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Issue Details / Capital History
The firm is popping out with its maiden IPO of 3544000 fairness shares of Rs. 10 every at a hard and fast value of Rs. 72 per share, to mobilize Rs. 25.52 cr. The minimal software to be made is for 3200 shares and in multiples of 1600 shares thereon, thereafter. The concern opens for subscription on September 22, 2026 and can shut on September 24, 2026. The shares might be listed on BSE SME. The IPO represent 29.61% of the post-IPO paid-up capital of the corporate. The firm is spending Rs. 3.13 cr. for this IPO course of, and from the web proceeds of the problem, the corporate will make the most of Rs. 13.20 cr. for capex on capability growth, know-how upgradation and so on., Rs.5.49 cr. for reimbursement/prepayment of sure borrowings, and Rs. 3.70 for common company functions.
The IPO is solely lead managed by Aftertrade Broking Pvt. Ltd., whereas MUFG Intime India Pvt. Ltd. is the registrar to the problem. Aftertrade Broking Pvt. Ltd. can be market maker.
After issuing preliminary fairness capital at par worth, the corporate additionally issued additional fairness shares within the value vary of Rs. 200.00 – Rs. 720.00 per share, between October 2008, and January 2013. It has additionally issued bonus shares within the ratio of 80 for 1 in December 2025. The common price of acquisition of shares by the promoters is Rs. 0.61, and Rs. 2.02 per share.
Post-IPO, firm’s present paid-up fairness capital of Rs. 8.43 cr. (8425458 fairness shares) will stand enhanced to Rs. 11.97 cr. (11969458 fairness shares). Based on the higher band of the IPO pricing, the corporate is in search of a market cap of Rs. 86.18 cr.
On the monetary efficiency entrance, for the final three fiscals, the corporate has posted complete income/ web revenue, of Rs. 37.00 cr. / Rs. 3.36 cr. (FY24), Rs. 33.64 cr. / Rs. 2.65 cr. (FY25), Rs. 56.17 cr. / Rs. 5.48 cr. (FY26). The firm marked inconsistency in its high and backside strains for the reported intervals. Rising commerce receivables elevate alarm.
For the final three fiscals, the corporate has reported a mean EPS of Rs. 4.96 and a mean RoNW of 25.24%. The concern is priced at a P/BV of three.11 primarily based on its NAV of Rs. 23.17 per share as of March 31, 2026, and at a P/BV of 1.91 primarily based on its post-IPO NAV of Rs. 37.63 per share.
If we attribute FY26 earnings to its post-IPO absolutely diluted paid-up fairness capital, then the asking value is at a P/E of 15.72, and primarily based on FY25 earnings, the P/E stands at 32.58. The concern seems aggressively priced primarily based on its latest common earnings. Boosted earnings for FY26 (pre-IPO 12 months) seems a window dressing for fancy valuations of IPO.
The firm has posted PAT Margins of 9.09% (FY24), 7.88% (FY25), 9.75% (FY26) and RoCE margins of 23.90%, 15.64%, 20.66%, respectively for referred intervals.
The firm has not paid any dividends since incorporation. It will undertake a prudent dividend coverage, primarily based on its monetary efficiency and future prospects.
Comparison with Listed Peers
As per the provide doc, the corporate has proven Venus Pipes, Gandhi Spl. Tubes, Ratnamani Metals, Scoda Tubes, as its listed friends. They are at the moment buying and selling at a P/E of 45.8, 14.5, 45.9, 20.7, (as of September 18, 2026). However, they don’t seem to be really comparable on an apple-to-apple foundation.
Anand Seamless Ltd. (ASL) is a tubes and pipes producer and exporter primarily based in India having an expertise of practically 20 years. Its merchandise are broadly categorized into: (i) Seamless tubes and pipes; and (ii) Finned tubes. Its Products are utilized by a various vary of shoppers like Automobile Industries, Heat Exchanger Industry, Petroleum Industries, Pharmaceutical Industries, Chemical Industries, Oil and Gas Refineries, Thermal & Nuclear Power Plants, Boiler Manufacturing, Chemical Industries, Textile Machinery, Railways and Transportation sectors, Defense Sector.
The Company possesses an built-in functionality as a producer and provider, enabling it to supply a one-stop resolution for the specialised necessities of its prospects. This integration facilitates constant product high quality, well timed supply, and dependable service. Leveraging its manufacturing experience and diversified operations, the Company serves a broad base of shoppers throughout varied industries.
ASL’s strategic buyer base includes main oil and fuel majors. Combined with its built-in manufacturing capabilities, this positions the corporate in a specialised phase characterised by excessive qualification and entry obstacles. These components restrict new competitors, present pricing leverage, and help long-term buyer retention. Its seamless pipes and tubes manufacturing capability is roughly 3,000 metric tons every year and finned tube manufacturing capability is roughly 3,60,000 meters every year, working from manufacturing facility situated in Gujarat.
It caters to each the home in addition to the worldwide markets. In the home market, it sells Products to Heat Exchanger Industry, Petroleum Industries, Pharmaceutical Industries, Chemical Industries, Oil and Gas Refineries Railways, Thermal & Nuclear Power Plants, Boiler Manufacturing, Chemical Industries, Textile Machinery, and Transportation sectors, Automobile Industries, Defense Sector, Cement Industries. As of March 31, 2026, it had total 100 workers on its payroll, and extra 67 contractual employees in varied division.
Merchant Banker’s Track Record
This is the 2nd mandate from Aftertrade Broking, within the final two fiscals (together with the continued one). The solely itemizing that occurred thus far opened at a reduction. Thus, it has a poor monitor report.
Conclusion
ASL is engaged in tubes and pipes manufacturing and advertising it in home and worldwide markets. It posted inconsistency in its high and backside strains for the reported intervals. Bumper earnings in a pre-IPO 12 months (FY26) seems window dressing to fetch fancy valuations for the IPO. Based on its latest common monetary efficiency, the problem seems aggressively priced. Merchant banker has a poor monitor report thus far. There is not any hurt in skipping this expensive and dicey IPO.
Dilip Davda is a veteran monetary journalist related to the Indian inventory market since 1978. He has been contributing to print and digital media on capital markets, insurance coverage, and finance since 1985.
He is widely known for reviewing public points and non-convertible debentures (NCDs) within the major market. Drawing on over three a long time of market expertise and shut interplay with service provider bankers, his opinions deal with detailed elementary and monetary evaluation of corporations, with a particular emphasis on SME public points.
Disclaimer: The info offered herein is solely for academic and informational functions and doesn’t represent a proposal, solicitation, or advice to purchase or promote any securities. Readers are suggested to seek the advice of a professional monetary advisor earlier than making any funding choices. Investments within the securities market are topic to market dangers. The creator doesn’t intend to put money into the securities mentioned.
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