January 8, 2026
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INDO SMC IPO
INDO SMC IPO is a book building SME issue of Rs. 91.95 crores, comprising an entirely fresh issue of 0.62 crore equity shares aggregating to Rs. 91.95 crores. The issue opens for subscription on Tuesday, January 13, 2026 and closes on Thursday, January 15, 2026. The equity shares are proposed to be listed on BSE SME, with a tentative listing date of Tuesday, January 20, 2026.
Lead Manager: GYR Capital Advisors Pvt. Ltd.
Registrar: Kfin Technologies Ltd.
Detailed IPO Review by Paresh Gordhandas, CA & RA is given in the last para
🕗 Last Update: 8 January 2026, 6.00 AM
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IPO Details
| Particulars | Details |
|---|---|
| IPO Opening Date | Tuesday, January 13, 2026 |
| IPO Closing Date | Thursday, January 15, 2026 |
| Allotment Date | Friday, January 16, 2026 |
| Refund Initiation | Monday, January 19, 2026 |
| Credit of Shares | Monday, January 19, 2026 |
| Listing Date | Tuesday, January 20, 2026 |
| Face Value | Rs. 10 per share |
| Price Band | Rs. 141 to Rs. 149 per share |
| Lot Size | 1,000 shares |
| Issue Type | Book Building IPO |
| Issue Size | Fresh Issue |
| Listing At | BSE SME |
| Market Cap (Post Issue) | Rs. 340.54 Cr |
| Total Issue Size | 61,71,000 shares (Rs. 92 Cr approx.) |
IPO Structure
| Particulars | Shares | Amount (Rs. Cr) |
|---|---|---|
| Fresh Issue | 61,71,000 | 91.95 |
| Market Maker Reservation | 3,09,000 | 5.00 |
| Net Issue to Public | 58,62,000 | 87.00 |
| Total Issue | 61,71,000 | 92.00 |
IPO Reservation
| Investor Category | Shares Offered | % of Issue |
|---|---|---|
| Market Maker | 3,09,000 | 5.01% |
| QIB (Total) | 29,28,000 | 47.45% |
| – Anchor Investors | 17,56,000 | 28.46% |
| – QIB (Ex Anchor) | 11,72,000 | 18.99% |
| NII (HNI) | 8,82,000 | 14.29% |
| – bNII (> Rs.10 Lakh) | 5,88,000 | 9.53% |
| – sNII (< Rs.10 Lakh) | 2,94,000 | 4.76% |
| Retail Individual Investors | 20,52,000 | 33.25% |
| Total | 61,71,000 | 100.00% |
IPO Lot Size
| Application Category | Lots | Shares | Amount (Rs.) |
|---|---|---|---|
| Retail (Minimum & Maximum) | 2 | 2,000 | 2,98,000 |
| S-HNI (Minimum) | 3 | 3,000 | 4,47,000 |
| S-HNI (Maximum) | 6 | 6,000 | 8,94,000 |
| B-HNI (Minimum) | 7 | 7,000 | 10,43,000 |
About INDO SMC Ltd
INDO SMC Ltd is engaged in the design and manufacture of a diversified range of products catering to electrical, industrial and infrastructure applications. The company primarily manufactures enclosure boxes for energy meters, high tension and low tension current transformers (HTCT, HTPT, LTCT), LT/HT distribution boxes and panels, fiberglass reinforced plastic (FRP) gratings, junction boxes, feeder pillars and various power distribution and circuit protection switchgears.
The company operates through four manufacturing facilities located across Gujarat, Maharashtra and Rajasthan. Its Ahmedabad manufacturing unit is equipped with advanced machinery for manufacturing SMC and FRP products, supported by efficient handling tools to ensure consistent quality and production efficiency.
INDO SMC has in-house testing laboratories to verify material composition and ensure compliance with quality standards before dispatch.
Competitive Strengths
• Diversified product portfolio across power distribution, electrical and infrastructure segments
• Multiple manufacturing facilities providing operational flexibility and scalability
• Strong in-house testing and quality assurance systems
• Experienced management team with domain expertise
• Established relationships with customers across industrial and utility segments
Company Financials (Rs. Cr – Consolidated)
| Particulars | 30 Sep 2025 | 31 Mar 2025 | 31 Mar 2024 | 31 Mar 2023 |
|---|---|---|---|---|
| Assets | 147.67 | 99.94 | 36.32 | 13.85 |
| Total Income | 112.62 | 138.78 | 28.06 | 7.30 |
| EBITDA | 17.19 | 22.83 | 5.08 | 1.15 |
| Profit After Tax | 11.46 | 15.44 | 3.00 | 0.46 |
| Net Worth | 47.14 | 35.69 | 5.79 | 1.17 |
| Reserves & Surplus | 30.46 | 19.00 | 5.06 | 0.52 |
| Total Borrowings | 49.35 | 35.76 | 17.70 | 10.43 |
Objects of the Issue
| Sr. No. | Objects | Estimated Amount (Rs. Cr) |
|---|---|---|
| 1 | Capital expenditure for purchase of plant & machinery | 25.71 |
| 2 | Funding working capital requirements | 52.00 |
| 3 | General corporate purposes | Balance |
Key Performance Indicators (As on 31 March 2025)
| KPI | Value |
|---|---|
| ROE | 74.45% |
| ROCE | 31.39% |
| Debt / Equity | 1.00 |
| RoNW | 43.27% |
| PAT Margin | 11.13% |
| EBITDA Margin | 16.45% |
| Price to Book Value | 6.97 |
Valuation Snapshot
| Particulars | Pre IPO | Post IPO |
|---|---|---|
| EPS (Rs.) | 9.25 | 10.02 |
| P/E (x) | 16.10 | 14.86 |
| Promoter Holding | 82.30% | 60.07% |
| Market Capitalisation | – | Rs. 340.54 Cr |
Promoters
The promoters of the company are Mr. Nitin Jasvantbhai Patel, Mr. Neel Niteshbhai Shah, Mrs. Riktabahen Sonawala, Mr. Chaitanya Patel and Mr. Rachit Jain.
