ScaleSauce Design India, a company specializing in developing consumer brands in India, made its debut on the NSE SME today. The company's shares listed at ₹203. 30 against an IPO price of ₹107, delivering an impressive 90% listing gain to initial investors. However, the initial euphoria was short-lived as the share price soon plummeted, hitting the lower circuit at ₹193. 15, where it closed for the day. Despite the sharp decline from its listing price, IPO investors still ended the first trading day with a substantial profit of 80. 51%.
Initial Listing Surge and Subsequent Decline
The ScaleSauce IPO listing generated significant excitement, with shares opening at nearly double their issue price of ₹107. This remarkable listing gain represented a major win for investors who participated in the IPO, securing an immediate 90% return. The strong debut underscored considerable market anticipation and confidence in the company's prospects. Nevertheless, shortly after the market opened, the share experienced a rapid downturn, reaching its lower circuit limit of ₹193. 15, where it remained for the rest of the trading session. This decline might have disappointed investors hoping for further gains post-listing, but the 80. 51% profit for IPO subscribers remains a notable achievement on the first day of trading.
The ₹40, while 21 crore ScaleSauce IPO was open for subscription from December 5 to December 9. The IPO received a strong response from investors, being oversubscribed by 2. 19 times overall. The portion reserved for Qualified Institutional Buyers (QIBs) was subscribed 1. 25 times (excluding anchor investors), while the Non-Institutional Investors (NIIs) segment saw a subscription of 4. 60 times, while retail investors also showed keen interest, with their portion being subscribed 1. 69 times, while the company issued 3,758,400 new shares with a face value of ₹10 each. The funds raised through this IPO are strategically allocated for various purposes. Approximately ₹11. 49 crore will be utilized for the purchase of office space, interior work, and refurbishment, enhancing the company's operational infrastructure. A sum of ₹11. 00 crore is designated for debt reduction, which will Notably strengthen the company's financial health. Plus, ₹7. 29 crore will address working capital requirements, crucial for smooth day-to-day operations. The remaining funds will be used for general corporate purposes,. Enabling the company to pursue future growth and expansion opportunities.
IPO Subscription Details and Fund Utilization
About ScaleSauce Design India
Established in March 2010, ScaleSauce Design India is dedicated to creating and nurturing consumer brands across India. The company primarily operates within the home, living, and food segments. Under the ScaleSauce brand name, Encompass Design India functions as a consumer brand company. Its core business involves manufacturing products such as bed sheets, curtains, comforters, table linens, and pillow covers. On top of that, it produces sauces under its own brands, diversifying its product portfolio. Beyond manufacturing, the company is also involved in the sale of agricultural products, cotton, fabrics, and other goods, which constitutes a significant part of its business activities. ScaleSauce actively engages in brand marketing, enhancing the market presence and reach of its products. This diversified business model helps the company solidify its presence across various consumer segments.
Financial Health and Future Outlook
The company's financial health has shown consistent improvement, a key factor behind its successful IPO and listing. After reporting a net loss of ₹1. 29 crore in FY23, ScaleSauce made a remarkable recovery, achieving a net profit of ₹6. 88 crore in FY24. This improvement became even more impressive in FY25, with net profit soaring to ₹10, while 79 crore. During this period, the company's total income grew at a compounded annual growth rate (CAGR) of over 59%, reaching ₹55, while 01 crore, indicative of its strong growth trajectory. For the first half of the current fiscal year 2026 (April-September 2025), the company has continued its strong performance, reporting a net profit of ₹5. 05 crore and a total income of ₹28. 17 crore, while as of the end of the September 2025 quarter, the company held ₹27. 20 crore in reserves and surplus, and notably, it's debt-free. This strong financial position, a debt-free balance sheet, and consistently growing income provide a solid foundation for the company's future growth and expansion. Investors should consider the long-term growth potential of the company, despite the volatility observed on its listing day.
