Unlocking Opportunities: Your Comprehensive Guide to the Krupalu Metals SME IPO
The vibrant Indian capital market consistently offers avenues for investors, with the Small and Medium Enterprise (SME) sector emerging as a particularly dynamic space. These growing businesses, through their Initial Public Offerings (IPOs), provide unique investment prospects. Today, we're casting our spotlight on one such upcoming offering: the IPO of Krupalu Metals Limited. This detailed overview aims to equip you with all the vital information to evaluate this fresh issue meticulously.
Krupalu Metals: An Overview of the Manufacturing Expertise
Established in 2012, Krupalu Metals Limited has established itself as a dedicated manufacturer of a wide array of brass and copper products. The company excels in producing high-quality sheets, strips, and various components crafted from these essential metals. Their product range is extensive and includes:
- Brass Sheets and Strips: Available in diverse thicknesses and finishes.
- Brass and Copper Rods: Catering to a multitude of industrial needs.
- Custom Sheet Metal Parts: Precision-pressed components made from brass and copper.
- Brass Washers and Stamping Parts: Engineered for various industrial applications.
- Specialized Brass Sheet Metal Components: Including press components and terminals.
Operating from a modern manufacturing facility in Jamnagar, Gujarat, Krupalu Metals prioritizes stringent quality control and adherence to industry benchmarks. The company's operations are supported by a core team of 13 permanent employees, complemented by 40 additional staff engaged on a flexible, as-needed basis as of July 31, 2025.
Driving Forces: Core Strengths of the Business
- A seasoned management team coupled with a highly trained workforce.
- Strong, enduring relationships with existing clientele, ensuring business stability.
- Unwavering commitment to quality assurance and elevated manufacturing standards.
- Profound industry expertise and extensive experience in the metals sector.
- A culture of fostering innovative ideas and continuous product enhancement.
Krupalu Metals IPO: Essential Details Uncovered
Below is a consolidated summary of the vital information concerning this SME IPO:
| Aspect | Detail |
|---|---|
| Issue Type | Fixed Price Issue, SME IPO |
| Total Issue Size | ₹13.48 Crores (18,72,000 shares) |
| Offer Price | ₹72 per share |
| Face Value | ₹10 per share |
| Application Lot Size | 1,600 shares |
| Exchange for Listing | BSE SME |
| Lead Manager | Finshore Management Services Ltd. |
| Registrar | Cameo Corporate Services Ltd. |
| Market Maker | Anant Securities |
Your Investment Journey: From Application to Listing
Keep track of the important milestones for the Krupalu Metals IPO with this sequential timeline:
*Please note: All dates mentioned are tentative and may be subject to adjustments by the issuer or regulatory bodies.*
Decoding the Investment Structure: Pricing, Lots, and Share Allocation
This IPO is structured as a fixed-price issue at ₹72 per share, with each application lot comprising 1,600 shares. Being an entirely fresh issue, the entirety of the funds raised will be channeled directly into the company to support its strategic objectives. The shares are distributed across different investor segments as detailed below:
Investor Category Reservation
| Investor Category | Shares Offered | Percentage (%) |
|---|---|---|
| Market Maker Portion | 94,400 | 5.04% |
| Non-Institutional Investors (NII/HNI) | 8,88,000 | 47.44% |
| Retail Individual Investors (RII) | 8,89,600 | 47.52% |
| Total Shares Offered | 18,72,000 | 100.00% |
Minimum and Maximum Investment Snapshot
Understanding the minimum investment required for different investor categories is crucial:
| Investor Type | Lots (Min) | Shares (Min) | Amount (Min) |
|---|---|---|---|
| Retail Individual Investor | 2 | 3,200 | ₹2,30,400 |
| High Net Worth Individual (HNI) | 3 | 4,800 | ₹3,45,600 |
Financial Performance Review: Krupalu Metals' Fiscal Health
An examination of the company's financial results offers valuable insights into its trajectory. Krupalu Metals has shown commendable financial growth in recent periods.
Restated Financial Summary (Amounts in ₹ Crore)
| Period Ended | Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 |
|---|---|---|---|
| Assets | 20.03 | 19.46 | 15.25 |
| Total Income | 48.50 | 37.12 | 33.58 |
| Profit After Tax (PAT) | 2.15 | 1.55 | 0.42 |
| Net Worth | 6.12 | 4.06 | 2.56 |
| Total Borrowing | 8.37 | 9.57 | 7.44 |
Between the financial years ending March 31, 2024, and March 31, 2025, Krupalu Metals showcased robust performance with revenue increasing by a notable 31% and Profit After Tax (PAT) climbing by an impressive 39%.
