Nityanand Udyog Files DRHP for SME IPO to Fund Expansion and Strategic Acquisition

Mumbai, 25 July 2025: Nagpur-based Nityanand Udyog Limited has filed its Draft Red Herring Prospectus (DRHP) with BSE SME to raise capital through an Initial Public Offering (IPO) of up to 44.60 lakh equity shares, each with a face value of ₹10. The IPO will be executed via the book-building route and does not involve any offer for sale (OFS).

100% Fresh Issue Aimed at Growth Without Any Existing Stakeholder Dilution

The entire public issue consists of a fresh issuance of equity shares. There is no OFS component, ensuring that the raised capital directly supports business growth. The offering complies with Regulation 229(2) of the SEBI (ICDR) Regulations.

As part of the allocation structure:

• Up to 50% of the issue is reserved for Qualified Institutional Buyers (QIBs), including anchor investors.
• A minimum of 15% is allocated to Non-Institutional Investors (NIIs).
• At least 35% is earmarked for retail individual investors.
• A portion is also set aside for market makers, with a three-year market making commitment.

Capital to Be Channelled Into Acquisition, Machinery Upgrade and Working Capital

• The company plans to use the net proceeds for a blend of strategic and operational needs. A significant portion, ₹2,342.94 lakh, will fund the acquisition of Shree Radhe Fibres Pvt Ltd.
• Additionally, ₹635 lakh is earmarked for machinery upgrades at the existing facility, and ₹500 lakh will be used to meet working capital requirements. Funds will also be allocated for general corporate purposes.
• A pre-IPO placement of ₹200 lakh may be considered, which would reduce the fresh issue size accordingly.

Financials Reveal Consistent Revenue Growth and Strengthening Balance Sheet

Over the last three financial years, Nityanand Udyog has reported stable and upward-trending financial performance:

• FY25 Revenue from Operations stands at ₹2,223.29 lakh, rising from ₹2,149 lakh in FY24 and ₹1,928.21 lakh in FY23.
• Profit After Tax (PAT) grew to ₹480.32 lakh in FY25 from ₹299.36 lakh in FY24.
• Net Worth has strengthened significantly, reaching ₹1,603.71 lakh in FY25, up from ₹566.40 lakh in FY24.
• Total Assets climbed to ₹2,612.18 lakh in FY25. The company maintains a conservative capital structure, with borrowings at ₹623.71 lakh as of FY25.

Promoters Retain Majority Stake With Strong Lock-In to Ensure Long-Term Commitment

Gaurav Agarwal and Pradeep Agarwal, the main promoters, hold 64.61% and 9.90% stakes respectively, while the total promoter group owns 88.88% of the pre-issue equity. As per SEBI SME guidelines, the minimum promoter contribution will be locked in for three years, while the remaining promoter and pre-IPO shareholders’ capital will be under lock-in for 1–2 years.

Defence-Focused Operations Drive Over 79% of Revenues as Company Diversifies

Founded in 1976 and converted to a public limited company in 2024, Nityanand Udyog has built its reputation as a precision engineering provider for defence and industrial OEMs. The company specialises in plastic-centric sub-systems and moulded components for defence applications, which contribute over 79% of its revenue in FY25. It also operates a retail outlet for woollen and linen products and plans to expand into sheet metal component manufacturing through the acquisition of Shree Radhe Fibres Pvt Ltd.

IPO Handled by Unistone Capital and MUFG Intime India as Lead Manager and Registrar

Unistone Capital Pvt Ltd has been appointed as the Book Running Lead Manager for the issue, while MUFG Intime India Pvt Ltd will serve as the Registrar to the Issue. The equity shares are proposed to be listed on the BSE SME platform.

REF: https://www.bsesme.com/download/319658/SME_IPO InPrinciple/DRHP_Nityanand_20250724211908.pdf

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