Om Metallogic To Come With Its IPO

Mumbai, 28 July 2025: Om Metallogic Ltd. is set to launch its Initial Public Offering (IPO). The company operates in the aluminium alloy manufacturing sector. The IPO comprises a fixed price issue of 26 lakh fresh equity shares, with the company aiming to raise funds for modernising its facility, working capital requirements, and partial debt repayment.

The IPO dates, price band, and listing schedule are yet to be disclosed. Navigant Corporate Advisors Ltd. will lead-manage the issue, while Skyline Financial Services Private Ltd. will act as the registrar. The shares are proposed to be listed on the BSE SME platform.

Company Overview: Focused on Quality and Technological Edge

Founded in 2011, Om Metallogic Ltd. specialises in recycling aluminium-based scrap into high-quality aluminium alloys, including ingots, cubes, shots, and notch bars. These products cater to sectors like automotive, electrical transmission, construction, and packaging due to their superior strength-to-weight ratio and corrosion resistance. The company operates a technologically advanced manufacturing facility in Ballabhgarh, Haryana, with an annual production capacity of 5,280 tonnes. As of September 30, 2024, the company employed 19 personnel.

Its competitive edge lies in a technology-driven in-house facility, experienced promoters, a diversified client base, and a focus on quality assurance. Promoters Mr. Manish Sharma and Mrs. Seema Sharma will reduce their stake from 91.16% pre-issue to 61.02% post-issue.

IPO Objectives: Fueling Expansion and Stability

The net proceeds from the IPO are intended to be used as follows:

• ₹2.31 crore for modernising and expanding the manufacturing facility
• ₹8.50 crore to meet working capital needs
• ₹5.50 crore towards repayment or prepayment of certain borrowings
• Balance for general corporate purposes

Financial Performance: Revenue Stability, Profit Growth

As per the restated financials, Om Metallogic Ltd.’s financials, as of 31 March 2024, reflect consistent growth and operational discipline. The company’s revenue rose to ₹38.91 crore in FY24, compared to ₹37.84 crore in FY23 and ₹41.29 crore in FY22, indicating steady top-line performance over three years.

Profit after tax showed notable improvement, increasing to ₹2.22 crore in FY24 from ₹1.10 crore in FY23 and ₹0.16 crore in FY22, showcasing enhanced cost efficiency and margin growth. The company’s asset base also increased to ₹25.11 crore, supported by a rising net worth of ₹7.66 crore, up from ₹4.87 crore the previous year. Meanwhile, total borrowings remained stable at ₹11.04 crore, indicating prudent debt management without aggressive leveraging.

Key Performance Indicators (KPI): Strong Returns and Healthy Margins

Om Metallogic Ltd. has reported solid KPI figures that underscore operational efficiency:

• Return on Equity (ROE) stands at 35.38%, indicating excellent capital utilisation
• Return on Capital Employed (ROCE) is 22.99%, showing solid performance across investments
• Debt-to-equity ratio is a manageable 1.44, highlighting financial balance
• Return on Net Worth (RoNW) is 28.92%, and PAT margin is 5.75%, reflecting healthy profitability across sales

These indicators reflect strong fundamentals and operational discipline, key markers for investor confidence in SME IPOs.

Peer Comparison: Competitive on Profitability, Room for Growth in Scale

When compared to its industry peers, Om Metallogic Ltd. shows commendable returns on net worth and profitability. With a RoNW of 30.87%, it surpasses both Baheti Recycling Industries Ltd. (18.93%) and Nupur Recyclers Ltd. (13.55%). Although its revenue is significantly lower at ₹49.30 crore compared to Baheti’s ₹429.34 crore and Nupur’s ₹180.81 crore, Om Metallogic demonstrates higher efficiency per unit of capital deployed. Its Basic EPS stands at ₹5.31, competitive in the segment, while the company awaits market-based valuation to determine its PE ratio post-listing.

The upcoming Om Metallogic IPO provides an opportunity to invest in a focused, profitable player in the aluminium alloy recycling segment. With robust financials, high returns, and a clearly defined growth strategy, the IPO could attract both retail and institutional interest upon launch.

REF: https://www.bsesme.com/download/344643/SME_IPO InPrinciple/DPOMMETAL_20250727025625.pdf

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