Digilogic Systems Shares Tumble 24% Following Disappointing Market Debut
The stock market witnessed a significant downturn for Digilogic Systems as its shares made a weak debut on the BSE SME platform during Wednesday's trading session. The company's share price was locked in the 5% lower circuit after listing at a substantial discount, reflecting investor caution toward the newly listed defense technology firm.
Listing Details and Price Performance
Digilogic Systems share price today opened at ₹83.20 per share, representing a 20% discount to the issue price of ₹104. The downward trend continued throughout the session, with the stock eventually trading at ₹79.05 apiece – marking a 24% decline from the initial public offering price. This disappointing performance followed a grey market scenario where shares were trading at their issue price with zero premium or discount, according to market data from investorgain.com.
IPO Subscription and Company Background
The initial public offering of Digilogic Systems had a subscription period running from Tuesday, January 20 through Thursday, January 22, with shares priced between ₹98 and ₹104. The offering achieved a subscription rate of 1.10 times on the final day of bidding, indicating moderate investor interest. The company specializes in several critical areas:
- Design, development, and integration of Automated Test Equipment systems
- Radar and Electronic Warfare simulators
- Application software and embedded signal processing solutions
- Complete project lifecycle services for defense and aerospace industries
Digilogic Systems provides specialized testing, simulation, and embedded systems services primarily for defense and aerospace clients, with limited applications in industrial automation.
Financial Performance and IPO Structure
The company's financial metrics reveal a mixed picture of its operational strength:
- Total income of ₹72.19 crore with profit after tax of ₹8.11 crore for fiscal year ending March 2025
- Revenue of ₹18.28 crore and net profit of ₹1.61 crore for the six months ended September 2025
- Net worth standing at ₹35.07 crore with total borrowings of ₹22.04 crore as of September 2025
The Digilogic Systems IPO comprised two key components:
- Fresh issue of shares worth ₹69.68 crore
- Offer for sale component of ₹11.33 crore from existing shareholders
Proceeds from the fresh issue will be allocated toward:
- Financing capital expenditures for establishing new facilities
- Repayment of current debts
- General corporate purposes
IPO Management Team
The offering was managed by a professional team of financial institutions:
- Book Running Lead Manager: Indorient Financial Services Ltd
- Registrar: Kfin Technologies Ltd.
- Market Maker: Pace Stock Broking Services Private Ltd.
The weak listing performance of Digilogic Systems shares highlights the challenging market conditions for new listings and underscores the importance of thorough due diligence before investment decisions. The company's future performance will depend on its ability to leverage its defense and aerospace expertise while managing its financial obligations effectively.
