Sampat Aluminium to reveal its IPO next week

Sampat Aluminium, an aluminium products producer from Gujarat, is opening its first initial public offering (IPO) for subscription from 17 September 2025, with the issue closing on 19 September 2025. The company aims to raise about INR 305 million (USD 3.67 million) from a fresh issue of 25.44 lakh shares at a price range of INR 114–INR 120 (USD 1.37–1.45) per share.

IPO structure and utilisation of funds

The public offer is structured as a Book Built Issue with a retail quota of 35 per cent, Qualified Institutional Buyers (QIB) at 50 per cent, and High Net-worth Individuals (HNI) at 15 per cent. The issue will be finalised on 22 September 2025, with the shares expected to list on the BSE SME platform on 24 September 2025.

Sampat Aluminium will use INR 233.2 million (USD 2.81 million) of the proceeds to set up a new manufacturing facility at Borisana, Gujarat, and the rest for general corporate purposes. The initiatives hint at the company's aspirations to grow beyond its current capacity at its Kalol plant, which stands at 8,400 tonnes per annum.

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On the financial side, Sampat Aluminium reported a small uptick in net profits despite a decrease in revenue. For FY25, the profit was INR 69.3 million (USD 0.83 million) compared to INR 65.8 million (USd 0.79 million) in FY24, while revenue decreased from INR 1,489.2 million (USD 17.93 million) a year ago to INR 1,330 million (USD 16.022 million). It displays some resilience in terms of marginals but headwinds in terms of topline growth.

Market positioning of the IPO

This is the second SME IPO in the week, following the Vijay Kedia-backed TechD Cybersecurity issue. While TechD represents the fast-growing digital sector, Sampat Aluminium’s offering underscores investor appetite for core industrials that support India’s manufacturing push.

Analysts suggest that investors may need to view the IPO with a long-term perspective, given the company’s expansion plans and the structural demand for aluminium in India.

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