The Kasturi Metal Composite SME IPO is expected to finalize allotment on January 30, 2026.
The IPO closed for subscription on January 29, raising Rs 17.61 crore through a fresh issue of 0.28 crore shares.
The IPO price band was set at Rs 61-64 per share, and it is scheduled to list on the BSE SME platform on February 3, 2026.
Subscription Details and Investor Interest
The SME IPO saw strong subscription, with a total oversubscription of 17.75 times.
Individual investors subscribed 38.88 times
Qualified Institutional Buyers (QIBs) subscribed 4 times
This indicates significant interest from retail investors in the IPO.
Purpose of the IPO
Kasturi Metal Composite plans to use Rs 13.29 crore for capital expenditure at a new manufacturing facility in Amravati, Maharashtra, including mechanical, electrical, and interior works and procurement of plant and machinery.
The remaining funds will be used for general corporate purposes.
Financial Performance
Net Profit: Rs 2.07 crore in FY25 (Rs 2.35 crore in FY24, Rs 1.49 crore in FY23)
Total Income: Rs 57.22 crore in FY25, up 14% from Rs 50.20 crore in FY24
Debt-to-Equity Ratio: 0.74
Return on Equity (ROE): 13.80%
Return on Capital Employed (ROCE): 13.76%
This shows a steady growth in income and profitability over the past three years.
Lot Size and Investment Requirement
Retail Investors: Minimum 2 lots = 4,000 shares = Rs 2.56 lakh
High Net Worth Individuals (HNI): Minimum 3 lots = 6,000 shares = Rs 3.84 lakh
Hem Securities is the book-running lead manager, Bigshare Services is the registrar, and Hem Finlease is the market maker.
About Kasturi Metal Composite
Founded in 2005, the company manufactures, supplies, and exports steel fibre products for industrial applications.
Their offerings include:
Steel Wool Fibre for brake pads and clutches
Durocrete PP Fibres
Durafloor Concrete Solutions for flooring
Their products, Duraflex and Durabond, cater to construction, mining, and automotive sectors, supporting tunnels, roads, bridges, and other infrastructure projects.
Important Investment Warning:
SME IPOs are high-risk investments with low liquidity and high price volatility.
They are suitable only for investors who understand capital markets and can bear total loss.
This article is for information only and is not a recommendation.
Investors should perform independent due diligence and consult a SEBI-registered financial advisor before investing.
