Unveiling the ANB Metal Cast IPO: A Comprehensive Investment Overview
The Indian primary market is buzzing, and the upcoming ANB Metal Cast IPO is set to capture investor attention. This SME IPO offers a unique opportunity to participate in the growth story of a company specializing in high-quality aluminum extrusions. But what exactly does ANB Metal Cast do, and what should potential investors know before considering an application? Let's dive deep into the details, financials, and strategic outlook of this exciting public offering.
Company Overview: Shaping the Future with Aluminum
Incorporated in March 2019, ANB Metal Cast Limited has quickly established itself as a manufacturer of high-quality aluminum extrusion products. Their versatile offerings cater to a wide array of industries, showcasing their adaptability and market relevance.
Core Operations and Product Portfolio:
- Manufacturing Expertise: The company specializes in producing a comprehensive range of aluminum extrusion products, including essential components like motor bodies, various profiles, round bars, and specialized solar profiles.
- Architectural Solutions: They also provide crucial elements for construction and design, such as railings and sliding windows, highlighting their presence in the architectural sector.
- Diverse Offerings: Beyond core extrusions, their product line extends to hardware items, engineering products, kitchen profiles, and standard aluminum extrusion forms like channels, sections, flat bars, and tubes.
- Industry Reach: ANB Metal Cast serves critical sectors including electronics, automotive, mechanical, solar, and architectural industries, demonstrating a broad market footprint.
- Geographical Presence: Their products are distributed across several Indian states, including Delhi, Gujarat, Haryana, Karnataka, Maharashtra, Rajasthan, and Tamil Nadu.
- Manufacturing Hub: The company operates a dedicated 50,000 sq. ft. manufacturing unit in Rajkot, Gujarat, focusing on both aluminum extrusions and non-ferrous metal alloys.
Key Strengths & Growth Drivers
ANB Metal Cast's success is underpinned by several key strengths that position it for continued growth and resilience in the competitive manufacturing landscape.
- Extensive Product Diversity: A broad portfolio allows them to cater to varied customer needs and reduce dependence on a single product segment.
- Customization Prowess: The ability to offer tailored solutions provides a significant competitive edge, attracting a wider client base.
- Robust Supply Chain Relations: Strong ties with raw material suppliers ensure consistent quality and timely procurement, crucial for uninterrupted production.
- Optimized Resource Utilization: Efficient management of resources contributes to operational effectiveness and cost control.
- Strict Quality Control: A stringent quality assurance framework ensures consistent product standards, building customer trust and brand reputation.
ANB Metal Cast IPO: Snapshot for Investors
Understanding the core details of the IPO is crucial for any potential investor. Here’s a quick look at the key parameters:
| Detail | Description |
|---|---|
| IPO Type | Book Building SME IPO |
| Issue Size | 32,00,000 equity shares (aggregating up to ₹49.92 Crores) |
| Sale Type | Entirely a Fresh Issue |
| Face Value | ₹10 per share |
| Price Range | ₹148 to ₹156 per share |
| Listing Exchange | NSE SME |
| Market Maker Reservation | 2,00,000 shares (aggregating up to ₹3.12 Cr) for Pure Broking Private Limited |
| Net Offer to Public | 30,00,000 shares (aggregating up to ₹46.80 Cr) |
Investment Timeline: Key Dates to Remember
Timing is everything in an IPO. Here's the tentative schedule for the ANB Metal Cast IPO, from application to listing:
Please note that all dates are tentative and subject to change.
Application Details & Lot Sizes
For retail investors, understanding the minimum and maximum investment requirements is key.
| Application Category | Minimum Lots | Minimum Shares | Minimum Amount | Maximum Lots | Maximum Shares | Maximum Amount |
|---|---|---|---|---|---|---|
| Individual Investors (Retail) | 2 | 1,600 | ₹2,49,600 | 2 | 1,600 | ₹2,49,600 |
| Small HNI (S-HNI) | 3 | 2,400 | ₹3,74,400 | 8 | 6,400 | ₹9,98,400 |
| Big HNI (B-HNI) | 9 | 7,200 | ₹11,23,200 | - | - | - |
Investors can apply for the IPO using either UPI or ASBA as a payment method, simplifying the application process through various brokers and bank platforms.
Financial Performance Overview
ANB Metal Cast has demonstrated robust financial growth in recent years, reflecting its operational efficiency and market demand for its products.
Restated Financial Highlights (Amount in ₹ Crores):
| Period Ended | 31 Mar 2025 | 31 Mar 2024 | 31 Mar 2023 |
|---|---|---|---|
| Assets | 98.05 | 63.58 | 44.02 |
| Total Income | 162.64 | 112.15 | 84.28 |
| Profit After Tax (PAT) | 10.25 | 5.34 | 1.85 |
| EBITDA | 17.47 | 10.71 | 3.15 |
| Net Worth | 33.97 | 10.67 | 5.37 |
| Reserves and Surplus | 25.33 | 7.67 | 2.37 |
| Total Borrowing | 34.33 | 34.13 | 15.92 |
The company's revenue increased by an impressive 45% and profit after tax (PAT) soared by 92% between the financial years ending March 31, 2024, and March 31, 2025, indicating strong operational leverage and market expansion.
