The euphoria for new listings among retail investors has continued in 2025, with a majority of SME issues receiving a strong response from the Street, as several issues witnessed subscription levels cross 100 times, despite market regulator SEBI tightening rules for SME IPOs.

However, only a few lived up to expectations, while the rest faced challenges post listing on the exchanges, with Austere Systems being one of them. The IPO, which received a massive response during its three-day bidding period, failed to sustain the same enthusiasm post listing.

The shares made a grand entry on Dalal Street in September,₹75.5 apiece”> listing with a 37.3% premium at ₹75.5 apiece, but the stock quickly lost its grip and has remained lower since then.

Since listing, the stock has never crossed its listing-day highs, witnessing severe pressure on the exchange, with it further tanking 2.15% in Friday’s trade to ₹49.51 apiece. This one-way slide has led it to drop 37.16% from the recent high of ₹79.32 and also 10% below its IPO price of ₹55.

Market experts suggest that while SME IPOs offer high growth potential, they also carry significant risks due to lower liquidity and a potential for speculative bubbles.

Austere Systems IPO becomes most-subscribed listing of 2025

The company raised ₹15.57 crore through a fully fresh issue of 28 lakh equity shares. The IPO was priced in a band of ₹52–55 per share, with a lot size of 2,000 shares.

Investor response was overwhelming, with the IPO subscribing 1,000 times overall, the biggest response among 362 firms listed in 2025 so far.

Among investor categories, the retail portion saw 1,097 times subscription, while Non-Institutional Investors (NIIs) subscribed a staggering 2,149.19 times. Qualified Institutional Buyers (QIBs) also showed strong participation, with 236.50 times subscription.

The company, in its RHP report, stated that it will utilise the proceeds from the issue to meet its working capital requirements and for general corporate purposes.

Founded in 2013, Austere Systems Limited (ASL) is a technology company offering end-to-end IT services and solutions for startups and enterprises. Its portfolio spans software development, SaaS, mobile applications, database management, e-commerce, ERP solutions, AI-driven process automation, digital transformation, and data/document management.

Retail shareholders own a 27% stake in the company

According to BSE shareholding data, retail shareholders collectively owned 27.6% of the company at the end of the September quarter, while the promoters held a majority stake of 66.9%.

Both FIIs and DIIs held 1.8% and 3.7% stakes, respectively, as of Q2FY26.

Disclaimer: We advise investors to check with certified experts before making any investment decisions.