September 12, 2025
admin
Sampat Aluminium IPO Key Dates
| Anchor Investor Subscription | |
| IPO opens on | 17 Sept. 2025 |
| IPO Closes on | 19 Sept. 2025 |
| Allotment on | 22 Sept, 2025 |
| Credit of shares on | 23 Sept. 2025 |
| Tentative Listing on | 24 Sept. 2025 |
Sampat Aluminium IPO Condenses Verdict
Sampat Aluminium Limited, engaged in manufacturing of aluminium rods and wires, has shown growth in net worth and profitability in recent years. However, working capital management is under pressure — with high inventory and receivables compared to monthly revenues. The cost-to-sales ratio has improved before the IPO, but sustainability of such low costs remains uncertain. Debt levels are also significant. Investors need to weigh the positives of brand association and steady business against risks of margin sustainability and stretched working capital.
Final Subscription Tally
| Size Rs. Crore | ||||
| QIB | NII x | RII x | Total x | Applications |
| Subscription Review: |
||||
About Sampat Aluminium
Incorporated in 1999, Sampat Aluminium Limited is engaged in the manufacturing of aluminium wire rods and wires in India. The company uses the Properzi process of continuous casting and hot-rolling, utilizing aluminium ingots, rods, wires, and recycled scrap to produce aluminium long products.
These products are widely used in electricity distribution, transformers, and various industrial applications owing to aluminium’s properties of being lightweight, corrosion-resistant, conductive, and cost-effective.
Manufacturing Facility
The company operates a manufacturing plant at Kalol, Gujarat with an installed capacity of 8,400 MTPA. The facility is equipped with dedicated sections for design, casting, machining, and quality control, supported by in-house testing labs for raw materials as well as finished goods.
Product Portfolio
-
Aluminium Rods
-
Range: 7.5 mm to 20 mm, Aluminium Content: 98%–99.5%
-
Properties: Durable, lightweight, corrosion-resistant, conductive
-
Applications: Construction, automotive, electrical sectors, steel deoxidation
-
Production in FY 2025: 4,222 MT
-
-
Aluminium Wires
-
Range: 5.5 mm to 6.5 mm, Aluminium Content: 98%–99.5%
-
Properties: Lightweight, corrosion-resistant, conductive
-
Applications: Power transmission, building wiring, transformers, telecom
-
Production in FY 2025: 1,085.05 MT
-
Workforce
As on 31 July 2025, the company employed 26 people across different functions, supported by a professional management team.
Sampat Aluminium IPO Details
|
Sector: Cyber Security |
|
| IPO opens on | 17 September 2025 |
| IPO closes on | 19 September 2025 |
| Issue Type | Book Built Issue IPO |
| Issue Size | 25,44,000 Shares / Rs 30.53 Crore |
| * Fresh Issue | – |
| * Offer for Sale – | – |
| Market Maker Portion | 168,000 Shares |
| Net offer to Public | 23,76,000 Shares Rs. 28,51 Crores |
| Face Value per share | Rs. 10 |
| Price Band | Rs. 114-120 |
| Employee discount | Rs. 0 per share |
| Retail Lot Size | 1200 Shares |
| Listing will at | BSE SME |
How shares are being offered
| Investor Category | Shares Offered |
| Market Maker Shares Offered | 1,68,000 (6.60%) |
| QIB Shares Offered | 11,84,400 (46.56%) |
| NII (HNI) Shares Offered | 3,56,400 (14.01%) |
| Retail Shares Offered | 8,35,200 (32.83%) |
| Total Shares Offered | 25,44,000 (100.00%) |
| Application | Lots | Shares | Amount |
| Retail (Min) | 2 | 2,400 | ₹2,88,000 |
| Retail (Max) | 2 | 2,400 | ₹2,88,000 |
| S-HNI (Min) | 3 | 3,600 | ₹4,32,000 |
| S-HNI (Max) | 6 | 7,200 | ₹8,64,000 |
| B-HNI (Min) | 7 | 8,400 | ₹10,08,000 |
Who are the Promoters of Sampat Aluminium IPO?
Limited are the promoters of the company.
The promoters hold 90.96% of the pre-IPO capital
What are the Objects of Sampat Aluminium IPO?
The Company proposes to utilize the Net Proceeds from Issue towards funding the following objects
+Setting up a new manufacturing facility located at Borisana, Mehsana in Gujarat Rs.23.32 Crore
+General Corporate purposes
| Registered Office of the Company |
| Sampat Aluminium Ltd. Block No 265, Rakanpur, Opp. Manpasand Waybridge, Kalol Gandhinagar, Gujarat, 382721 |
| Email: cs@sampataluminium.com |
| Lead Manager of the IPO |
| Marwadi Chandarana Intermediary Brokers Pvt ltd |
| Who is the Registrar to the IPO?