Key Performance Indicators (KPIs) as of March 31, 2025:
| KPI | Value |
|---|---|
| Return on Equity (ROE) | 45.91% |
| Return on Capital Employed (ROCE) | 24.13% |
| Debt/Equity Ratio | 1.01 |
| Return on Net Worth (RoNW) | 45.91% |
| Profit After Tax (PAT) Margin | 6.30% |
| EBITDA Margin | 10.74% |
| Price to Book Value | 3.72 |
The market capitalization of ANB Metal Cast IPO is ₹184.62 Crores at the upper price band.
Earnings and Valuation:
| Metric | Pre IPO | Post IPO |
|---|---|---|
| EPS (Rs) | 11.87 | 8.66 |
| P/E (x) | 13.15 | 18.02 |
Note: The Pre-IPO EPS is based on pre-issue shareholding and FY25 earnings. Post-IPO EPS is based on post-issue shareholding and annualized FY25 earnings.
Leadership & Shareholding Structure
The company's strong foundation is built on its leadership and a clearly defined shareholding structure.
- Promoter: The company is promoted by Avnishkumar Dhirajlal Gajera.
Promoter Holding:
| Holding Type | Percentage |
|---|---|
| Pre-Issue Shareholding | 91.49% |
| Post-Issue Shareholding | (To be calculated based on equity dilution) |
IPO Reservation Categories:
| Investor Category | Shares Offered |
|---|---|
| Qualified Institutional Buyers (QIB) | Not more than 50% of the Net Issue |
| Retail Individual Investors (RII) | Not less than 35% of the Offer |
| Non-Institutional Investors (NII) | Not less than 15% of the Net Issue |
Strategic Utilization of Funds (Issue Objectives)
ANB Metal Cast Limited intends to utilize the net proceeds from this public offering for strategic initiatives aimed at bolstering its manufacturing capabilities and ensuring sustained growth.
- Capital Expenditure for Expansion: A significant portion (₹13.70 Crores) is earmarked for expanding existing manufacturing facilities. This includes constructing additional floor space and installing new plant and machinery to enhance production capacity.
- Long-Term Working Capital: Approximately ₹21.50 Crores will be used to partly fund the company's long-term working capital requirements, ensuring smooth day-to-day operations and facilitating future growth.
- General Corporate Purposes: The remaining funds will be allocated for general corporate needs, providing flexibility for various business operations and unforeseen requirements.
Key Intermediaries
The IPO process is facilitated by experienced financial entities:
- Book-Running Lead Manager: Sun Capital Advisory Services (P) Ltd
- Registrar to the Issue: Kfin Technologies Limited
- Market Maker: Pure Broking Private Limited
Company Contact Details:
ANB Metal Cast Ltd.
Riverwave Off. No 9, 8th Floor, Near Lords Pradhyuman,
Kalawad Road, Rajkot, Gujarat, 360005
Phone: 98255 98259
Email: cs@anbmetalcast.com
Website: https://anbmetalcast.com/
Strategic Insights: SWOT Analysis
A comprehensive look at ANB Metal Cast's internal and external factors provides a clearer picture for investors.
Strengths:
- Diverse Product Range: Caters to multiple industries, reducing dependency on a single sector.
- Strong Financial Growth: Significant revenue and PAT growth demonstrate operational efficiency.
- Customization Capabilities: Ability to meet specific client needs adds value and market differentiation.
- Robust Manufacturing Base: A dedicated, well-equipped facility in a strategic location (Rajkot, Gujarat).
- Quality Focus: Stringent quality control ensures high standards and customer satisfaction.
Weaknesses:
- Dependence on Raw Material Prices: Volatility in aluminum prices could impact profitability margins.
- Competition: Operating in a competitive market with both organized and unorganized players.
- Scalability Challenges: Scaling up operations rapidly might require significant capital injection and resource management.
Opportunities:
- Growing End-User Industries: Increasing demand from the automotive, solar, and construction sectors in India.
- Government Initiatives: "Make in India" and infrastructure development drives can boost demand for aluminum extrusions.
- Expansion into New Geographies: Potential to tap into unexplored markets within India or even explore export opportunities.
- Product Innovation: Developing new or specialized extrusion profiles for emerging applications.
Threats:
- Economic Downturns: A general slowdown in the economy could reduce industrial and construction activity, affecting demand.
- Regulatory Changes: New environmental or industrial regulations could increase compliance costs.
- Technological Disruption: Emergence of alternative materials or manufacturing processes could pose a long-term challenge.
Conclusion: A Look Ahead for ANB Metal Cast
The ANB Metal Cast IPO presents an intriguing proposition for investors seeking exposure to the manufacturing sector, particularly in aluminum extrusions. The company's impressive financial performance, diverse product portfolio, and clear objectives for utilizing the IPO proceeds suggest a strong growth trajectory. While the SME platform inherently carries higher risk, the company's demonstrated strengths and strategic plans for expansion could be compelling factors for consideration. As with any investment, a thorough review of the RHP and careful consideration of one's investment objectives and risk appetite are essential before making a decision.