Austere Systems' IPO received a tremendous response from investors, being subscribed 1077 times. The shares, offered at an issue price of ₹55, listed on BSE SME at ₹75.55, a premium of 37%. Post-listing, the stock reached the upper circuit of ₹78.50. The company plans to utilize the raised funds for working capital and corporate needs.
Austere Systems IPO Listing: Software development company Austere Systems made a spectacular entry on the BSE SME platform on September 12. The company's share, priced at ₹55, listed at ₹75.55 with a 37% premium and later touched the upper circuit of ₹78.50. The ₹15.17 crore IPO, which opened between September 3-9, was subscribed 1077 times by investors. The majority of the funds raised will be used for working capital requirements and the rest for general corporate purposes.
Performance on Listing Day
Austere Systems' shares were issued at an issue price of ₹55. Its listing on the BSE SME platform was at ₹75.55, providing investors with approximately a 37% profit. Notably, the stock continued its upward momentum even after listing, surging to ₹78.50 and hitting the upper circuit. This brought the profit for IPO investors to over 42%.
Investor Enthusiasm Peaks
The company's IPO was open from September 3 to September 9. During this period, investor enthusiasm was remarkable. The IPO size was ₹15.17 crore, but the subscriptions surpassed all expectations. Austere Systems' IPO was subscribed a total of 1077 times. The Qualified Institutional Buyers' portion was subscribed 236.50 times, Non-Institutional Investors' portion 2149 times, and Retail investors' portion 1090 times. These figures clearly indicate the immense confidence investors placed in this company.
Utilization of Funds Raised
The largest portion of the funds raised through the IPO will be utilized to meet working capital needs. The company has stated that approximately ₹11.60 crore will be spent on this. The remaining funds will be used for general corporate purposes.
Company's Business Model
Established in 2013, Austere Systems is an IT and software development company. It provides software services to startups and large corporations. The company's operations span areas such as software development, mobile applications, database management, ERP, e-commerce, and AI services. Additionally, the company offers solutions in digital transformation and process automation to its clients.
Fluctuations in Financial Performance
In terms of financial performance, the company reported a net profit of ₹1.77 crore in the fiscal year 2023. In the following year, fiscal year 2024, this profit increased to ₹4.15 crore. However, in fiscal year 2025, the profit saw a slight decline to ₹4.01 crore. Meanwhile, the company's total income continued to grow, reaching ₹18.86 crore.
The company's debt situation is also not a cause for significant concern. In fiscal year 2023, the company had a debt of ₹79 lakh, which decreased to ₹44 lakh in the following year. In fiscal year 2025, this figure slightly increased to ₹46 lakh. Regarding reserves and surplus, it stood at ₹4.84 crore in 2023, growing to ₹8.99 crore in 2024. However, in 2025, it saw a slight decrease to ₹8.62 crore.
