Introduction to the Opportunity
The Initial Public Offering (IPO) market remains a dynamic avenue for capital raising and investment growth. Amongst the upcoming opportunities, Apollo Techno Industries Limited (ATIL) is set to launch its SME IPO. This offering provides a chance to invest in a company rooted in specialized construction technology. Before committing capital, thorough due diligence is essential. This post breaks down every critical aspect of the ATIL IPO, from its business model to the financial outlook, ensuring you have the necessary insights.
Understanding Apollo Techno Industries Ltd.
Incorporated in 2016, Apollo Techno Industries Limited has carved a niche in providing advanced machinery and technology solutions for the infrastructure and construction sectors. Their expertise lies particularly in trenchless technology and essential foundation equipment.
Core Business and Offerings
- Specializes in manufacturing and supplying foundation equipment for construction.
- Key product lines include Horizontal Directional Drilling (HDD) rigs, Diaphragm Drilling Rigs, and Rotary Drilling Rigs.
- HDD technology allows for minimal environmental impact while installing underground utilities.
- Offers in-house design capabilities, enabling customized and quality-focused solutions.
Competitive Edge and Market Reach
- A strong focus on maintaining high product quality and prioritizing customer service is central to their strategy.
- The company leverages its in-house engineering team to remain competitive and adapt quickly.
- Domestically, Gujarat currently accounts for the highest share of sales (34.52%), indicating a regional stronghold that they aim to expand upon.
- The business is driven by a customer-centric approach, fostering long-term client relationships.
IPO Snapshot: Key Subscription Metrics
This SME IPO is structured as a Book Building issue aiming to raise ₹47.96 Crores through a fresh issuance of equity shares.
IPO Timeline Summary
| Event | Tentative Date |
|---|---|
| IPO Opening Date | Tuesday, December 23, 2025 |
| IPO Closing Date | Friday, December 26, 2025 |
| Basis of Allotment Finalization | Monday, December 29, 2025 |
| Initiation of Refunds / Credit of Shares to Demat | Tuesday, December 30, 2025 |
| Tentative Listing Date (BSE SME) | Wednesday, December 31, 2025 |
Price Band and Application Details
| Investor Category | Lot Size (Shares) | Minimum Investment (Retail Max) |
|---|---|---|
| Retail Investor (Minimum/Maximum) | 2 Lots (2,000 Shares) | ₹2,60,000.00 |
| S-HNI (Minimum Bid) | 3 Lots (3,000 Shares) | ₹3,90,000.00 |
IPO Structure and Allotment Breakdown
The total offering comprises 36,89,000 shares. The allocation is segmented across various investor classes as per regulatory norms for SME listings.
Share Reservation Details
| Investor Category | Shares Offered | Percentage (%) |
|---|---|---|
| Qualified Institutional Buyers (QIB) | 17,50,000 | 47.44% |
| Non-Institutional Investors (NII/HNI) | 5,26,000 | 14.26% |
| Retail Individual Investors (RII) | 12,28,000 | 33.29% |
| Market Maker Reservation | 1,85,000 | 5.01% |
| Total Issue Size | 36,89,000 Shares | 100.00% |
Financial Health Check: Performance Indicators
A review of the company's recent financial history shows significant upward trajectory, particularly in profitability.
Financial Highlights (Amount in ₹ Crore)
| Metric | Mar 31, 2024 | Mar 31, 2025 | Jun 30, 2025 (Latest) |
|---|---|---|---|
| Total Income | 69.28 | 99.66 | 24.67 |
| Profit After Tax (PAT) | 3.23 | 13.79 | 1.08 |
| Total Borrowing | 43.29 | 31.75 | 30.57 |
Observation: Revenue saw a substantial growth of approximately 44%, and Profit After Tax (PAT) witnessed an impressive surge of 327% between the fiscal years ending March 2024 and March 2025. This indicates strong operational leverage kicking in.
Key Return Ratios (As of Mar 31, 2025)
| KPI | Value |
|---|---|
| Return on Equity (ROE) | 74.75% |
| Return on Capital Employed (ROCE) | 30.98% |
| PAT Margin | 13.84% |
| Debt/Equity Ratio | 3.74 |
Valuation Perspective and Ownership Structure
The valuation post-IPO needs careful consideration against the earnings potential.
Pre vs. Post-IPO Earnings & P/E Analysis
| Metric | Pre-IPO | Post-IPO |
|---|---|---|
| EPS (Rs) | 13.79 | 3.16 |
| P/E Ratio (x) | 9.43 | 41.16 |
Note on Dilution: The issue results in a dilution of promoter holding. Pre-IPO, the promoters held 100% of the company. Post-listing, the public float will increase, and promoter holding will adjust based on the fresh issue size.
Promoter Group
- The company is promoted by Mr. Parth Rashmikant Patel, Mr. Rashmikant Haribhai Patel, Mrs. Manjulaben Rashmikant Patel, alongside their respective HUFs (Parth Patel (HUF) and Rashmikant Haribhai Patel HUF).
Purpose of the Issue (Utilization of Funds)
The company intends to deploy the net proceeds primarily to strengthen its operational capacity and for general corporate development.
| Objective | Expected Amount (₹ Million) |
|---|---|
| Meeting Working Capital Requirements | 385 |
| General Corporate Purpose | (Balance Proceeds) |
Stakeholder Facilitators
Successful IPO execution relies on competent intermediaries. Here are the key players involved in the ATIL listing:
Lead Manager and Registrar
- Book Running Lead Manager (BRLM): Beeline Capital Advisors Pvt.Ltd.
- Registrar to the Issue: MUFG Intime India Pvt.Ltd. (Contact: +91-22-4918 6270, Email: apollotechno.smeipo@in.mpms.mufg.com)
- Market Maker: Spread X Securities Pvt.Ltd.
SWOT Analysis for Investors
A balanced view requires assessing inherent strengths against potential challenges.
Strengths (Internal Positives)
- Strong technical focus on niche segments like trenchless technology (HDD).
- Consistent financial growth, especially the significant PAT increase in FY25.
- Experienced promoter group and in-house design capabilities providing flexibility.
Weaknesses (Internal Negatives)
- Relatively high level of existing debt indicated by the Debt/Equity ratio.
- A high post-IPO P/E of 41.16 suggests the stock is priced richly relative to its current trailing earnings.
- Small employee base (154 as of June 2025) relative to ambitious growth targets.
Opportunities (External Potential)
- The ongoing focus on infrastructure development in India provides a strong demand backdrop for their specialized equipment.
- Potential for expanding market share beyond the current regional dominance.
Threats (External Risks)
- Cyclical nature of the construction industry can impact demand unpredictably.
- Competition from larger, established machinery manufacturers.
Guidance for Application
For investors looking to participate, utilizing established online brokerage platforms is the standard route. Ensure your application meets the minimum lot size requirement for your chosen category (Retail or HNI). If applying via a major broker, UPI mandate authorization must be completed promptly before the subscription window closes.
Always verify the final allotment status post the finalization date to confirm your share allocation.