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Kasturi Metal IPO Opens Today; Steel Fiber Manufacturer Eyes ₹17.6 Crore for Capacity Expansion

Kasturi Metal IPO Opens Today; Steel Fiber Manufacturer Eyes ₹17.6 Crore for Capacity Expansion

The subscription window for Kasturi Metal Composite Limited opened this morning on the BSE SME platform and will remain active until Thursday, January 29, 2026. The issue is a 100% fresh offering of 27.52 lakh equity shares with a price band fixed at ₹61 to ₹64 per share.

The company produces high-strength steel fibers used in tunneling, mining, and industrial flooring under its "Duraflex" brand, as well as steel wool fibers for automotive brake pads under "Durabond." Approximately ₹13.29 crore of the IPO proceeds are earmarked for setting up "Unit IV" in Amravati, Maharashtra, which will nearly double its existing manufacturing footprint.

Financially, the company has demonstrated a massive growth spurt recently. While it earned a profit of ₹2.07 crore for the full fiscal year 2025, it has already reported a Profit After Tax (PAT) of ₹2.47 crore in the first half of FY26 (H1 FY26). As of today, January 27, the Grey Market Premium (GMP) is holding at ₹0, indicating a neutral "at-par" listing expectation as investors monitor the first day's subscription momentum.


Key IPO Details & Timetable

Feature Details
Price Band ₹61 – ₹64 per share
Lot Size 2,000 Shares (Min. Investment ₹2,56,000 for 2 Lots*)
Total Issue Size ₹17.61 Crore (Fresh Issue)
Listing Platform BSE SME
Open Date January 27, 2026 (Today)
Close Date January 29, 2026
Basis of Allotment January 30, 2026
Tentative Listing February 3, 2026

*Note: Retail investors are required to apply for a minimum of 2 lots (4,000 shares) for this issue.


Important Note for Investors

  • Exceptional H1 Performance: The company's profit in just the first six months of the current fiscal year (FY26) has already surpassed the total profit of the previous full year. This makes the Post-IPO P/E ratio of 13.47x look relatively attractive if the earnings run rate continues.

  • Growth-Centric Funding: Unlike many IPOs that include an "Offer for Sale," this is a 100% Fresh Issue, meaning all money raised will be used for company expansion rather than going to promoters.

  • Customer Concentration: A significant risk factor remains the company's reliance on a few large clients, with the top 10 customers contributing nearly 65–70% of revenue.

  • Regional Hub: Operations are heavily concentrated in Amravati, Maharashtra. While this provides localized efficiency, any regional economic or regulatory disruption could impact the company's entire production chain.

  • Anchor Participation: The company successfully raised ₹5 crore from anchor investors on January 23, providing a vote of confidence from institutional players before the public launch.