Influx Healthtech

• Influx Healthtech is coming out with an initial public offering (IPO) of 61,00,800 equity shares in a price band Rs 91-96 per equity share.
• The issue will open on June 18, 2025 and will close on June 20, 2025.
• The shares will be listed on SME Platform of NSE.
• The face value of the share is Rs 10 and is priced 9.10 times of its face value on the lower side and 9.60 times on the higher side.
• Book running lead manager to the issue is Rarever Financial Advisors.
• Compliance Officer for the issue is Atul Kumar Ashok Kumar Shukla.

Profile of the company

Influx Healthtech is a Mumbai-based, healthcare focused company specialising in contract manufacturing. Since its inception in 2020, the company has established itself as a reliable Contract Development and Manufacturing Organization (CDMO), offering specialized services to a wide range of clients across various industries.

The company operates manufacturing facilities located in Thane, Maharashtra, covering a total area of around 9,676 square feet, 13,000 square feet, and 14,000 square feet, respectively. These facilities are certified to international quality standards, including GMP (Good Manufacturing Practice), HACCP (Hazard Analysis & Critical Control Points), ISO 22000, and Halal certifications, ensuring adherence to the highest standards of safety, quality and regulatory compliance.

These certifications reflect its adherence to stringent safety, quality, and regulatory compliance standards. Equipped with advanced machinery, a dedicated quality control department, and a skilled workforce, its facilities are designed to meet diverse customer needs efficiently and effectively. Its expertise spans the production of Dietary and Nutritional Supplements, Cosmetics, Ayurvedic/Herbal Products, Veterinary Feed Supplements, Homecare Products, Active Pharmaceutical Ingredients (APIs), and finished dosage forms, including tablets, capsules, and injectables.

Proceed is being used for:

• Funding capital expenditure requirements for setting up of manufacturing facility for nutraceutical division
• Funding capital expenditure requirements for setting up of manufacturing facility for veterinary food division
• Purchase of machineries for homecare and cosmetic division
• General corporate purposes

Industry Overview

The global nutraceutical market is currently estimated at around $400 billion, blending the fields of food, pharmaceuticals, and biotechnology. India stands out as a key player, supported by its rich heritage of traditional knowledge, especially in Ayurveda, and a unique ecosystem that fosters growth in this sector. However, India's share remains under 2% globally, primarily due to a lack of defined industry classification within Indian ministries, limiting targeted sector support. India has also prioritized infrastructure support, with nutraceutical incubation hubs and centers of excellence. NIFTEM-Kundli, Centurion University, and AIC-CSIR-CCMB have developed hubs fostering innovation, while the Kerala government inaugurated the first government-backed Nutraceutical Centre of Excellence in 2024. Through the Department of Commerce, India has showcased its nutraceutical strengths at global trade fairs, enhancing visibility and forging connections with international stakeholders. The collaboration between the Task Force and the Central Board of Indirect Taxes and Customs (CBIC) is working toward a unique HSN code to streamline exports and simplify customs procedures.

India's nutraceutical market is prepped to be a global leader at $4-5 billion. It is expected to grow approximately $18 billion by 2025. The dietary supplements market in India is valued at $3924.44 million in 2020 and reports say that it will reach $10,198.57 million by 2026 that is 22% growth rate year on year. The ongoing pandemic and the rising importance about preventive healthcare has led to the exponential growth of this sector. Indian population has begun to believe in immunity-boosting supplements and has led to a significant shift in buying patterns and market behaviour. Vitamin capsules, chewable tablets and gummies are examples of the open-minded buying behaviour of consumers of healthcare products.

Preventive healthcare has become an important line of defence during the pandemic proving the nutraceuticals sector to be a strong economic partner to the people. Even after the pandemic severity has minimized, nutraceuticals purchases are soaring. The second wave proved that the nutraceutical sector has built and will continue to grow its presence in the market. The global market for nutraceuticals is huge at approximately $117 billion, the Indian nutraceutical industry can step up to combat health issues in India amidst ongoing pandemic and significantly contribute to India’s Gross Domestic Product (GDP). 

Pros and strengths

Diversified product portfolio: The company specializes in contract manufacturing a wide and diverse range of products, designed to cater to a broad spectrum of customer needs and preferences. Its comprehensive product portfolio includes multi-nutritional tablets, dietary supplements, various Ayurvedic products, oral dispersible films, gummy candies, ice sticks, and numerous other innovative items. This wide variety not only demonstrates its commitment to meeting diverse consumer demands but also highlights its ability to adapt and innovate across various market segments.

Formulation development department: The company specializes in contract manufacturing for nutraceuticals, cosmetics, Ayurvedic products, and veterinary formulations. Its Formulation development department is a key driver in creating innovative, market-ready solutions for third-party clients. The team plays a pivotal role in developing a wide range of formulations, ensuring they meet both consumer needs and regulatory standards.

Stringent quality assurance/quality control: The company is committed to maintaining the highest quality across its product offerings. It ensures the excellence of its products through a rigorous quality control mechanism at every stage of the manufacturing process. This approach is crucial to guarantee that its finished products meet the exact requirements of its customers and pass all necessary validations and quality checks. Quality assurance (QA) and quality control (QC) are fundamental to its operations. QC involves rigorous testing to ensure products meet predefined quality standards, while QA focuses on implementing systems and processes to maintain these standards throughout development and manufacturing. This dual focus fosters client trusts and ensures the delivery of high-quality products.

Risks and concerns

Maximum revenue comes from few customers: The company’s top 10 customers contribute 47.89%, 50.10% and 46.29% of its revenue from operation for the financial year ended as on March 31, 2025, March 31, 2024, and March 31, 2023 respectively. Its business operations are highly dependent on its customers and the loss of any of its customers may adversely affect its sales and consequently on its business and results of operations. While it typically has long term relationships with its customers, it has not entered into long term agreements with its customers and the success of its business is accordingly significantly dependent on it maintaining good relationships with its customers and suppliers. The actual sales by the company may differ from the estimates of its management due to the absence of long-term agreements. 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.

Geographical constrain: The company’s manufacturing unit, located in Palghar, Thane, Maharashtra, exposes it to risks of geographical concentration. Its success relies on its ability to efficiently manufacture and deliver products that meet customer demand. While it has not encountered significant operational disruptions in the past, its manufacturing facility is vulnerable to various risks, including human error, power outages, equipment breakdowns, supply chain interruptions, inefficiencies in production, obsolescence, loss of services from external contractors, and unforeseen events such as terrorist attacks, acts of war, break-ins, natural disasters, and industrial accidents. If it is forced to shut down its manufacturing unit for an extended period, it would negatively impact its earnings, operational performance, and overall financial position.

High working capital requirements: The company’s business requires significant working capital including in connection with its processing operations, financing its inventory and purchase of raw materials and its development of new products which may be adversely affected by changes in terms of credit and payment. It is required to maintain a high level of working capital because its business activities are characterized by long product development periods and production cycles. Delays in payment under on-going contracts or reduction of advance payments due to lower order intake or inventory and work in progress increases and/or accelerated payments to suppliers, could adversely affect its working capital, lower its cash flows and materially increase the amount of working capital to be funded through external debt financings.

Outlook

Influx Healthtech is a healthcare-focused company specialising in contract manufacturing. The company is a reliable CDMO, providing specialized services to clients in multiple industries. The company has diversified product portfolio. On the concern side, the company is dependent on few numbers of customers for sales and loss of any of this large customer may affect its revenues and profitability. Moreover, the company’s existing manufacturing facility are concentrated in a single region i.e., Palghar, Thane, Maharashtra and the inability to operate and grow its business in this particular region may have an adverse effect on its business, financial condition, results of operations, cash flows and future business prospects.

The company is coming out with a maiden IPO of 61,00,800 equity shares of Rs 10 each. The issue has been offered in a price band of Rs 91-96 per equity share. The aggregate size of the offer is around Rs 55.52 crore to Rs 58.57 crore based on lower and upper price band respectively. On performance front, the company’s revenue from operations increased by 31.44% from Rs 9,996.51 lakh in the financial year ended March 31, 2024 to Rs 10,485.36 lakh in the financial year ended March 31, 2025 on account of an increase in revenue from Nutraceuticals by 0.61% and other segments by 66.43%. Moreover, the company has reported 20.11% rise in its net profit at Rs 1,336.60 lakh in FY25 as compared to Rs 1,112.80 lakh in FY24.

The company’s growth strategy is focused on expanding its brand presence and enhancing its capabilities within its Nutraceutical, Homecare, Cosmetic, and Veterinary Food Divisions. It aims to drive growth through key initiatives that include expanding its manufacturing facilities and acquiring advanced machinery to cater to the growing demand in these sectors. The Revenues from nutraceuticals Segment for FY 2022-23 was Rs 71.61 crore, which increased to Rs 93.47 crore in FY 2023-24 and further increased to Rs 94.04 crore in FY25 resulting into an increase by 30.52% and 0.61% respectively. These statistics and upward trend have provided justifiable basis to the management to come to conclusion that expanding and new machinery / production lines will help the company to cater larger orders from existing clients and also increase its product portfolio.

Patil Automation

• Patil Automation is coming out with an initial public offering (IPO) of 58,00,800 equity shares in a price band Rs 114-120 per equity share.
• The issue will open on June 16, 2025 and will close on June 18, 2025.
• The shares will be listed on SME Platform of NSE.
• The face value of the share is Rs 10 and is priced 11.40 times of its face value on the lower side and 12.00 times on the higher side.
• Book running lead manager to the issue is Seren Capital.
• Compliance Officer for the issue is Niharika Shamindra Singhal.

Profile of the company

Incorporated in 2015, the company is an automation solutions provider serving industrial clients, primarily in the automotive sector. The company is engaged in designing, manufacturing, testing and installation of customized automation systems such as welding lines (spot welding, MIG and TIG), assembly lines, material handling machineries and special-purpose machineries, tailored to meet the specific requirements of its clients' production facilities. The company’s client base primarily comprises of Automotive Original Equipment Manufacturers (OEMs), Tier I suppliers to Automotive OEMs and manufacturers of automotive components and sub-components, who seek to establish, expand, upgrade, modify or repair their production setup. Its automation solutions focus on optimizing manufacturing processes and reducing manual intervention at its clients' facilities.

The company’s product offerings also include assembly fixtures, welding fixtures, robotic cells, testing and inspection systems and auxiliary items. These products and items support the automation systems and provide integrated solutions to the operational requirements of clients. Its testing and inspection systems include leak testing machines and inspection jigs and gauges to ensure product performance with industry standards. In addition, it also provides support services to its clients, including repair and maintenance services, modification services and manpower support services so as to support system operations.

The manufacturing of its automation systems is carried out at its facility, based on the detailed designs made by it and approved by its customers. The company’s facility, located in the MIDC Chakan area of Village Sudumbre, Tehsil Maval, District Pune, is divided into two units: Unit-I (built up area - 50,536 sq. ft.) and Unit-II (built up area - 58,464 sq.ft.). Its units are equipped with requisite machineries such as CNC bending machines, cutting machines (plasma, oxyfuel and laser), milling machines, jig boring, surface grinding machines, among others and various testing equipment to support production of automation systems. Additionally, its facility is certified under ISO 45001:2018, ISO 9001:2015 and ISO 14001:2015.

Proceed is being used for:

• Funding of capital expenditure towards setup of a new manufacturing facility
• Repayment of a portion of certain borrowings availed by the company
• General corporate purpose

Industry Overview

The global manufacturing industry is evolving rapidly, as it integrates the latest technologies and processes. The last few decades were characterized by increasing use of machines in factories, which slowly replaced manual labor. In several advanced economies, core manufacturing sectors are fully automated with industrial robots carrying out most of the production process. Human intervention is limited to supervisory and monitoring roles. Industrial automation has become a driving force behind economic transformation, reshaping industries, and economies worldwide. Increasing focus on process efficiency, waste reduction, and cost optimization are forcing Indian manufacturing sector to reinvent themselves. With advancements in technology and the adoption of automation solutions, industries across various sectors are experiencing increased efficiency, productivity, and competitiveness.

