The Initial Public Offering (IPO) market continues to be a dynamic space for investors looking for growth opportunities, particularly in the SME segment. Today, we turn our attention to Exim Routes Limited, a company making its debut on the NSE SME platform. This book-building issue presents a significant chance for investors to gain exposure to a globally focused recycling exchange business. Let's break down all the essential details you need before considering an application.
Understanding Exim Routes Limited: Business Profile
Incorporated in April 2019, Exim Routes Limited establishes itself as a crucial facilitator in the global trade of recyclable materials, primarily focusing on waste paper and metal scrap. The company aims to bridge the gap between international suppliers and Indian Paper Mills.
- Core Business: Global platform facilitating cross-border trade in recyclable paper materials.
- Proprietary Technology: Utilizes an AI-powered B2B platform named "ERIS" to streamline procurement and transactions.
- Service Model: Offers end-to-end services, including sourcing, quality assurance, logistics coordination, and trade execution for Indian mills.
- Geographic Presence: Operates with a strong base in India and Singapore, supported by foreign subsidiaries in the USA, UK, Germany, and South Africa.
- Team Size: As of late 2025, the company employs 18 individuals.
Key Competitive Advantages
- A well-established global sourcing network provides reliable access to international supplies.
- The ERIS platform enhances efficiency in matching buyers and sellers and coordinating transactions.
- The integrated end-to-end service model simplifies the complex supply chain for domestic paper mills.
- The business structure is specifically designed to cater to the consistent raw material demand of Indian paper manufacturers.
Exim Routes IPO: The Numbers Breakdown
This is a book-building issue amounting to ₹43.73 Crores, comprising entirely fresh equity shares. Understanding the structure, pricing, and timeline is crucial for informed participation.
IPO Overview and Timeline
The IPO is scheduled to open in mid-December 2025. Here is the critical path investors must track:
| Event | Tentative Date |
|---|---|
| IPO Opens | Friday, December 12, 2025 |
| IPO Closes | Tuesday, December 16, 2025 |
| Basis of Allotment Finalization | Wednesday, December 17, 2025 |
| Initiation of Refunds / Credit to Demat | Thursday, December 18, 2025 |
| Tentative Listing Date on NSE SME | Friday, December 19, 2025 |
Pricing and Size: The issue price band is set between ₹83.00 and ₹88.00 per share. With a face value of ₹5 per share, the total issue size is 49.69 Lakh shares.
- Listing Venue: NSE SME.
- Total Issue Size: ₹43.73 Crores (Fresh Issue).
- Price Band: ₹83 to ₹88 per share.
Investment Lot Size Details for Retail and HNI
Investors must adhere to the prescribed lot sizes for applications, particularly in SME IPOs where minimum investment thresholds are higher.
| Investor Category | Lots Applied | Shares Applied | Minimum Investment Amount (Upper Price) |
|---|---|---|---|
| Individual Investors (Retail - Min/Max) | 2 | 3,200 | ₹2,81,600.00 |
| S-HNI (Minimum) | 3 | 4,800 | ₹4,22,400.00 |
| B-HNI (Minimum) | 8 | 12,800 | ₹11,26,400.00 |
Note: The maximum application for Retail investors is capped at the minimum lot size in this specific structure, which is common for SME offerings.
Analyzing Company Strength: Financial Health Snapshot
A review of the company's financial performance indicates robust recent growth, which is a key focus area for investors evaluating SME IPOs.
Revenue and Profit Trend (₹ in Crores)
The data shows significant improvement leading up to the latest reported period:
| Financial Metric | FY Ended Mar 31, 2023 | FY Ended Mar 31, 2024 | FY Ended Mar 31, 2025 | Q1 FY Ended Jun 30, 2025 |
|---|---|---|---|---|
| Total Income | 36.46 | 72.39 | 120.99 | 44.17 |
| Profit After Tax (PAT) | 0.37 | 4.20 | 7.56 | 1.17 |
It is worth noting that revenue grew by approximately 67% and PAT by 80% between the fiscal years ending March 2024 and March 2025.
