Autofurnish Ltd. IPO

Autofurnish

• Autofurnish is coming out with an initial public offering (IPO) of 35,61,000 equity shares of face value of Rs 10 each for cash at a fixed price of Rs 41 per equity share.
• The issue will open on May 21, 2026 and will close on May 25, 2026.
• The shares will be listed on SME Platform of BSE.
• The share is priced at 4.1 times higher to its face value of Rs 10.
• Book running lead manager to the issue is Novus Capital Advisors.
• Compliance Officer for the issue is Srishti Narang.

Profile of the company

Autofurnish operates primarily in the B2B segment and the entire revenue has been derived solely from the B2B segment, engaged in the design, manufacturing, marketing and sale of automobile accessories, with a core product line that includes body covers and foot mats for both cars and two-wheelers. The company’s revenue from manufacturing activities, as disclosed above, is inclusive of revenue generated from its design segment. Mainly its products are marketed under the brand name ‘Autofurnish’, and ‘Mototrance’ catering to a wide range of industries. 

Its team works closely with clients to develop customized products that meet specific design requirements. Its manufacturing facilities are certified under ISO 9001:2015, ISO 14001:2015, ISO 50001:2018, ISO 45001:2018, ISO 26262-1:2011, IATF 16949:2016 and Good Manufacturing Practices (GMP), reflecting its commitment to quality, safety, and sustainability. Over time, it has evolved into a one-stop solution for automotive accessories, offering a diverse product portfolio that combines both manufacturing and trading. 

Its wholly owned subsidiary, Golden Mace is engaged in trading of automotive accessories and focuses on the B2C segment through online platforms such as Flipkart, Amazon, Zepto and its website. Over the years, it has not only maintained strong relationships with its existing customers but also expanded its customer base, increasing from approximately 53 customers in Fiscal 2024 to approximately 106 customers in Fiscal 2025.

Proceed is being used for:

• Purchase and installation of machinery
• Funding the working capital requirements of the company
• General corporate purposes 
• Issue expenses

Industry Overview

The Indian automobile industry has historically been a good indicator of how well the economy is doing, as the automobile sector plays a key role in both macroeconomic expansion and technological advancement. The two-wheelers segment dominates the market in terms of volume, owing to a growing middle class and a huge percentage of India’s population being young. Moreover, the growing interest of companies in exploring the rural markets further aided the growth of the sector. The rising logistics and passenger transportation industries are driving up demand for commercial vehicles. Future market growth is anticipated to be fuelled by new trends including the electrification of vehicles, particularly three-wheelers and small passenger automobiles. 

The automotive components industry experienced a 11% YoY growth, reaching Rs 3.32 lakh crore ($38.4 billion) in the first half of FY25. India has become the fastest-growing economy in the world in recent years. This fast growth, coupled with rising incomes, a boost in infrastructure spending and increased manufacturing incentives, has accelerated the automobile industry. The two-wheeler segment dominated the automobile industry because of the Indian middle class, with automobile sales standing at 23.85 million units in FY24. Significant demand for automobiles also led to the emergence of more original equipment and auto components manufacturers. As a result, India developed expertise in automobiles and auto components, which helped boost international demand for Indian automobiles and auto components. Hence, the Indian automobile industry has a considerable impact on the auto component industry.

The Government has reaffirmed its commitment towards EVs and its mission for 30% electric mobility by 2030. Budget announced customs duty exemption on the import of capital goods and machinery required for the manufacture of lithium-ion batteries that typically power EVs. The Bharat New Car Assessment Program (BNCAP) will not only strengthen the value chain of the auto component sector, but it will also drive the manufacturing of cutting-edge components, encourage innovation, and foster global excellence. The Government of India’s Automotive Mission Plan (AMP) 2006-26 has been instrumental in ensuring growth for the sector. The Indian automobile industry is expected to achieve a turnover of $300 billion by 2026 by expanding at a CAGR of 15% from its current revenue of $74 billion. 