The welding process, a part of metal fabrication process, forms the backbone of the manufacturing sector which account for approximately 17% of India’s GDP. Welding process is critical for many manufacturing processes where the welding quality welding has a direct impact on the quality of the final product. Design / specification of the product to be fabricated is provided by the customer, and fabrication companies majorly focus only on the operational part of executing the fabrication work as per the supplied designs. Depending upon the product, a wide range of metals – both common as well as exotic - is used for fabrication. Steel and aluminum are two major input materials used in fabrication industries. Metal fabrication facilities (also referred to as fab shops) are often run by independent contractors, Original Equipment Manufacturers and Value-Added Resellers. In the metal fabrication industry, the welding process can be segmented into manual and robotic systems, each serving distinct roles across various industries.

The Indian industrial automation market experienced a steady growth from 2018 to 2023, driven by the increasing adoption of advanced technologies across manufacturing sectors. Starting at approximately $6.5 billion in 2018, the market grew to $13 billion in 2023, reflecting a CAGR of around 15%. This growth was fueled by rising demand for efficiency, precision, and scalability in manufacturing processes, alongside government initiatives like Make in India that encouraged technology-driven investments. Despite challenges such as the global pandemic, the industry demonstrated resilience, with accelerated adoption of automation solutions post-2020 to address labor shortages and enhance productivity. The growth in Industrial Automation Equipment’s appears to be robust in India. The increasing focus on the Government to improve the manufacturing infrastructure in India, through the flagship Make in India program, Industry 4.0 and most recently PLI scheme and Atma Nirbhar is playing a pivotal role. The regulatory changes and policy measures that are being implemented as part of the program are attracting multinational companies. 

Pros and strengths

Design and development capabilities: The design and development process in automation system production is a critical step that involves creating detailed, client-specific designs and developing tailored solutions to address unique operational requirements. This process ensures the functionality, efficiency, and precision of the systems while meeting client expectations. The company’s design and development team employs advanced software tools such as E-PLAN, Delmia, CATIA V5, AutoCAD, Process Simulate, and Solid Edge to craft precise automation systems.

In-house manufacturing facility with integrated testing capabilities: It operates an in-house manufacturing facility comprising of two units Unit-I and Unit II, having combined built up area of around 109,000 sq. ft., which support the production of precision automation systems. Its units are equipped with requisite machineries such as CNC bending machines, cutting machines (plasma, oxyfuel and laser), milling machines, jig boring, surface grinding machines, among others and various testing equipment to support production of automation systems. Its testing setup includes equipment’s for dimensional measurement, weld penetration analysis and material strength evaluation, supported by inspection systems such as coordinate measuring machines (CMM) for the inspection of parts and gauges.

Recognition from customers: In Fiscal 2025, the company supplied its products to over 52 customers, including Automotive Original Equipment Manufacturers (OEMs), Tier I suppliers to Automotive OEMs, electric vehicle manufacturers and manufacturers of automotive components and sub-components. During the Fiscal 2024, it has sold its products in India to 10 states including Maharashtra, Haryana, Karnataka, Gujarat, Madhya Pradesh, Rajasthan and Tamil Nadu. It has also received repeat orders from several customers and have also been recognized by several customers through awards such as the Best Supplier Award, Exceptional Performance Award, Best Tech-Savvy Partner Award, and Appreciation Awards.

Risks and concerns

Maximum revenue comes from limited customers: The substantial portion of its revenues has been dependent upon few customers. For instance, the company’s top ten customers for the F.Y. ended March 31, 2025, March 31, 2024 and March 31, 2023 accounted for 76.67%, 79.51% and 70.88% of its revenue from operations for the respective fiscal year. Its reliance on a limited number of customers for its business exposes it to risks, that may include, but are not limited to, educations, delays or cancellation of orders from its significant customers, a failure to negotiate favorable terms with its key customers or the loss of these customers, all of which would have a material adverse effect on the business, financial condition results of operations, cash flows and future prospects of the company.

No long-term agreements with suppliers for its input materials: The production of its automation systems relies on raw materials and bought-out parts sourced from various suppliers. Major raw materials include MS steel plates, tubes (rectangular and square sections), C channels and I sections, which are procured through local suppliers. The bought-out parts, such as pneumatic cylinders, PLCs, HMIs, sensors, light curtains, conveyor chains, and gearbox motors, are sourced from various vendors located primarily in Maharashtra and Gujarat. Its cost of raw materials consumed for Fiscal 2025, 2024 and 2023 was Rs 5,820.17 lakh, Rs 7,690.27 lakh and Rs 4503.41 lakh respectively, which represented 49.30, 66.71% and 57.88% of its revenue from operations for the respective fiscal. It does not have any contracts with, or long-term arrangements for sourcing input materials from suppliers of input materials. The absence of long-term contracts makes it susceptible inter alia to short-term supply challenges and exposes it to volatility in the prices of input materials.

Geographical constrain: The company operates through its manufacturing facility comprising of Unit I and Unit II, at Village Sudumbre, Tehsil Maval, District Pune. Due to the geographical concentration of its manufacturing operations in Pune district, its operations are susceptible to local, regional and environmental factors, such as social and civil unrest, regional conflicts, civil disturbances, economic and weather conditions, natural disasters, demographic and population changes, and other unforeseen events and circumstances. Such disruptions could result in the damage or destruction of a significant portion of its manufacturing abilities, significant delays in the transport of its products and raw materials, loss of key managerial personnel or senior management personnel, and/or otherwise adversely affect its business, financial condition and results of operations.

Outlook

Patil Automation specializes in welding and line automation solutions. The company has five operational facilities across India, including two in Pune, it offers comprehensive automation services such as welding lines, assembly lines, auto handling, gantries, production, and testing special-purpose machines. The company has strong design and development capabilities. It also has in-house manufacturing facility with integrated testing capabilities. On the concern side, substantial portion of its revenue has been dependent upon few customers with which it does not have any firm commitments. The loss of any one or more of its major customers would have a material adverse effect on its business, cash flows, results of operations and financial conditions. Moreover, the company’s business operations are majorly concentrated in certain geographical regions and any adverse developments affecting its operations in these regions could have a significant impact on its revenue and results of operations.

The company is coming out with a maiden IPO of 58,00,800 equity shares of Rs 10 each. The issue has been offered in a price band of Rs 114-120 per equity share. The aggregate size of the offer is around Rs 66.13 crore to Rs 69.61 crore based on lower and upper price band respectively. On performance front, the revenue from operations was Rs 11,805.13 lakh in FY25 as compared to Rs 11,527.96 lakh in FY24, reflecting an increase of 2.40%. The company’s profit after tax increased by 49.31%, rising from Rs 783.72 lakh in the FY24 to Rs 1170.21 lakh in the FY25.

The company is focused on addressing the market demand from its existing and new clients in the automotive sector while also expanding its presence into the non-automotive sector. It aims to manufacture and market automation solutions for non-automotive sectors, particularly for the heavy construction equipment, pharmaceutical, and white goods (consumer goods) sectors. By leveraging the additional capacity of its proposed new manufacturing facility, it plans to enhance its ability to cater to non-automotive sectors. This will enable it to strengthen relationships with new clients in these industries, broaden its customer base, reduce dependence on any single market segment and mitigate risks associated with market concentration.

Eppeltone Engineers

• Eppeltone Engineers is coming out with an initial public offering (IPO) of 34,34,000 equity shares in a price band Rs 125-128 per equity share.
• The issue will open on June 17, 2025 and will close on June 19, 2025.
• The shares will be listed on SME Platform of NSE.
• The face value of the share is Rs 10 and is priced 12.50 times of its face value on the lower side and 12.80 times on the higher side.
• Book running lead manager to the issue is Expert Global Consultants.
• Compliance Officer for the issue is Megha Sharma.

Profile of the company

Eppeltone Engineers is engaged in the business of manufacturing of electronic energy meters including smart meters and various power conditioning devices like high grade chargers, UPS systems, etc. to consumers from institutions, industries and electricity distribution utilities. The company began its operations in the year 1977 and now operates a single manufacturing plant focused on producing quality and high-performance products. Over the years, it has streamlined its operations to ensure that its emphasis remains on quality and excellence.

The company is an ISO 9001, 140001 & 27001 certified organization engaged in the business of design, manufacturing and supply of Static Watt Hour Meters, Smart Meters, Water Meters, BPL Kits, UPS Systems, LED based luminaries, battery management system, battery chargers and battery packs, development of software applications, 4.5KW underslung constant voltage, regulated cum emergency battery charger, short neutral section assembly (phase break), light weight section insulator assembly, modular cantilever system, boxes and enclosures and all types of auto tensioning devices.

The company collects data from the customers, analyse the data and then design a customized/ Bespoke system which cater to the needs of its customers. It undertakes manufacturing and supply of finished products and intermediate stage products for its customers depending upon the demand. The company is engaged in business to business (B2B) segment. The primary focus of its business is to providing products and services to Government Entities, which constitute the majority of its business transactions. Additionally, it extends its B2B operations to private sector companies, supplying products to Non-Government and Government Companies across various industries.

Proceed is being used for:

• Working capital requirements of the company
• Funding capital expenditure towards installation of additional machinery at its factory
• General corporate purposes

Industry Overview

Electricity demand in India has grown exponentially on the back of rapid urbanization, and large-scale industrialization. The two factors have increased the pool of consumers, as well as increased the per head unit consumption. This developing demand landscape have led to a rapid scale up in generation sector - with capacity addition happening across thermal, hydroelectric, nuclear, and renewable energy. As of January 2024, the installed electricity generation capacity in the country reached approximately 430 GW. During the last five-year period (FY 2019 - 2023), the installed generation capacity in India has increased by a CAGR of nearly 4%. During the same period, electricity generated in the country increased by a CAGR of 4.2% to reach 1,624 billion units (BU) in FY 2023, and 1,452 billion units in FY 2024, as of January 2024.

Smart meter (with respect to electricity distribution sector) is part of the Advanced Metering Infrastructure (AMI) that defines the model electricity grid. AMI is a two-way communication system to collect real time information on electricity usage by the utility. AMI is a combination of hardware, software, and communication protocols. Based on the requirement of utility, AMI can collect electricity usage by consumer at hourly intervals or every 15 minutes. This eliminates the need for manual meter reading and bill generation. Smart meter is the hardware component of the AMI, which is installed at the consumer’s premise and records the power consumption happening at the consumers’ end.

Smart meters offer a win-win situation for both consumers and power distribution companies (DISCOMs). Consumers benefit from real-time energy monitoring, empowering them to make informed choices about their energy usage. This transparency allows them to identify areas for potential reduction, leading to lower electricity bills. Additionally, smart meters provide convenient features like remote meter reading, eliminating the need for manual meter readers and potential billing discrepancies. For DISCOMs, smart meters offer a multitude of advantages. They significantly reduce electricity theft, a major concern for the power sector. Furthermore, smart meters enable efficient billing processes, reducing administrative costs and improving revenue collection. Additionally, these meters provide valuable data on grid performance and consumer behavior, allowing DISCOMs to optimize grid management and improve overall efficiency. These widespread benefits for both consumers and DISCOMs further incentivize the adoption of smart meters, propelling the growth of the smart meter base across India. 

