Unveiling Sampat Aluminium IPO: Your Comprehensive Investment Guide
The Indian primary market is abuzz with activity, and a new Small and Medium Enterprise (SME) Initial Public Offering (IPO) is on the horizon: Sampat Aluminium Limited. As investors look for opportunities, understanding the intricacies of an IPO is crucial. This blog post dives deep into Sampat Aluminium's offering, providing you with a detailed analysis to help you make an informed decision.
Introducing Sampat Aluminium Limited
Sampat Aluminium Limited, incorporated in 1999, is a key player in the manufacturing of aluminium wire rods in India. The company leverages the 'Properzi process' for continuous casting and hot-rolling to produce essential aluminium long products.
Core Business & Products
The company’s products are vital for various sectors, primarily due to aluminium's properties – lightweight, corrosion-resistant, highly conductive, and cost-effective.
- Aluminium Rods: Ranging from 7.5 mm to 20 mm with 98%-99.5% aluminium content, these rods are used extensively in construction, automotive, and electrical sectors, and for steel deoxidation. In FY 2025, the company produced 4222 MT of aluminium rods.
- Aluminium Wires: With a range of 5.5 mm to 6.5 mm and similar aluminium content, these are crucial for power transmission, building wiring, transformers, and telecommunications. Production stood at 1085.05 MT in FY 2025.
Sampat Aluminium operates a plant in Kalol, Gujarat, boasting an 8,400 MTPA capacity, equipped with sections for design, casting, machining, and rigorous quality checks. The company employed 26 individuals as of July 31, 2025.
Key Strengths Defining the Company
- A broad and diverse customer base, fostering long-term relationships.
- An efficient and well-established supplier network.
- Presence across a wide geographical area.
- Leadership by experienced promoter directors with deep industry knowledge.
- A proven history of achieving growth and profitability.
Sampat Aluminium IPO: Key Details at a Glance
The Sampat Aluminium IPO is a Book Built Issue aimed at raising significant capital for the company's growth initiatives.
| Detail | Description |
|---|---|
| Issue Type | Bookbuilding IPO |
| Total Issue Size | 25,44,000 shares (₹30.53 Crores) |
| Fresh Issue | Entirely a fresh issue of 0.25 crore shares |
| Face Value | ₹10 per share |
| Price Range | ₹114.00 to ₹120.00 per share |
| Minimum Lot Size | 1,200 shares |
| Listing Exchange | BSE SME |
| Book Running Lead Manager | Marwadi Chandarana Intermediaries Brokers Pvt.Ltd. |
| Registrar | Cameo Corporate Services Ltd. |
| Market Maker | Globalworth Securities Ltd. |
Investment Minimums: Lot Size Details
For prospective investors, understanding the minimum and maximum application sizes is crucial.
| Investor Category | Application Lots | Shares | Amount (at upper price band) |
|---|---|---|---|
| Individual (Retail) Minimum | 2 | 2,400 | ₹2,88,000 |
| Individual (Retail) Maximum | 2 | 2,400 | ₹2,88,000 |
| S-HNI Minimum | 3 | 3,600 | ₹4,32,000 |
| S-HNI Maximum | 6 | 7,200 | ₹8,64,000 |
| B-HNI Minimum | 7 | 8,400 | ₹10,08,000 |
Allocation Details: Who Gets What?
The IPO allocates shares across different investor categories, ensuring broad participation.
| Investor Category | Shares Offered | Percentage |
|---|---|---|
| Market Maker | 1,68,000 | 6.60% |
| Qualified Institutional Buyers (QIB) | 11,84,400 | 46.56% |
| - Anchor Investors | 7,09,200 | 27.88% |
| - QIB (Ex-Anchor) | 4,75,200 | 18.68% |
| Non-Institutional Investors (NII/HNI) | 3,56,400 | 14.01% |
| Retail Individual Investors (RII) | 8,35,200 | 32.83% |
| Total Shares Offered | 25,44,000 | 100.00% |
Anchor Investor Details
Sampat Aluminium secured ₹8.51 crore from anchor investors, signaling institutional confidence.
- Anchor Bid Date: September 16, 2025
- Shares Offered to Anchors: 7,09,200
- Anchor Portion Size: ₹8.51 Crore
- Lock-in Period for 50% Shares: Until October 22, 2025 (30 days)
- Lock-in Period for Remaining Shares: Until December 21, 2025 (90 days)
Important Dates for Aspiring Investors
Mark your calendars! Here's a tentative schedule for the Sampat Aluminium IPO.
- IPO Open Date: Wednesday, September 17, 2025
- IPO Close Date: Friday, September 19, 2025
- Tentative Allotment Date: Monday, September 22, 2025
- Initiation of Refunds: Tuesday, September 23, 2025
- Credit of Shares to Demat: Tuesday, September 23, 2025
- Tentative Listing Date: Wednesday, September 24, 2025
- UPI Mandate Confirmation Cut-off: 5 PM on Friday, September 19, 2025
Purpose of the Public Offering
The funds raised from this IPO are earmarked for strategic initiatives to fuel the company's expansion.
- New Manufacturing Facility: A significant portion of the net proceeds, ₹233.21 million, will be utilized to establish a new manufacturing facility in Borisana, Mehsana, Gujarat. This expansion is critical for increasing production capacity and meeting growing demand.
- General Corporate Purposes: The remaining funds will be used for general corporate needs, which may include working capital requirements, marketing, and other operational expenses to support business growth.