Pros and strengths

Wide range of products: The company is engaged in the design, manufacturing, marketing and sale of automobile accessories, with a core product line that includes body covers and foot mats for both cars and two-wheelers. The company offers plenty of choices for customers under one roof such as interior and exterior accessories to car care items. It manufactures wide range of products for bike and car accessories. Its products are marketed under the brand name ‘Autofurnish’, and ‘Mototrance’ catering to a wide range of industries.

Use of technology: By adding the latest technology in its products, Autofurnish improves quality and performance, attracting modern and tech-savvy buyers. Its manufacturing facilities are certified under ISO 9001:2015, ISO 14001:2015, ISO 50001:2018, ISO 45001:2018, ISO 26262-1:2011, IATF 16949:2016 and Good Manufacturing Practices (GMP), reflecting its commitment to quality, safety, and sustainability.

Customized products: The company provides special, tailor-made accessories that meet specific customer needs, helping it stands out from others.

Risks and concerns

Significant revenue dependence on top customers: Significant proportion of its total revenue comes from its top 10 customers and the loss of any of its customers may adversely affect its sales and consequently on its business and results of operations. For the period ended December 31, 2025 and for the financial year ended March 31, 2025, March 31, 2024 and March 31, 2023, its top ten customers accounted for around 48.84%, 66.78%, 94.22% and 95.59% of its total revenue. The loss of one or more of these significant or key customers or a reduction in the amount of business it obtains from them could have an adverse effect on its business, results of operations, financial condition and cash flows.

Revenue reliance on Delhi region: It generates its revenue from various states across India; however, a major proportion of its revenue from operations comes from the State of Delhi. In the event of a regional slowdown in the economic activity in Delhi or any other developments including political unrest, disruption or sustained economic downturn or natural calamities in those regions affecting the ability of its merchants to continue their operations within their respective communities, or that make or products in these states less available or attractive and beneficial to the customer, it may experience an adverse effect on its financial condition and results of operations, which are largely dependent on the performance, geo political and other prevailing conditions affecting the economies of the state.

Heavily dependent on the performance of the automobile sector: Its auto-components business is heavily dependent on the performance of the Automobile Sector particularly, passenger vehicle, commercial vehicles and auto parts market in India. Consequently, any fluctuation in the performance of these markets directly impacts the demand for its products. A decline in demand, or developments that make the sale of components in these markets less viable, may adversely affect its revenues and profitability. The automotive market is affected by, amongst other things, changes in government policies, economic conditions, demographic trends, employment and income levels and interest rates, which may negatively affect the demand of its products which may materially adversely affect its business, results of operations and financial condition.

Outlook

Autofurnish is engaged in the design, manufacturing, marketing and sale of automobile accessories, with a core product line that includes body covers and foot mats for both cars and two-wheelers. It offers plenty of choices for customers under one roof such as interior and exterior accessories to car care items. On the concern side, it relies entirely on its distributor network for the sale of its products, and the absence of formal agreements with distributors may adversely affect its business, results of operations, and financial condition. Further, its business depends on the availability and cost of key raw materials such as synthetic fabrics, foams, leatherette, metals, rubber, adhesives, and packaging materials, which are essential for the manufacturing of automobile accessories. The prices of these materials are influenced by factors such as domestic and international demand-supply conditions, foreign exchange fluctuations, inflationary trends, and changes in government policies or environmental regulations.

The company is coming out with an IPO of 35,61,000 equity shares of face value of Rs 10 each for cash at a fixed price of Rs 41 per equity share to mobilize Rs 14.60 crore. On performance front, its revenue from operations increased by 109.68% to Rs 3,336.01 lakh for FY25 from Rs 1,591.00 lakh for FY24. Profit after tax has increased by 115.22% to Rs 350.49 lakh for FY 2025 from Rs 162.85 lakh for FY 2024.

