Narmadesh Brass Industries Files DRHP with SEBI for BSE SME IPO

Ahmedabad, August 29, 2025 – Narmadesh Brass Industries Limited (NBIL) has submitted its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) on the BSE SME platform.

The offering includes a new issue of equity shares with a face value of ₹10 each. The price band and lot size haven’t been disclosed by the company yet, but the DRHP provides details on the fundraising goals, business overview, and investor risks.

Narmadesh Brass Industries Limited has its base of operations in Jamnagar, Gujarat, commonly known as the brass hub of India. The firm is largely involved in the production and sale of brass rods and billets. Its initial public offering will be its maiden appearance in the capital markets, with which it will be able to tap growth capital and further increase its size of operations.

Use of IPO Proceeds

According to the DRHP, the net IPO proceeds will be utilised to finance working capital requirements, general corporate purposes, and issue-related expenses.

Business Overview

Narmadesh Brass Industries, registered in Jamnagar, Gujarat, is involved in the production of brass rods, billets, ingots, and allied products. The company’s major clientele is from industrial customers in the sanitary ware, electrical, and hardware fittings sectors.

The DRHP emphasises the thrust of NBIL in taking advantage of Jamnagar’s brass-strong ecosystem, which serves close to 70% of India’s brass manufacturing output. The firm wants to increase operations and broaden its domestic as well as export client base.

Financial Performance (as per DRHP)

Narmadesh Brass Industries has posted consistent growth in revenue and profitability during the last few years, as evident from its Draft Red Herring Prospectus (DRHP). Operating revenue was at ₹12,437.82 lakh for FY23, increasing to ₹14,685.21 lakh in FY24. During the first nine months of FY25, the company posted revenues of ₹11,092.43 lakh.

EBITDA rose from ₹1,056.34 lakh in FY23 to ₹1,204.65 lakh in FY24 and ₹930.42 lakh in the nine months of FY25. PAT also improved steadily, from ₹624.71 lakh in FY23 to ₹703.54 lakh in FY24. PAT in 9M FY25 was ₹562.18 lakh. Such performance is an example of how the company can sustain profitability while driving revenue growth.

Risks Identified in the DRHP

The DRHP also identifies major risks for investors:

• Reliance on cyclical demand in end-user industries.
• Risk exposure to copper and zinc price volatility, which are the major raw materials.
• High working capital needs.
• Competition from unorganised sector participants in the brass manufacturing cluster.

What’s Next?

The firm will proceed with SEBI inputs befor the finalisation of the Red Herring Prospectus (RHP) and declaration of IPO dates, price band, and lot size. After approval, the basis of allotment shall be announced by the registrar, and the shares shall be listed on the BSE SME platform.

REF: https://www.bsesme.com/download/309582/SME_IPO InPrinciple/Draft_Prospectus_NBIL_20250825193337.pdf

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