NewsIPONarmadesh Brass Industries Limited IPO: ₹32.59 Crores Fresh Issue Opens January 12, 2026Narmadesh Brass Industries Limited IPO: ₹32.59 Crores Fresh Issue Opens January 12, 2026
Narmadesh Brass Industries Limited launches ₹32.59 crores IPO opening January 12, 2026, for debt repayment and working capital needs. The Gujarat-based brass manufacturer operates ISO-certified facility with 4,320 mt capacity, showing 21.01% revenue CAGR from FY2023-FY2025. Despite strong growth, the company faces concentration risks with top 10 customers representing 84.59% of revenue and significant capacity under-utilization.
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Narmadesh Brass Industries Limited, a Gujarat-based brass products manufacturer, is set to launch its Initial Public Offering (IPO) worth ₹32.59 crores through a fresh issue. The company, which manufactures brass rods, billets, valves, and sanitary fittings, will open its IPO on January 12, 2026, and close on January 15, 2026, with listing scheduled for January 20, 2026.
Company Operations and Infrastructure
Narmadesh Brass Industries operates from a single ISO 9001:2015 certified manufacturing facility located in Jamnagar, Gujarat. The facility spans 6,293.03 square meters within total premises of 12,299.34 square meters. The company maintains significant installed capacity across its product lines, positioning it for potential expansion.
| Facility Parameter: | Details |
|---|---|
| Manufacturing Area: | 6,293.03 sq.mtr |
| Total Premises: | 12,299.34 sq.mtr |
| Location: | Jamnagar, Gujarat |
| Certification: | ISO 9001:2015 |
| Product Category: | Installed Capacity (mt per annum) |
|---|---|
| Brass Billets: | 4,320 |
| Brass Rods: | 4,320 |
| Brass Components: | 1,600 |
Financial Performance Analysis
The company has demonstrated robust revenue growth since its establishment in 2023. Revenue from operations increased from ₹59.96 crores in FY2023 to ₹87.72 crores in FY2025, representing a compound annual growth rate of 21.01%. Profitability has also improved significantly, with PAT margins fluctuating between 1.48% and 11.73% across different periods.
| Period: | Revenue (₹ Crores) | PAT (₹ Crores) | PAT Margin (%) |
|---|---|---|---|
| FY2023: | 59.96 | 0.89 | 1.48% |
| FY2024: | 78.88 | 7.10 | 9.00% |
| FY2025: | 87.72 | 5.72 | 6.52% |
| Sep 2025: | 34.18 | 4.01 | 11.73% |
As of September 2025, the company's balance sheet shows total assets of ₹63.10 crores, with current assets comprising 75.72% of total assets at ₹47.82 crores. The debt-equity ratio stands at 0.75, while the current ratio is 1.61, indicating adequate liquidity position.
IPO Proceeds Utilization
The company plans to deploy the ₹32.59 crores raised through the IPO across four key areas. The largest allocation of ₹14.50 crores will go toward repayment and prepayment of borrowings, representing 44.49% of the total issue size. Working capital requirements will receive ₹10.20 crores, accounting for 31.30% of the proceeds.
| Purpose: | Amount (₹ Crores) | Percentage |
|---|---|---|
| Debt Repayment: | 14.50 | 44.49% |
| Working Capital: | 10.20 | 31.30% |
| General Corporate Purposes: | 4.60 | 14.11% |
| Machinery Purchase: | 3.29 | 10.10% |
Management and Leadership
The company is led by an experienced management team with significant industry expertise. Managing Director Hitesh Dudhagara brings over two decades of brass industry experience, while CEO Ronak Dudhagara contributes more than a decade of relevant experience. The leadership team also includes directors Krish Dudhagara, Vishal Pansara, and Nikhil Malpani, along with CFO Hiren Patoriya and COO Hetal Vachhani.
Key Strengths and Risk Factors
The company's strategic location in Jamnagar, Gujarat provides logistics advantages and easy access to raw materials and end users. Its diversified product portfolio, with brass rods, billets, and components representing over 92% of revenue, reduces dependency on particular products. The ISO 9001:2015 certification ensures quality standards across manufacturing operations.
However, the company faces several concentration risks that potential investors should consider. The top 10 customers represent 84.59% of revenue as of September 2025, while the top 10 suppliers account for 77.81% of total purchases without formal agreements. Additionally, 91.85% of revenue comes from just three states: Gujarat, Maharashtra, and Delhi. Manufacturing capacity utilization remains significantly below potential, with brass billets operating at only 4% utilization and brass components at 18% utilization as of September 2025.
Investment Considerations
Narmadesh Brass Industries presents a mixed investment proposition with strong growth potential balanced against operational challenges. The company's revenue CAGR of 21.01% and PAT growth of 542.70% from FY2023 to FY2025 demonstrate significant business expansion. However, the working capital intensive nature of operations, with current assets representing 75.72% of total assets, and capacity under-utilization present areas for improvement. The IPO offers exposure to the brass manufacturing sector for investors comfortable with small-cap, high-growth companies and associated concentration risks.
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