Key Performance Indicators (KPIs) Snapshot (As of March 31, 2025)
These ratios provide insight into profitability and leverage:
| KPI | Value |
|---|---|
| Return on Equity (ROE) | 42.28% |
| Return on Capital Employed (ROCE) | 26.81% |
| PAT Margin | 18.52% |
| Debt/Equity Ratio | 0.18 |
| Price to Book Value | 7.77x |
Shareholding Structure Impact
The IPO is structured to reduce promoter holding while raising fresh capital for growth initiatives. Promoter holding is set to move from 71.35% pre-IPO to 52.44% post-IPO, indicating a significant dilution.
Earnings Per Share (EPS) Analysis:
Pre-IPO EPS: ₹5.49
Post-IPO EPS: ₹2.50
The P/E ratio post-listing is calculated at 35.18x based on the latest annualized earnings, which requires careful consideration against industry peers.
IPO Objectives and Key Personnel
Utilization of Raised Funds
The net proceeds are earmarked primarily for technological enhancement and working capital needs to fuel business expansion:
- Development and Maintenance of the ERIS Platform: ₹11.87 Crores.
- Working Capital to Fund Business Growth: ₹9.00 Crores.
- Investment in Office Space for New Hires: ₹7.13 Crores.
- General Corporate Purposes.
Key Intermediaries
| Role | Entity Name |
|---|---|
| Book Running Lead Manager (BRLM) | Narnolia Financial Services Ltd. |
| Registrar to the Issue | Maashitla Securities Pvt.Ltd. |
| Market Maker | Nikunj Stock Brokers Ltd. |
Promoter Information: The company is promoted by Mr. Manish Goyal and Mr. Govind Rai Garg, bringing expertise in trade and supply chain management.
Contact Information for Registrar (For Post-IPO Queries)
Registrar: Maashitla Securities Pvt.Ltd.
Phone: +91-11-45121795-96
Email: contact@maashitla.com
SWOT Analysis of Exim Routes Limited
To provide a balanced view, here is a structured analysis of the company's internal and external positioning relative to the IPO launch.
Strengths
- Global sourcing capacity provides competitive edge in supply chain stability.
- Adoption of AI technology (ERIS) for platform efficiency.
- Comprehensive, integrated service model simplifying complex international trade for clients.
Weaknesses
- Relatively small employee base (18 as of Nov 2025) compared to global operational scale.
- High post-IPO P/E valuation (35.18x) might suggest premium pricing expectation.
Opportunities
- Growing global demand for recyclable materials, especially paper, driven by sustainability mandates.
- Leveraging the new capital for significant platform development and expansion into new geographies or material types.
Threats
- Fluctuations in international scrap commodity prices and foreign exchange rates.
- Geopolitical risks affecting global logistics and cross-border trade routes.
- Intensifying competition from other established or emerging recycling trading platforms.
Frequently Asked Questions (FAQs) About the IPO
It is a Bookbuilding IPO on the NSE SME platform, offering a fresh issue of equity shares to raise capital.
The minimum investment is ₹2,81,600.00, corresponding to the minimum application size of 2 lots (3,200 shares) at the upper price band.
Applications can typically be placed online using UPI mandate through your registered broker's platform, or via the ASBA facility available through net banking.
The tentative listing date on the NSE SME is Friday, December 19, 2025.
A significant portion of the funds is allocated towards the development and maintenance of their proprietary ERIS platform and augmenting working capital.
Concluding Thoughts on the Exim Routes SME IPO
Exim Routes offers a compelling entry point into the niche yet growing sector of global recyclable material exchange, backed by technology and a defined service model serving the Indian paper industry. Investors should weigh the company's demonstrated recent financial momentum against the higher valuation multiples often associated with SME listings and the inherent volatility of commodity-linked businesses. Thorough due diligence, especially concerning the deployment of the IPO funds for technology enhancement, will be key to assessing its long-term potential post-listing.