Utkal Speciality Industries India Ltd. IPO

Utkal Speciality Industries India

• Utkal Speciality Industries India is coming out with an initial public offering (IPO) of 52,34,000 shares in a price band of Rs 62-66 per equity share. 
• The issue will open on June 10, 2026 and will close on June 12, 2026.
• The shares will be listed on SME Platform of NSE.
• The face value of the share is Rs 10 and is priced 6.20 times of its face value on the lower side and 6.60 times on the higher side.
• Book running lead manager to the issue is Affinity Global Capital Market.
• Compliance officer for the issue is Satyabrata Baral.

Profile of the company

Utkal Speciality Industries India is engaged in the manufacturing of paper-based products and packaging materials, offering a broad range of items that serve both functional and aesthetic needs across various consumer segments. Its product portfolio includes thoughtfully designed paper-based alternatives intended for everyday use as well as special occasions, aligning with evolving consumer preferences for sustainable and convenient options. It has built its operations with an emphasis on maintaining consistent quality, efficiency in production, and attention to design detail. Through steady growth and a commitment to meeting industry standards, it has developed a stable presence in the market. Its experience in the sector has enabled it to cater to the needs of a diverse clientele while maintaining a reliable supply chain and adhering to environmentally conscious practices.

It serves a wide range of customers, including smaller manufacturers as well as end retailers who distribute its paper-based products and packaging materials. This diversity in its customer base allows it to engage with multiple segments of the market, reducing dependence on any single group and contributing to a more stable flow of business activity. Its sales are not concentrated among a few clients, which helps mitigate risks associated with market fluctuations or client-specific challenges. This broader distribution supports a steady operational environment and reflects its ability to maintain relationships across different levels of the supply chain. By reaching various customer segments, it has been able to align its offerings with a variety of needs, allowing for consistent market presence and business continuity within a competitive industry setting.

Its product portfolio includes a range of paper-based items designed for various food service applications. Paper plates are available in different sizes, thicknesses, and designs, with or without plastic film coating, and are suited for a variety of food types. Paper cups, primarily used for ice cream, come in several sizes and are differentiated by quality to suit both cost-sensitive vendors and more quality-focused clients. Paper glasses, intended for single-use beverages, are also offered in multiple variants to address different customer requirements. Across the product range, the company maintains a focus on offering practical and appropriately priced solutions tailored to the requirements of both local vendors and larger-scale clients.

Proceed is being used for:

• Funding incremental working capital requirements of the company
• Prepayment or Repayment of all or a portion of certain outstanding borrowings availed by the company
• Funding Capital Expenditure requirement towards purchase of machinery for its new manufacturing facility at Khurda, Odisha
• Meeting the offer related expenses
• General corporate purposes

Industry overview

The India Pulp and Paper Market size was valued at $4693.85 million in 2024 and the India Pulp and Paper Market size is expected to grow at a CAGR of 13.4% from 2025 to 2032, reaching nearly $11319.33 million by 2032. The Indian paper & pulp market leads globally with rising demand for packaging, writing, printing, and specialty papers. Emphasizing recycling, it champions sustainability, conserving resources and minimizing environmental impact through renewable practices. 

The India Paper & Paper Products Market was valued at $9.25 billion in 2024, and is expected to reach $11.91 billion by 2030, rising at a CAGR of 4.37%. India's paper and paper products market has witnessed remarkable growth in recent years, driven by several key factors that have reshaped the industry landscape. A confluence of rising literacy rates, increasing consumerism, and advancements in manufacturing technologies has propelled the sector forward, fostering a conducive environment for expansion and innovation.

The India Paper Packaging Market size is estimated at $19.07 billion in 2025, and is expected to reach $46.43 billion by 2030, at a CAGR of 19.48% during the forecast period (2025-2030). The paper packaging business experienced growth over the past years due to changes in substrate choice, new market expansion, ownership dynamics, and government initiatives to ban the usage of certain plastic packaging products. As sustainability and environmental issues are continuously being emphasized by businesses and customers, various innovations catering to paper packaging are expected to drive market growth in India.

Pros and strengths

It offers a vast selection of SKUs to cater to diverse customer requirements: The company is engaged in the manufacturing of paper-based products and packaging materials and maintains a broad portfolio of 200 plus stock-keeping units (SKUs) designed to serve a variety of customer needs. This extensive product range includes different sizes, shapes, and specifications that cater to the diverse functional and aesthetic preferences of clients operating across various sectors. By offering multiple product configurations, it is able to meet the requirements of both small-scale vendors and larger institutional buyers, each with their own specific demands. This diversity in offerings allows it to manage varying order volumes and usage scenarios without being limited to a narrow product focus. 

Strategically located on the highway linking Kolkata to Chennai: The company’s manufacturing facility is situated along the highway that connects Kolkata to Chennai, a location that offers logistical convenience for transportation and distribution. Being positioned on this major route allows for easier movement of raw materials to the production site and facilitates the timely dispatch of finished goods to various regions. This location has supported the company's ability to manage supply chain operations with efficiency, reducing transit times and helping maintain a consistent flow of goods. The accessibility of the site to key transport networks has also enabled smoother coordination with suppliers and distributors operating in different parts of the country. 

