Narmadesh Brass Industries IPO Opens Today: ₹45 Crore Issue Priced at ₹515 Per Share
Narmadesh Brass Industries has launched its ₹45 crore SME IPO at ₹515 per share, comprising ₹36.10 crore fresh issue and ₹8.80 crore offer for sale. The Jamnagar-based brass manufacturer reported ₹88.05 crore revenue and ₹5.72 crore profit for the year ended March 2025. With zero grey market premium and listing scheduled for January 20, the issue reflects cautious investor sentiment in the crowded SME IPO market.
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Narmadesh Brass Industries has opened its ₹45 crore SME IPO for public subscription today, with shares priced at ₹515 each. The Jamnagar-based brass products manufacturer will list on the BSE SME platform, with the subscription window remaining open until Thursday and listing scheduled for January 20.
IPO Structure and Pricing Details
The public offering comprises both fresh equity and secondary sale components:
| Component: | Amount |
|---|---|
| Fresh Issue: | ₹36.10 crore |
| Offer for Sale: | ₹8.80 crore |
| Total Issue Size: | 8.71 lakh shares |
| Price per Share: | ₹515 |
| Lot Size: | 240 shares |
Retail investors must apply for a minimum of two lots, requiring an investment of ₹2,47,200 for 480 shares. The issue allocation reserves 47.40% each for retail and non-institutional investors, while 5.20% has been designated for market maker JSK Securities & Services.
Company Operations and Manufacturing
Narmadesh Brass Industries operates from a 6,300 square meter manufacturing facility at the Shree Ganesh Industrial Hub in Jamnagar, known as India's "Brass City". The company manufactures diverse brass products including billets, rods, valves, plumbing and sanitary fittings, agricultural sprayer parts, and customized machined components for both domestic and export markets.
The firm employs an integrated manufacturing model with in-house casting, forging, and machining processes, enabling quality control and timeline management across production stages.
Financial Performance
The company's recent financial results demonstrate steady operational performance:
| Period: | Revenue | Profit After Tax |
|---|---|---|
| Year ended March 2025: | ₹88.05 crore | ₹5.72 crore |
| Six months ended September 2025: | ₹34.21 crore | ₹4.01 crore |
Use of Proceeds and Market Outlook
The company plans to utilize net proceeds for multiple strategic purposes:
- Repayment or prepayment of borrowings worth approximately ₹14.50 crore
- Working capital requirements funding
- Machinery purchases
- General corporate expenses
The IPO carries a zero grey market premium, indicating muted investor expectations for immediate listing gains. This contrasts with some recent SME offerings that commanded double-digit premiums ahead of debut. Aryaman Financial Services serves as the book-running lead manager, while KFin Technologies acts as the registrar for the issue.
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