Sellowrap Industries Limited successfully made its stock market debut on the NSE SME platform on August 1, 2025, with shares listing at ₹90 each, representing an 8.43% premium over its IPO price band upper limit of ₹83. This listing price exceeded market expectations, driven by a strong Grey Market Premium (GMP) of ₹10 (12.05%) ahead of the listing, reflecting investor enthusiasm.

The company raised ₹30.27 crores through a Fresh Issue of 36.48 lakh equity shares, with the IPO subscription closing on July 29, 2025. The issue was highly oversubscribed, with the final day subscription standing at 44.09 times, demonstrating robust investor demand. Additionally, the company secured ₹8.59 crores from anchor investors who were allotted 10.35 lakh shares at the upper band price of ₹83.

About Sellowrap Industries Limited

Sellowrap Industries Limited, headquartered in Mumbai, is a specialized B2B manufacturer of customized components catering primarily to the automotive and white goods industries. Formerly known as Sellowrap Industries Private Limited, the company has more than four decades of experience in manufacturing both adhesive and non-adhesive processed components focused on quality, cost efficiency, and customer satisfaction.

The company operates manufacturing plants spread across Gurugram, Ranipet, Kancheepuram, and Pune, covering around 5 acres of production space. Its facilities are equipped with advanced technology and are supported by a centralized R&D center and warehouse, ensuring high standards of innovation, testing, and compliance with global quality norms.

The R&D lab functions as a pilot industrial plant, enabling rigorous product development and process optimization before mass production, keeping Sellowrap at the forefront of technological advancements in component manufacturing.

Product Portfolio

Sellowrap offers a broad range of products including:

• Adhesive parts

• Non-adhesive parts

• Plastic injection moulded parts (interior and exterior)

• PU foam moulding

• Foam components, labels & stickers

• Screen sealing parts

• EPP moulding parts

• Brought-out parts

As of June 30, 2025, the company employed 159 permanent employees and 635 contractual workers, ensuring a flexible yet skilled workforce. The company banks with HDFC Bank Limited.

IPO Details

• IPO Price Band: ₹79 to ₹83 per share

• Lot Size: 1,600 shares

• Minimum Investment: 2 lots (3,200 shares) for ₹2,65,600 minimum

• Issue Type: Fresh issue only

• Book Running Lead Manager: Gretex Corporate Services Limited

• Registrar: Purva Sharegistry (India) Private Limited

• Market Maker: Gretex Share Broking Limited

Industry Overview

The Indian automobile and allied sectors are key drivers of the economy, with the auto components industry playing a vital role. India is the world’s largest manufacturer of tractors, second largest of buses, and third largest of heavy trucks, with growing exports and domestic demand.

The auto components industry contributed 2.3% of India’s GDP in FY24, employing over 1.5 million people directly and is projected to grow rapidly due to increased manufacturing, EV adoption, and government incentives such as the PLI scheme and Vehicle Scrappage Policy.

The plastic moulding market and PU foam segment are also expanding steadily, with demand from automotive and consumer goods sectors supported by ‘Make in India’ initiatives.

Business Strengths

• Quality Commitment: Zero defect philosophy with stringent quality controls ensures superior products and zero customer complaints.

• Wide Product Range: Diverse components catering to multiple industries including automotive and white goods.

• Long-Term OEM Relationships: Strong partnerships with leading domestic and global OEMs provide business stability.

• Strategic Manufacturing Locations: Plants across major industrial hubs in NCR, Maharashtra, and Tamil Nadu ensure proximity to clients and efficient logistics.

• R&D Focus: Dedicated R&D center in Ranipet with skilled engineers drives innovation and product improvement.

• Experienced Management: Experienced leadership supported by a knowledgeable workforce.

• Robust Information Security: ISO 27001:2013 certified ISMS and TISAX compliance assure high standards of data security.

Growth Strategy

Sellowrap’s growth strategy centers on:

• Sustainability and ESG integration for long-term viability.

• Balanced organic and inorganic growth, including partnerships and joint ventures.

• Product diversification to reduce dependency on single product lines.

• Enhanced brand visibility through industry participation.

• Strengthening long-term B2B collaborations for sustained revenue.

Risks & Challenges

• Heavy reliance on the automotive sector exposes the company to cyclical demand risks.

• Operational risks due to dependence on multiple manufacturing facilities that require uninterrupted production.

• Customer concentration, with significant revenue derived from top clients, may lead to volatility if major orders decline.

Conclusion

The Sellowrap Industries IPO listing at an 8% premium marks a successful entry into the public markets, reflecting strong investor confidence in its business model and growth prospects. Positioned well in the growing Indian automotive components and manufacturing sectors, the company’s strategic focus on quality, innovation, and operational efficiency provides a solid foundation for future expansion.

The use of IPO proceeds to expand plant and machinery, boost working capital, and support corporate objectives underscores Sellowrap’s commitment to scaling operations and meeting rising market demand. However, investors should remain mindful of industry cyclicality and client concentration risks.

Given India’s robust automobile industry growth, increasing EV adoption, and government backing, Sellowrap Industries is poised to capitalize on emerging opportunities, making it an attractive consideration for medium to long-term investors looking at the SME space.

The Upcoming IPOs in this week and coming weeks are BLT Logistics, Bhadora Industries, Highway Infrastructure, Parth Electricals & Engineering, Jyoti Global Plast, Essex Marine, Aaradhya Disposal Industries.

The Current active IPO are Flysbs Aviation, Cash Ur Drive Marketing, Renol Polychem, B.D. Industries (Pune), NSDL, Takyon Networks, Mehul Colours, M&B Engineering, Sri Lotus Developers & Realty.

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