Monolithisch India Limited, a specialist in the manufacturing and supply of ramming mass used as heat insulation/lining material for induction furnaces in the iron, steel, and foundry industries, has received an overwhelming response for its IPO, which was open from June 12 to June 16, 2025. The Book Built Issue of ₹82.02 Crores, consisting entirely of a fresh issue of 57.36 lakh equity shares, was subscribed 170.12 times by the end of the final bidding day.

The company also engages in trading of its products occasionally to meet urgent and excess demand from its clientele. This business strategy reflects operational flexibility and customer-oriented service execution.

The price band for the Monolithisch India IPO was fixed at ₹136 to ₹143 per equity share, and the lot size was set at 1,000 shares, translating into a minimum retail investment of ₹1,43,000. For High-Net-Worth Individuals (HNIs), the minimum application size was 2 lots (2,000 shares), requiring an investment of ₹2,86,000. At the upper band of ₹143 per share, the company’s estimated market capitalisation stands at ₹310.82 Crores.

HEM SECURITIES LIMITED acted as the Book Running Lead Manager (BRLM), while KFin Technologies Limited was appointed as the Registrar to the issue. Hem Finlease Private Limited has taken up the role of Market Maker, ensuring liquidity post-listing on the NSE SME platform.

IPO Subscription and Anchor Investor Details

According to data released on June 16, 2025, at 07:00 PM, the IPO was oversubscribed 170.12 times, a clear indication of strong investor confidence. Ahead of the public offering, Monolithisch India raised ₹23.35 Crores from Anchor Investors at the upper price band of ₹143 per share, allocating 16,33,000 shares. These anchor investments were drawn from the Qualified Institutional Buyers (QIBs) quota.

The Anchor Investor Book was closed in consultation with the BRLM, and the participation at the top band also points to optimistic valuation sentiment among institutional participants.

GMP Analysis and Listing Expectations

As of June 16, 2025, the Grey Market Premium (GMP) for Monolithisch India stood at ₹21 per share, taking the expected listing price to approximately ₹164 per share. This indicates an estimated 14.68% gain on listing day.

It’s important to note that the GMP is unofficial and unregulated, based purely on demand-supply dynamics in the grey market. It does not guarantee the listing price and is shared for informational and educational purposes only.

IPO Allotment and Listing Schedule

The allotment of shares for Monolithisch India IPO is expected to be finalized on Tuesday, June 17, 2025, with the listing likely on Thursday, June 19, 2025, on the NSE SME platform. Investors can check their allotment status online on the KFin Technologies website by entering either their PAN, application number, or DP Client ID.

Objectives of the Issue

Monolithisch India Limited plans to utilize the net proceeds from the IPO for the following purposes:

1. ₹1,657.77 Lakh to fund capital expenditure for a new manufacturing facility, including land purchase, civil work, and installation of machinery.

2. ₹2,789.67 Lakh investment into its subsidiary Metalurgica India Pvt. Ltd., to fund a new plant setup.

3. ₹2,000.00 Lakh for meeting working capital requirements.

4. Remaining funds for general corporate purposes.

These investments are aimed at capacity expansion and improving operational efficiency, ensuring sustained business growth.

Company Overview and Financials

Monolithisch India is managed by promoters Prabhat Tekriwal, Sharmila Tekriwal, Harsh Tekriwal, and Kritish Tekriwal. Mr. Prabhat Tekriwal, who is the Chairman and Whole-Time Director, brings over 36 years of experience, with oversight on strategy and compliance. Mr. Harsh Tekriwal, the Managing Director, holds degrees in Mechanical Engineering and Business Administration and focuses on operations and growth strategy.

Financial Performance (Standalone)

(*FY25 is Provisional as of March 31, 2025)

Key Financial Ratios:

• Pre-Issue EPS (FY24): ₹9.11

• Post-Issue EPS (FY24): ₹6.67

• Pre-Issue P/E Ratio: 15.69x

• Post-Issue P/E Ratio: 21.45x

• Industry P/E Ratio: 89x

• ROCE (FY24): 46.22%

• ROE (FY24): 53.94%

• RoNW: 41.15%

These figures indicate robust profitability and efficiency, and suggest that the IPO is fairly valued in comparison to industry benchmarks.

Review and Recommendation

Monolithisch India Limited has demonstrated consistent growth in revenues and profits, with strong return ratios and healthy margins. Its capital deployment plan towards manufacturing expansion and investment in its subsidiary supports a strategic growth trajectory.

The Grey Market Premium indicates moderate listing gains, and with the IPO being massively oversubscribed, investor sentiment remains bullish. Additionally, the company's low post-issue P/E relative to industry averages, coupled with high ROE and ROCE, make it an attractive bet for listing gains.

Given the company's strong financials, growth strategy, and industry prospects, we recommend investors to apply for the Monolithisch India IPO for listing benefit. However, long-term investors should track execution of capex plans and continued margin performance before making portfolio allocations post-listing.

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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