Sundrex Oil Company makes its debut on the NSE SME platform today, December 30. This update breaks down the B2B lubricant manufacturer's flat GMP status and whether its strong 112% profit growth can overcome the lack of listing-day buzz.

Sundrex Oil Company Limited, a manufacturer of industrial and automotive lubricants, is officially listing on the NSE SME platform today. The ₹32.25 crore IPO was priced at ₹86 per share but enters the market with a GMP of ₹0. This "flat" premium is a rarity in the current SME cycle, where many issues have been doubling on day one, suggesting that investors are being increasingly selective with manufacturing-heavy businesses.

The company operates a diverse B2B model, supplying hydraulic oils, greases, and specialty lubricants under its own brand while also engaging in "toll blending" for other major players. Despite the lack of grey market excitement, Sundrex’s financials tell a compelling story: the company reported a massive 112% surge in Profit After Tax (PAT) for FY25, supported by a 41% rise in revenue. This indicates that while the "hype" is low, the operational efficiency is high.

Subscription data shows that the issue was covered 1.53 times, with retail investors being the primary participants. The lack of heavy institutional oversubscription is likely what kept the GMP in check. The company plans to utilize the fresh capital to bolster its working capital and repay existing debt, which should theoretically improve its net margins in the coming fiscal year.

Listing day expectations for Sundrex are conservative. Market observers anticipate the stock to open near its issue price of ₹86. For those holding the shares, the focus should be on the company's ability to navigate the volatile raw material costs associated with base oils. If Sundrex can maintain its 13.6% EBITDA margin as a public entity, it may eventually attract the "value" investors who look past the initial listing-day noise.

The Sundrex debut marks a shift in the SME market sentiment as we head into 2026—investors are no longer bidding up every issue blindly. For the manufacturing sector, today's performance will be a benchmark for how upcoming industrial IPOs like Modern Diagnostic (opening tomorrow) might be received in a more cautious trading environment.