Pros and strengths

Strong and unique product technology: By leveraging its core technologies and unique ideas, it continued to provide new value to society. In 1999, the company broadened its business operations and established manufacturing facilities to produce energy meters in response to the government of India’s push for significant infrastructure projects. It has a NABL approved R&D Testing laboratory, with a focus on pioneering futuristic and innovative technologies. It has supporting facilities and offices in Noida, Uttar Pradesh and Okhla, New Delhi. The company is committed to providing consumers with quality, cost-effective metering goods and services. It has a CMMI Level III accreditation and certifications including ISO 9001,140001 & 27001 and ‘S’ mark safety accreditation from the Government of India.

Wide range of products and services: The company provides a broad range of products to its customers, it has significantly expanded its product portfolio from time to time. It also provides a wide range of turnkey services with the help of its trained employees and personnel, which increases the scope of its customers and its ability to cater to a diversified clientele base. Although the technical specifications for its products are largely standardized, it may undertake certain customizations of certain products for its institutional and corporate customers.

Consistency in quality and service standards: The company follows utmost quality standards in its areas of operation so that its products meet the required Quality standards. It helps it in maintaining a cordial relationship with its customers. Ensuring global standard products will attract domestic and international customers to the company.

Risks and concerns

Maximum revenue comes from limited customers: The company’s top ten customers contribute 85.73%, 94.73% and 91.55% of its total sales for the financial year ended on March 31 ,2025, March 31, 2024 and March 31, 2023, respectively. Its business operations are highly dependent on its customers and the loss of any of its customers may adversely affect its sales and consequently on its business and results of operations. While it typically has long term relationships with its customers, it has not entered into long term agreements with its customers and the success of its business is accordingly significantly dependent on it maintaining good relationships with its customers and suppliers. The actual sales by the company may differ from the estimates of its management due to the absence of long-term agreements. 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.

Significant topline comes from few states in India: Though the company supply its products on PAN India basis across all the states in India. However, a significant portion of its revenue is concentrated in some states across India. Any factors relating to political and geographical changes, growing competition and any change in the demand for its service by customers of these states may adversely affect its ability to retain them. The company cannot assure that it shall generate the same quantum of business, or any business at all, from these states, and loss of business from one or more of them may adversely affect its revenues and profitability.

No long-term contracts with its suppliers: The company’s ability to manufacture and make timely deliveries of its products is dependent upon the availability of raw materials and the cost incurred over them. It generally does not enter into agreements with its suppliers and transact with them on an order-by-order basis, and it cannot assure that it will continue to enjoy undisrupted relationships with its suppliers in the future. It cannot assure that it will be able to procure such specific raw materials in a timely manner or at commercially acceptable terms, or at all, resulting in delays in production and delivery of its products. If it is unable to obtain adequate supplies of raw materials in a timely manner or on commercially acceptable terms, the cost of raw material consumption can increase, which could have an adverse effect on its business, prospects, results of operations and financial condition.

Outlook

Eppeltone Engineers specializes in manufacturing electronic energy meters, including smart meters, alongside various power conditioning device. The company’s diverse product range caters to various sectors, including electricity utilities, industries, commercial establishments, and domestic consumers. The company has strong market presence & customer base. It also has advanced manufacturing & R&D capabilities. On the concern side, the company is dependent on few numbers of customers for sales. Loss of any of this large customer may affect its revenues and profitability. Moreover, significant portion of its revenue has been generated from some states of India, any loss of business from these states may adversely affect its revenues and profitability.

The company is coming out with a maiden IPO of 34,34,000 equity shares of Rs 10 each. The issue has been offered in a price band of Rs 125-128 per equity share. The aggregate size of the offer is around Rs 42.93 crore to Rs 43.96 crore based on lower and upper price band respectively. On performance front, the company has reported 57.09% rise in total income at Rs 12,573.88 lakh in FY 25 as compared to Rs 8,004.18 lakh in FY24. The company’s net profit rose 37.67% to Rs 1,123.20 lakh in FY25 as compared to Rs 815.86 lakh in FY24.

After deepening its roots in the Indian market with its products and services, the company is further in progression of marking its presence globally. It intends to reach in the international arena too. Currently, the company is focused only certain States in India. It continually seeks to enhance its addressable market through private meetings with it proposed customers, by carrying out promotional activities to create awareness for its products. It plans to create a Strong and niche customer base for its products by increasing its focus on increasing its visibility with such institutional customers including Government Institutions, builders, and Developers of residential and commercial projects. Further, its emphasis is on expanding the scale of its operations as well as growing its supply chain network, which may provide opportunities to grow its client base and revenues.

Aten Papers & Foam

• Aten Papers & Foam is coming out with an initial public offering (IPO) of 33,00,000 equity shares in a price band Rs 91-96 per equity share.
• The issue will open on June 13, 2025 and will close on June 17, 2025.
• The shares will be listed on SME Platform of BSE.
• The face value of the share is Rs 10 and is priced 9.10 times of its face value on the lower side and 9.60 times on the higher side.
• Book running lead manager to the issue is Swastika Investmart.
• Compliance Officer for the issue is Neha Munot.

Profile of the company

Aten Papers & Foam operates as an important intermediary in the Paper Product Supply Chain. As a crucial middleman in the paper product supply chain, the company procures paper from different paper mills and resell them to clients in the packaging products industry. Examples of these products include Kraft Paper and Duplex Board. It also purchases Wastepaper from stockiest and sell them to Paper mills which is crucial raw material for such mills. A wide range of grades, thicknesses, widths, and standards are available in its product portfolio for Kraft papers and Duplex boards and other according to customer specifications.

It operates from its Registered Office and also operates Godown located in Changodar, Ahmedabad. The paper products manufactured by its customers have a variety of end use applications and are used mainly in the packaging industry. It sells papers in the domestic markets specially in the state of Gujarat.

It attributes its growth to the expertise and dedication of its management team. Their extensive experience of more than two decades, they play a pivotal role in guiding its strategic decisions and daily operations. Its Promoters, Mohamedarif Mohamedibrahim Lakhani and Amrin Lakhani, with their deep knowledge, vision, and industry insight, have been instrumental in shaping and executing its growth strategies. Their leadership has allowed it to adapt to evolving market demands and successfully expand its business.

Proceed is being used for:

• Capital expenditure
• Meeting working capital requirements
• General corporate purposes

Industry Overview

The India Paper and Paperboard Packaging Market size is estimated at $13.72 billion in 2025, and is expected to reach $18.92 billion by 2030, growing at a CAGR of 6.63% during the forecast period (2025-2030). The Indian paper and packaging industry has witnessed significant transformation driven by changing consumer preferences and technological advancements. With India's overall size of the packaging industry market in India valued at over $70 billion in 2023, paper packaging has emerged as a crucial segment gaining prominence across various sectors. The industry's structure is characterized by around 600 paper mills, with twelve major players dominating the market landscape. Despite the growing market, India's per capita paper consumption remains relatively low at 15 kg compared to the global average of 57 kg, indicating substantial growth potential in the domestic market.

In the last five to seven years, an amount of over Rs 25,000 crore has been invested in new efficient capacities and induction of clean and green technologies. The industry size of single-use plastics is estimated to be Rs 10,000 crore. This move by the government will benefit all Indian paper mills to flourish their business. In India, only 15% of total paper and paperboard production is made from recycled materials, compared to a global average of 30% to 85%. As a result, there is a lot of potential for recycling in the paper industry.

India's paper and packaging sector has a bright future ahead of it, thanks to the nation's expanding urbanization, increased disposable income, and expanding population. The need for packaging materials is increasing due to the quick growth of e-commerce, and the industry is being forced to come up with greener solutions as sustainability becomes more and more of a priority. It is anticipated that government programs like 'Make in India' and infrastructure development projects would increase manufacturing and improve supply chains. Technological developments are improving quality and productivity, and growing export potential is creating prospects for market growth. Notwithstanding obstacles like volatile raw material costs and competition from substitute materials, the sector may seize chances and solidify its place in the international market with the support of smart investments and a dedication to sustainability. 

Pros and strengths

Variety of products: The company provides a one stop shop to its clientele for their customized paper product supply needs. As a trading company, it is in a position to always provide the latest products collected in house for its customers and also conduct market expansion activities for its suppliers. Its continuous effort and belief in maintaining a healthy relationship with its suppliers ensures adequate inventory at any point. It procures, stock and supply a diverse and multi-application range of papers and paper products to satisfy the growing requirements of customers. It procures various types of paper from Paper Mills, which are used for varied purposes including Packaging and Printing, which inter-alia includes retail mono packaging boxes and shipper carton manufacturing. 

In-house logistics: The company has its own in-house commercial vehicles which facilitates door-to-door delivery service to its customers, in order to minimise transportation costs by providing effective material handling system. It owns four commercial vehicles for this purpose. Transportation mainly includes carrying the products from the paper mills and delivering them to the customers. At times, when needed, it also outsources its transportation-to-transportation agencies.

High Credibility with its Banker and existing lines of Credit since 2019: The Paper Industry is a highly competitive and fragmented one. Small sized mills usually face cash crunch situations and are willing to give discounts to buyers who are willing to purchase products on cash basis. Similarly, the end-users of this Industry require high amount of credit. Hence, it plays an important role here as a financial intermediary by assisting such mills by giving them a bailout and providing its products to the end users on credit. It has maintained an efficient liquidity and net worth position. Currently it obtained a credit facility of Rs 900 lakh from its bankers.

Risks and concerns

Maximum revenue comes from limited customers: The company’s top ten customers contribute 30.51%, 34.62%, 28.00% and 28.20% of its total sales for the year ended on March 31, 2025, March 31, 2024, March 31, 2023 and March 31, 2022 respectively. Moreover, 8.14%, 17.04%, 11.30% and 10.54% of its total revenue is from related parties / group companies /entities. All transactions with related parties entered into by the Company in past were at arm’s length basis, in compliance with applicable provisions of Companies Act, 2013. The company is engaged in the business of paper trading. 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.

Geographical constrain: For the year ended March 31, 2025, March 31, 2024, March 31, 2023 and March 31, 2022 sales within the state of Gujarat was 98.16%, 99.18%, 99.86% and 99.59% respectively of its total revenue from operations. It anticipates continuing to expand its sales efforts in this region. However, this high concentration in Gujarat exposes it to increased competition, as existing and potential competitors may intensify their focus on this market to capture a larger share. This heightened competition, along with other adverse developments such as economic, political, or demographic changes, could significantly impact its market share and overall business performance. Consequently, any negative event affecting its sales in Gujarat could materially harm its business prospects, financial condition, and operational results. While it aims to mitigate these risks, the concentration of its operations in Gujarat makes it particularly vulnerable to these external factors.

Dependent on a few suppliers for purchase of product: The company’s top ten suppliers contribute 72.40%, 84.46%, 84.12% and 89.92% of its total purchases for the year ended on March 31, 2025, March 31, 2024, March 31, 2023 and March 31, 2022 respectively. Moreover, 19.21%, 56.74%, 30.85% and 35.49% of its total purchase is from related parties / group companies /entities. It cannot assure that it will be able to get the same quantum and quality of supplies, or any supplies at all, and the loss of supplies from one or more of them may adversely affect its purchases of stock and ultimately its revenue and results of operations.

Outlook

Aten Papers & Foam is operating as a key intermediary in the paper product supply chain. The company sources paper from various mills and supplies it to clients in the packaging industry. The company has High Credibility with the Banker and existing lines of Credit since 2019. On the concern side, the company is dependent on a few suppliers for purchase of product. Loss of any of these large suppliers may affect its business operations. Moreover, significant revenue of the company is from related party. Moreover, the company has a significant sale generated from state of Gujarat and any adverse developments affecting its operations in this state could have an adverse development affecting its operation in this state could have an adverse impact on its revenue and results of operation.