Key Performance Indicators (KPIs as of March 31, 2024)
| Indicator | Value |
|---|---|
| Market Capitalization | ₹42.28 Crores |
| Return on Capital Employed (ROCE) | 48.45% |
| Debt/Equity Ratio | 1.37 |
| Return on Net Worth (RoNW) | 35.12% |
| PAT Margin | 4.45% |
| EBITDA Margin | 7.65% |
| Price to Book Value | 7.09 |
Earnings Per Share (EPS) and Price-to-Earnings (P/E) Overview
| Metric | Value |
|---|---|
| Pre-IPO EPS (based on Mar 31, 2025 earnings) | ₹5.38 |
| Pre-IPO P/E Ratio | 13.39x |
| Post-IPO EPS (annualized for Mar 31, 2025) | ₹3.66 |
| Post-IPO P/E Ratio | 19.66x |
The Leadership: Promoters and Their Shareholding
Krupalu Metals Limited is championed by Mr. Jagdish Parsottambhai Katariya and Mr. Navinbhai Katariya. Their ownership stake before and after the IPO is outlined below:
| Holding Stage | Promoter Holding Percentage |
|---|---|
| Pre-Issue Holding | 100.00% |
| Post-Issue Holding | 68.12% |
Strategic Vision: Objectives of the IPO Fund Utilization
The capital garnered from this fresh issue will be strategically deployed to enhance Krupalu Metals' operational capabilities and drive future expansion. The core objectives include:
- Capital Expenditure: A significant allocation of ₹5.18 Crores is designated for acquiring additional plant and machinery, signaling a clear intent for capacity expansion.
- Working Capital Requirements: To ensure seamless daily operations and support the anticipated increase in production, ₹5.70 Crores will be utilized for working capital needs.
- Issue Related Expenses: Approximately ₹1.49 Crores is earmarked to cover the various expenditures associated with the IPO process itself.
- General Corporate Purposes: An allocation of ₹1.10 Crores provides flexibility for miscellaneous corporate expenses and strategic initiatives.
A Balanced Perspective: SWOT Analysis of Krupalu Metals
To provide a comprehensive understanding, let's analyze the internal strengths and weaknesses, alongside the external opportunities and threats confronting Krupalu Metals:
Strengths
- Seasoned leadership and a highly skilled workforce contributing to operational efficiency.
- Well-established and robust relationships with existing clientele.
- A strong focus on maintaining high-quality standards across all products.
- Extensive domain expertise and valuable industry experience.
- Commitment to fostering innovation and developing new product lines.
Weaknesses
- The IPO valuation appears somewhat aggressive, which might temper immediate listing performance.
- A smaller post-IPO equity base could potentially extend the timeline for a possible migration to a larger exchange.
- Vulnerability to fluctuations in the prices and availability of critical raw materials like brass and copper.
Opportunities
- Growing demand for brass and copper components across diverse industrial sectors.
- Potential for market expansion and increased production capacity through strategic investments.
- Scope to further diversify product offerings and explore new application areas.
Threats
- Unpredictability in global commodity prices can impact profitability.
- Intense competition from both established and emerging players in the metals industry.
- Risks associated with potential shifts in governmental policies or trade regulations.
Informed Decisions: Key Considerations for Investors
For those contemplating an investment in the Krupalu Metals IPO, a thorough and independent evaluation is paramount. While the company demonstrates encouraging growth in its financial performance, the current valuation, as indicated by the issue price, appears somewhat demanding. Furthermore, the relatively modest equity base post-IPO suggests that a potential transition to a main board might be a longer-term prospect. Therefore, it is generally recommended that investors who are well-versed in market dynamics, possess ample liquidity, and maintain a long-term investment outlook may consider participating with a moderate allocation. Always consult a qualified financial advisor to align investment decisions with your personal financial goals and risk tolerance.
Engaging with the IPO: Your Application Guide
Participating in an IPO has been streamlined for modern investors. You can typically submit your application online using either the UPI (Unified Payments Interface) method, often available through various stockbrokers, or the ASBA (Applications Supported by Blocked Amount) facility, usually accessible via your bank's net banking portal.
Concluding Thoughts on the Krupalu Metals IPO
Krupalu Metals Limited is embarking on its public journey with an IPO designed to bolster its expansion and operational requirements. With a solid foundation in brass and copper manufacturing and clear growth objectives, the company presents an intriguing opportunity within the SME space. However, potential investors are urged to carefully balance the current valuation against the company's long-term prospects and their individual risk appetite. As with any investment, particularly in the SME segment, comprehensive research and a patient, informed approach are indispensable.
Frequently Asked Questions About the Krupalu Metals IPO
What is the Krupalu Metals IPO about?
The Krupalu Metals IPO is an SME IPO comprising 18,72,000 equity shares, each with a face value of ₹10, aiming to raise ₹13.48 Crores. The shares are priced at ₹72 per share, with a minimum order quantity of 1,600 shares. The shares are proposed to be listed on BSE SME.
What are the opening and closing dates for the Krupalu Metals IPO?
The subscription window for the Krupalu Metals IPO will open on September 8, 2025, and is scheduled to close on September 11, 2025.
What is the minimum lot size for the Krupalu Metals IPO application?
The standard lot size for the Krupalu Metals IPO is 1,600 shares. For retail individual investors, the minimum application involves 2 lots, which equates to 3,200 shares and a total investment of ₹2,30,400.
How can I apply for the Krupalu Metals IPO?
You can apply online for the Krupalu Metals IPO using either the UPI (Unified Payments Interface) method through various stockbrokers or the ASBA (Applications Supported by Blocked Amount) facility available via your bank's net banking services.
When is the allotment for the Krupalu Metals IPO expected?
The finalization of the basis of allotment for the Krupalu Metals IPO is tentatively set for Friday, September 12, 2025. Subsequently, the allotted shares are expected to be credited to demat accounts by Monday, September 15, 2025.
What is the tentative listing date for Krupalu Metals IPO?
The shares of Krupalu Metals are tentatively scheduled to be listed on BSE SME on Tuesday, September 16, 2025.