Dedicated to ensuring customer satisfaction by delivering high-quality products consistently: It places a strong emphasis on ensuring customer satisfaction by maintaining consistent quality throughout its manufacturing processes. This dedication is evident in the comprehensive quality control measures implemented at every stage, from sourcing raw materials to the final stages of packaging. By paying close attention to detail and adhering to established industry standards, it aims to meet the diverse needs of its customers in the paper-based products and packaging materials market. The production process is carefully monitored to minimize defects and ensure that products align with customer expectations, which has helped it to build a reliable reputation for delivering dependable goods. It also focuses on fostering long-term relationships with clients by being responsive to their specific requirements, whether for bulk orders or customized products. Timely deliveries and efficient order handling further support its commitment to customer satisfaction, allowing it to serve both local vendors and corporate clients effectively.

Risks and concerns

Revenue dependence on certain key customers: A substantial portion of its revenue is derived from a number of key customers. Its top ten customers have contributed 40.94%, 44.00%, 43.35% and 48.18% of its total sales for the stub period April to December 2025 and for the financial years ended March 31, 2025, March 31, 2024 and March 31, 2023 respectively. Its business lies in the strength of its relationship with the customers who have been associated with the company. This customer concentration exposes it to the risk that the loss of, or a significant reduction in orders from, any of these key customers could result in a substantial decline in sales, disrupt cash flow, and hinder the company’s ability to sustain operations effectively. Such a loss may further compound the risk that could arise from factors like changes in customer preferences, price sensitivity, competition, or even economic downturns that affect customer budgets.

Dependence on the eastern Indian market: A substantial portion of its sales and client base is concentrated in the Eastern region of India. This dependence on a specific geographic market exposes them to several potential vulnerabilities. Any adverse developments in this region such as changes in regional regulations, environmental policies, shifts in demand, natural disasters, political instability, or increased competition could severely disrupt its operations, distribution networks, and customer relationships. If large clients or distributors in the Eastern region decide to scale down or cease operations, or if new entrants capture significant market share, it could lead to a sharp decline in their revenue. Since the infrastructure, supply chain alignment, and sales strategies are optimized for this region, expanding or pivoting to other parts of the country would require considerable time, investment, and operational realignment. This regional dependence not only limits its growth potential but also makes its overall business performance highly sensitive to localized disruptions.

Reliance on top suppliers for uninterrupted supply of raw-materials: It procures its supply of raw materials from various suppliers depending upon the price and quality of raw materials. However, its Top 10 suppliers contribute significantly to supply of raw materials. Raw materials are subject to supply disruptions and price volatility caused by various factors such as commodity market fluctuations, the quality and availability of raw materials, currency fluctuations, consumer demand, changes in government policies and regulatory sanctions. Any disruption of supply of raw materials from these suppliers will adversely affect its operations. Its top ten suppliers have contributed 96.28%, 92.63%, 86.58% and 93.36% of its purchases for the period ended on December 31, 2025 and for the financial years ended March 31, 2025, March 31, 2024 and March 31, 2023 respectively.

Outlook

Utkal Speciality Industries India is a manufacturer of raw materials catering to the paper disposable tableware industries, paper bused disposable tableware, serviettes and aluminum home foil rolls. It mostly caters to the B2B market having expertise and rich experience in their line of business. Its manufacturing facility is situated along the highway that connects Kolkata to Chennai, a location that offers logistical convenience for transportation and distribution. Being positioned on this major route allows for easier movement of raw materials to the production site and facilitates the timely dispatch of finished goods to various regions. On the concern side, a significant portion of its revenue is derived from the manufacturing of paper products segments. Consequently, its performance is closely tied to the stability and growth of this sector. Any adverse developments such as shifts in consumer preferences, economic slowdowns, increased competition, regulatory changes, or market saturation could materially impact its revenue and profitability.

The company is coming out with a maiden IPO of 52,34,000 equity shares of face value of Rs 10 each. The issue has been offered in a price band of Rs 62-66 per equity share. The aggregate size of the offer is around Rs 32.45 crore to Rs 34.54 crore based on lower and upper price band respectively. On performance front, its revenue from operations increased by 10.74% to Rs 4,861.96 lakh for FY 2025 from Rs 4,390.54 lakh for FY 2024. Profit after tax has increased by 106.37% from Rs 323.80 lakh for FY 2024 to Rs 668.23 lakh for FY 2025.

The company operates a manufacturing unit engaged in the production of paper-based disposable products. In line with its long-term expansion strategy and in response to the growing demand for hygienic, recyclable, and food-grade packaging solutions in both domestic and international markets, the company is reviewing opportunities to diversify its product portfolio. The company proposes to establish a new manufacturing facility for the production of aluminum foil containers. This strategic move will enhance the company’s ability to serve the evolving needs of the food service and packaging sectors, which increasingly prioritize sustainability and convenience.

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.