Ashish Kacholia held INDO SMC IPO opens tomorrow; Check GMP, price band and more

SYNOPSIS: Ashish Kacholia-backed INDO SMC’s Rs. 91.95 crore SME IPO opens January 13th, offering pure fresh issue exposure to a fast-growing transformer and power equipment maker with strong financial momentum.

Amid the ongoing IPO rush and back-to-back market launches, one company has started drawing heightened interest from investors and market watchers. The buzz is largely driven by the presence of a well-known market veteran, whose participation is often closely watched by retail investors.

This company has a book build issue of Rs. 91.95 crores, backed by ace investor Ashish Kacholia, who holds a 3.36 percent stake. The IPO comprises entirely a fresh issue of 0.62 crore shares aggregating Rs. 91.95 crore, with no offer-for-sale component, meaning all proceeds will flow directly into the company.

The company in focus is INDO SMC Limited. Its IPO will open for subscription on Tuesday, 13th January, and close on Thursday, 15th January, with the stock scheduled to list on the BSE SME platform on Tuesday, 20th January 2026.

The IPO price band has been fixed at Rs. 141-149 per share. As of 12th January, the stock was commanding a grey market premium (GMP) of around Rs. 35, indicating a potential upside of over 23 percent over the upper end of the price band of Rs. 149. Based on this GMP, the listing price is being estimated at around Rs. 184 per share, reflecting strong early market interest.

The allotment for the Indo SMC IPO is expected to be finalised on Friday, 16th January 2026, while shares are likely to be credited to the demat accounts of successful applicants on Monday, 19th January 2026.

Company Overview

Incorporated on 27th September 2021, INDO SMC Limited is mainly engaged in the design and manufacturing of electrical and power distribution products. Its portfolio includes enclosure boxes for energy meters, high- and low-tension current and potential transformers (HTCT, HTPT, LTCT), LT/HT distribution boxes and panels, fibreglass reinforced plastic (FRP) grating, junction boxes, feeder pillars and other power distribution and circuit protection switchgears. The company uses materials such as sheet moulding compounds (SMC), FRP, copper, mild steel and stainless steel, etc.

The business operates across three key verticals. The SMC division focuses on manufacturing enclosure boxes for energy meters, SMC sheets, and chequered plates. The FRP division produces grating plates and related products, while the electrical components division manufactures transformers, feeder pillars, and other power distribution and protection equipment. It currently operates 4 manufacturing facilities across Gujarat, Maharashtra, and Rajasthan.

Objectives of the IPO Offer

The company’s IPO consists of a fresh issue of up to 61.71 lakh equity shares at the issue price per share. The proceeds from the issue are proposed to be utilised primarily for funding capital expenditure, including the purchase of plant and machinery, meeting the company’s working capital requirements, and for general corporate purposes.

In addition to funding business needs, the company believes that listing its equity shares on the BSE SME platform will enhance its brand visibility and corporate image, provide liquidity to existing shareholders, and create a public trading market for its shares.

Financial Performance

INDO SMC experienced a significant growth in its revenue from operations by around 395 percent YoY from Rs. 28 crores in FY24 to Rs. 138.7 crores in FY25, while the net profit registered a stronger performance, growing by about 414 percent YoY from Rs. 3 crores to Rs. 15.44 crores.

For H1 FY26, INDO SMC reported revenue from operations of Rs. 112.5 crore and a net profit of Rs. 11.4 crore. The company delivered an EBITDA of Rs. 17.2 crore, reflecting an EBITDA margin of 15.27 percent, while the PAT margin stood at 10.18 percent. Key return ratios remained healthy, with Return on Equity (ROE) at 27.66 percent and RoCE at 17.5 percent, alongside a debt-equity ratio of 1.05.

INDO SMC Strengths and Weaknesses:

Strengths

Strong presence in SMC, FRP, and pultrusion products: INDO SMC has built a solid position as a manufacturer of SMC boxes, FRP products, and pultrusion products. Its standing in the market is supported by technical expertise, robust product quality, and a wide-reaching network. 

Advanced manufacturing capabilities: The company leverages modern machinery and equipment to streamline production across its product lines. This enables better quality control, improved operational efficiency, lower wastage, and the flexibility to offer customised solutions based on client requirements.

Healthy and diversified order book: The company is supported by a strong order book comprising projects from both government and private sector clients. This diversification helps ensure revenue visibility and reduces reliance on any single customer or segment.

Weaknesses

Competitive Market: The company operates in a highly competitive market, facing constant pressure from both established players and new entrants. Sustaining growth requires continuous innovation, cost-efficiency, and consistent quality to maintain its market share.

Limited Capital Expenditure sources: Expansion and modernisation efforts may be constrained by limited capex availability. This could restrict the company’s ability to scale operations quickly, meet rising demand, or enter new markets at an accelerated pace.

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