The company is coming out with a maiden IPO of 33,00,000 equity shares of Rs 10 each. The issue has been offered in a price band of Rs 91-96 per equity share. The aggregate size of the offer is around Rs 30.03 crore to Rs 31.68 crore based on lower and upper price band respectively. On performance front, the company’s total revenue from operations for the year ended on FY 2024-25 was Rs 13,869.22 lakh as compared to Rs 9,679.82 lakh during the FY 2023-24. Moreover, PAT Increased to Rs 701.14 lakh in FY 2024-25 from Rs 278.10 lakh in the FY 2023-24. PAT was 5.06% and 2.87% of total revenue of the company for the year ended on March 31, 2025 and March 31, 2024 respectively.

The company, currently engaged in the paper trading business, is excited to announce its plans to expand operations by setting up wastepaper processing units. This strategic move will mark its entry into wastepaper processing, which will serve as a key raw material supply for its trading activities. It plans to invest around Rs 425.00 lakh to purchase requisite machineries for setting up waste paper processing Units. These units will enhance its supply chain efficiency and sustainability by providing a reliable source of processed wastepaper. A portion of the proceeds from the issue will be allocated to this project, facilitating the successful implementation of these wastepaper processing units and supporting its business expansion goals.

Samay Project Services

• Samay Project Services is coming out with an initial public offering (IPO) of 43,20,000 equity shares in a price band Rs 32-34 per equity share.
• The issue will open on June 16, 2025 and will close on June 18, 2025.
• The shares will be listed on SME Platform of NSE.
• The face value of the share is Rs 10 and is priced 3.20 times of its face value on the lower side and 3.40 times on the higher side.
• Book running lead manager to the issue is Smart Horizon Capital Advisors.
• Compliance Officer for the issue is Ramaa Krishnakumar.

Profile of the company

Samay Project Services is primarily engaged in Engineering, Procurement and Construction (EPC) Services providing specialized services in design, engineering, supply, fabrication, erection and commissioning of balance of plant (BOP) systems in various industries. The company is involved in EPC projects which consists of (i) Piping System, (ii) Tanks and vessels and fabricated structures; and (iii) fire protection and detection systems / firefighting systems (FFS).

The various systems engineered, procured and constructed by the company finds its application in a diverse range of industries, including power, sugar and distilleries, iron and steel, infrastructure, etc. The system may consist of subsystems, products and raw materials, which are procured directly by the company from the vendors, fabricated, erected at site to provide the complete functionality of the overall system, meeting tender requirements. In case of tanks, carbon steel or stainless steel, as the case may be, is procured as hot rolled sheets with cutting, edge preparation, rolling, erection, fit-up, welding carried out at site as per the approved drawings under the supervision of the company’s engineers.

The company is an ISO 9001:2015 certified organization for quality management system for the activities which includes Engineering, Supply, Fabrication, Erection, Testing and Commissioning of Piping, Appurtenances and Tanks, Fire Protection, Detection and Suppression Systems. The company is committed to provide quality work to its customers that meets the project standards and specifications for materials, workmanship and timely execution. It treats all suppliers as its partners who work with it on a long-term basis. It always has supervisory staff consisting of a project manager, quality assurance engineer and safety engineer at each of the project sites that it executes. The company also provides multiple services in a particular project with a combination of the aforesaid services, wherein combined revenues are generated, the break-up of which is provided below under Revenue break-up tab.

Proceed is being used for:

• Funding working capital requirements of the company
• General corporate purposes

Industry Overview

India’s high growth imperative in 2023 and beyond will significantly be driven by major strides in key sectors with infrastructure development being a critical force aiding the progress. Infrastructure is a key enabler in helping India become a $26 trillion economy. Investments in building and upgrading physical infrastructure, especially in synergy with the ease of doing business initiatives, remain pivotal to increase efficiency and costs. Prime Minister Narendra Modi also recently reiterated that infrastructure is a crucial pillar to ensure good governance across sectors. The government’s focus on building infrastructure of the future has been evident given the slew of initiatives launched recently. The $1.3 trillion national master plan for infrastructure, Gati Shakti, has been a forerunner to bring about systemic and effective reforms in the sector, and has already shown a significant headway.

In Interim Budget 2024-25, capital investment outlay for infrastructure has been increased by 11.1% to Rs 11.11 lakh crore ($133.86 billion), which would be 3.4 % of GDP. As per the Interim Budget 2023-24, a capital outlay of Rs. 2.55 lakh crore ($30.72 billion) has been made for the Railways, an increase of 5.8% over the previous year. Starting with 6,835 projects, the NIP project count now stands at 9,142 covering 34 sub-sectors, as per news reports. Under the initiative, 2476 projects are under the development phase with an estimated investment of $1.9 trillion. Nearly half of the under-development projects are in the transportation sector, and 3,906 are in the roads and bridges sub-sector.

India's Infrastructure forms an integral part of the country's economic ecosystem. There has been a significant shift in the industry that is leading to the development of world-class facilities across the country in the areas of roads, waterways, railways, airports, and ports, among others. The country-wide smart cities programmes have proven to be industry gamechangers. Given its critical role in the growth of the nation, the infrastructure sector has experienced a tremendous boom because of India's necessity and desire for rapid development. The expansion has been aided by urbanisation and an increase in foreign investment in the sector. The infrastructure sector has become the biggest focus area for the Government of India. India's GDP is expected to grow by 8% over the next three fiscal years, one of the quickest rates among major, developing economies. 

Pros and strengths

Strong engineering and technical software and design team: The company has an engineering team divided along product lines. The Company has employed the Auto plant CAD modelling software from the local channel partners. The Company uses this software to design layouts and prepare detailed engineering drawings. The modelling software also helps its engineers understand any routing changes required to prevent fouling during the detailed engineering phase. The Company also uses Canute software for hydraulic calculations in Fire Protection System.

Good presence in multiple EPC Segments: The Company has established strong credibility in timely completion of over Rs 3,714.08 lakh EPC projects as on March 31, 2025 in full financial year spread all over India and abroad. The Company also has carried out installations in Power, Sugar and Distilleries, Infrastructure, Iron and Steel, mining etc. Its endeavour is to provide technical solutions based on the specific needs of individual customer. Most manufacturers are currently vendors for other projects of the Company. The strong relationship established with the suppliers will assist the Company to meet the delivery commitments. EPC is an evergreen field with year-round project implementation requirements.

Quality assurance: Top priority is given to safety and quality at all its installations. The Company has acquired ISO 9001-2015 Certification for EPC of Piping System, Tanks and Vessels and Fire Protection System. The Company is committed to Quality Standards, Occupational Health and Safety Guidelines. The company is committed to Customer Satisfaction through high value engineering, quality execution, delightful customer service, delivered with passion and integrity.

Risks and concerns

Maximum revenue comes from limited customers: The company is dependent on certain key customers for a significant portion of its revenue. It derived 63.06% and 84.26% & 62.34% and 87.14% of its revenue from its top five and top ten customers, respectively, for Fiscal 2025 and Fiscal 2024. 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 a material adverse effect on its business, results of operations, financial condition and cash flows.

Dependent on suppliers for raw materials, parts and other materials: The company has a supplier base spanning across 14 states and 1 Union Territory in India and in 4 countries internationally. Any failure by its suppliers to provide raw materials and parts to it on time or at all, or as per its specifications and quality standards for reasons such as capacity limitations, breakdowns, machine failures, industrial relations and safety issues, or any disruption in its suppliers’ manufacturing processes could have an adverse impact on its ability to meet its execution of the projects and delivery schedules, which in turn could adversely affect its sales margin and customer relations. If it is unable to find a suitable replacement in a timely manner, or at all, its business, financial condition, results of operations and cash flows could be materially and adversely affected.

Stiff competition: The company operates in a highly competitive business environment. Most of its orders are received through a competitive bidding process. Some of its competitors may have greater resources than those available to it. About 3 to 5 competitors bid for each project, whether public or private sector tenders. In some cases, such as BHEL tenders, reverse auction is applicable. There are a few ongoing projects with which letter of intent has been executed, such as, Engineering projects (India) Limited, Rungta Mines and Zuari Envien Bioenergy Private Limited. The company competes in both public sector and private sector tenders. As the value of the project goes up, prequalification norms also increase but competition reduces. The company utilizes competition to benchmark performance metrics, identify strong and weak functional areas and in general to keep improving. The company’s competitors may be larger and may have better access to financial resources. Some of its competitors may be better known in regional markets in which it competes. In such a scenario, it may find difficulties in maintaining its position in the market.

Outlook

Samay Project Services offers EPC services, specializing in design, engineering, and the commissioning of balance of plant (BOP) systems across various industries. The company has good presence in multiple EPC Segments. It is also committed to customer satisfaction through high-value engineering, quality execution, and delightful customer service, delivered with passion and integrity. On the concern side, the company derived 63.06% and 84.26% & 62.34% and 87.14% of its revenue from its top five and top ten customers, respectively, for Fiscal 2025 and Fiscal 2024, and any inability to retain its key customers or attract new customers and expand its customer network, could negatively affect its business and results of operations. Moreover, the company derives majority of its revenues from limited number of government entities for the past 3 financial years. Any adverse changes in the central or state government policies may lead to its orders being foreclosed, terminated, restructured or renegotiated, which may have a material effect on its business and results of operations.

The company is coming out with a maiden IPO of 43,20,000 equity shares of Rs 10 each. The issue has been offered in a price band of Rs 32-34 per equity share. The aggregate size of the offer is around Rs 13.82 crore to Rs 14.69 crore based on lower and upper price band respectively. On performance front, Revenue from operations had reduced by 8.85% from Rs 4,047.67 lakh in Fiscal 2024 to Rs 3,714.08 lakh in Fiscal 2025. The company reported a net profit of Rs 419.32 lakh in Fiscal 2025 as compared to a net profit of Rs 461.53 lakh in Fiscal 2024.

Over the next few years, the company will continue to focus on the operations and maintenance of its existing projects while seeking opportunities to further expand its business. The company intends to enter the BioCNG EPC segment as well. It also intends to capitalize on its experience and continue to selectively pursue larger projects, both independently and in partnership with other players. It intends to continue its focus on efficient project execution by adopting industry best practices to deliver quality projects to the satisfaction of its customers. It intends to continue to invest in modern equipment to ensure continuous and timely availability of equipment critical to its business, which will help it in exercising better control over the execution of its projects.

Oswal Pumps

• Oswal Pumps is coming out with a 100% book building; initial public offering (IPO) of 2,33,39,726 shares of Rs 1 each in a price band Rs 584-614 per equity share.
• Not more than 50% of the issue will be allocated to Qualified Institutional Buyers (QIBs), including 5% to the mutual funds. Further, not less than 15% of the issue will be available for the non-institutional bidders and the remaining 35% for the retail investors.
• The issue will open for subscription on June 13, 2025 and will close on June 17, 2025.
• The shares will be listed on BSE as well as NSE.
• The face value of the share is Rs 1 and is priced 584 times of its face value on the lower side and 614 times on the higher side.
• Book running lead managers to the issue are IIFL Capital Services, Axis Capital, CLSA India, JM Financial and Nuvama Wealth Management.
• Compliance Officer for the issue is Anish Kumar.

Profile of the company

Oswal Pumps is the fastest growing vertically integrated solar pump manufacturers in India in terms of revenue growth during the last three fiscals, with its revenues growing at a CAGR of 45.07% between Fiscal 2022 and Fiscal 2024. It manufactures solar-powered and grid-connected submersible and monoblock pumps, electric motors comprising induction and submersible motors as well as solar modules, which it sells under the ‘Oswal’ brand. It has over 22 years of experience in pumps encompassing engineering, product design, manufacturing and testing. It caters to the diverse requirements of end-users in the agricultural sector for irrigating fields; the residential sector for maintaining gardens and fountains, extracting water, supplying water to overhead tanks and cleaning households and small establishments; commercial premises such as shopping malls, offices and hotels; industries which use its pumps in boilers and water treatment, water transportation and sewage applications and use its electric motors in machinery applications and cooling tower systems.

