Anand Seamless Limited, a Gujarat-based manufacturer of seamless tubes and finned tubes, has filed its Draft Red Herring Prospectus (DRHP) for an initial public offering. The company is raising ₹25.52 crore through a fresh issue to fund capacity expansion and repay outstanding borrowings. The SME IPO is scheduled to open on September 22, 2026.

About the Company

Incorporated in 2005, Anand Seamless Limited operates from its manufacturing facility in Kadi, Gujarat. The company specializes in two primary product categories: seamless tubes and pipes made from carbon steel, alloy steel, and stainless steel, and finned tubes used in heat transfer applications. Its annual manufacturing capacity stands at approximately 3,000 metric tonnes for seamless pipes and tubes and 360,000 meters for finned tubes.

The company serves critical industries including Oil & Gas, Thermal & Nuclear Power Plants, Automobile, Pharmaceutical, and Chemical sectors. In FY2026, seamless tubes and pipes contributed 66.74% of revenue, while finned tubes accounted for 31.30%. Domestic sales constituted 94.85% of revenue, with exports to the Middle East and Europe making up the remainder. Gujarat alone contributed 54.49% of domestic revenue in FY2026.

Financial Performance

Anand Seamless Limited reported a significant revenue recovery in FY2026 after a dip in FY2025. Revenue from operations surged by approximately 67% year-on-year to reach ₹56.00 crore in FY2026, up from ₹33.55 crore in FY2025. Profit after tax (PAT) also doubled to ₹5.48 crore in FY2026 from ₹2.65 crore in FY2025. The company reported an EBITDA margin of 18.25% in FY2026.

Despite profitability, the company reported negative cash flows from operations in both FY2025 (₹-3.31 crore) and FY2026 (₹-5.57 crore). Total borrowings stood at ₹28.02 crore as of March 31, 2026.

Why the Company Is Raising Funds

The proceeds from the ₹25.52 crore fresh issue will be utilized as follows:

• Capacity Expansion: ₹13.20 crore for technological upgradation and cost optimization at the Kadi facility.
• Debt Repayment: ₹5.49 crore for prepayment of outstanding borrowings from lenders including HDFC Bank and Tata Capital.
• General Corporate Purposes: ₹3.70 crore for working capital and operational expenses.
• Issue Related Expenses: ₹3.13 crore for regulatory and professional fees.

Business Strengths

The company holds ISO 9001:2015, ISO 14001:2015, and ISO 45001:2018 certifications. It is accredited by IBR as a 'Well Known Tube Maker' and 'Well Known Pipe Maker,' enabling access to regulated markets. Products comply with ASTM, ASME, and EN standards, with European certifications under PED 97/23/EC. The management team, led by Managing Director Kedar Mayank Choksi, brings over two decades of industry experience.

Key Risks

Material risks include high customer concentration, with the top 10 customers contributing 59.21% of revenue in FY2026. Supplier concentration is also significant, with top 10 suppliers accounting for 85.36% of raw material purchases. The company operates from a single manufacturing facility, posing operational disruption risks. Additionally, persistent negative operating cash flows and significant indebtedness present financial risks. The DRHP also notes past corporate compliance deficiencies, including delayed statutory filings.

Important IPO Dates

• IPO Open Date: 22-Sep-2026
• IPO Close Date: 24-Sep-2026
• Allotment Date: 25-Sep-2026
• Listing Date: 29-Sep-2026

Offer Details

• Issue Type: SME IPO
• Fresh Issue Size: ₹25.52 Crores
• Offer for Sale: Not Applicable
• Price Band: Not Available

Bottom Line

Anand Seamless Limited presents a growth narrative with strong revenue and profit recovery in FY2026, supported by international certifications and a diversified product portfolio. However, investors must weigh these positives against material risks including negative operating cash flows, high customer and supplier concentration, and significant leverage.