INDO SMC Limited's ₹91.95 crore initial public offering opens for subscription on January 14, 2025, with early market indicators suggesting strong investor interest. The book-built SME IPO is commanding a grey market premium of approximately 24%, signaling positive sentiment ahead of its proposed listing on the BSE SME platform on January 21. The subscription window will remain open until January 16.

Issue Structure and Pricing Details

The IPO comprises entirely fresh equity shares, with the company issuing 61.71 lakh shares to raise ₹91.95 crore. The pricing has been set in a band of ₹141 to ₹149 per share, valuing the company at approximately ₹340.5 crore at the upper price band.

The minimum application requirements vary by investor category. Retail investors must bid for at least 2,000 shares, requiring an investment of ₹2.98 lakh at the upper price band. High net-worth individuals face a minimum application size of 3,000 shares, translating to ₹4.47 lakh.

Allocation Framework

The issue follows a structured allocation pattern across different investor categories. Qualified institutional buyers, including anchor investors, have been allocated 47.45% of the total issue size. Retail investors receive 33.25% allocation, while non-institutional investors get 14.29%. Additionally, 5% of the issue has been reserved for market makers.

Business Operations and Manufacturing

INDO SMC operates in the electrical equipment manufacturing sector, specializing in products for electrical, industrial and infrastructure applications. The company's product portfolio encompasses enclosure boxes for energy meters, current and potential transformers, distribution boxes and panels, FRP gratings, feeder pillars and power distribution switchgears.

The company maintains four manufacturing facilities strategically located across Gujarat, Maharashtra and Rajasthan. Its Ahmedabad facility focuses specifically on SMC and FRP products. The company has established in-house testing laboratories to ensure quality control and compliance with technical standards.

Financial Performance

INDO SMC has demonstrated strong financial growth in recent periods. The company's financial metrics show consistent performance across key parameters.

Fund Utilization Strategy

The company has outlined a clear deployment strategy for the IPO proceeds. Capital expenditure for plant and machinery will receive ₹25.7 crore, supporting the company's expansion plans. The largest allocation of ₹52 crore will address working capital requirements, reflecting the execution-intensive nature of the business. The remaining funds will be directed toward general corporate purposes.

Issue Management

GYR Capital Advisors serves as the book-running lead manager for the issue, while KFin Technologies has been appointed as the registrar. Giriraj Stock Broking and Nikunj Stock Brokers are functioning as market makers for the IPO.

INDO SMC Limited's initial public offering opens for subscription tomorrow, January 13th, 2026, marking another significant entry in the ongoing IPO rush. The ₹91.95 crore SME IPO has garnered considerable attention from investors, primarily due to the backing of renowned investor Ashish Kacholia, who holds a 3.36% stake in the company.

IPO Structure and Timeline

The public offering comprises entirely a fresh issue of 0.62 crore shares, with no offer-for-sale component, ensuring all proceeds flow directly into the company. The subscription window remains open from January 13th to January 15th, 2026, with listing scheduled on the BSE SME platform on January 20th, 2026.

The allotment is expected to be finalised on January 16th, 2026, with shares credited to successful applicants' demat accounts on January 19th, 2026.

Company Profile and Operations

Incorporated on September 27th, 2021, INDO SMC Limited specialises in designing and manufacturing electrical and power distribution products. The company's diverse portfolio includes enclosure boxes for energy meters, high and low-tension current and potential transformers, distribution boxes and panels, fibreglass reinforced plastic grating, junction boxes, and feeder pillars.

The business operates across three key verticals:

• SMC Division: Manufacturing enclosure boxes for energy meters, SMC sheets, and chequered plates
• FRP Division: Producing grating plates and related products
• Electrical Components Division: Manufacturing transformers, feeder pillars, and power distribution equipment

The company currently operates four manufacturing facilities strategically located across Gujarat, Maharashtra, and Rajasthan, utilising materials such as sheet moulding compounds, FRP, copper, mild steel, and stainless steel.

Financial Performance Analysis

INDO SMC has demonstrated remarkable financial growth, particularly in FY25. The company's revenue from operations surged approximately 395% year-on-year, rising from ₹28.00 crores in FY24 to ₹138.70 crores in FY25. Net profit performance was even stronger, registering about 414% YoY growth from ₹3.00 crores to ₹15.44 crores.

For H1 FY26, the company reported revenue from operations of ₹112.50 crores and net profit of ₹11.40 crores. Key profitability ratios remained robust, with Return on Equity at 27.66% and Return on Capital Employed at 17.50%. The debt-equity ratio stood at 1.05.

Use of IPO Proceeds

The fresh issue proceeds will be utilised for multiple strategic purposes. Primary allocation includes funding capital expenditure for purchasing plant and machinery, meeting working capital requirements, and general corporate purposes. The company believes listing on BSE SME platform will enhance brand visibility, provide liquidity to existing shareholders, and create a public trading market for its shares.

Market Position and Outlook

INDO SMC has established a strong presence in SMC, FRP, and pultrusion products, supported by technical expertise and robust product quality. The company benefits from advanced manufacturing capabilities and maintains a healthy, diversified order book comprising both government and private sector projects. However, it operates in a highly competitive market and faces constraints from limited capital expenditure sources for expansion efforts.