January 8, 2026
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Defrail Technologies Limited IPO
Defrail Technologies IPO is a book building SME issue comprising 18,60,800 equity shares, entirely a fresh issue. The IPO opens for subscription on Friday, January 9, 2026 and closes on Tuesday, January 13, 2026. The shares are proposed to be listed on BSE SME, with a tentative listing date of Friday, January 16, 2026.
The IPO price band is fixed at Rs. 70 to Rs. 74 per share, with a lot size of 3,200 shares. NEXGEN Financial Solutions Pvt. Ltd. is the Book Running Lead Manager, Maashitla Securities Pvt. Ltd. is the Registrar to the Issue, and Nikunj Stock Brokers Ltd. is the Market Maker.
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Defrail Technologies IPO – Key Details
| Particulars | Details |
|---|---|
| IPO Open Date | Fri, Jan 9, 2026 |
| IPO Close Date | Tue, Jan 13, 2026 |
| Listing Date | Fri, Jan 16, 2026 |
| Face Value | Rs. 10 per share |
| Price Band | Rs. 70 – Rs. 74 |
| Lot Size | 3,200 shares |
| Issue Type | Book Building IPO |
| Issue Size | 18,60,800 shares |
| Issue Type | Fresh Issue |
| Listing Platform | BSE SME |
Issue Size Break-up
| Particulars | Shares | % of Issue |
|---|---|---|
| Market Maker | 94,400 | 5.07% |
| QIB (Total) | 8,73,600 | 46.95% |
| – Anchor Investors | 5,18,400 | 27.86% |
| – QIB (Ex-Anchor) | 3,55,200 | 19.09% |
| NII (HNI) | 2,68,800 | 14.45% |
| – bNII (> Rs. 10 Lakh) | 1,77,600 | 9.54% |
| – sNII (< Rs. 10 Lakh) | 91,200 | 4.90% |
| Retail (RII) | 6,24,000 | 33.53% |
| Total | 18,60,800 | 100% |
IPO Timetable (Tentative)
| Event | Date |
|---|---|
| IPO Opens | Fri, Jan 9, 2026 |
| IPO Closes | Tue, Jan 13, 2026 |
| Allotment | Wed, Jan 14, 2026 |
| Refunds | Thu, Jan 15, 2026 |
| Credit of Shares | Thu, Jan 15, 2026 |
| Listing | Fri, Jan 16, 2026 |
About the Company
Incorporated in October 2023, Defrail Technologies Limited is engaged in the manufacturing of rubber parts and components, including rubber hoses and assemblies, rubber profiles and beadings, and moulded rubber parts. Its products are used across automotive, railways, and defence sectors, catering to both standard and customised requirements.
The company traces its origins to Vikas Rubber Industries (1980) and Impex Hitech Rubber (2008), both of which were consolidated into Defrail Technologies Limited on April 1, 2024, through Business Transfer Agreements.
Defrail Technologies primarily operates on a B2B model, supplying bulk orders to automotive clients, while also servicing the B2G segment, including Indian Railways and Defence establishments.
Manufacturing Facilities
The company operates two manufacturing plants in Faridabad, Haryana:
-
Neemka, Tigaon Road, Sector 71 – 2,420 sq. yards
-
Sector 24, Faridabad – 4,833.33 sq. yards
The facilities are equipped to manufacture diesel and petroleum hoses, LPG hoses, nylon tubes, gaskets, grommets, EPDM profiles, sponge products, air intake hoses, and aluminium window rubber beadings.
Certifications & Registrations
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ISO 9001:2015 certified
-
Registered vendor on Government e-Marketplace (GeM)
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RDSO-approved vendor for Indian Railways
Employee Strength
As of November 30, 2025, the company had 298 permanent employees.
Competitive Strengths
-
Experienced management with deep industry knowledge
-
RDSO approval enabling railway supplies
-
Diversified rubber product portfolio
-
Strong customer and supplier relationships
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In-house testing and R&D facility
Company Financials (Rs. in Crore)
| Particulars | 30 Sep 2025 | 31 Mar 2025 | 31 Mar 2024 |
|---|---|---|---|
| Assets | 37.22 | 33.91 | 1.22 |
| Total Income | 39.08 | 62.22 | 0.72 |
| EBITDA | 3.44 | 5.78 | 0.14 |
| Profit After Tax | 1.51 | 3.42 | 0.11 |
| Net Worth | 10.62 | 9.12 | 0.16 |
| Reserves & Surplus | 5.46 | 3.96 | 0.11 |
| Total Borrowings | 11.78 | 11.56 | 0.41 |
Objects of the Issue
| Sr. No. | Objects | Estimated Amount (Rs. Cr.) |
|---|---|---|
| 1 | Purchase of equipment/machineries | 7.96 |
| 2 | Purchase and installation of solar panels | 1.73 |
| 3 | General corporate purposes | Balance |
Key Performance Indicators
| KPI | Value |
|---|---|
| ROE | 73.72% |
| ROCE | 24.43% |
| RoNW | 73.72% |
| Debt / Equity | 1.27 |
| PAT Margin | 5.49% |
| EBITDA Margin | 9.29% |
Promoters
Mr. Vivek Aggarwal, Mr. Abhishek Aggarwal, Ms. Ashi Aggarwal, and Mr. Dinesh Aggarwal
| Shareholding | Percentage |
|---|---|
| Pre-IPO | 100% |
| Post-IPO | To be diluted |
IPO Registrar
Maashitla Securities Pvt. Ltd.
Tel: +91-11-45121795-96
Email: investor.ipo@maashitla.com
IPO Lead Manager
NEXGEN Financial Solutions Pvt. Ltd.
IPO Review – Defrail Technologies Limited
Defrail Technologies Limited is engaged in manufacturing rubber hoses, profiles, and moulded components catering to automotive, railways, and defence sectors, operating largely on a B2B/B2G model.
The company has shown a sharp scale-up in operations post consolidation in FY24, with reasonable EBITDA margins of around 9% and ROCE of 24%.
High ROE and RoNW numbers appear optically strong, partly aided by a low base and leveraged balance sheet.
However, working capital intensity is a key concern, with inventory of Rs. 11.91 Cr and trade receivables of Rs. 9.73 Cr against average monthly sales of about Rs. 6.51 Cr, indicating stretched operating cycles.
Trade payables at Rs. 12.28 Cr further underline dependence on creditor funding, warranting close scrutiny of cash-flow sustainability.
The issue is a full fresh issue, primarily aimed at capex and solar installation, which may aid operational efficiency over the medium term.
At the upper price band, the IPO appears fairly to fully priced, factoring in recent growth and SME liquidity risks.
Given the balance of positives and concerns, only informed, risk-tolerant investors with a long-term horizon may consider moderate exposure.
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Disclaimer
This coverage is for informational and educational purposes. Chanakya Ni Pothi does not deal in Grey Market Premiums or recommend investments based on GMP data. Please consult your SEBI-registered investment advisor.
