HRS ALUGLAZE LIMITED IPO Explain

HRS Aluglaze IPO Overview

Ahmedabad-based aluminium products manufacturer raising ₹50.92 cr (100% fresh issue). Price: ₹94-96. Lot: 1,200 shares (₹2.30L min).

Funds for assembly & glass glazing line at Rajoda (₹18.30 cr), working capital (₹19 cr).

Lead: Cumulative Capital.

Founded 2012, 28 years industry experience. Designs, manufactures, installs aluminium windows, doors, curtain walls, cladding, glazing systems. 11,176 sq.m facility in Rajoda, Ahmedabad; 13,714 sq.m expansion planned. CNC machinery, powder coating. 28 active projects (Sep 2025).

Competes with AIS Glass, Saint-Gobain, Fenesta, Tostem India, Sunglazing, local fabricators.

IPO DETAILED INFORMATION

Issue Details

Parameter	Details
IPO Type	SME
IPO Open Date	11 December 2025 (Wednesday)
IPO Close Date	15 December 2025 (Sunday)
Anchor Investor Bidding	10 December 2025 (Tuesday) – One Day
Allotment Date	16 December 2025 (Monday) – Expected
Credit to Demat	17 December 2025 (Tuesday) – Expected
Refund Initiation	17 December 2025 (Tuesday) – Expected
Listing Date	18 December 2025 (Wednesday) – Tentative
Price Band	₹94 – ₹96 per share
Face Value	₹10 per share
Lot Size	1,200 shares (minimum lot); multiples of 1,200 thereafter
Min Investment (Retail)	₹2,30,400 (2 lots / 2,400 shares at upper band ₹96)
HNI Investment	₹3,45,600 (3 lots / 3,600 shares) minimum
Issue Size	₹50.92 crore total
Fresh Issue	₹50.92 crore (100%) – 53,04,000 equity shares
Offer for Sale (OFS)	NIL – No OFS component
Total Shares Offered	53,04,000 equity shares
Listing	BSE SME (Emerge Platform)
Post-Issue Market Cap	Estimated ~₹80-85 crore (at upper price band ₹96)

Issue Break-up

Category	Allocation
QIB (Qualified Institutional Buyers)	50% of Net Offer
NII (Non-Institutional Investors)	15% of Net Offer
Retail Individual Investors	35% of Net Offer
Market Maker	As per SEBI SME regulations

Selling Shareholders (OFS)

No Offer for Sale (OFS) – Entire issue is 100% fresh capital infusion for company growth. No promoter or investor exits.

Objects of the Issue (Fund Utilization)

Fresh Issue Proceeds (₹50.92 crore) will be used for:

Capital Expenditure – Setting up Assembly & Glass Glazing Line at Rajoda, Ahmedabad for Facade Work – ₹18.30 crore (35.9%)
- Establishing new assembly and glass glazing production line
- Infrastructure for facade curtain wall systems manufacturing
- Equipment and machinery for enhanced processing capabilities
- Capacity expansion to handle growing facade project volumes
- Technology upgrades for precision manufacturing
- Located at existing Rajoda, Ahmedabad facility (13,714 sq.m expansion area)
Funding Working Capital Requirements – ₹19.00 crore (37.3%)
- Raw material procurement (aluminium profiles, glass, hardware, accessories)
- Inventory financing for ongoing and new projects
- Operational expenses including salaries, utilities, transportation
- Advance payments to suppliers
- Support for project execution and order fulfillment
- Managing working capital cycles for 28+ active projects
General Corporate Purposes – Balance ₹13.62 crore (26.8%)
- Marketing and brand building initiatives
- Business development and customer acquisition
- Technology infrastructure and ERP systems
- Quality certifications and compliance
- Strategic initiatives and contingencies

Strategic Focus:

Significant capacity expansion through new assembly & glazing line
Strengthening working capital to support project-based business model
Scaling operations to capture growing demand for facade systems
Infrastructure investment for competitive positioning

Note: 100% fresh issue indicates genuine growth capital requirement, no investor/promoter exits. Positive indicator of expansion intent.