Snapshot of Financial Health
A look at Sampat Aluminium's financial performance over recent years. While revenue saw a dip in FY25, profitability has shown resilience.
| Period Ended | 31 Jul 2025 (₹ Cr) | 31 Mar 2025 (₹ Cr) | 31 Mar 2024 (₹ Cr) | 31 Mar 2023 (₹ Cr) |
|---|---|---|---|---|
| Total Assets | 75.74 | 70.03 | 51.56 | 37.20 |
| Total Income | 52.30 | 133.00 | 148.92 | 131.03 |
| Profit After Tax (PAT) | 3.35 | 6.93 | 6.58 | 1.42 |
| EBITDA | 5.11 | 11.55 | 10.50 | 2.66 |
| Net Worth | 25.85 | 22.49 | 13.19 | 3.61 |
| Total Borrowing | 24.27 | 23.57 | 20.65 | 16.70 |
Key Valuation Metrics at a Glance (as of Mar 31, 2025)
Understanding these metrics can provide insights into the company's efficiency and valuation. The market capitalization of Sampat Aluminium IPO is ₹101.77 Crores.
| Key Performance Indicator | Value |
|---|---|
| Return on Equity (ROE) | 42.42% |
| Return on Capital Employed (ROCE) | 23.13% |
| Debt/Equity Ratio | 1.05 |
| Return on Net Worth (RoNW) | 30.82% |
| PAT Margin | 5.22% |
| EBITDA Margin | 8.70% |
| Price to Book Value | 3.13 |
Earnings Per Share and Price-to-Earnings Ratio
| Metric | Pre IPO | Post IPO |
|---|---|---|
| Earnings Per Share (EPS) | ₹11.68 | ₹11.86 |
| Price/Earnings (P/E) Ratio (x) | 10.28 | 10.12 |
*Note: Pre IPO EPS is based on pre-issue shareholding and FY 2025 earnings. Post IPO EPS is based on post-issue shareholding and annualized earnings up to July 31, 2025.
Promoter Shareholding: Before and After
The promoters of Sampat Aluminium Limited are Sanket Sanjay Deora, Sanjay Vimalchand Deora, Ekta Sanket Deora, and Sampat Heavy Engineering Limited. Their stake will undergo a change post-IPO.
- Pre-Issue Promoter Holding: 90.96%
- Post-Issue Promoter Holding: 63.68%
SWOT Analysis: A Strategic Overview
A strategic analysis helps in understanding the internal and external factors influencing Sampat Aluminium's business.
Strengths
- Established operational history since 1999 with an experienced management team.
- Critical product portfolio (aluminium rods & wires) catering to essential industries like power, infrastructure, and automotive.
- Robust manufacturing capacity (8,400 MTPA plant in Gujarat).
- Diversified customer base and strong supplier relationships enhancing business stability.
- Proven track record of profitability, as shown by increasing PAT over the years.
Weaknesses
- Recent decline in total income (FY 2025 vs FY 2024), indicating potential market challenges or operational shifts.
- Dependence on raw materials like aluminium ingots and scrap, making it vulnerable to price fluctuations.
- Listing on BSE SME, which typically has lower liquidity and a smaller investor base compared to mainboard exchanges.
- High minimum investment for retail investors (₹2,88,000), limiting accessibility for smaller investors.
Opportunities
- Growing demand for aluminium products driven by infrastructure development and industrial expansion in India.
- Planned expansion with a new manufacturing facility to boost capacity and cater to future demand.
- Potential for market share growth in niche segments or through technological advancements.
- Strategic partnerships or backward integration to mitigate raw material price risks.
Threats
- Volatile global commodity prices, especially for aluminium, impacting profitability margins.
- Intense competition from organized and unorganized players in the aluminium manufacturing sector.
- Economic downturns or slowdowns in key end-user industries (automotive, construction, electrical) could affect demand.
- Environmental regulations and compliance costs, which could impact operational expenses.
Connecting with Sampat Aluminium and Registrar
For direct inquiries or support regarding the IPO, here are the contact details.
Company Contact
- Address: Block No 265, Rakanpur, Opp. Manpasand Waybridge, Kalol, Gandhinagar, Gujarat, 382721
- Phone: +91 9227210022
- Email: cs@sampataluminium.com
Registrar Information
- Name: Cameo Corporate Services Ltd.
- Phone: +91-44-28460390
- Email: ipo@cameoindia.com
Applying for the Sampat Aluminium IPO: A Quick Guide
Applying for an IPO is straightforward with modern digital platforms.
- Through Brokers: Many leading stockbrokers offer online IPO application via UPI as a payment gateway. Simply log in to your broker's platform (e.g., Zerodha Console, Upstox, Angel One), navigate to the IPO section, enter your UPI ID, quantity, and bid price, then approve the mandate on your UPI app.
- Through ASBA: Alternatively, you can apply using the ASBA (Application Supported by Blocked Amount) facility available through your bank's net banking portal.
Final Thoughts for Potential Investors
Sampat Aluminium IPO presents an opportunity to invest in a company engaged in a core industrial sector with a good track record of profitability and expansion plans.
However, investors should carefully weigh the financial performance, valuation metrics, and the inherent risks of investing in an SME IPO, including market liquidity. Always conduct your own due diligence and consider consulting a financial advisor before making any investment decisions. The future growth trajectory of the company, coupled with the overall economic sentiment and demand for aluminium products, will be crucial factors to watch.