The company intends to strategically tap into international markets to expand its customer base and enhance its global footprint. As of now, the specific markets for such expansion have not been identified. Going forward, it plans to leverage its in-house R&D capabilities to develop new products that have good growth and profitability potential. In addition to enhancing its existing product offerings, it plans to expand into new segments. Further, the company intends to continue pursuing strategic acquisitions and investments. It selectively evaluates potential targets and partners to complement its existing operations and expand its business.

Liotech Industries

• Liotech Industries is coming out with an initial public offering (IPO) of 11,22,000 equity shares of face value of Rs 10 each for cash at a fixed price of Rs 321 per equity share.
• The issue will open on June 17, 2026 and will close on June 19, 2026.
• The shares will be listed on SME Platform of BSE.
• The share is priced at 32.1 times higher to its face value of Rs 10.
• Book running lead manager to the issue is Wealth Mine Networks.
• Compliance Officer for the issue is Pooja Nakul Jain.

Profile of the company

Liotech Industries specializes in the production of hardware structures and accessories, including door kits, a wide range of hinges (including cut & butt, parliament, W, Z, and duck hinges), gate hooks, aldrop, locks, handles, tower bolts, and shelf bottoms. It offers a diverse selection of products, with over 150 distinct specifications, that cater to various industries such as housing, infrastructure, agriculture, automotive, electricity, cement, mining, solar energy, and general engineering. It adheres to a business-to-business (B2B) operational framework. Aside from its production operations, it also engages in the trading of supplementary products such as door stoppers, magnets, table brackets, bed lifters, and bell magnets.

It owns and operates a manufacturing unit located in Rajkot, Gujarat, spanning 12,632 square feet. This facility is strategically situated to offer locational advantages, enabling it to meet its customers' just-in-time delivery schedules, achieve economies of scale, and provide logistical benefits to its customers, thereby protecting them from local supply disruptions. It provides end-to-end product solutions that include designing, manufacturing, quality testing, packaging, and logistics under the B2B model. It has installed a diverse array of plant and machinery at its manufacturing facility to facilitate the fabrication and production of a diverse selection of products. 

Its manufacturing facilities are furnished with modern equipment, an engineered architecture that incorporates process controls, and the necessary automation to guarantee productivity and quality. The facility has been certified with ISO 9001:2015, which confirms that it adheres to its Quality Management System for the design and manufacture of hardware products. These products include aldrop, handles, door kits, hinges, tower bolts, gate hooks, screws, door stops, magnets, table chains, universal brackets, bed dadi, brass cam bolts, table brackets, basket trolleys, bed lifters, bed sockets, and bell magnets. The company has also been awarded a certificate of compliance from UK Certificate and Inspection for the above listed products. These products are in compliance with the Construction Products (CPD/CPR) Council Directive 89/106/EEC (CPD) / Regulation (EU) No 305/2011 (CPR). Its quality control team, which is comprised of experienced personnel, guarantees that both raw materials and finished products undergo rigorous testing to ensure that they meet the necessary market standards. 

Proceed is being used for:

• Funding capital expenditure requirements towards acquiring machinery in the manufacturing unit
• Funding towards repayment of loan
• Funding working capital requirement
• Funding expenditure for general corporate purpose

Industry Overview

One of the primary forces behind industrialization has been the use of metals. Steel has traditionally occupied a top spot among metals. Steel production and consumption are frequently seen as measures of a country's economic development because it is both a raw material and an intermediary product. Therefore, it would not be an exaggeration to argue that the steel sector has always been at the forefront of industrial progress and that it is the foundation of any economy. The Indian steel industry is classified into three categories - major producers, main producers, and secondary producers. 

