1. Business Deep Dive: Beyond Just Sheets
Based in Bareilly, Uttar Pradesh, Manilam Industries has built a strong brand presence in the interior decor industry. They aren't just manufacturers; they are designers of residential and commercial aesthetics.
Key Highlights:
Product Range: They produce decorative laminates (0.7 mm to 1 mm thickness) under the "Manilam" brand, featuring collections like Artistica, Vogue, and Magnificent.
Technological Edge: The company utilizes OCTA technology and high-precision Delite presses to ensure their laminates are durable, uniform, and resistant to warping.
Distribution Power: They operate a B2B model with over 67 distributors and 358 dealers, supported by dedicated service depots in major hubs like Bangalore.
2. IPO Timeline & Subscription Details
The IPO is scheduled to open this Friday. Since this is an SME IPO on the NSE Emerge platform, the lot size and investment threshold are higher than mainboard issues.
| Event / Detail | Information |
|---|---|
| Bidding Period | Friday, Feb 20 – Tuesday, Feb 24, 2026 |
| Price Band | ₹65 to ₹69 per share |
| Market Lot Size | 2,000 Shares |
| Min. Retail Investment | ₹2,76,000 (2 Lots / 4,000 shares) |
| Total Issue Size | ₹39.95 Crore (Fresh: ₹32.42 Cr |
| Allotment Date | Wednesday, February 25, 2026 |
| Listing Date | Friday, February 27, 2026 |
| Listing Exchange | NSE SME |
3. Financial Health: Doubling Profits
Manilam has shown a very healthy upward trajectory in its bottom line over the last three fiscal years:
Revenue: Steady at ₹142.16 crore (FY25), showing consistent demand despite a fragmented market.
Profitability: Net Profit (PAT) more than doubled from ₹3.10 Cr (FY24) to ₹7.38 Cr (FY25).
Return Metrics: Boasts an impressive ROCE of 36.68% and ROE of 24.80%, indicating highly efficient capital usage.
Valuation: At the upper price band of ₹69, the P/E ratio is approximately 20x–23x. While it’s a competitive price, it sits comfortably below some larger industry peers like Archidply (~52x).
4. Grey Market Premium (GMP) & Sentiment
As of February 18, 2026:
GMP Status: ₹0 (Flat).
Market Outlook: Grey market activity for SME IPOs often kicks in 24 hours before the opening. Analysts expect sentiment to pick up once the anchor book (28% of the issue) is filled later this week.
5. Strategic "Use of Proceeds"
The company is prioritizing infrastructure and cost-efficiency:
Plant & Machinery (₹32.42 Cr): Enhancing production capacity at their 20,650 sq. meter Bareilly facility.
Solar Power: Part of the Capex is dedicated to installing solar panels to reduce long-term operational costs.
Debt Repayment: A portion will go toward clearing existing loans, which will improve their debt-equity ratio (currently at 1.39).
6. Investment Analysis: Strengths vs. Risks
Strengths:
Innovation Leader: Over 1,000 laminate designs allow them to cater to changing fashion trends in home interiors.
Proven Margins: PAT margins improved from 2.2% to 5.3% in just one year.
BIS Certified: Adherence to strict quality standards makes them a preferred choice for architects and interior designers.
Risks:
Raw Material Volatility: Fluctuations in chemical and wood prices can impact margins.
Fragmented Industry: Faces stiff competition from both unorganized local players and giants like Greenlam or CenturyPly.
Geographic Concentration: A significant portion of manufacturing is centralized in North India.
7. Conclusion
Manilam Industries is a "quality-meets-growth" story in the SME space. While the minimum entry price of ₹2.76 lakh makes it a significant commitment, the company’s strong return ratios and clear path toward capacity expansion make it a noteworthy contender for long-term investors in the building materials sector.