The company is one of the few fully integrated Turnkey Solar Pumping Systems providers in India with the capability to manufacture solar powered agricultural pumps, solar modules and pump controllers and provide installation services for such systems. To enhance its capabilities as Turnkey Solar Pumping Systems provider, it commenced manufacturing solar modules for Turnkey Solar Pumping Systems on January 8, 2024 through its wholly-owned subsidiary, Oswal Solar Structure Private Limited. It also benefits from its Associate, Walso Solar Solution Private Limited, which manufactures mounting structures, BOS and essential components for Turnkey Solar Pumping Systems.

It has end-to-end pump manufacturing capabilities and has undertaken several backward integration initiatives over the years, enabling it to produce several components of a pump in-house and providing it with competitive advantages. It also focuses on recycling scraps to produce certain components of pumps. For example, it utilizes scrap metal to manufacture components such as suction, non-return valve, impellers, bowls sleeves, collets and stator end ring. This approach allows it to minimize waste and helps it to improve its margins. It also harnesses the capabilities of electronics to optimise the end-use efficiency of its pumps.

Proceed is being used for:

• Funding certain capital expenditure of the company
• Investment in its wholly-owned Subsidiary, Oswal Solar, in the form of equity, for funding the setting up of new manufacturing units at Karnal, Haryana
• Pre-payment/ re-payment, in part or full, of certain outstanding borrowings availed by the Company
• Investment in its wholly-owned Subsidiary, Oswal Solar, in the form of equity, for repayment/prepayment, in part or full, of certain outstanding borrowings availed by Oswal Solar
• General corporate purposes 

Industry Overview

Pumps are vital across various sectors in India, including agriculture, industrials and infrastructure, making the pump industry a key contributor to the nation's growth. The Indian pumps market was Rs 380.50 billion in FY25, expected to reach Rs 591.90 billion by FY30, growing at a CAGR of 9.2% between FY25-30. India currently has just 5% share in global pumps market, indicating a significant opportunity for growth Agriculture drives growth in the Indian pumps market through increasing demand for efficient irrigation solutions, boosted by government initiatives, increasing adoption of solar pumps and rising need for reliable water supply to enhance crop yields. Rapid industrialization, coupled with significant infrastructure development, drives the need for pumps for water supply, wastewater treatment, and manufacturing operations. Urbanization in India is also driving the growth of pumps due to increased demand for water management, construction, and industrial activities in expanding urban areas.

Electric motors are devices that transform electrical energy into mechanical energy, usually resulting in rotational movement. These motors are used in consumer electronics, automotive industry, industrial applications, agriculture, pumps, etc. The global electric motor market is projected to grow at a CAGR of 7% from CY24-29, with the market being valued at $219.40 billion by CY29. The electric motor market in India was estimated at $4.10 billion in FY25 and is expected to reach $8.00 billion in FY30, growing at a CAGR of 14.3% from FY25-30. Induction motors, also known as asynchronous motors, are a type of alternating current electric motor that operates based on the principle of electromagnetic induction, Induction motors are extensively utilized in numerous applications with pumps being of it. The induction motor market in India was estimated at $0.80 billion in FY25 and is expected to grow at a CAGR of 13.80% from FY25-30, with the market being valued at $1.50 billion in FY30.

Further, High-end precision pumps are vital to key sectors of the Indian economy, including oil and gas refining, nuclear power plants, and pharmaceuticals. These industries demand pumps that offer exceptional accuracy, reliability, and resistance to harsh materials and conditions, ensuring optimal performance and safety. They handle a wide range of viscosities and temperatures, making them ideal for applications requiring precise flow control and reliability, such as in oil and gas, pharmaceuticals, and food processing industries. The high-end precision industrial pumps market grew at a CAGR of 8.7% between FY19-25 and was valued at Rs 31.6B in FY25, forming 2% of the global high-end precision industrial pumps market and is expected to reach Rs 57.50 billion by FY30, growing at a CAGR of 12.7% from FY25-30.

Pros and strengths

One of the largest suppliers of solar powered agricultural pumps under the PM Kusum Scheme: The company is fastest growing vertically integrated solar pump manufacturers in India in terms of revenue growth during the last three fiscals, with its revenues growing at a CAGR of 45.07% between Fiscal 2022 and Fiscal 2024. Initially, it started supplying solar powered agricultural pumps to Turnkey Solar Pumping System providers participating in the PM Kusum Scheme, including Tata Power Solar Systems Limited and certain vendors empanelled under the Mukhyamantri Saur Krushi Pump Yojana launched by the Government of Maharashtra in 2019. Subsequently, in 2021, it started offering Turnkey Solar Pumping Systems under the PM Kusum Scheme either directly or through third party bidders. Within four years of supplying solar powered agricultural pumps, in Fiscal 2024 and 2023, it emerged as one of the largest suppliers of solar powered agricultural pumps under the PM Kusum Scheme.

Vertically integrated manufacturing competencies: The company’s operations are vertically integrated, encompassing the manufacturing of components for its pumps and the production of solar modules for solar-powered pumps. Its capabilities are further strengthened by its associate, Walso Solar Solution Private Limited, specializing in the manufacturing of mounting structures, BOS and essential components for Turnkey Solar Pumping Systems. This approach provides it several advantages including the ability to design and develop new products, optimize its operational costs and improve its margins.

End-to-end pump manufacturing capabilities: The company has end-to-end pump manufacturing capabilities, encompassing manufacturing components of monoblock and submersible pumps using processes such as cast-iron casting, investment casting, aluminium die casting, electrical grade stamping, submersible cable and wire winding, injection plastic moulding, rubber moulding, thrust bearing, stainless steel stator casing, stamping, machining and assembly and packaging. Over the years, it has undertaken extensive backward integration initiatives, enabling it to produce several critical components of a pump and motors and undertake various processes in-house which provides it with competitive advantages.

Comprehensive product portfolio in multiple product specifications: The company offers a wide range of solar-powered and grid-connected submersible and monoblock pumps, electric motors as well as solar modules under its ‘Oswal’ brand. Its focus on providing quality pumps and building its brand through marketing and brand building initiatives, along with its more than 22 years of operating history, has contributed to a positive brand recall among its target audience which is instrumental in establishing a loyal customer base. Its comprehensive product portfolio allows it to address the diverse requirements of its end-users in the agricultural, residential and industrial sectors. The company’s product portfolio helps it to attract new customers, expand its market reach, solidify its industry position, and mitigate business risks by reducing dependence on any single product or end-use market.

Risks and concerns

Maximum revenue comes from limited customers: The company’s business largely depends upon its top 10 customers, which contributed 78.87%, 79.50%, 72.56% and 66.29% of its revenue from operations for the nine months ended December 31, 2024, Fiscals 2024, 2023 and 2022, respectively. The loss of all or a substantial portion of sales to any of its top 10 customers for any reason (including, due to loss or termination of contracts, failure to negotiate commercially acceptable terms, disputes with these customers), could have an adverse impact on its business, results of operations, financial condition and cash flows.

Dependent on a few suppliers for the supply of raw materials: The company’s primary raw materials for manufacturing pumps are copper, stainless steel, pig iron and polypropylene; motors are casting and electrical grade sheets; and solar modules are ethylene-vinyl acetate sheets, back sheets, glass, solar cells, junction box and aluminium frames. It typically procures these materials through purchase orders and do not enter into any long-term agreements with its suppliers. Consequently, its suppliers may not perform their obligations in a timely manner, or at all, resulting in delays to its production schedule and adversely affecting its output.

Geographical constrain: The company and its Subsidiary, Oswal Solar operate two manufacturing facilities which are located at Karnal in the state of Haryana. One of its manufacturing facilities is engaged in the manufacturing of monoblock pumps, submersible pumps and electric motors, whereas the other manufacturing facility is engaged in the manufacturing of solar modules. Due to the geographic concentration of its manufacturing facilities in Karnal, Haryana, its operations are susceptible to local and regional factors, such as civil unrest as well as other adverse social, economic and political events in Haryana, weather conditions, natural disasters, regional conflicts and other unforeseen events and circumstances.

Huge working capital requirement: The company requires working capital to finance the purchase of raw materials required for its operations, as well as for its other expenses before payment is received from customers. The actual amount and timing of its future working capital requirements may differ from estimates as a result of several factors including unforeseen events beyond its control, delays or cost overruns, unanticipated expenses, regulatory changes, adverse economic conditions, engineering design changes, technological changes and additional market developments and new opportunities in the markets in which it operates. Its inability to obtain adequate amounts of working capital in a timely manner and on terms that are acceptable to it, may adversely affect its business, results of operations, financial condition and cash flows.

Outlook

Oswal Pumps is a manufacturer and distributor of pumps. The company offers a diverse range of products catering to domestic, agricultural, and industrial applications, including solar pumps, submersible pumps, monoblock pumps, pressure pumps, sewage pumps, electric motors, submersible winding wires & cables, and electric panels. The company has a growing network of distributors across India, increasing from 473 distributors as of March 31, 2022, to 636 distributors as of March 31, 2024. On the concern side, the company’s business largely depends upon its top 10 customers, which contributed 78.87%, 79.50%, 72.56% and 66.29% of its revenue from operations for the nine months ended December 31, 2024, Fiscals 2024, 2023 and 2022, respectively. The loss of any of these customers could have an adverse effect on its business, results of operations, financial condition and cash flows. The company’s operations are supported by two manufacturing facilities which are situated at Karnal, Haryana. The geographical concentration of its manufacturing facilities exposes its operations to potential risks arising from local and regional factors such as adverse social and political events, weather conditions and natural disasters in this region.

The issue has been offering 2,33,39,726 shares in a price band of Rs 584-614 per equity share. The aggregate size of the offer is around Rs 1363.04 crore to Rs 1433.06 crore based on lower and upper price band respectively. Minimum application is to be made for 24 shares and in multiples thereon, thereafter. On performance front, the company’s revenue from operations increased by 97.01% from Rs 3,850.36 million in Fiscal 2023 to Rs 7,585.71 million in Fiscal 2024. The company’s restated profit for the year was Rs 341.99 million in Fiscal 2023 compared to Rs 976.65 million in Fiscal 2024 and PAT margin was 12.83% in Fiscal 2024 compared to 8.83% in Fiscal 2023. 

The company intends to continue to focus on increasing integration in its operations to optimise its margins by (i) integrating certain processes and manufacture certain components for pumps in-house; (ii) automate specific pump manufacturing processes; and (iii) strengthen its technological capabilities and enhance automation and IT interface of its products through strategic acquisitions. The company intends to leverage its pump and solar module manufacturing capabilities to capitalise on the growth opportunities provided by the PM Kusum Scheme and also tap into the growing market of farmers seeking to adopt solar technology for irrigation to reduce costs and enhance productivity. Also, it intends to expand its operations into states such as Maharashtra, Karnataka and Madhya Pradesh to leverage the opportunities provided by the PM Kusum Scheme and establish itself as a key player in the solar pump industry.

Monolithisch India

• Monolithisch India is coming out with an initial public offering (IPO) of 57,36,000 equity shares in a price band Rs 135-143 per equity share.
• The issue will open on June 12, 2025 and will close on June 16, 2025.
• The shares will be listed on SME Platform of NSE.
• The face value of the share is Rs 10 and is priced 13.50 times of its face value on the lower side and 14.30 times on the higher side.
• Book running lead manager to the issue is HEM Securities.
• Compliance Officer for the issue is Deepa Vijay Agrawal.

