Nanta Tech vs. Admach Systems: A Tale of Two SME Closures

On December 26, 2025, two diverse SME IPOs—Nanta Tech and Admach Systems—closed their subscription windows. While both belong to the engineering/tech sector, their market reception couldn’t have been more different. This comparison provides a masterclass in how "Sector Sentiment" and "Valuation" drive SME success in the current bull market.\n\nNanta Tech, focusing on AV integration and robotics, saw a more cautious response. Despite its impressive 50% ROCE, investors were wary of its short operating history (founded in 2023) and its dependence on project-based revenues. The subscription ended at a modest 0.3x on the final morning, reflecting a "wait and watch" approach toward new-age tech SMEs that lack a long-term profit track record.\n\nIn contrast, Admach Systems, which provides precision engineering for the aerospace and defense sectors, enjoyed a steadier interest. With a debt-to-equity ratio of just 0.04 and a PAT that grew from ₹0.9 crore to ₹13.7 crore in two years, Admach represents the "Fundamental Value" that SME investors are increasingly looking for. Its specialization in aerospace components—a hot sector in 2025—gave it a distinct edge in the eyes of HNI investors.\n\nThe pricing also played a role. Nanta Tech’s P/E of 29 was seen as "full" for its size, while Admach’s valuation left some room on the table for listing gains. This reminds us that in the SME market, a "good company" isn’t always a "good IPO" if the pricing doesn’t leave something for the retail investor.\n\nAs both stocks head toward their December 31 listing, the market will decide the winner. Nanta Tech might see buying interest post-listing if it clarifies its 2026 order book, while Admach is expected to list at a healthy premium. For retail investors, this serves as a reminder: don’t just follow the crowd. Dig into the "KPIs" and "Risk Factors" of the RHP before putting your capital at risk.