ANB Metals Cast Limited, a company engaged in aluminium extrusion manufacturing, is coming up with its Initial Public Offering (IPO) to raise fresh capital. The company, established in 2019 under the leadership of Mr. Avnishkumar Dhirajlal Gajera, has built a diversified product portfolio that serves industries such as electronics, automotive, mechanical, solar and architecture. With a focus on continuous improvement, integrity, and cost optimisation, ANB Metals Cast has carved a strong presence in the aluminium industry within a short period of time.

The company is launching a ₹49.92 crore Book Built IPO, consisting entirely of a fresh issue of 32 lakh equity shares. There is no Offer For Sale (OFS), meaning all proceeds will go directly to the company to fund its future expansion and working capital requirements. The IPO opened on August 08, 2025 and closed on August 12, 2025, with allotment scheduled for August 13, 2025 and listing on August 18, 2025 at the NSE SME Exchange.

IPO Details and Structure

The price band of the IPO has been fixed at ₹148 to ₹156 per equity share. Based on the upper band of ₹156, the company’s market capitalisation will stand at ₹184.62 crore. The IPO has a lot size of 800 shares, and retail investors must apply for a minimum of 2 lots (1,600 shares), amounting to ₹2,49,600. This high minimum application size makes it suitable only for High Net-Worth Individuals (HNIs) and serious retail investors.

The issue is being managed by Sun Capital Advisory Services Pvt. Ltd. as the Book Running Lead Manager, with KFin Technologies Ltd. acting as the Registrar. Pure Broking Pvt. Ltd. is designated as the Market Maker.

Subscription Status

As of 07:00 PM on August 12, 2025, the IPO subscription status showed that the issue was subscribed 1.92 times overall. The demand was moderate compared to other SME IPOs, reflecting cautious investor sentiment.

Grey Market Premium (GMP)

The Grey Market Premium (GMP) for ANB Metals Cast IPO has remained ₹0, suggesting that there are no expected listing gains. Since GMP is an informal indicator, it should not be relied upon as a basis for investment decisions. Analysts point out that GMP depends on demand and supply in the unorganised market, and in this case, no premium has been observed.

Anchor Investors

The company successfully raised ₹14.01 crore from anchor investors on August 07, 2025, at ₹156 per share. A total of 8,98,400 equity shares were allocated to anchor investors. Anchor subscription strengthens confidence in an IPO, but in this case, the response was limited.

Financial Performance

The company’s financial growth trajectory over the last three fiscal years has been strong:

• Revenue from operations rose from ₹8,427.56 lakh in FY23 to ₹16,263.57 lakh in FY25.

• EBITDA improved from ₹314.76 lakh in FY23 to ₹1,747.44 lakh in FY25.

• Profit After Tax (PAT) jumped from ₹184.63 lakh in FY23 to ₹1,024.71 lakh in FY25.

This demonstrates steady and consistent growth in both revenue and profitability.

Valuation Metrics

• Pre-Issue EPS (FY24): ₹12.66

• Post-Issue EPS (FY24): ₹8.66

• Pre-Issue P/E Ratio: 12.32x

• Post-Issue P/E Ratio: 18.02x

• Industry P/E Ratio: 32x

• ROCE (FY24): 24.13%

• ROE (FY24): 45.91%

• RoNW (FY24): 45.91%

The company’s valuations indicate that while it is fairly priced, it is not underpriced enough to ensure strong listing gains.

Objectives of the IPO

The company plans to use the net proceeds of the IPO for the following objectives:

1. ₹1,370.01 lakh – Funding capital expenditure for expansion of existing manufacturing facilities.

2. ₹2,150.00 lakh – Part funding of long-term working capital requirements.

3. Balance amount – To be used for general corporate purposes.

Management Experience

The promoter, Mr. Avnishkumar Dhirajlal Gajera, has over a decade of experience in the aluminium, import-export, and metal casting industry. His entrepreneurial journey started as a metals trader, before establishing ANB Metals Cast in 2019. His leadership has been instrumental in scaling up the business in a short period of time.

Analyst View – Should You Invest?

Despite strong financial growth, the absence of Grey Market Premium (GMP) and the relatively high minimum investment amount make this IPO less attractive for retail investors looking for quick listing gains.

However, for long-term investors, ANB Metals Cast could be a potential opportunity, given its robust financial growth, experienced management, and expansion plans. Analysts recommend avoiding the IPO for listing gains, but considering it for long-term holding if one believes in the aluminium extrusion sector’s growth potential.

Final Thoughts

The ANB Metals Cast IPO represents a growing company with solid fundamentals and strong financial performance. However, the subscription response, lack of GMP, and valuation levels indicate that investors should exercise caution. Those with a long-term horizon may consider investing, while those expecting immediate listing gains should avoid.

The Upcoming IPOs in this week and coming weeks are Mangal Electrical Industries, LGT Business Connextions, Vikram Solar, Gem Aromatics, Studio LSD, Shreeji Shipping Global, Patel Retail.

The Current active IPO are Regaal Resources, Mahendra Realtors and Infrastructure.

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