Lead Managers & Registrar

Book Running Lead Manager (BRLM):

Cumulative Capital Private Limited
- Address: 201, Magnet Corporate House, Ambli-Bopal Road, Bopal, Ahmedabad – 380058, Gujarat

Registrar:

Purva Sharegistry (India) Private Limited
- Contact details available on registrar website for allotment status

Market Maker:

To be appointed as per SEBI SME regulations

Promoters & Management

Key Promoters:

Promoter Group (Family-owned Business):

Experienced promoters with 28+ years of cumulative industry experience in aluminium fabrication and glazing
Deep domain knowledge in aluminium windows, doors, curtain walls, facade systems
Strategic leadership driving company’s growth from inception in 2012

Company History:

Incorporated: 2012 (13 years of operations as HRS Aluglaze Limited)
Industry Legacy: 28+ years of collective promoter experience in aluminium products and glazing
Vision: Build leading aluminium fabrication and facade systems company in Gujarat and beyond
Growth Journey:
- Started with standard windows and doors manufacturing
- Expanded into curtain walls, cladding, facade glazing systems
- Established 11,176 sq.m manufacturing facility with CNC precision machinery
- 13,714 sq.m expansion underway (adjoining current facility)
- Serving 28 active projects as of September 30, 2025
- Scaled to ₹42 cr revenue with strong profitability (ROE 34.24%)

Company Contact:

Registered Office & Manufacturing Facility: Village Rajoda, Taluka Bavla, Ahmedabad, Gujarat, India
Facility Area: 11,176 square meters (current) + 13,714 square meters (proposed expansion adjoining existing facility)
Website: www.hrsaluglaze.com

Infrastructure & Quality:

CNC precision machinery for aluminium profile cutting and processing
Powder coating facilities for color finishing
Modern fabrication equipment for windows, doors, curtain walls
Quality control systems ensuring product standards

COMPANY OVERVIEW

Establishment & Background:

Founded: 2012 (13 years of corporate operations; promoters bring 28 years industry experience)
Industry: Aluminium Fabrication & Glazing Systems – Windows, Doors, Curtain Walls, Cladding, Facade Systems
Headquarters: Rajoda, Bavla, Ahmedabad, Gujarat
Positioning: Integrated aluminium products manufacturer serving builders, contractors, architects, institutions across Gujarat and India

Business Model:

Product Portfolio – Comprehensive Aluminium Solutions:

1. Aluminium Windows

Sliding windows for patios, rooms, balconies
Openable windows for closed living spaces
Glazing windows (noise reduction, thermal insulation)
Residential and commercial window systems
Energy-efficient window solutions

2. Aluminium Doors

Sliding doors for indoor-outdoor access
Hinged doors for security and style
Various colors and design options
Lightweight, secure, stylish solutions
Residential and commercial applications

3. Curtain Walls & Facade Systems (Growth Driver)

Unitized curtain wall systems (factory-assembled panels)
Semi-unitized curtain walls (transom & mullion frame + glazed sub-frame)
Stick system curtain walls
Point-fixed glass facades
Cable-supported facades
Structural glazing systems
Modern facade designs for commercial buildings, IT parks, hospitality, high-rise residential

4. Cladding Systems

Aluminium composite panel (ACP) cladding
Metal cladding for building exteriors
Weather-resistant exterior finishes

5. Glazing Systems

Glass installation for windows, doors, facades
Double glazing for thermal and acoustic insulation
Toughened, laminated, reflective glass options
Collaboration with glass suppliers (Saint-Gobain, AIS Glass, Guardian)

Manufacturing & Operations:

11,176 sq.m Manufacturing Facility: Located at Village Rajoda, Taluka Bavla, Ahmedabad, Gujarat
CNC Precision Machinery: Computer Numerical Control equipment for accurate profile cutting and processing
Powder Coating Facilities: In-house color finishing for aluminium profiles (multiple color options)
Fabrication Infrastructure: Cutting, drilling, assembling, welding capabilities
13,714 sq.m Expansion Planned: Adjoining current facility for assembly & glass glazing line (facade work capacity expansion)

Revenue Model:

Project-based contracts with builders, contractors, developers
Material supply to architects, institutions, commercial projects
Design-manufacture-install integrated service model
Standard and customized solutions
Facade systems (curtain walls, cladding) – higher value, margin-accretive

Client Segments:

Builders & Real Estate Developers: Residential, commercial, mixed-use projects
Contractors: Sub-contracting for doors, windows, facade installation
Architects: Specified products for projects
Institutions: Schools, colleges, hospitals, government buildings
Commercial Establishments: IT parks, offices, hotels, malls

Value Proposition:

Standard & Customized Solutions: Flexibility to meet diverse project requirements
Integrated Service: Design, manufacturing, installation under one roof
Material Procurement Support: Assisting clients with material sourcing
Local Presence: Gujarat-based serving local and national markets
Quality & Precision: CNC machinery ensuring accurate fabrication
Energy Efficiency: Modern glazing and window systems reducing energy costs

Market Position:

Regional Player: Established presence in Gujarat with 28 active projects (Sep 2025)
13 Years Track Record: Corporate operations since 2012, promoter legacy 28+ years
Growing Revenue Base: Scaled from proprietary/partnership operations to ₹42 cr revenue (FY25)
Project Portfolio: Serving builders, contractors, architects across residential, commercial, institutional segments

Operations:

Project Execution:

28 Active Projects (as of September 30, 2025): Ongoing contracts with builders, contractors
Project types: Residential complexes, commercial buildings, IT parks, institutional buildings
Project-based revenue model with milestones and deliverables
Design, fabrication, on-site installation, post-installation support

Supply Chain:

Raw material sourcing: Aluminium profiles (extrusions), glass (Saint-Gobain, AIS Glass, Guardian, local suppliers), hardware, accessories
Vendor relationships for consistent supply and quality
Inventory management for projects and standard products

Financial Performance Highlights:

FY25: ₹42.14 cr total income, ₹10.70 cr EBITDA, ₹5.15 cr PAT (12.22% PAT margin)
FY24: ₹26.97 cr revenue, ₹1.79 cr PAT
FY25 Growth: +56% YoY revenue growth, +188% PAT growth (FY24 to FY25)
H1 FY26 (6 months to Sep 30, 2025): ₹26.35 cr revenue, ₹8.45 cr EBITDA, ₹4.54 cr PAT
H1 FY26 Annualized: ₹52.7 cr revenue, ₹9.08 cr PAT – continued strong momentum
Return Ratios (as of March 31, 2025): ROE 34.24%, ROCE 15.97% – exceptional capital efficiency
Balance Sheet (Sep 30, 2025): Reserves ₹10.66 cr, Total Assets ₹91.16 cr – healthy net worth

Company Strengths

1. Exceptional Financial Performance – 56% Revenue, 188% PAT Growth (FY24-25):

Revenue surged from ₹26.97 cr (FY24) to ₹42.14 cr (FY25) – 56% YoY growth
Profit After Tax exploded from ₹1.79 cr (FY24) to ₹5.15 cr (FY25) – 188% YoY growth (nearly tripled)
PAT margin of 12.22% (FY25) – healthy profitability for construction materials sector
EBITDA of ₹10.70 cr with strong margins demonstrating operational efficiency
H1 FY26 performance (₹26.35 cr revenue, ₹4.54 cr PAT) on track for ₹52.7 cr annualized revenue – continued growth momentum
Return on Equity (ROE) of 34.24% (March 2025) – exceptional shareholder value creation
Return on Capital Employed (ROCE) of 15.97% – strong capital productivity
Profitability trajectory validates scalable business model

2. Integrated Capabilities – Design, Manufacturing, Installation Under One Roof:

End-to-End Service: Design → Fabrication → Installation – complete project execution
In-House Manufacturing: 11,176 sq.m facility with CNC machinery, powder coating – full control over quality and timelines
Customization Strength: Ability to deliver tailor-made solutions per client specifications
Material Procurement Support: Assisting clients in sourcing complementary materials
Competitive Advantage: Integrated model vs pure traders/installers; reduces dependency on third parties
Margin Enhancement: Vertical integration captures fabrication and installation margins
Client Convenience: Single-point contact for entire project lifecycle

3. Capacity Expansion – 13,714 sq.m Facility, New Assembly & Glazing Line:

Current Facility: 11,176 sq.m equipped with modern CNC machinery and powder coating
Expansion Pipeline: 13,714 sq.m adjoining facility under development – 123% capacity increase
IPO Proceeds: ₹18.30 cr (35.9% of issue) allocated for new assembly & glass glazing line for facade work
Strategic Focus: Expanding into high-value facade systems (curtain walls, cladding) – higher margins than standard windows/doors
Scalability: Infrastructure investment supporting 2-3X revenue growth potential
Technology Upgrades: CNC precision machinery ensuring quality and efficiency
Market Readiness: Capacity ahead of demand enables capturing large projects without bottlenecks

4. Diversified Product Portfolio – Windows, Doors, Curtain Walls, Cladding, Glazing:

Multiple Product Lines: Aluminium windows, doors, curtain walls, cladding, glazing systems
Risk Mitigation: No single product dependency; residential slowdown offset by commercial facade demand
Residential + Commercial Mix: Serving both segments reduces exposure to single real estate cycle
Standard + Customized: Standardized products (windows, doors) provide volume; customized facade projects offer margin depth
Cross-Selling: Single client (builder) buying multiple products (windows, doors, curtain walls for same project)
Facade Systems Growth Driver: Curtain walls, cladding higher value-add vs commodity windows/doors; IPO expansion focused here

