Kasturi Metal Composite IPO Overview
Kasturi Metal Composite Limited (KMCL) is a manufacturing company from Amravati, Maharashtra, focused on producing steel fibre products and related composite materials used in construction, infrastructure, industrial and automotive applications. Incorporated in 2005 and converted to a public limited company in March 2024, KMCL is now launching its SME IPO on the BSE SME platform.
The IPO is a 100% fresh issue to raise up to ₹17.61 crore through the issuance of 2,752,000 equity shares at a price band of ₹61 – ₹64 per share. At the upper price band, the minimum retail investment works out to about ₹2,56,000 for 4,000 shares (2 lots).
Funds raised will be primarily deployed for capacity expansion (new manufacturing facility in Amravati, Maharashtra) and general corporate purposes.
IPO DETAILED INFORMATION
Issue Details
| Parameter | Details |
| IPO Type | (SME) |
| IPO Open Date | 27 January 2026 |
| IPO Close Date | 29 January 2026 |
| Allotment Date | 30 January 2026 (Expected) |
| Credit to Demat | 2 February 2026 (Expected) |
| Refund Initiation | 2 February 2026 (Expected) |
| Listing Date | 3 February 2026 (Tentative) |
| Price Band | ₹61 – ₹64 per share |
| Face Value | ₹10 per share |
| Lot Size | 2,000 shares |
| Min Investment (Retail) | ₹2,56,000 (2 lots at upper band) |
| Issue Size | ₹17.61 cr (approx) |
| Fresh Issue | ₹17.61 cr (100%) |
| Offer for Sale (OFS) | Nil |
| Total Shares Offered | 27,52,000 equity shares |
| Listing | BSE SME |
Note: Entire IPO is fresh capital—no promoters are selling shares in this issue.
Issue Break-up
Approximate allocation structure (based on disclosed subscriptions):
| Category | Allocation | Shares |
| Anchor Investors | ~28.42% | 7,82,000 |
| QIB (excluding anchor) | ~18.97% | 5,22,000 |
| NII (HNI) | ~14.32% | 3,94,000 |
| Retail Individual Investors | ~33.28% | 9,16,000 |
| Total | 100% | 27,52,000 |
Selling Shareholders (OFS)
No Offer For Sale (OFS) – Entire issue is a fresh issue.
All proceeds go to the company for its stated purposes.
Objects of the Issue (Fund Utilization)
Net proceeds from the IPO will be used primarily for:
- Capital expenditure — for mechanical & electrical works, interior work, and the purchase of plant & machinery to set up Proposed Unit IV (a new manufacturing facility) at Amravati, Maharashtra. (~₹13.29 cr)
- General corporate purposes — balancing funds to support working capital, business operations, and other corporate needs.
Strategic Context:
- Expansion capacity in manufacturing aligns the company with rising demand for steel fibres in concrete reinforcement, industrial flooring, infrastructure segments, and automotive friction materials.
Lead Managers & Registrar
- Book Running Lead Manager (BRLM): Hem Securities Ltd
- Registrar to the Issue: Bigshare Services Private Limited
Promoters & Management
Promoters: Samit Surendra Singhai, Akash Surendra Singhai, Surendra Fatechand Singhai, and Lata Surendra Singhai.
- Pre-IPO promoter holding: ~92.35%
- Estimated post-IPO promoter holding: ~67.90% (indicative)
The promoter group has longstanding experience in manufacturing steel fibre composites and related industrial products.
COMPANY DETAILS
Incorporation & History:
- Incorporated on 24 November 2005 as a private entity at Amravati, Maharashtra; later converted to public limited company in March 2024.
Business Activities:
Kasturi Metal Composite manufactures and exports a range of steel fibre products that reinforce concrete (e.g., Loose Hook-End Steel Fibre, Glued Hook-End Steel Fibre, Flat Crimped Steel Fibre), steel wool fibres for friction linings, and macro synthetic PP fibres under the Durocrete brand. The company also has a subsidiary Durafloor Concrete Solution LLP offering industrial flooring solutions. Products serve construction, infrastructure, mining, warehousing, automotive, and engineering segments.
Manufacturing Footprint:
- Three manufacturing units located in MIDC, Amravati, Maharashtra with proposed expansion of a fourth unit.
Company Strengths
- Established Manufacturing Expertise: Long history (since 2005) producing steel fibre and composite products.
- Diversified Product Portfolio: Includes concrete reinforcement fibres, steel wool fibre for friction materials, and industrial flooring solutions.
- Export Capability: Products are marketed domestically and internationally across multiple sectors.
- ISO Quality Standards: Strong quality control and manufacturing processes.
- Growth Orientation: Planned capacity expansion supports rising infrastructure demand.
- Market Demand Tailwinds: Steel fibre used in fiber-reinforced concrete is in growing infrastructure “smart materials” markets.
- Experienced Promoters: Hands-on promoter involvement with majority shareholding.
Key Risks & Challenges
- Industry Cyclicality: Demand tied to construction and infrastructure spending patterns.
- Raw Material Volatility: Steel prices and supply chain fluctuations can impact margins.
- SME Listing Volatility: Companies on SME exchanges may experience low liquidity and price volatility post-listing.
- Profit Margin Fluctuations: Historical PAT margins show variability.
- Regional Concentration: Operations primarily centered in Maharashtra may limit geographic diversification.
Disclaimer
This document is for informational and educational purposes only and does not constitute investment advice or a recommendation. Investors must read the Red Herring Prospectus (RHP) and consult certified financial advisors before making any investment decisions. Past performance is not indicative of future results and all investments are subject to market risks.