Profile of the company

Monolithisch India is an ISO 9001:2015, ISO 14001:2015, ISO 22301:2019, ISO 37301:2021, ISO 45001:2018 and ISO/IEC 27701:2022 certified company engaged in the business of manufacturing and supply of specialized ramming mass used as a heat insulation/ lining material, by its customers as a refractory consumable for Induction furnaces installed in iron/steel and foundry plants. It is also engaged in the trading of its products on occasional basis to meet the excess and urgent requirement by its customers. Most of its customers and raw material suppliers are located in nearby states with the manufacturing facility of the company. The major customers of the company are iron and steel producers located in Eastern parts of India, majorly in the states of West Bengal, Jharkhand & Odisha.

The company’s product i.e. specialized ramming mass is used in the induction furnace to create thermal insulation between the coil of the induction furnace and the molten steel. The melting point of the ramming mass act as an insulation barrier material between the induction furnace crucible and the molten steel. It has over the years, based on the requirements of its customers, developed different grades of ramming mass with different specifications and additives to serve furnace of different sizes and make. Its products are made of alpha-quartzite and stone boulder which is available in the Bihar, Jharkhand and Madhya Pradesh region, as most of its suppliers are located in these areas. 

The company strives to develop a long-term business relationship with its customer by maintaining the industry standards and meet customer's business requirements through its products and services. In order to achieve the same, the company aims to provide its customers quality product at reasonable prices. Its operational team also keeps close track of production schedules, which ensures on time delivery of its products to the customers, which results in enhanced service quality and cost savings.

Proceed is being used for:

• Funding capital expenditure towards setting up of a manufacturing facility of the Company by purchase of land, building of factory shed, civil work and installation of additional plant and machinery therein
• Investment in its Subsidiary, Metalurgica India Private Limited for financing its capital expenditure towards purchase of land, building of factory shed, civil work and installation of additional plant and machinery therein
• Meeting working capital requirements
• General corporate purpose

Industry Overview

India is the second-largest producer of crude steel as well as the second-largest consumer of finished steel in the world. The sector contributes to about 2% of the total GDP of the country and employs 2.6 million people directly and indirectly through allied sectors. The Indian steel sector is further bifurcated into the primary and secondary steel sector based on their production pathways. The secondary steel sector largely utilizes the Direct Reduction-Electric Arc Furnace (DRI-EAF) route or the DRI-Induction Furnace (DRI/IF) route for crude steel production and is also involved in the production of finished steel through re-rolling mills. Overall, the secondary sector accounts for about 40% of steel production in India. The secondary steel sector also remains highly emission-intensive, being responsible for around 50 million tonnes (MT) of GHG emissions, annually. Excessive reliance on low-quality coal, iron ore, and low shares of scrap input coupled with heterogenous scattered units of operations add to the deep decarbonization challenge for the secondary steel sector in India.

To align India’s ambitious growth visions with its commitment to reach net-zero emissions by 2070, it is vital to enable the low-carbon transition (LCT) of the secondary steel sector, particularly through the development of a suitable enabling environment to scale-up the flow of finance for the adoption of low-carbon technologies by the sector. The value chain of the secondary steel sector involves the production of sponge iron through the direct reduction route (DRI plants), which is followed by the production of crude steel (semi-finished steel) through Electric Arc Furnaces (EAF) or Induction Furnaces (IF). Lastly, finished steel products are produced through steel re-rolling mills which involve hot and cold rolling units, as well as galvanizing units. There are approximately 333 DRI plants, 55 EAFs, 1103 IFs, and 1313 Steel-rerolling mills scattered across the country contributing to the value chain of the secondary steel sector.

India is a global force in steel production and the second-largest crude steel producer in the world. In FY23, the cumulative production of crude steel stood at 126.26 MT, finished steel stood at 122.28 MT, and consumption of finished steel stood at 119.86 MT. During April 2024, crude steel stood at 11.919 MT, finished steel stood production at 11.215 MT and consumption at 11.076 MT. Production of steel in India could go up to 500 million tonnes by 2050, nearly four times the current output, as New Delhi seeks to undergird its evident growth ambitions with rapid capacity expansion for the primary infrastructure alloy. Demand for steel is expected to grow by around 10% through 2022 amid the government's continued focus on the construction of roads, railways, ports and airports. 

Pros and strengths

Established manufacturing facility with easy access to raw material sources: The manufacturing facility of the company is located in the Purulia, West Bengal which is equipped with the requisite plant and machineries including crushing, mixing and packing machines which are capable of producing ramming mass of different grades as per the Industry standards and the requirements of its customers, along with the equipments and utilities for smooth manufacturing activities. The manufacturing facility of the company is equipped with machineries like jaw crusher, roll crusher, low frequency vibrator, secondary crusher and utility equipment’s like conveyer belt, forklift, crane, transformer and panels having an existing installed manufacturing capacity of 132000 MTPA, capable of undertaking the manufacturing activities.

Long-standing customer relationships with customers along with location advantage: The quality of goods and services provided by the company has helped it to achieve customer satisfaction and developing long-standing relationships with its customers which majorly includes companies involved in iron and steel production. Maintaining strong relationships with its key customers is essential to its business strategy, towards the growth of its business, as a result it has been able to retain a number of its customers for a long period. Due to its quality products and services, its customer base has gradually grown from 41 customers in Fiscal year 2023 to 63 customers in Fiscal year 2025 along with a CAGR 52.46% growth in revenue from operation and approx. 61.44% business from repeated customers.

Track record of healthy financial performance: The company has established a track of consistent revenue growth and profitability. The company’s revenue from operations increased from Rs 4187.79 lakh in Fiscal 2023 to Rs 9734.43 lakh in Fiscal 2025 at a CAGR of 52.46% while its restated profit for the year increased from Rs 454.29 lakh in Fiscal 2023 to Rs 1448.80 lakh in Fiscal 2025 at a CAGR of 59.46%. Its continued focus on efficiency, productivity improvements and cost rationalization have enabled it to keep its operating costs under control and improve its margins. The company’s EBITDA has increased from Rs 671.69 lakh in Fiscal 2023 to Rs 2106.24 lakh in Fiscal 2025 while its EBITDA Margin increased from 16.04% in Fiscal 2023 to 21.64% in Fiscal 2025. In Fiscal 2025, 2024 and 2023, its Return on Capital Employed was 46.22%, 57.86%, and 46.80% respectively and as of March 31, 2025, 2024 and 2023, its Return on Equity was 53.94% 59.69% and 58.74% respectively.

Risks and concerns

Maximum revenue comes from limited customers: The company derives a significant portion of its revenue from its major customers. As of March 31, 2025, its top 3 customers contribute 25.56% of revenue from operations. Further, the share of its top 3 customers for the Fiscal year 2024 and 2023 was approximately 29.58% and 26.00% respectively. Further, it derives a significant portion of its revenue from its top 10 customers. As of March 31, 2025, its top 10 customers contribute 59.43% of revenue from operations. The loss of any of these customers individually or severally could have a material adverse effect on its business, operations and could have impacted its financial strength.

Geographical constrain: The company manufactures ramming mass from its single manufacturing facility located at Purulia, West Bengal. Also, majority of its customer base is concentrated in the states of West Bengal, Odisha and Jharkhand which account for more than 90% of its revenue from operations. Due to the geographic concentration of its manufacturing operations and the operations of certain of its customers, its operations are prone to various hazards both natural and manmade. Such disruptions could result in the damage or destruction of a significant portion of its manufacturing abilities, significant delays in shipments of its products and/or otherwise materially adversely affect its business, financial condition and results of operations.

Depend on certain key suppliers to procure a significant portion of raw materials: The company is dependent on certain key suppliers for purchasing its raw materials. Its customer satisfactions and growth of its business directly depends on the timely and quality product delivery which ultimately depends on the availability of the timely and good quality raw materials. The company’s top 10 suppliers are contributing 63.83%, 73.94% and 77.04%respectively in the year ended March 31, 2025, March 31, 2024 and March 31, 2023. It depends on these suppliers for procuring major portion of its raw material requirements, in case it is unable to procure raw materials from these suppliers due to any reason beyond its control, it may be required to search for alternate which may not be available or if available may not be willing to supply their products to it or at feasible prices, which may affect its business and profitability.

Outlook

Monolithisch India Limited manufactures and supplies specialized “ramming mass,” a heat insulation refractory used in the iron and steel industry induction furnaces. The company is ISO certified and specializes in manufacturing specialized ramming mass for heat insulation, used by customers as a refractory consumable in induction furnaces for iron, steel, and foundry plants. It has long-standing customer relationships with customers along with location advantage. It also has a track record of healthy financial performance. On the concern side, the company is dependent on a limited number of customers for its revenue from operations, the loss of any of these customers individually or severally could have a material adverse effect on its business, operations and could have impacted its financial strength. Moreover, the company is currently a regional player and derives substantial revenue from West Bengal, Odisha and Jharkhand and hence faces geographical concentration related risks.

The company is coming out with a maiden IPO of 57,36,000 equity shares of Rs 10 each. The issue has been offered in a price band of Rs 135-143 per equity share. The aggregate size of the offer is around Rs 77.44 crore to Rs 82.02 crore based on lower and upper price band respectively. On performance front, the company’s revenue from operations has increased significantly by 41.31% to Rs 9734.43 lakh in Fiscal 2025 from Rs 6888.71 lakh in Fiscal 2024. The profit after tax of the company increased from Rs 851.18 lakh in the Fiscal 2024 to Rs 1448.80 lakh in the Fiscal 2025 representing an increase of 70.47%.

The manufacturing facility of the company is located in Purulia, West Bengal and most of its customers are located in the states of West Bengal, Jharkhand and Odisha. Its customers located in these regions account for more than 90% of its revenue from operations. It plans to continue to invest in enhancing its presence into different geographies and to enable it to respond quickly to its customers’ changing requirements, thereby continually improving the competitiveness of its services. It is further planning to expand its presence by establishing its new manufacturing unit which will help it to expand its presence and network. This will help it to take the advantage of adding new customer base and fulfilling additional demand from existing customers. Accordingly, it intends to further consolidate its position in the geographic markets where it sells its products as well as expand into additional geographic markets.

Jainik Power Cables

• Jainik Power Cables is coming out with an initial public offering (IPO) of 46,63,200 equity shares in a price band Rs 100-110 per equity share.
• The issue will open on June 10, 2025 and will close on June 12, 2025.
• The shares will be listed on SME Platform of NSE.
• The face value of the share is Rs 10 and is priced 10.00 times of its face value on the lower side and 11.00 times on the higher side.
• Book running lead manager to the issue is Fast Track Finsec.
• Compliance Officer for the issue is Kumari Sonal.

Profile of the company

Jainik Power Cables is engaged in manufacturing of aluminum wire rods from the year 2023, and it’s been more than a decade since the company has worked in the metal industry, before the manufacturing the company deals in the trading of aluminum rods. The company is a manufacturer and supplier of aluminum wire rods with quality practices and compliant with the Environmental, Health, and Safety (EHS) in the manufacturing industry as certified with the ISO Certificates held by the company. The company has a Quality Assurance Department which ensures testing through spectrometers for purity checks and detects even hidden impurities.

The company started manufacturing on April 1, 2023. It purchased land in the financial year 2021-22 and immediately began construction of a building for its manufacturing facilities. The company also purchased additional land in the financial year 2022-23 and incurred capital expenditure related to the existing manufacturing facility.

