Ahmedabad-headquartered Kasturi Metal Composite is entering the capital market with a 100% fresh issue of 27.52 lakh equity shares. The company has fixed the price band at ₹61 to ₹64 per share. The proceeds from the issue are primarily intended to fund a significant capital expenditure of ₹13.29 crore for setting up a new manufacturing facility (Unit IV) in Amravati, Maharashtra.
The company is a niche player in the infrastructure and automotive sectors, producing steel fibers used for reinforcing concrete in tunnels, roads, and industrial floors, as well as steel wool fibers for automotive brake pads. Financially, Kasturi Metal has shown strong recent momentum; while its FY25 profit stood at ₹2.07 crore, it has already reported a Profit After Tax (PAT) of ₹2.47 crore in the first half of FY26 (H1 FY26), effectively surpassing its previous full-year earnings in just six months.
As of today, Monday, January 26, 2026, the Grey Market Premium (GMP) is trading at ₹0, indicating that the market expects a listing close to the issue price. However, analysts are watching the "bumper" H1 FY26 earnings closely to see if they will drive higher subscription demand once the window opens.
Key IPO Details & Timetable
| Feature | Details |
|---|---|
| Price Band | ₹61 – ₹64 per share |
| Lot Size | 2,000 Shares (Min. Investment ₹2,56,000 for Retail*) |
| Total Issue Size | ₹17.61 Crore |
| Listing Platform | BSE SME |
| Open Date | January 27, 2026 (Tomorrow) |
| 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
Market Holiday: Today, January 26, is a trading holiday in India for Republic Day. No bidding or grey market updates are active today; the process officially resumes tomorrow morning.
Aggressive Valuation: At the upper price band, the IPO is priced at a P/E of 13.47x based on post-IPO earnings. While this appears reasonable, some analysts have cautioned that the sudden surge in H1 FY26 profits should be scrutinized for sustainability.
Capacity Expansion: The IPO is a "growth" issue. By adding a new unit with a 6,000 MT annual capacity for steel fibers, the company aims to nearly double its production footprint to meet infrastructure demand.
Risk Factors: The company faces high customer concentration, with its top 10 clients contributing nearly 65% of revenue. Additionally, it does not have long-term contracts with suppliers for steel wire rods, making its margins sensitive to raw material price spikes.
Lead Manager: Hem Securities is the lead manager for this issue, a firm known for handling several SME IPOs with varied post-listing performances.