India is the world’s second-largest producer of crude steel, with an output of 125.32 MT of crude steel and finished steel production of 121.29 MT in FY23. The growth in the Indian steel sector has been driven by the domestic availability of raw materials such as iron ore and cost-effective labour. Consequently, the steel sector has been a major contributor to India's manufacturing output. The Indian steel industry is modern, with state-of-the-art steel mills. It has always strived for continuous modernisation of older plants and up-gradation to higher energy efficiency levels. 

The steel industry has emerged as a major focus area given the dependence of a diverse range of sectors on its output as India works to become a manufacturing powerhouse through policy initiatives like Make in India. With the industry accounting for about 2% of the nation's GDP, India ranks as the world's second-largest producer of steel and is poised to overtake China as the world's second-largest consumer of steel. Both the industry and the nation's export manufacturing capacity have the potential to help India regain its favourable steel trade balance. The National Steel Policy, 2017 envisage 300 million tonnes of production capacity by 2030-31. The per capita consumption of steel has increased from 57.6 kgs to 74.1 kgs during the last five years. The government has a fixed objective of increasing rural consumption of steel from the current 19.6 kg/per capita to 38 kg/per capita by 2030-31. Huge scope for growth is offered by India's comparatively low per capita steel consumption and the expected rise in consumption due to increased infrastructure construction and the thriving automobile and railways sectors.

Pros and strengths

Compliance with quality standards & consistency in quality and service: It adheres to stringent quality standards in all its manufacturing units to ensure that its products meet the necessary requirements. Its manufacturing units are ISO 9001: 2015 certified, which confirms that its products conform to the Quality Management System Standard. Additionally, the company has obtained a certificate of compliance from UK Certificate and inspection confirming adherence to the requirement of Construction Products (CPD/CPR) Council Directive 89/106/EEC (CPD) / Regulation (EU) No 305/2011 (CPR) for its products. Further, its quality control team led by experienced Personnels ensure that its raw materials as well as end products are tested on all quality parameters to ensure that it is compliant with the required market standards. 

Wide range of product portfolio: It manufactures various hardware accessories and engineering products like door kits, cut & butt hinges, parliament hinges, W, Z & duck hinges, gate hook etc. It manufactures such products (combined) of more than 150 different specifications and caters, directly and indirectly, to customer requirements in various sectors such as housing, infrastructure, agriculture, automotive, power, cement, mining, solar power and engineering. Further, its product portfolio includes all types of aldrop, latch, handle, tower bolt, shelf bottom etc. The company is also involved in trading activities of products such as door stopper, magnet, table bracket, bed lifter, bell magnet etc. Its key differentiator is its range of product specifications in terms of thickness, length, quality, availability and customised products. It offers customization facilities to all the customers as per their particular requirements and specifications. Its manufacturing teams focus on the precise demand of the customer and design the products accordingly. This provides complete satisfaction to its customers and enables it to expand its business from existing customers and also address a larger base of potential new customers.

Experienced & qualified team: Its skilled management team and Promoters exhibit numerous years of experience in the marketing and distribution of products within this industry. With more than a decade of experience in the iron and steel industry, Hitesh Mansukh Bhuva, its Promoter, has played a critical role in the development of its business strategy and growth. He is actively engaged in the company's daily operations, administration, and marketing. The experience and industry knowledge of its management team will help it capitalize on current and future opportunities. 

Risks and concerns

Volatile demand and pricing environment: Steel prices fluctuate based on a number of factors, such as, the availability and cost of raw material inputs, fluctuations in domestic and international demand and supply of steel and steel products, international production and capacity, fluctuation in the volume of steel imports, transportation costs, protective trade measures and various social and political factors, in the economies in which the steel producers sell their products and are sensitive to the trends of particular industries, such as, the infrastructure, construction, automotive and machinery industries. When downturns occur in these economies or sectors, it may experience decreased demand for its products, which may lead to a decrease in steel and steel product prices, which may, in turn, have a material adverse effect on its business, results of operations, financial condition and prospects.

