Anubhav Plast IPO targets ₹15.95 crore to fund expansion
Anubhav Plast Limited filed its DRHP for an SME IPO to raise ₹15.95 crore, aiming to fund a new manufacturing facility and working capital needs. The company reported strong financial growth with net profit rising to ₹6.00 crore in FY2025 from ₹0.74 crore in FY2023, while revenue reached ₹98.17 crore. Investors should note high customer and supplier concentration risks alongside elevated leverage.
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Anubhav Plast Limited, a Kanpur-based manufacturer of ERW steel pipes and tubular poles, filed its Draft Red Herring Prospectus (DRHP) to raise ₹15.95 crore through a fresh issue SME IPO. The company plans to utilize the net proceeds to establish a new manufacturing facility for crash barriers and solar panel structures, alongside meeting working capital requirements. The issue is scheduled to open on June 19, 2026, and close on June 23, 2026, with listing expected on June 29, 2026.
The company has demonstrated a significant turnaround in profitability, with net profit surging from ₹0.74 crore in FY2023 to ₹6.00 crore in FY2025. This represents an approximately 8x improvement over two years. Revenue from operations grew from ₹87.14 crore in FY2023 to ₹98.17 crore in FY2025, reflecting a compound annual growth rate (CAGR) of approximately 6.17%. The profit after tax (PAT) margin expanded substantially from 0.85% in FY2023 to 6.11% in FY2025.
Financial Performance
The company's financial statements show a consistent improvement in operational efficiency. Gross margins improved from 10.75% in FY2023 to 15.69% in FY2025, driven by backward integration. Total assets grew from ₹37.91 crore in FY2023 to ₹55.50 crore in FY2025, while the equity base more than doubled from ₹7.47 crore to ₹15.55 crore during the same period.
Key Financial Metrics (₹ Crore)
| Particulars | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
| Revenue from Operations | 87.14 | 87.33 | 98.17 |
| Total Revenue | 87.21 | 87.41 | 98.31 |
| Total Expenses | 86.19 | 84.52 | 89.97 |
| Profit Before Tax | 1.03 | 2.89 | 8.34 |
| Net Profit | 0.74 | 2.08 | 6.00 |
Objects of the Issue
The IPO proceeds are allocated towards specific expansion and general corporate purposes. The total identified proceeds amount to ₹15.95 crore, excluding the allocation for General Corporate Purpose which remains unspecified.
Utilization of Proceeds
| Object | Amount |
|---|---|
| New Manufacturing Facility | ₹2.20 Crore |
| Working Capital Requirements | ₹13.75 Crore |
| General Corporate Purpose | Not Specified |
Business Overview and Risks
Anubhav Plast operates two manufacturing units near Kanpur with an installed capacity of 7,500 MT per month for ERW steel pipes and 12,500 units per month for swaged steel tubular poles. The products are marketed under the "ANUBHAV" brand and hold ISI certification. The company serves diverse sectors including electricity transmission, street lighting, and telecom infrastructure.
However, the DRHP highlights several material risks. The company exhibits high customer concentration, with the top ten customers contributing 66.42% of revenue for the period ended December 31, 2025. Supplier concentration is also extreme, with the top ten suppliers accounting for 98.30% of total purchases and a single supplier contributing 50.12%. Additionally, the company reported a debt-to-equity ratio of 1.67:1 as of December 31, 2025, and negative operating cash flow of ₹93.99 lakhs for the same period due to inventory build-up.
How will the company mitigate the significant risk associated with relying on a single supplier for over 50% of its total purchases?
Can the expansion into crash barriers and solar panel structures effectively reduce the current high customer concentration in the infrastructure sector?
Will the substantial allocation of IPO proceeds to working capital be sufficient to turn operating cash flow positive given the recent inventory build-up?
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