B D Industries, a reputed company in plastic manufacturing with a legacy of over 35 years, is now making its public debut on the BSE SME platform. With a strong foundation in Mumbai and catering to eight industries, the company offers more than 500 plastic-based products used in diverse sectors, such as automotive, safety infrastructure, and industrial storage.

The company has launched a Book Built IPO of ₹ 45.36 crores, entirely through a fresh issue of 42 lakh equity shares. The IPO is open from July 30 to August 01, 2025, with a price band of ₹102 to ₹108 per share. The market capitalisation at the upper price band stands at ₹153.46 crores.

The minimum lot size for retail investors is 1,200 shares, and the minimum application size is 2 lots or 2,400 shares, which comes to ₹2,59,200. The IPO has received considerable attention from institutional and retail investors alike, backed by the company’s solid performance and long-standing credibility.

IPO Allotment and Listing Details

The IPO allotment date is set for August 04, 2025, and the tentative listing date is August 06, 2025, on BSE SME. The IPO is being managed by Aryaman Financial Services Limited, with Cameo Corporate Services Limited acting as the registrar. Aryaman Capital Markets Limited is the designated market maker.

Grey Market Premium Signals Positive Sentiment

As per market observers, the Grey Market Premium (GMP) for B D Industries IPO is currently ₹18, suggesting an expected listing price of ₹126, representing a 16.81 percent premium over the upper price band. It is important to note that GMP is unofficial and volatile, often driven by demand and sentiment in the unregulated market. However, it does serve as an early indicator of listing-day expectations.

Subscription Status and Anchor Investment

By 12:00 PM on August 01, 2025, the IPO had already been subscribed 1.37 times, which indicates good participation even before the close of the issue. The company also raised ₹12.90 crores from Anchor Investors, who subscribed at the upper band of ₹108 per share, with 11,95,200 shares allocated to them. This not only boosts investor confidence but also reinforces the value the market sees in this offering.

Utilisation of IPO Proceeds

The net proceeds from the IPO will be strategically used in the following ways:

1. ₹680 lakh will be utilised for repayment or prepayment of company borrowings

2. ₹730 lakh will be allocated for working capital requirements

3. Investment into B D Industries (India) Private Limited, a material subsidiary, includes:

   • ₹1,160 lakh for loan repayment

   • ₹540 lakh for purchase of new machinery

   • ₹730 lakh for working capital needs

4. General corporate purposes

This detailed allocation reflects a balanced growth strategy focused on debt reduction, capacity expansion, and operational enhancement.

Company Background and Operations

BDI Group, the parent group, has been a leader in plastic product manufacturing for over three decades. The company offers solutions for custom rotational moulding, and is a trusted vendor for leading automotive giants, supplying components such as fuel tanks, fenders, rooftops, adblue tanks, and in-cab parts. It also manufactures road barriers and other safety infrastructure products.

Their manufacturing excellence is driven by a team led by Dalbirpal Saini, the Chairman and Managing Director, and Sanjay Patil, Whole Time Director. Mr. Saini brings in years of strategic and operational experience, helping shape the company's vision and growth.

Financial Performance Highlights

The company has shown consistent growth in revenues and profits:

• FY 2025 revenue: ₹8,413.28 lakh

• FY 2024 revenue: ₹5,533.15 lakh

• FY 2023 revenue: ₹5,509.89 lakh

The EBITDA also witnessed remarkable improvement:

• FY25: ₹1,558.26 lakh

• FY24: ₹578.95 lakh

• FY23: ₹321.40 lakh

The Profit After Tax (PAT) for the last three fiscals indicates strong earnings momentum:

• FY25: ₹814.83 lakh

• FY24: ₹318.00 lakh

• FY23: ₹149.22 lakh

Key Valuation Metrics

• Pre-Issue EPS (FY24): ₹7.6

• Post-Issue EPS (FY24): ₹5.73

• Pre-Issue P/E Ratio: 14.21x

• Post-Issue P/E Ratio: 18.83x

• Industry P/E Ratio: 46x

These ratios suggest that B D Industries IPO is fairly priced compared to the industry average.

Further, the company’s Return on Capital Employed (ROCE) is 43.50%, and Return on Equity (ROE) stands at 43.86%, with Return on Net Worth (RoNW) at 35.97%, indicating strong profitability and efficient capital deployment.

Should You Subscribe to B D Industries IPO?

Given the robust financials, consistent revenue and profit growth, high return ratios, and reasonable IPO valuation, the B D Industries IPO appears promising. However, as it is listed on the SME platform, investors must note the relatively lower liquidity and higher risk involved.

The GMP trend, subscription data, and anchor participation show positive market interest, and short-term investors seeking listing gains may find this IPO attractive.

That said, long-term investors should carefully evaluate the SME nature, market risk, and operational scalability before investing.

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.

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