Reliance on external suppliers for raw materials: It is highly dependent on S.S. Rods, S.S. Sheets, S.S. Coil and S.S. Patta Patti, stainless steel and other hardware items which are the prime raw material for its products. It procures its supply of raw materials from various vendors from local market. It has not entered into any long-term supply agreement for supply of major raw materials. Currently, it has been able to secure timely supply of required raw material for its existing activity. Raw materials are easily available in the domestic market and no difficulty is envisaged in sourcing of the raw material. In case of any disruption in supply of raw materials from these suppliers or its procurement of raw materials in terms are not favorable to it; it will adversely affect its operations and financial cost. Further in case the company is unable to procure the requisite quantities of raw materials well in time and at competitive prices, the performance of it may be affected, thus adversely affecting its business, prospects, results of operations and financial condition. Moreover, it is dependent upon third parties for supply of its raw materials and any disruption in their supply could disrupt its business and adversely affect its financial results. For year ended March 31, 2025, 2024 and 2023, its top 10 suppliers contributed around 96.25%, 98.21% and 99.38% respectively of its total purchases.

Key revenue reliance on limited number of customers: Its top ten customers have contributed 91.43%, 97.87% and 98.45% of its revenues for the year ended March 31, 2025, March 31, 2024 and March 31, 2023 respectively based on Restated Financial Statements. However, its top customers may vary from period to period depending on the demand and thus the composition and revenue generated from these customers might change as it continues to add new customers in normal course of business. In addition, it has not entered into any long-term agreements with its customers and the success of its business is accordingly significantly dependent on maintaining good relationships with them. The loss of one or more of these customers or a reduction in the amount of business it obtains from them could have an adverse effect on its business, results of operations, financial condition, and cash flows.

Outlook

Liotech Industries is mainly engaged in the business of manufacturing and trading all types of door Al drops, window hinges, Butt hinges, pin hinges and all types of door locks and all type of fastenings to doors and window. Its key differentiator is its range of product specifications in terms of thickness, length, quality, availability and customised products. It offers customization facilities to all the customers as per their requirements and specifications. Its manufacturing teams focus on the precise demand of the customer and design the products accordingly. This provides complete satisfaction to its customers and enables it to expand its business from existing customers and also address a larger base of potential new customers. On the concern side, its manufacturing unit is based in Gujarat, specifically in the district of Rajkot. Due to its processing unit is concentrated in this region, it is vulnerable to local, regional, and environmental factors including social and civil unrest, regional conflicts, civil disturbances, economic and weather conditions, natural disasters, demographic and population changes, and other unforeseen events. These disruptions could lead to damage or destruction of its processing capabilities, significant transport delays for its products and raw materials, loss of key personnel, and other adverse effects on its business, financial condition, and operations. 

The company is coming out with an IPO of 11,22,000 equity shares of face value of Rs 10 each for cash at a fixed price of Rs 321 per equity share to mobilize Rs 36.02 crore. On performance front, its revenue from operations increased by 45.99% to Rs 4,067.78 lakh for FY 2025 from Rs 2,786.30 lakh for FY 2024. Profit after tax has increased by 42.30% from Rs 292.61 lakh for FY 2024 to Rs 416.39 lakh for FY 2025.

The company is presently serving to around 9 states and Union Territories in India of which the majority portion of the revenue comes from the state of Gujarat. Its distribution channels developed over the years have been critical to its growth. It intends to continue developing and nurturing existing markets and creating new distribution channels in under and non-penetrated geographies. It aims to further develop its domestic sales networks in those territories where there are lower transportation costs having a significant demand of its products, where it can sell at price-points that can effectively offset higher transportation costs. Going forward, it constantly endeavours to improve its productivity levels by optimum resource utilization, improvement in manufacturing process, skill upgradation of its workers, modernization of machineries to achieve better asset turnover. From the net proceeds, it intends to deploy funds for factory infrastructural development and setting up new machineries to increase the efficiency of the workforce.