tirupati district of Andhra Pradesh, with an aggregate installed recycling capacity of 156,950 MTPA. Through its integrated recycling platform, AIL recovers critical resources from waste streams, supports sustainable metal production, and generates revenue from the domestic and international sale of recycled and refined nonferrous metal products.

• This issue is a combination of fresh issue (Rs. 320cr) and OFS (Rs. 99.88 - 105.87cr). The company will not receive any proceeds from the OFS portion. From the fresh issue net proceeds, the company will be utilizing Rs. 220cr for Funding incremental working capital requirement of the company, and Rs. 20cr for Repayment and/or pre-payment, in full or in part, of certain borrowings availed by the company. Residual proceeds will be used for general corporate purposes.

Key competitive strengths:

• Proven track record and stable operations in India's circular economy

• Application of Hedging Mechanism for Commodity Price Risk

• Strong customer base along with robust raw materials sourcing

• Track record of profitability and consistent financial performance

• Experienced promoters and professional management team

Business strategy:

• Expand sustainably driven product portfolio through capacity expansion and strategic integration

• Expanding geographical footprint across exports and domestic markets

• Leveraging London Metal Exchange (LME) listing to expand globally

• Improving the debt profile of the company

Risk and concerns:

• Dependence on raw material availability and pricing

• Customer concentration risk

• Exposure to lead and commodity price volatility

• Working capital-intensive operations

• Environmental and regulatory compliance risk

• Competition

Valuation Overview and IPO Rating

At the upper price band, Ardee Industries is valued at a P/E of 19.7x based on FY26 earnings and an EV/Sales of 1.3x, which appears reasonably priced relative to its established position in India's recycled lead industry. The company is among the top six organized recycled lead producers in India with an estimated ~2% market share, supported by an integrated recycling platform, a strategically located manufacturing facility, diversified sourcing across 58 countries, and a growing domestic and export customer base. Its planned capacity expansion, proposed integration of Pilot Industries' recycling business, and diversification into plastic granules, recycled tin, and copper provide additional long-term growth levers. While the business remains exposed to lead price volatility, environmental regulations, and working capital intensity, its board-approved hedging framework and established sourcing network help mitigate these risks. Considering its reasonable valuation, integrated business model, and long-term growth prospects driven by the expanding circular economy, we recommend a “Subscribe for Long-Term” rating for the issue.

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