Bhadora Industries IPO: Strong Growth, Robust Financials and Steady Demand Signal Listing Gains

Bhadora Industries Limited, the company behind the reputed Vidhut Cables brand, has launched its Initial Public Offering (IPO) with a fresh issue of ₹55.62 crores, opening to investors on August 4, 2025 and closing on August 6, 2025. The issue is entirely a fresh issue of 54 lakh shares, with no offer-for-sale (OFS) component.

The IPO is a Book Built Issue with a price band of ₹97 to ₹103 per share, and the company’s post-issue market capitalisation at the upper band will be approximately ₹191.58 crores. With a lot size of 1,200 shares, retail investors must apply for at least two lots (2,400 shares), which translates to a minimum investment of ₹2,47,200.

Legacy and Business Model

Bhadora Industries, through its flagship Vidhut Cables brand, has been delivering premium industrial and power cables since 1988. With a legacy spanning over three decades, the company provides customised and eco-friendly cable solutions, serving various industrial needs across India.

The company's product portfolio includes:

• Armoured Cables

• XLPE Cables

• AB Cables

• ACSR Conductors

• Other premium industrial-grade electrical components

Bhadora’s manufacturing facilities are BIS and internationally certified, ensuring reliability and performance. Their proposed new manufacturing plant is located in Khargone, Madhya Pradesh, expected to enhance their production capabilities significantly.

IPO Objectives and Utilisation of Funds

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

1. ₹22.31 crore to partly finance the establishment of a new manufacturing facility in Khargone, MP.

2. ₹20 crore to meet working capital requirements, supporting its expanding order book.

3. Remaining amount for general corporate purposes, strengthening its operational framework.

This structured fund allocation indicates that the company is aiming for capacity expansion and working capital efficiency, crucial for sustaining its growth momentum.

Financial Performance and Ratios

Bhadora Industries has demonstrated strong financial growth over the past three fiscal years:

This reflects a CAGR of over 150% in revenues over the last two years, backed by improved margins and profitability.

Key valuation metrics:

• Pre-issue EPS (FY24): ₹8.17

• Post-issue EPS (FY24): ₹5.80

• Pre-issue P/E ratio: 12.60x

• Post-issue P/E ratio: 17.76x

• Industry P/E: 16x

Profitability metrics:

• ROCE (FY24): 42.41%

• ROE (FY24): 51.51%

• RoNW: 51.51%

These metrics suggest that the issue is fully priced, yet competitive when compared to peers, especially considering the company’s high return ratios and profit expansion.

Anchor Investors and Market Sentiment

Anchor investment worth ₹13.80 crores was secured on August 3, 2025, with 15,31,200 shares allotted at ₹103 each — the upper band price. This reflects institutional confidence in the offering.

IPO Subscription Status

As of 11:30 AM on August 6, 2025, Bhadora Industries IPO had been subscribed 0.30 times. While still early in the day, this suggests gradual but steady interest, possibly driven by informed investors focusing on value-based entries.

Grey Market Premium (GMP) and Listing Expectations

As per the latest GMP data, the IPO is commanding a ₹10 premium, indicating an expected listing price of ₹113, or 9.7% over the issue price. However, experts caution that GMP is speculative, influenced by supply-demand imbalances in informal channels and not regulated.

Allotment, Listing, and Registrar Details

• IPO Closing Date: August 6, 2025

• Allotment Date: August 7, 2025 (Thursday)

• Tentative Listing Date: August 11, 2025 (Monday)

• Registrar: MUFG Intime India Private Limited

• Market Maker: NNM Securities Private Limited

Investors can check allotment status on the registrar's website by entering either PAN, Application Number, or DP Client ID.

Promoter Background and Experience

The IPO is backed by experienced promoters:

• Shashank Bhadora, Promoter & MD, with decades of technical expertise.

• Pradeep Bhadora and Anil Bhadora, each with 30+ years of experience in the industrial cable segment.

Their leadership has guided the company through phases of expansion and quality enhancement, earning client trust and brand recognition across industrial corridors in India.

Should You Apply to Bhadora Industries IPO?

Given the consistent revenue growth, strong profitability, and strategic fund utilisation, Bhadora Industries presents a compelling investment case.

While valuation appears full at the post-issue P/E of 17.76x, the high ROE and ROCE, as well as the upbeat GMP, suggest that listing gains are likely.

Recommendation:
Apply for listing gains if you are a short-term investor. Long-term investors may also consider subscribing based on the company’s operational strength, expansion plans, and sound management.

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.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.