Austere Systems IPO listing today. GMP hints at robust gains

Synopsis

Austere Systems' IPO received massive subscription. The shares are ready to debut on the Bombay Stock Exchange SME platform this Friday. The IPO was booked 1,077 times. It is one of the most sought-after small-cap issues. The IPO will fund capital expenditure and general corporate purposes.

After receiving stellar subscription for the IPO, shares of Austere Systems are set to debut on the BSE SME platform on Friday. The Rs 16-crore IPO, which opened on September 3 and closed on September 9, was booked a massive 1,077 times, making it one of the most sought-after small-cap issues of the year.
Ahead of the listing, the stock is also drawing strong investor interest in the grey market with a GMP of 59%. That indicates investors are betting on significant listing gains despite caution around valuations.

Proceeds from the IPO will be used for funding capital expenditure of the company and also general corporate purposes.

Strong investor response

Investor appetite for the IPO was evident from day one. By the close of bidding, the qualified institutional buyer (QIB) category was subscribed 236.5 times, non-institutional investors (NIIs) nearly 2,149 times, and the retail quota 1,091 times. In total, Austere received over 3.17 lakh applications for just 28.3 lakh shares on offer.

The company had also raised Rs 4.4 crore from anchor investors a day before the issue opened.

Also Read: Lenskart IPO: 10 things Jefferies said about Rs 2,200 crore offer

About the company

Incorporated in 2013, Austere Systems is a software development and IT services firm. It offers a wide range of solutions including SaaS platforms, mobile and web applications, ERP, AI-enabled products, and digital transformation tools.

The company serves both domestic and international clients, with a focus on underserved rural markets in India. Its portfolio extends to IT staff augmentation, managed services, and digital marketing. As of July 2025, it employed 123 staff across engineering, product development, and support roles.

Financial performance

The company’s revenue stood at Rs 18.9 crore in FY25, up just 1% year-on-year, while profit after tax fell slightly to Rs 4 crore from Rs 4.15 crore in FY24.

Investors are advised to caution that sustainability of gains will depend on the company’s ability to grow revenues consistently in a highly competitive IT services market.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)

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