ANB Metals Cast IPO Opens on August 8: ₹49.92 Crore Issue, Analysts Advise Caution

ANB Metals Cast Limited, a manufacturer of a wide range of aluminium extrusion products, is launching its initial public offering (IPO) on August 08, 2025. The IPO, amounting to ₹49.92 crore, is a Book Built Issue and consists entirely of a fresh issue of 32 lakh shares. The price band is fixed at ₹148 to ₹156 per equity share.

The IPO will close on August 12, 2025, with the allotment expected on August 13, 2025, and tentative listing on NSE SME scheduled for August 15, 2025. The lot size is 800 shares, and retail investors need to apply for at least 2 lots (1,600 shares), amounting to an investment of ₹2,49,600 at the upper price band.

Company Overview

ANB Metals Cast specializes in aluminium extrusion manufacturing. Its product portfolio includes motor bodies, solar profiles, architectural profiles, railings, round bars, sliding windows, and other custom aluminium profiles. These products serve multiple industries such as electronics, automotive, mechanical, solar, and construction.

The company was founded in 2019 by Mr. Avnishkumar Dhirajlal Gajera, a first-generation entrepreneur with over 10 years of experience in the metal trading and aluminum extrusion industry. His strategic vision and understanding of the aluminum sector have enabled the company to scale operations swiftly over a short period.

Financial Performance

The company has demonstrated consistent financial growth over the last three fiscal years:

• FY23

  • Revenue: ₹8,427.56 lakh

  • EBITDA: ₹314.76 lakh

  • PAT: ₹184.63 lakh

• FY24

  • Revenue: ₹11,215.41 lakh

  • EBITDA: ₹1,070.76 lakh

  • PAT: ₹533.63 lakh

• FY25

  • Revenue: ₹16,263.57 lakh

  • EBITDA: ₹1,747.44 lakh

  • PAT: ₹1,024.71 lakh

These figures reflect strong operational growth and profitability. The company’s Return on Capital Employed (ROCE) stands at 24.13%, and Return on Net Worth (RoNW) is 45.91%. These are impressive metrics that indicate capital efficiency and strong returns for shareholders.

IPO Valuation and Pricing Metrics

The IPO is priced reasonably, considering the company’s financial performance:

• Pre-Issue EPS (FY24): ₹12.66

• Post-Issue EPS: ₹8.66

• Pre-Issue P/E Ratio: 12.32x

• Post-Issue P/E Ratio: 18.02x

• Industry P/E Average: ~32x

• Market Capitalization at Upper Price Band: ₹184.62 crore

Though the post-issue EPS drops, the pricing still appears conservative compared to industry peers. This could appeal to long-term investors who are not focused solely on listing gains.

Use of IPO Proceeds

The company plans to utilise the net proceeds from the IPO for the following objectives:

1. Capital Expenditure (₹1,370.01 lakh): Expansion of manufacturing capacity by constructing an additional floor and installing new plant & machinery.

2. Working Capital Needs (₹2,150.00 lakh): Supporting growing business operations.

3. General Corporate Purposes: Meeting miscellaneous corporate expenses.

This allocation shows that the company is looking to scale operations, which aligns with the growth in revenue witnessed over the last three years.

IPO Lead Manager and Registrar

• Book Running Lead Manager: Sun Capital Advisory Services Private Limited

• Registrar: KFin Technologies Limited

• Market Maker: Pure Broking Private Limited

Grey Market Premium (GMP) Insights

As of August 05, 2025, the Grey Market Premium (GMP) for the IPO stands at ₹0, indicating no unofficial premium or listing enthusiasm. This suggests that market sentiment remains muted, and listing gains are unlikely.

Grey market activity is often a reflection of short-term trader expectations. A flat GMP can be a red flag for those entering purely for listing profits. Hence, most analysts are recommending caution and advising retail investors to avoid this IPO for short-term gains.

How to Check IPO Allotment

The allotment status can be checked from August 13, 2025, on the registrar's website (KFin Technologies) by:

• Visiting the IPO allotment page

• Selecting ANB Metals Cast Limited from the dropdown

• Entering PAN, DP Client ID, or Application Number

• Submitting details to view allotment status

Should You Subscribe to ANB Metals Cast IPO?

While ANB Metals Cast has shown robust growth in revenue and profits and is operating in a growing sector, the lack of grey market interest and a flat GMP point towards limited listing-day upside.

Analysts suggest avoiding this IPO for short-term gains, although long-term investors with a 2–3 year horizon may explore it for fundamental strength and capacity expansion plans.

Conclusion

The ANB Metals Cast IPO offers exposure to a fast-growing aluminum extrusion company with solid financials and strong management. However, in the absence of market enthusiasm, especially in the grey market, the IPO appears unsuitable for short-term investors seeking quick returns.

If you are a long-term investor, the company’s steady earnings growth and operational expansion might justify a small exposure. But for listing gains, the recommended stance is to avoid.

Disclaimer
This article is for educational and informational purposes only and does not constitute financial advice. Investment decisions should be based on individual risk tolerance and consultation with SEBI-registered advisors. Market conditions are volatile and subject to change. Neither the author nor the platform is responsible for losses arising from use of this information.

The Upcoming IPOs in this week and coming weeks are Mahendra Realtors and Infrastructure, Bluestone Jewellery and Lifestyle, Icodex Publishing Solutions, Star Imaging and Path Lab, Medistep Healthcare, ConnPlex Cinemas, ALL Time Plastics, JSW Cement, Sawaliya Foods Products, ANB Metal Cast.

The Current active IPO are Parth Electricals & Engineering, Jyoti Global Plast, Essex Marine, Aaradhya Disposal Industries, BLT Logistics, Bhadora Industries, Highway Infrastructure.

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