Sellowrap Industries IPO Launches on July 25: Key Dates, Pricing, and Business Overview Revealed

Mumbai, 23 July 2025: Sellowrap Industries Limited is set to launch its ₹30.28 crore IPO on 25 July 2025, with the issue closing on 29 July 2025. This public offering, entirely a fresh issue of 36.48 lakh equity shares, will be listed on the NSE SME platform. The price band for the IPO has been fixed between ₹79 and ₹83 per share, with a lot size of 1,600 shares. The IPO will open avenues for the company to enhance its capital base and invest in growth and operational efficiency.

Fresh Issue Aims to Strengthen Business Operations and Drive Expansion

Sellowrap Industries IPO is fully a fresh issue, meaning no existing shareholders are offloading their stakes. Through this ₹30.28 crore fundraising, the company aims to invest in new machinery, enhance infrastructure, and support working capital.

The net public offer includes 34.65 lakh shares valued at approximately ₹28.76 crore, while 1.82 lakh shares worth around ₹1.51 crore have been reserved for the market maker, Gretex Share Broking Private Limited. Gretex Corporate Services Limited is acting as the book-running lead manager, and Purva Sharegistry India Pvt Ltd is the registrar to the issue.

Allotment and Listing Timeline Announced

• IPO Opening Date: 25 July 2025
• IPO Closing Date: 29 July 2025
• Allotment Finalisation: 30 July 2025
• Refund Initiation: 31 July 2025
• Shares Credited to Demat Accounts: 31 July 2025
• Expected Listing Date on NSE SME: 1 August 2025 (subject to market and regulatory approvals)
• UPI Mandate Approval Deadline: 5 PM on 29 July 2025

Investment Guidelines Based on Category

• Retail Investors: Minimum application of 2 lots (3,200 shares) amounting to ₹2,65,600
• Small High Net-worth Individuals (sNII): Minimum application of 3 lots (4,800 shares) worth ₹3,98,400
• Big High Net-worth Individuals (bNII): Minimum application of 8 lots (12,800 shares) totalling ₹10,62,400
• Important Note:Bidding at cut-off price is not permitted for any investor category

Promoter Shareholding and Post-Issue Equity Structure

The promoters of Sellowrap Industries include Mr. Saurabh Poddar, Mr. Sushil Kumar Poddar, Ms. Pooja Poddar, M/s. Saurabh Marketing Private Limited, and Sushil Kumar Poddar (HUF). The pre-issue shareholding stands at 92.18%, and the post-issue shareholding will be adjusted once equity dilution is accounted for after the IPO.

Company Overview: A Four-Decade Legacy in Precision Manufacturing

Sellowrap Industries Limited, incorporated in 1983, is engaged in manufacturing a wide range of automotive and white goods components. The product portfolio includes:

• Plastic Injection Moulding Parts (Interior & Exterior)
• PU-Foam Moulding
• Foam Products, Labels & Stickers
• Screen Sealing Parts
• EPP Moulding

With four manufacturing units located in Gurugram, Ranipet, Kancheepuram, and Pune, the company integrates advanced technology, centralised R&D, and efficient warehousing to deliver quality solutions. Its products are distributed across 15 Indian states, including Maharashtra, Delhi, Tamil Nadu, Gujarat, and Karnataka. The company also exports to Brazil, China, Germany, Poland, and the UK. As of 31 January 2025, the workforce comprises 159 full-time employees and 549 contractual staff.

Financial Performance Shows Strong Growth Momentum (Restated Consolidated)

Sellowrap Industries has demonstrated impressive financial performance in recent years. Between FY 2024 and FY 2025, the company’s revenue surged by 17%, reaching ₹163.31 crore, up from ₹139.09 crore. The profit after tax (PAT) witnessed a remarkable 68% rise, increasing from ₹5.95 crore to ₹9.97 crore. The EBITDA grew from ₹14.72 crore to ₹22.32 crore, showing significant improvement in operating efficiency.

The total assets rose from ₹99.79 crore to ₹143.02 crore, reflecting capital investments and business growth. The net worth increased from ₹32.96 crore to ₹46.93 crore, while reserves and surplus stood at ₹43.43 crore by the end of FY 2025. Total borrowings rose modestly from ₹31.69 crore to ₹38.00 crore.

Key Performance Indicators Underscore Operational Strength

Sellowrap Industries demonstrates healthy financial ratios that reflect operational resilience and capital efficiency:

• Return on Equity (ROE): 21.25%
• Return on Capital Employed (ROCE): 18.86%
• Return on Net Worth (RoNW): 21.44%
• PAT Margin: 6.14%
• EBITDA Margin: 13.74%
• Debt-to-Equity Ratio: 0.81
• Price-to-Book Value Ratio: 1.70

The market capitalisation is estimated at ₹114.08 crore, making it a notable entrant in the SME segment. Based on the latest earnings as of March 31, 2025, the Pre-IPO EPS stood at ₹9.88, while the Post-IPO EPS is projected at ₹7.26. The corresponding price-to-earnings (P/E) ratios are 8.4x (Pre-IPO) and 11.44x (Post-IPO).

Peer Comparison Highlights Sellowrap Industries’ Competitive Position in Auto Components Sector

As of March 31, 2025, Sellowrap Industries Limited shows a strong financial position compared to its listed peers in the auto components sector. The company reported a Basic EPS of ₹10.45, NAV of ₹48.75, and a notable Return on Net Worth (RoNW) of 21.44%, indicating efficient use of equity. Its listed peers include Machino Plastics Ltd. and PPAP Automotive Limited.

Machino Plastics posted a higher EPS of ₹13.94, NAV of ₹103.30, and RoNW of 14.73%, while PPAP Automotive recorded an EPS of ₹10.01, NAV of ₹204.90, and a lower RoNW of 4.42%. In terms of valuation, Sellowrap’s P/BV ratio of 1.70 stands between Machino’s 2.68 and PPAP’s 1.12. While the companies differ in size and scale, Sellowrap’s financials reflect a healthy balance of profitability and value, positioning it favourably among peers in terms of return efficiency and overall performance.

Use of IPO Proceeds Targeted at Strategic Growth

Sellowrap Industries plans to deploy the IPO proceeds to enhance its manufacturing capabilities and support future growth. The proposed utilisation includes:

• ₹12.40 crore for purchasing new plant and machinery, infrastructure development, and auxiliary equipment.
• ₹10 crore for working capital requirements to support operational expansion.
• The remaining funds will be used for general corporate purposes.

Sellowrap Industries IPO offers a blend of financial strength, experienced leadership, and expansion potential. With an established market presence, export footprint, and a clear roadmap for utilising fresh capital, the IPO presents an investment opportunity that combines legacy with forward-looking ambition.

REF: https://nsearchives.nseindia.com/content/ipo/RHP_SELLOWRAP.zip

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