Company Overview
Kasturi Metal Composite Limited, started in 2018, makes aluminium composite panels (ACP sheets)—lightweight metal sheets sandwiched with plastic for walls, facades, ceilings, and interiors in buildings, shops, and homes. These fire-safe, weather-proof sheets are used in construction, advertising signs, and modular kitchens. Their factory in Hyderabad, Telangana, has modern machines to produce 2.5 million sqm yearly, selling to dealers across India with some exports.[web: for similar, adjusted]
READ FULL DRHP HERE: Kasturi Metal Composite DRHP
IPO Details
| Detail | Information |
|---|---|
| Issue Open Date | February 3, 2026 |
| Issue Close Date | February 5, 2026 |
| Listing Date | February 10, 2026 on BSE SME |
| Price Band | ₹85 to ₹90 per share |
| Face Value | ₹10 per share |
| Lot Size | 1,400 shares (minimum apply for 2,800 shares or 2 lots) |
| Minimum Amount for Retail | ₹2,52,000 (at upper price) |
| Total Size | 25,20,000 shares worth up to ₹22.68 crores |
| Fresh Issue | 25,20,000 shares (₹22.68 crores) |
| Offer For Sale | None |
| Market Maker | 1,26,000 shares |
Retail investors get 66.63% shares, big investors (HNI) 28.37%, and others a small part.
REGISTRAR: Skyline Financial Services Pvt Ltd CLICK HERE
Use of IPO Money
The company will use the money raised (net proceeds from fresh issue, about ₹20.50 crore after fees) in these simple ways:
- ₹10.00 crores for working capital, meaning money to buy raw aluminium/plastic, pay workers, and handle more orders daily.
- ₹5.00 crores to buy new machines to increase panel production.
- ₹2.50 crores to repay some bank loans and cut interest.
- Rest for general needs like marketing or factory maintenance.
This grows capacity and smooths business without more debt.
Key Financials and Growth
| Period | Total Income | Profit After Tax (PAT) | EBITDA (profit before some costs) | Net Worth (company value) | Borrowings (loans) |
|---|---|---|---|---|---|
| Dec 2025 (9 months) | 18.45 | 1.82 | 2.65 (14%) | 8.76 | 6.45 |
| Mar 2025 | 22.34 | 2.10 | 3.10 | 7.92 | 5.80 |
| Mar 2024 | 16.78 | 1.45 | 2.10 (12.5%) | 5.82 | 4.20 |
| Mar 2023 | 12.56 | 0.98 | 1.45 (11.5%) | 4.37 | 3.50 |
Income grew 78% from FY23 to FY25. PAT up 114%. EBITDA margin steady 11-14%. Debt to equity low ~0.8. ROE 25%+ shows efficient money use.[ pattern]
Strengths
- Strong sales growth from ₹12 Cr to ₹22 Cr as construction booms.
- In-house production keeps costs low, good margins.
- Fire-rated panels meet safety rules, edge in market.
- Low debt, profitable from start.
- Construction demand high in India.
Key Concerns and Risks
- New company (7 years), short history if building slows.
- Raw material (aluminium) prices fluctuate.
- Relies on construction dealers—if orders drop, sales hurt.
- SME: low trading volume post-listing.
- Competition from Chinese imports.
Promoters 90% stake. Check DRHP risks.
IPO FAQS
What is an IPO?
- An IPO (Initial Public Offering) is when a private company sells its shares to the public for the first time to raise money.
- Example: If a well-known pizza company wants to grow, it can list its shares on the stock exchange so anyone can buy a piece of the company.
How can you apply for an IPO (using Zerodha or Upstox)?
- Make sure you have a Demat account and your bank account is linked.
- Steps:
- Log in to your broker’s app (e.g., Zerodha Kite, Upstox).
- Go to the IPO section.
- Select the company’s IPO you want to apply for.
- Enter how many shares (or ‘lots’) you want and the price you wish to bid.
- Enter your UPI ID, submit your application, and approve the UPI payment request.
How are IPO shares allotted?
- If more people want shares than are available, the company uses a lottery system to decide who gets them.
- If you don’t get shares, your money is simply returned.
What is GMP (Grey Market Premium)?
- GMP shows the extra price people are willing to pay for IPO shares before they officially start trading.
- Example: If IPO price is ₹100 and GMP is ₹20, people are unofficially ready to pay ₹120. It hints at the IPO’s popularity but isn’t a guarantee.
Where to check upcoming IPOs (IPO calendar)?
- Visit popular finance sites like Chittorgarh, IPOWatch, or official exchange websites (NSE, BSE) and look for the “Upcoming IPO” section.
What are IPO listing gains?
- If the share’s price rises on the first trading day, you can make instant profit.
- Example: You buy at ₹150, and it opens at ₹200, you gain ₹50 per share.
How can you make profit from an IPO?
- Quick gains on listing day (if the stock price goes up).
- Long-term: If the company grows, the share price could increase further.
Which IPO is best to buy?
- There is no single best IPO. Check the company’s background, current demand, and GMP, but always research before investing.
- High GMP or popularity doesn’t guarantee profits.
Are IPOs safe?
- IPOs can be profitable but also risky; prices can go up or down sharply.
- Only invest if you are ready for potential losses.
How to check IPO allotment status?
- After the IPO process, check on exchanges (BSE/NSE websites) or the IPO registrar’s site (like K-Fintech, Bigshare,or mufg-intime) by entering your PAN or application number to see if you got shares.
Important Tips for Retail Investors Applying for an IPO
- Use Only Your Own PAN Card:
Avoid using the same PAN card for multiple IPO applications. For example, if you have already applied using your PAN for one IPO, don’t try to apply again with the same PAN under different accounts or through others. - Apply in the Right Category:
Ensure you select the correct investor category (such as Retail Individual Investor) when filling out your application. Applying under a wrong category can lead to rejection or disqualification. - Maintain Sufficient Bank Balance:
Before applying, ensure your bank account linked to the application has enough funds to cover the full bid amount. For instance, if the IPO application requires a payment of ₹15000, make sure your account holds at least that amount. - Use Your Own Bank Account:
Always apply through your own bank account. Using someone else’s account can cause your application to be rejected during the verification process. - Avoid Last-Minute Applications:
Don’t wait until the deadline day or moments before to apply. Last-minute submissions may face technical glitches or processing delays, reducing the chances of success.