Apollo Techno Industries: Why 43x Subscription is Just the Start | The IPO List

Apollo Techno Industries has surprised market observers by hitting a 43x subscription rate by the morning of Day 3. This massive interest in a company focused on specialized polymer-based industrial components shows that the "Small-Cap Rally" is still in full swing. The company’s competitive pricing in the ₹123–₹130 range has made it an easy "yes" for many retail investors looking for a high-probability allotment.\n\nThe company operates as a key supplier to the automotive and home appliance sectors. With the recent push in the Indian manufacturing sector (PLI schemes), Apollo Techno has secured multi-year contracts with several Tier-1 automotive brands. This has resulted in a 40% growth in their order book for the current fiscal year, providing high revenue visibility.\n\nGrey Market Premium (GMP) for Apollo Techno is currently holding steady at ₹12, indicating an estimated listing gain of approximately 10%. While not as spectacular as some recent multi-baggers, this steady premium suggests a healthy, sustainable listing. Institutional investors have also shown a preference for the company due to its low debt-to-equity ratio and high asset turnover.\n\nOne thing to watch is the raw material dependency. As a polymer-based manufacturer, the company’s margins are sensitive to fluctuations in crude oil prices. Any significant spike in international oil prices could compress margins in the short term. However, the company has historically managed to pass on a portion of these costs to its long-term clients.\n\nFor retail investors who missed out on earlier December IPOs, Apollo Techno offers a solid entry point into the industrial sector. The high subscription levels mean that the chances of allotment are slim, but the fundamental strength of the company makes it a good addition to the watchlist for post-listing purchases.