IPO Registrar
Kfin Technologies Ltd.
Tel: 040-67162222 / 040-79611000
Email: austere.ipo@kfintech.com
IPO Lead Manager
GYR Capital Advisors Pvt. Ltd.
Registered Office Address
INDO SMC Ltd
809, Shilp Zaveri, Shyamal Cross Road,
Vejalpur, Shyamal, Ahmedabad – 380006, Gujarat
Phone: +91 75758 12866
Email: cs@indosmc.com
INDO SMC IPO – Detailed IPO Review
by Paresh Gordhandas, CA & RA
INDO SMC Ltd operates in the electrical and infrastructure equipment segment and has reported sharp growth in revenues and profitability over the last three financial years. At the IPO price band of Rs. 141–149, the post-issue valuation appears optically reasonable with a post-IPO P/E of around 14.9x based on FY25 earnings. However, a deeper analysis of the business mix, working capital structure, and revenue quality reveals several important red flags that investors should not ignore.
1) Revenue Composition: Low Technology, Commodity-Dominated Mix
Despite positioning itself as a diversified electrical and infrastructure solutions provider, a large portion of the company’s revenue comes from routine, low-technology products, rather than specialised or high-entry-barrier items.
For the six months ended September 30, 2025, Bus Duct alone contributed Rs. 73.28 crore, accounting for over 65% of total revenue. FRP Grating, another relatively standardised product, contributed about 5.4%. In contrast, products that suggest higher technical capability—such as current transformers (HTCT, LTCT), pultrusion products, and consultancy—together form only a small fraction of total sales.
This skewed mix indicates that the company’s revenue growth is driven more by volume-based, price-competitive products than by technology-led differentiation, which limits pricing power and raises vulnerability to competition.
2) Sharp Volatility in Product-Wise Sales
The product-wise revenue table shows significant inconsistency across years:
-
Bus Duct sales jumped sharply in FY26 (H1) but were negligible in earlier years
-
FRP Grating sales fluctuated heavily across FY23–FY25
-
Several product lines show zero sales in prior years and sudden appearance later
Such volatility suggests project-based or order-concentrated revenue, rather than a stable, annuity-like business. This increases earnings unpredictability and raises the risk of sharp slowdown if large orders do not repeat.
3) Working Capital Stress: Inventory & Receivables Out of Sync with Sales
One of the most critical concerns in this IPO is the heavy working capital build-up.
-
Inventory stood at Rs. 17.23 crore (FY25) and surged to Rs. 47.30 crore (Sep 2025)
-
Trade receivables were Rs. 47.21 crore (FY25) and further increased to Rs. 54.76 crore (Sep 2025)
This is disproportionately high when compared with:
-
Average monthly sales of Rs. 11.55 crore during FY25, and
-
Average monthly sales of Rs. 18.76 crore during H1 FY26
Such elevated inventory and receivables indicate:
-
Slower customer collections
-
Possible extended credit terms to push sales
-
Risk of inventory obsolescence or project delays
This also explains why a substantial portion of IPO proceeds (Rs. 52 crore) is earmarked for working capital, highlighting that growth so far has been cash-intensive rather than efficiency-driven.
4) Rising Debt Despite Profit Growth
Even with strong reported profitability, total borrowings increased to Rs. 49.35 crore as of September 30, 2025, with a debt-equity ratio of around 1:1. This suggests that internal accruals have not been sufficient to fund growth, forcing reliance on external borrowing.
Sustained dependence on debt-funded working capital can compress future return ratios if margins moderate or receivables stretch further.
5) Margin Sustainability Risk
While EBITDA and PAT margins appear healthy, the dominance of standardised products like Bus Ducts and FRP items raises questions on margin sustainability over the medium term. These segments typically face intense competition from unorganised and regional players, making margins vulnerable during downturns or price wars.
6) Promoter Dilution & Execution Risk
Post IPO, promoter holding drops sharply from 82.30% to 60.07%, which is a meaningful dilution. While not negative by itself, it places greater importance on consistent execution, governance discipline, and capital allocation—especially given the working capital-heavy model.
Chanakya Perspective (Analytical View)
INDO SMC IPO presents strong headline growth numbers, but beneath the surface, the business is largely driven by low-technology, routine products with volatile order flows and heavy working capital dependence. The sharp build-up in inventory and receivables relative to sales is a key structural risk, making future cash flows more uncertain.
The IPO may attract interest due to valuation comfort and growth optics, but risk-aware investors should track post-listing working capital discipline, order sustainability, and margin behaviour very closely.
This is not a plain-vanilla “growth at any price” SME story, and suitability depends on an investor’s risk appetite and ability to monitor execution quality after listing.
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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.