Its manufacturing facility located in Sonipat, Haryana, has been certified with ISO 9001:2015 from Innovative Systemcert Pvt. Ltd., ISO 45001:2018 from Innovative Systemcert Pvt. Ltd. (Accredited by EGAC, A Member of International Accreditation Forum) and ISO 14001:2015 from United Accreditation Foundation, a member of International Accreditation forum to maintain quality, environmental and safety practices. The company has obtained certificate of authorization from Haryana State Pollution Control Board for generation, collection, storage, disposal of certain Hazardous Substance. The authorization allows the company to use mineral/synthetic oil as lubricant in hydraulic systems or other applications.

Proceed is being used for:

• Meeting the working capital requirements of the company
• Funding and set up a plant
• Repayment of portion of loan availed by the company
• Meeting the general corporate purposes
• Meeting the issue expenses

Industry Overview

Aluminium is the second most used metal in the world after steel with an annual consumption of 88 Million Tonnes (including scrap). Aluminium consumption in India at 2.5 kg per capita is much below the global average of 11kg per capita. Rise in infrastructure development and automotive production are encouraging development in the metals and mining sector in India. India has nearly 10% of the world’s bauxite reserves and a growing aluminium sector that leverages this. Demand in the domestic market is expected to rise by 8-10%. India is considered to be the fifth largest producer of aluminium in the world with a tremendous bauxite reserve of about 3 billion tonnes. While the major consumption of aluminium in India is done by the electrical (31%) and B&C sectors (13%), the future growth is envisaged to happen in the solar power and industrial sector. One is witnessing the rapid development of this industry with a phenomenal growth noticed since 2002 and the industry is posed to play a significant role in the future growth of the Indian economy.

Meanwhile, the aluminium extrusion industry in India has witnessed a growth of 150% over the last eight years from 300,000 tonnes in 2010 to 800,000 tonnes in 2018. While construction constitutes 60%, consumption from industrial and transportation, Building & Construction comprise 28% and 12% of overall extrusion consumption respectively. The aluminium extrusion process involves creating parts of homogeneous cross-sections which is achieved by forcing the metal through an outlet (that is designed in the required configuration/shape of the extruded profile) under high pressure.

China continued to be the world's largest producer and consumer of aluminium with a production level of 36.7 million tonnes in 2020, constituting about 56.7% of total global output. In 2021, world primary Aluminium demand has reached new all-time highs in recent months and is projected to increase to 67.4 million tonne for the year. The main drivers behind this steep recovery have been monetary and fiscal stimulus around the world, tight scrap market, a metal intensive economic recovery as spending in capital goods trumpeted over experiences given the pandemic and the ongoing green revolution that favors aluminum as the material of choice. The consumption is projected to go higher in coming years with increased demands from Western and Asian markets. 

Pros and strengths

Digital presence: It involves establishing and maintaining a brand’s visibility, credibility, and engagement across online platforms. It's about creating a strong online footprint that resonates with the target audience. 

Quality assurance: At Jainik, the emphasis on quality standards is stated transparently and met for every cycle of the manufacturing process.

B2B partnership: Identifying potential partners, such as construction companies, electrical equipment manufacturers, etc. that are using aluminium wire rods.

Risks and concerns

Limited experience in manufacturing of aluminium goods: Although the company has experienced significant growth over the past five years, and has significantly expanded its operations and product portfolio, the company only has one-year experience in the area for manufacturing. As per its Restated Standalone Financial Statements, its revenues from operations increased at a CAGR of 128.45%% from FY 2023 to FY 2025, while its EBITDA increased at a CAGR of 221% for the same period. It cannot assure that its growth strategy will continue to be successful or that it will be able to continue to expand further, or at the same rate. The success of its business will depend greatly on its ability to effectively implement its business and growth strategy. The company’s growth strategy involves focusing on production of wide range of aluminum products.

Maximum revenue comes from limited customers: The company’s top ten customers contribute 52.28%, 75.26% and 73.85% of its total sales for the year ended March 31, 2025, 2024 and 2023 respectively. The company’s business operations are highly dependent on its customers and the loss of any of its customers may adversely affect its sales and consequently on its business and results of operations. 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.

Geographical constrain: The company’s business operations are based and concentrated in one area i.e., Sonipat, Haryana. As a result, any localized social unrest, natural calamities, distress or breakdown of services and utilities in and around this region, could have material adverse effect on its business, financial position and results of operations. Further, any continuous addition of similar industries/competitors in and around these areas, without commensurate growth of its infrastructural facilities may put pressure on the existing infrastructure and also increase competition in the area, which may affect its business and results of operation. The prices it can obtain for the products that it trades depend largely on prevailing market prices.

Outlook

Jainik Power Cables has been manufacturing aluminum wire rods since 2023 and has over a decade of experience in the metal industry, previously trading in aluminum rods. The company manufactures and supplies aluminum wire rods, adhering to Environmental, Health, and Safety (EHS) standards, as certified by ISO certifications. Its Quality Assurance Department conducts purity tests using spectrometers to detect hidden impurities. On the concern side, the company is dependent on few numbers of customers for sales. The loss of any of this large customer may affect its revenues and profitability. The company, only has one year of prior experience in manufacturing of aluminium goods which could adversely affect the results of operations and financial condition of the company.

The company is coming out with a maiden IPO of 46,63,200 equity shares of Rs 10 each. The issue has been offered in a price band of Rs 100-110 per equity share. The aggregate size of the offer is around Rs 46.63 crore to Rs 51.30 crore based on lower and upper price band respectively. On performance front, the company’s net revenue from operations for the Financial Year 2024-25 stood at Rs 35,168.95 lakh. Whereas for the Financial Year 2023-24, it stood at Rs 33,862.12 lakh representing an increase of 3.86%. The restated profit before tax for the Financial Year 2024-25 stood at Rs 923.60 lakh. Whereas for the Financial Year 2023-24, it stood at Rs 501.86 lakh.

The company will increase the capacity of current finished goods. This will be done in order to achieve perfect utilization of its batch- making process, also ensure efficient use of power. Economies of scale will also be achieved to the fullest. Further, the company plans to keep utilizing its current network of sales and marketing contacts, its wide range of products, and its reputation in the market to build new local, regional, and global clientele and broaden its customer base in order to efficiently increase its market share.

Sacheerome

• Sacheerome is coming out with an initial public offering (IPO) of 60,40,800 equity shares in a price band Rs 96-102 per equity share.
• The issue will open on June 9, 2025 and will close on June 11, 2025.
• The shares will be listed on SME Platform of NSE.
• The face value of the share is Rs 10 and is priced 9.60 times of its face value on the lower side and 10.20 times on the higher side.
• Book running lead manager to the issue is GYR Capital Advisors.
• Compliance Officer for the issue is Harpreet Kaur.

Profile of the company

Sacheerome is engaged in a creative house, designing & manufacturing fragrance and flavours. It was founded in the year 1992 by its visionary promoter Manoj Arora, who is a third-generation entrepreneur of a business family in Fragrance & Flavour industry and has been actively involved in this line of business form last 40 years. The company was initially only in the fragrance industry. In 2014, the company ventured into the flavours and has a separate unit, with a team of skilled flavorists, an application centre and a Research & Development centre.

The company’s products adhere to the global standards such as the International Fragrance Association (IFRA), European Commission (EU), Food Safety and Standards Authority of India (FSSAI), and Flavour Extract Manufacturers Association (FEMA as per the requirements of the customers). It is member of Chemexcil and Fragrances & Flavours Association of India (FAFAI). Additionally, it complies to ISO 9001:2015 ensuring top quality and reliability. 

The company’s manufacturing facility is equipped, with an annual production capacity of 7,60,000 Kg. It has a strong and dedicated R&D team of 45 specialist persons, at Y-4 Okhla Industrial Area, Phase-II, New Delhi and F-89-4-2 Okhla Industrial Area, Phase-1, New Delhi. Its highly trained team combines expertise from fragrance and flavor design specialists and marketing intelligence.

Proceed is being used for:

• Setting up a new manufacturing facility at Yeida, Gautam Buddha Nagar, UP
• General Corporate Purpose

Industry Overview

India’s fragrances market is anticipated to grow at a CAGR of 14.50% from 2024 to 2032, driven by factors such as rising disposable incomes, increasing consumer focus on personal grooming, and the proliferation of global beauty trends via social media. India has a rich history of olfactory culture, with the use of aromatherapy, incense, and ittar dating back to ancient times. The Indian market is experiencing a surge in demand for natural and organic fragrances as consumers seek healthier alternatives to synthetic chemicals. Additionally, the influence of Western fashion, e-commerce growth, and celebrity endorsements are contributing to the market’s expansion. Fragrances are now considered an essential part of daily grooming, particularly among the millennial population, which accounts for a significant portion of India’s consumer base.

The Indian flavours market is experiencing robust growth, driven primarily by the expanding food processing industry and increased demand for packaged, ready-to-eat foods and beverages. According to a report by IMARC Group, the market size reached Rs 4,287 crore in 2023 and is projected to grow at a CAGR of 7.1% from 2023 to 2032, reaching Rs 8,100 crore by 2032. The utilization of flavoring ingredients in various products - such as bakery items, confectioneries, ice creams, smoothies, and energy drinks - is significantly contributing to this growth. The rise of urbanization and Western food trends further boosts demand for these flavoring agents. Additionally, the popularity of processed and shelf-stable food products like noodles, soups, cake mixes, RTD tea and coffee, and juices - especially among millennials - is accelerating market expansion. 

The emergence of quick-service restaurants (QSRs) and the expanding café culture in India are also driving demand for innovative and diverse flavours. Moreover, government initiatives such as the 'aroma mission' of CSIR-CIMAP, the Aroma Park in Uttarakhand, and the Purple Revolution in Jammu & Kashmir aim to cultivate new aromatic ingredients and harness India’s rich aromatic heritage. These initiatives are set to revolutionize the industry, create rural employment opportunities, and promote sustainable practices. The global and Indian flavours and fragrances markets are experiencing robust growth, driven by innovation, rising consumer awareness, and an increasing focus on natural and sustainable products. The Indian market, in particular, is seeing rapid expansion due to changing consumer preferences, growing disposable incomes, and the influence of social media. This presents significant opportunities for businesses to tap into the growing demand for unique, high-quality flavours and fragrances, and to meet the evolving needs. 

Pros and strengths

Strong research and development skill: Together with knowledge from Fragrance & Flavours design specialists, marketing intelligence, and quality assurance, its highly experienced in-house team of trained perfumers and flavourists works to create distinctive notes at accords. With their extensive training and specialized knowledge, they are adept at comprehending the unique requirements of its clients.

Efficient sourcing of raw materials / global sourcing: Sacheerome’s extensive knowledge of ingredients and network to procure the right quality of raw materials at the most competitive rates give it a competitive edge in terms of effective and timely sourcing, which guarantees efficient manufacturing process and prompt product delivery, improving the customer experience overall. In the financial year 2023-24, it sourced major raw materials from Indian importers and manufacturers.

Efficient manufacturing facilities: The company’s manufacturing facility situated at F-89/4/2, Okhla Industrial Area, Phase I, New Delhi, is equipped with cutting-edge technology, and robotic finesse at formulating the most sophisticated aromas in single lot sizes ranging from 10gm to 10MT with great precision. The robotic production plant is imported from Europe. The company’s storage facilities are made of stainless steel 316, is temperature controlled and it use nitrogen-filled storage vessels to safeguard the delicate properties of ingredients and products. The company’s facilities represent a seamless integration of technology, stringent quality control measures, and robotic production, all aimed at delivering superior fragrance and flavour solutions tailored to the clients' needs.

Risks and concerns  

Maximum revenue comes from limited clients: A significant portion of the company’s revenues is dependent on a few key customers. The company’s top five customers accounted for 49.26%, 45.08%, and 45.90% of its revenue from operations for fiscal years 2025, 2024 and 2023 respectively. This reliance on a limited number of customers exposes it to risks, including, but not limited to, reductions, delays, or cancellations of orders from these key customers, the failure to negotiate favorable terms, or the potential loss of these customers. Any of these factors could have a material adverse effect on its business, financial condition, results of operations, cash flows, and future prospects.