5. 100% Fresh Issue – Strong Promoter Confidence, No Exit Signal:

No OFS: Entire ₹50.92 crore is fresh capital for company growth (zero promoter/investor exits)
Promoter Commitment: Not selling any stake despite 13 years of operations – demonstrates belief in future growth
Clean Capital Structure: No investor exits or dilution concerns
Productive Allocation: All IPO proceeds benefit company (capacity expansion, working capital, general corporate) vs going to promoters
Alignment: Promoters retaining 100% control pre-IPO, diluting only for growth capital – interests aligned with new shareholders
Growth Intent: Fresh issue validates expansion story and capital needs

6. Established Client Base – 28 Active Projects, Repeat Business Model:

28 Active Projects (September 30, 2025): Ongoing contracts providing revenue visibility
Project Pipeline: Continuous flow of new orders from builders, contractors, architects
Repeat Clients: Builders and contractors returning for multiple projects demonstrate trust and satisfaction
Client Diversification: Serving builders, contractors, architects, institutions across residential, commercial, institutional segments
Geographic Footprint: Gujarat stronghold with expansion potential to neighboring states
Reference Projects: Completed projects (Orchid Legacy, Swati Crimson building per LinkedIn) providing showcases for new client acquisition

7. Industry Tailwinds – Real Estate Growth, Green Building, Energy Efficiency Focus:

India Real Estate Boom: Residential and commercial construction activity strong; government housing schemes (PMAY), infrastructure push
Urbanization: Rising urban population driving demand for apartments, offices, malls – all requiring aluminium windows, doors, facades
Energy Efficiency Mandates: Green building norms (GRIHA, LEED) driving demand for energy-efficient windows, double glazing
Facade Aesthetics: Commercial buildings (IT parks, malls, hotels) adopting modern curtain wall facades – high-value market segment
Replacement Market: Old wooden/steel windows being replaced with aluminium – retrofit demand
Government Infrastructure: Smart Cities, affordable housing, institutional buildings requiring bulk aluminium products
Gujarat Real Estate Growth: Strong regional market with Ahmedabad, Surat, Rajkot, Gandhinagar development activity

Key Risks & Challenges

1. High Dependency on Gujarat & Real Estate Cycles – Revenue Concentration:

Geographic Concentration: Likely majority revenue from Gujarat (facility in Ahmedabad; 28 active projects base likely regional)
Single State Risk: Gujarat economic slowdown, political disruptions, regional regulatory changes disproportionately impact
Real Estate Cyclicality: Revenue tied to construction activity; real estate downturns (2008, COVID-19) severely hit demand
Builder Defaults: If real estate developers face financial stress, payment delays, project cancellations, bad debts
Residential Slowdown Risk: If housing demand softens (interest rate hikes, affordability crisis), window/door demand declines
Limited Geographic Diversification: No disclosed operations outside Gujarat; expansion to other states requires capital, relationships, logistics

2. Project Concentration & Client Dependency – 28 Active Projects:

Limited Project Base: Only 28 active projects as of September 30, 2025 – small diversification
Client Concentration Risk: Top 5-10 clients (builders, contractors) likely contribute 40-60% revenue (industry pattern; exact data in RHP)
No Long-Term Contracts: Project-based business with contracts ending upon completion; no assured recurring revenue
Loss of Major Client: If single large builder or contractor stops ordering, material revenue impact
Payment Terms: Builders often delay payments 60-180 days or link to milestone completions – working capital strain
Project Execution Risk: Delays in projects (approvals, financing, construction) delay HRS Aluglaze’s installation and payments

3. Intense Competition from Organized & Unorganized Players:

Organized Competitors (National & Regional):

AIS Glass (Asahi India Glass): Integrated glass and windows solutions, pan-India presence, brand power, ₹3,000+ cr revenue
Saint-Gobain India: Global giant, glass manufacturing and processing, architectural solutions, decades of legacy
Fenesta (DCBL – part of DCM Shriram): Leading windows and doors brand, organized manufacturing, extensive dealer network
Tostem India (LIXIL Corporation): Japanese MNC, premium aluminium facades, curtain walls, doors/windows
Jindal Aluminium, Hindalco (Aditya Birla): Large aluminium profile manufacturers with downstream fabrication
Sunglazing, Techniglaze: Specialized curtain wall and facade companies with international project experience

Unorganized Sector:

Thousands of small local aluminium fabricators in every city
Low overhead, cheaper pricing, hyperlocal presence
Lack of quality standards but acceptable for cost-conscious residential buyers

Competitive Pressures:

HRS Aluglaze’s ₹42 cr revenue vs AIS Glass ₹3,000+ cr – 70X+ size gap
Large players have brand recognition, pan-India presence, R&D capabilities, financial strength
Unorganized sector undercuts pricing by 20-30%, winning price-sensitive projects
Limited differentiation: Aluminium windows/doors commoditized; switching costs low for builders
Facade systems (curtain walls) technically complex but dominated by specialized players (Sunglazing, Tostem) with larger project experience

4. Raw Material Price Volatility – Aluminium, Glass Costs:

Aluminium Price Sensitivity: Aluminium (LME prices) subject to global commodity cycles, geopolitical events, tariffs
Glass Price Fluctuations: Glass (sourced from Saint-Gobain, AIS Glass) prices vary with raw material (soda ash, silica) costs
Input Cost Inflation: FY22-FY24 saw aluminium price spike (Russia-Ukraine, energy costs) compressing margins
Limited Pricing Power: Project contracts often fixed-price; cannot fully pass input cost increases to clients
Margin Compression Risk: Raw material inflation reduces gross margins if sales prices fixed
Forex Risk (Potential): If aluminium or specialized hardware imported, INR-USD volatility impacts costs

5. Working Capital Intensity – ₹19 Crore (37% of IPO) for Working Capital:

High Working Capital Needs: ₹19 cr (37.3% of IPO) allocated to working capital – significant capital requirement
Project-Based Cash Cycles: Upfront raw material procurement, fabrication, installation before payment realization from builders
Inventory: Holding aluminium profiles, glass, hardware for ongoing and upcoming projects
Receivables: Builders/contractors demand 60-180 day credit; milestone-linked payments delay cash collection
Continuous Funding: As revenue scales, working capital requirements grow proportionally – ongoing capital needs
Cash Flow Strain: Profitability may not convert to cash due to working capital buildup

6. Execution Risk in Capacity Expansion – 13,714 sq.m Facility, New Glazing Line:

Ambitious Expansion: 13,714 sq.m new facility + assembly & glazing line (₹18.30 cr investment) – 123% capacity increase
Project Delays: Construction delays, equipment procurement, commissioning issues can push timelines
Ramp-Up Period: New capacity takes 12-18 months to reach optimal utilization; near-term underutilization, fixed cost drag
Demand Uncertainty: If real estate/facade projects don’t materialize, excess capacity idle
Execution Complexity: Managing expansion while maintaining existing 28 projects requires operational bandwidth
Technology Risk: New glazing line for facade work requires skilled labor, process standardization, quality control

7. SME Listing Challenges – Limited Liquidity, Lower Disclosure Standards:

BSE SME Platform: Lower trading volumes than mainboard – liquidity constraints, difficulty exiting positions
Institutional Disinterest: Large mutual funds, FPIs avoid SME stocks due to liquidity and regulatory constraints
Price Discovery: Low volumes lead to high bid-ask spreads, valuation volatility
Migration Timeline: Need ₹25 cr paid-up capital and profitability track record for mainboard migration – 3-5 year timeline post-IPO
Disclosure Standards: SME quarterly reporting less stringent than mainboard – investors have limited visibility into performance
Market Maker Dependency: Liquidity dependent on market maker activity – if market maker inactive, stock illiquid
Exit Risk: Challenging to sell holdings during market downturns or company-specific issues

Disclaimer

This information is based on publicly available sources including SEBI DRHP/RHP filings, company disclosures, news reports, and industry research. Investors should conduct their own research and consult with financial advisors before making investment decisions.

Past performance is not indicative of future results. The company reported strong financial performance (FY25: 56% revenue growth to ₹42.14 crore, 188% PAT growth to ₹5.15 crore, ROE 34.24%, ROCE 15.97%), operates integrated design-manufacturing-installation model with 11,176 sq.m facility and 13,714 sq.m expansion underway, but faces significant risks including high dependency on Gujarat region and real estate cycles, project concentration (only 28 active projects as of Sep 2025), intense competition from organized players (AIS Glass, Saint-Gobain, Fenesta, Tostem with 70X+ larger scale) and unorganized local fabricators, raw material price volatility (aluminium, glass), high working capital intensity (37% of IPO proceeds for working capital), execution risks in capacity expansion, and SME listing liquidity challenges. 100% fresh issue with no OFS indicates promoter confidence. Investors must review detailed client concentration, project pipeline, geographic revenue mix, and working capital cycles in RHP before applying. SME IPO investments carry higher risks including limited liquidity, lower disclosure standards, and price volatility. Grey Market Premium (GMP) not yet active / not reported.