Cameo Corporate Services ltd |
Sampat Aluminium Financials Snapshot
| Period Ended | 31-Jul-25 | 31-Mar-25 | 31-Mar-24 | 31-Mar-23 |
| Assets | 75.74 | 70.03 | 51.56 | 37.2 |
| Total Income | 52.3 | 133 | 148.92 | 131.03 |
| Profit After Tax | 3.35 | 6.93 | 6.58 | 1.42 |
| EBITDA | 5.11 | 11.55 | 10.5 | 2.66 |
| NET Worth | 25.85 | 22.49 | 13.19 | 3.61 |
| Reserves and Surplus | 19.91 | 16.56 | 9.11 | 2.53 |
| Total Borrowing | 24.27 | 23.57 | 20.65 | 16.7 |
| Amount in ₹ Crore | ||||
Key Financial Indicators
| KPI | Values |
| ROE | 42.42% |
| ROCE | 23.13% |
| Debt/Equity | 1.05 |
| RoNW | 30.82% |
| PAT Margin | 5.22% |
| EBITDA Margin | 8.70% |
| Price to Book Value | 3.13 |
| EPS | 11.68 |
| PE Ratio | 10.28 |
How Sampat Aluminium IPO compares with the Peers?
| Company Name | P/E (x) | RoNW (%) |
| Sampat Aluminium | 10.28 | 30.82 |
| Palco Metals | 8.56 | 54.25 |
| Arffin India | 62.87 | 5.94 |
Sampat Aluminium IPO Review
by Paresh Gordhandas, CA & Research Analyst
Sampat Aluminium Limited, incorporated in 1999, manufactures aluminium rods and wires, mainly used in power distribution, transformers, telecom and industrial applications. Its manufacturing unit at Kalol, Gujarat has 8,400 MTPA capacity and employs 26 staff as of July 2025.
Financial Performance
-
Revenues: Declined from Rs. 148.92 crore in FY24 to Rs. 133 crore in FY25. For 4 months ended July 2025, revenue stood at Rs. 52.3 crore.
-
Profitability: PAT grew from Rs. 1.42 crore (FY23) to Rs. 6.93 crore (FY25). For 4 months of FY26 (till July), PAT was Rs. 3.35 crore.
-
EBITDA: Improved from Rs. 2.66 crore in FY23 to Rs. 11.55 crore in FY25, showing operational efficiency.
-
Net Worth: Rose from Rs. 3.61 crore in FY23 to Rs. 22.49 crore in FY25, reflecting reserves growth.
Key Observations
-
Margin Sustainability: Cost of materials + manufacturing expenses to sales was very high (98.78%) in FY23 but reduced to 90.66% in FY25. This sharp improvement may not be sustainable going forward.
-
Working Capital Stress:
-
FY23: Inventory Rs. 15.03 crore + Receivables Rs. 17.67 crore vs. monthly revenue Rs. 10.67 crore.
-
FY25: Inventory Rs. 36.53 crore + Receivables Rs. 19.95 crore vs. monthly revenue Rs. 11.06 crore.
This reflects high inventory holding and sluggish receivables, which can stress liquidity.
-
-
Borrowings: Total borrowings stood at Rs. 23.57 crore in FY25 and Rs. 24.27 crore as of July 2025 — leverage remains elevated.
Overall View
While Sampat Aluminium has a niche product profile and growing reserves, the concerns around sustainability of margins, inventory pile-up, receivable cycle, and borrowings cannot be ignored. Investors with high-risk appetite may consider, but conservative investors should be cautious.
The IPO price band is Rs. 114 to Rs. 120 per share. The lot size is 1,200 shares, meaning minimum retail investment is Rs. 2,88,000 (2 lots), while HNI requires 3 lots worth Rs. 4,32,000.
IPO Opens: 17 September 2025
IPO Closes: 19 September 2025
Basis of Allotment: 22 September 2025
Listing Date (Tentative): 24 September 2025 on BSE SME.
The company manufactures aluminium rods and wires using the Properzi process at its Kalol, Gujarat plant. These products are widely used in electricity distribution, transformers, telecom, and industrial applications
The company has shown improved profitability and reserves, but concerns remain regarding margin sustainability, high inventory, receivables, and leverage. Hence, the IPO may appeal only to investors with high risk appetite, while conservative investors may prefer to avoid.
Quicklinks
- Market Analysis by Nagaraj Shetti
- Stock Market today by Vaishali Parekh
- Analysis by Kotak Securities
- Market Analysis by HDFC Securities
- Technical Analysis by Kotak Securities
- Technical Analysis by Samco Securities
- Reliance, Target & Stoploss
- Gold Analysis
- FII buy-Sell
- Technical Analysis
- Calls for the Day
- Currency Analysis
# This is only coverage of News related to Grey Market Premium & subject to rates. We do not deal in grey market premium. We do not recommend dealing in Grey Market. Investment decision based on Grey Market trends can be faulty.