Geographical constrain: The sale of the company’s products is significantly concentrated in state of Uttar Pradesh. The company garnered 29.94%, 36.61% and 36.93% of its total revenue from Uttar Pradesh in FY25, FY24 and FY23 respectively. Any significant social, political or economic disruption, or natural calamities or civil disruptions in this region, or changes in policies of the state or local governments or the government of India or adverse developments related to competition in Uttar Pradesh, may adversely affect its business, results of operations, financial condition and cash flows.

Increasing competition and industry consolidation: The fragrance and flavor industry is characterized by intense competition and a growing trend towards consolidation. Increasing competition and growing trend towards consolidation in the fragrance and flavour industry can result in declining prices and weaken its market share, which could adversely affect its business, financial condition and results of operations. Additionally, industry consolidation may result in larger, more resourceful competitors with enhanced operational efficiencies, and greater bargaining power with suppliers and customers. Such developments may weaken its competitive position, erode its market share, and impact its pricing strategy. If the company is unable to effectively differentiate its products, maintain cost efficiencies, or respond to competitive pressures, its revenues, profitability, and overall financial condition may be adversely affected.

Outlook

Sacheerome is a creative entity specializing in the designing and manufacturing fragrances and flavors. The company offers diverse products, including cosmetic fragrances, industrial fragrances, perfumes, food additives, and flavoring essences. The company has strong research and development skills with efficient quality control, assurance and regulatory. On the concern side, a significant portion of its revenues is dependent on a few key customers, with whom it does not have firm commitments. The loss of any one or more of these major customers could have a material adverse effect on its business, cash flows, results of operations, and financial condition. The sale of its products is concentrated in state of Uttar Pradesh. Any adverse developments affecting its customers’ operations in such region, could have an adverse impact on its business, financial condition, results of operations and cash flows.

The company is coming out with a maiden IPO of 60,40,800 equity shares of Rs 10 each. The issue has been offered in a price band of Rs 96-102 per equity share. The aggregate size of the offer is around Rs 57.99 crore to Rs 61.62 crore based on lower and upper price band respectively. On performance front, the company’s revenue from operations increased from Rs 8,50,953 thousand in FY 2023-24 to Rs 10,73,359 thousand in FY 2024-25, marking a substantial growth of 26.37%, driven by significant increases in both export and domestic sales. Profit after tax for the fiscal year 2025 stood at Rs 1,59,821 thousand, compared to Rs 1,06,730 thousand in fiscal year 2024, an increase of 49.74%, significantly outpacing the revenue growth of 26.37% over FY 2024.

The company continues to seek to increase its market share and strengthen its position in the industry. It proposes to achieve this by setting up a modern infrastructure manufacturing facility comprising of Manufacturing, Research & Innovation Centre, Quality Centre, Application Centre, Consumer evaluation Centre, Administration and Perfumery training Centre and various other dedicated facilities for its fragrances & flavours at YEIDA, Gautam Buddha Nagar, Uttar Pradesh. Further, to continue offering cutting-edge products and solutions in order to fulfil its commitment to adding value for customers as well as maintaining their competitive edge in the fiercely competitive FMCG market, the company encourages close collaboration between its R&D and Sales & Marketing departments. By using its research and development capabilities, it develops new products based on customer requirements and market trends.

Ganga Bath Fittings

• Ganga Bath Fittings is coming out with an initial public offering (IPO) of 66,63,000 equity shares in a price band Rs 46-49 per equity share.
• The issue will open on June 4, 2025 and will close on June 6, 2025.
• The shares will be listed on SME Platform of NSE.
• The face value of the share is Rs 10 and is priced 4.60 times of its face value on the lower side and 4.90 times on the higher side.
• Book running lead manager to the issue is Jawa Capital Services.
• Compliance Officer for the issue is Priyanka Sharma.

Profile of the company

The company is engaged in the business of manufacturing and supplying Bathroom Accessories including but not limited to bath fittings items such as CP taps and their parts, showers, bath accessories, Sanitary wear, ABS Shower, ABS Health faucet, ABS Taps, ABS Accessories, PTMT Taps, Door Handles, Bathroom Vanities, Bathroom Sinks, SS Showers, Shower Drains, SS Channel Drainer etc.

The Company derives its revenues from three verticals, viz.: i) sale of goods manufactured and sold under own brands - under this vertical the Company manufactures various bath fittings and accessories and the same are then sold under its brand names, viz. Ganga, Glimpse, Stepian, and Tora; ii) sale of goods to OEMs on contract manufacturing basis - under this vertical the company manufactures various bath fittings and accessories for third parties, under contract manufacturing. The said goods manufactured by the Company are sold under the brand of the third party; and iii) sale of traded goods - under this vertical, the company procures Sanitary ware which is then branded and sold under the brand name Ganga.

The company’s manufacturing facilities are technologically aligned to develop and manufacture the products that adhere to the stringent quality control requirements of its customer. It also manufactures customized components as per its customer’s specific requirements, while ensuring that its products meet the quality and are manufactured as per its customer’s specification in a timely manner. It also offers personalized services to its strong customer base across India. The company’s focus is to consistently expand its product portfolio by developing new designs. It shares a longstanding relationship with its customer and it receives majority of its business from repetitive clients. The company constantly engages with its customers through marketing via personal interactions and updating them on its capabilities and strengths.

Proceed is being used for:

• Capital expenditure towards purchase of equipment/machineries, etc
• Repayment/prepayment of certain borrowings availed by the company
• Funding working capital requirements
• General corporate purpose

Industry Overview

India Sanitary Ware Market has valued at $318.8 million in 2023 and is anticipated to project robust growth in the forecast period with a CAGR of 7.9% through 2029. The India Sanitary Ware Market is a dynamic and rapidly evolving sector within the country’s construction and home improvement industry. Sanitary ware encompasses a wide range of products, including toilets, washbasins, faucets, showers, and bath accessories, all designed for use in residential, commercial, and institutional spaces. India is experiencing a profound shift towards urban living, with millions of people moving to cities and towns in search of better opportunities. This urbanization has spurred the construction of residential and commercial properties, leading to increased demand for modern and aesthetically pleasing sanitary ware products.

Government initiatives such as 'Swachh Bharat Abhiyan' (Clean India Campaign) have raised awareness about sanitation and hygiene, emphasizing the importance of well-designed and efficient sanitary ware products. This has boosted the adoption of modern bathroom fixtures and accessories. Consumers are increasingly inclined toward bathroom spaces that offer comfort, style, and water efficiency. As a result, there is a growing demand for premium and technologically advanced sanitary ware products that enhance the overall bathroom experience. The booming real estate sector in India, including residential and commercial construction projects, has been a significant driver of the sanitary ware market.

The India Sanitary Ware Market is poised for continued growth and innovation. As urbanization, infrastructure development, and consumer awareness continue to rise, the demand for modern, efficient, and aesthetically pleasing sanitary ware products will persist. Manufacturers are expected to focus on sustainability, water conservation, and technological advancements to meet the evolving needs of consumers. With government initiatives promoting cleanliness and sanitation, the market is set to expand further, offering opportunities for both domestic and international players to thrive in this dynamic industry. 

Pros and strengths

Wide range of products: Currently, the company has 250 SKUs in its GI Unit, 32 SKUs in its GBS Unit, and 150 SKUs in its GPI segment. It offers wide range of products like Bathroom Accessories including but not limited to bath fittings items such as CP taps and their parts, showers, bath accessories, Sanitary wear, ABS Shower, ABS Health faucet, ABS Taps, ABS Accessories, PTMT Taps, Door Handles, Bathroom Vanities, Bathroom Sinks, SS Showers, Shower Drains, SS Channel Drainer etc. The company’s variety of product offerings has enabled it to cater to a large customer base in the domestic market.

Legacy business: The company’s promoters have been engaged in the business of bath fittings since the year 2011. Since the inception of the business, its promoters have diversified the operations and have been continuously adding new products to the portfolio of the company. Further, over the years its promoters have built positive relationship, goodwill and trust with the distributors, customers, suppliers etc. which has been instrumental in growth of its business.

Strong & experienced R&D team: With the ever-changing business scenario, new products are always in development to cater to the customized needs of the market. The company has a highly experienced R&D team who designs various new and complicated parts as requested by its customers within competitive timeline.

Risks and concerns  

Maximum revenue comes from limited clients: The company depends on certain customers who have contributed a substantial portion of its total revenues. The company has garnered 46.77%, 48.72% and 35.62% of its total revenue from top 10 customers in FY24, FY23 and FY22 respectively. If any of its major clients/distributors becomes bankrupt or insolvent, it may lose some or all of its business from that client/distributor and its receivable from that client/distributor would increase and may have to be written off, impacting its income and financial condition.

Limited operating history: The company was incorporated as Ganga Bath Fittings Limited on May 22, 2024, (Formerly Known as Ganga Plast Industries Limited) under the provisions of the Companies Act, 2013. Prior to the incorporation of the company, the business which is presently under the GPI Unit of the Company was being carried out under the Limited Liability Partnership of its Promoters, Tusharkumar Vithaldas Tilva, Jimmy Tusharkumar Tilva, Sajan Tusharbhai Tilva and Niruben Tusharkumar Tilva (Relative of Promoter) in the name and style of M/s Ganga Plast Industries LLP since the year 2018. The company has a very limited operating history as a company from which the investors might evaluate its business performance, financial position, future prospects and viability of its business.

Geographical constrain: All of its manufacturing units are presently located in Rajkot, Gujarat. Further, it generates major domestic sales through its customers situated in Gujarat. More than 45% of its revenues are generated solely from the Gujarat region. Such geographical concentration of its business in this region heightens its exposure to adverse developments related to competition, as well as economic and demographic changes in this region, which may adversely affect its business prospects, financial conditions and results of operations.

Outlook

Ganga Bath Fittings manufactures and supplies various bathroom accessories, including CP taps, showers, sanitary wear, ABS fittings, door handles, vanities, sinks, and more. The company's manufacturing facilities are technologically aligned to develop and manufacture products that meet its customers' stringent quality control requirements. The company has long-standing relationship with distributors, clients and suppliers. It also has strong & experienced R&D team. On the concern side, the company generates a significant percentage of its revenue from few clients. The loss of any one or more of its major clients would have a material adverse effect on its business operations and profitability. The company has a very limited operating history as a company, which may make it difficult for investors to evaluate its historical performance or future prospects.

The company is coming out with a maiden IPO of 66,63,000 equity shares of Rs 10 each. The issue has been offered in a price band of Rs 46-49 per equity share. The aggregate size of the offer is around Rs 30.65 crore to Rs 32.65 crore based on lower and upper price band respectively. On performance front, the company’s total revenue increased to Rs 1,367.85 lakh for the year ended on March 31, 2024, as compared to Rs 1,218.04 lakh for the year ended on March 31, 2023. Profits after tax as a percentage of total income is 4.35% during the year ended March 31, 2024. In absolute terms, profit after tax was Rs 59.44 lakh during the year ended March 31, 2024.

Going forward, the company intends to diversify its product portfolio using advanced electronic integration technology and to add more products to its portfolio based on its own assessment of market, demand, and supply position. The company’s strategy is focused towards introducing new product designs to cater to the requirements of its customers as well as garnering the attention of more customers. This helps it in strengthening the relationship with the existing customer network through a wide range of products while also onboarding new customers from untapped geographies. Identifying and developing new products and designs is a continuous exercise that its management team engages into as there is an immense demand in the global markets for unique designs, good quality and competitively priced products.