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Liotech Industries

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

Profile of the company

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

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

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

Proceed is being used for:

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

Industry Overview

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

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

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

Pros and strengths

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

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

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

Risks and concerns

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

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

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

Outlook

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

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

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