Systematic Industries IPO Opens Today with ₹115 Crore Issue and Anchor Book Raising ₹32.91 Crore

Mumbai, 24 September 2025: Systematic Industries Limited has launched its ₹115 crore Initial Public Offering (IPO), which opened for subscription today, 24 September, and will close on 26 September. The company is scheduled to list on the BSE SME platform on 1 October 2025.

Incorporated in 2000, Systematic Industries manufactures a diverse range of steel wires and wire products. Its portfolio includes galvanised wires, stainless steel wires, high-carbon wires, speciality wires, and optical ground wires (OPGW). The company caters to industries such as power transmission, telecom, infrastructure, and agriculture.

It operates four manufacturing facilities strategically located in Dadra & Nagar Haveli and Gujarat, enabling it to serve industrial sectors efficiently. Post-IPO, promoter shareholding will reduce from 99.95% to 73.41%.

IPO Subscription Opens with Price Band of ₹185-₹195 per Share

Systematic Industries IPO comprises a fresh issue of 55,28,000 equity shares and an Offer for Sale (OFS) of 4,00,000 shares by Siddhant Ispat Pvt Ltd. The total of 59,28,000 equity shares are being offered at a price band of ₹185–₹195 per share. Investors can bid in lots of 600 shares, translating to an application amount of ₹1,17,000 per lot at the upper band. Hem Finlease Pvt Ltd has been appointed as the market maker, reserving 3,00,000 shares for this purpose.

Anchor Allocation Raises ₹32.91 Crore Ahead of IPO Opening

On 23 September 2025, Systematic Industries allotted 16,87,800 equity shares to 15 anchor investors at ₹195 per share, aggregating to ₹32.91 crore. Leading participants in the anchor round included:

• Sanshi Fund-I, which secured 2,56,800 shares (15.22% of anchor book) worth ₹5 crore.
• Bharat Venture, which took 2,05,200 shares (12.16%) for ₹4 crore.
• Mint Focused Growth Fund and Tattvam AIF Trust, each picking up 1,54,200 shares (9.14%) valued at ₹3 crore each.

Other participants included Grobiz SME Fund, Vikasa India EIF, and SB Opportunities Fund II, collectively completing the anchor allocation.

Financials Show Revenue Growth of 39.5% in Two Years and Profits Nearly Triple Since FY23

Systematic Industries has reported consistent financial growth over the last three financial years. Total income increased from ₹32,190 lakh in FY23 to ₹44,921 lakh in FY25, marking a 39.5% rise in two years. Net profit rose sharply from ₹631 lakh in FY23 to ₹1,846 lakh in FY25, nearly a threefold increase.

Earnings per share (EPS) climbed from ₹5.18 in FY23 to ₹10.99 in FY25, while net worth improved from ₹4,963 lakh to ₹8,083 lakh during the same period. On the liability side, borrowings rose from ₹6,226 lakh in FY23 to ₹9,912 lakh in FY25, reflecting higher leverage used to fund growth.

This performance indicates strengthening margins and scale expansion, although the rising borrowings highlight balance sheet risks.

Strengths in Diversified Products and Transmission Markets Balanced by Steel Price Volatility and Legal Cases

Systematic Industries’ strengths lie in its diverse product portfolio, strong presence in the power transmission market (68% of FY25 revenue), and established manufacturing base with ISO certifications. The company has shown steady revenue growth with improving margins, supported by demand across the infrastructure and telecom sectors.

However, risks remain significant. The company faces high dependency on steel, exposing margins to raw material price volatility. Borrowings of ₹9,912 lakh as of FY25 increase financial leverage concerns. Additionally, the firm and its promoters are subject to legal proceedings worth ₹175 lakh, which remain unresolved.

Lead Manager and Registrar Oversee IPO Process

Hem Securities Limited is the Book Running Lead Manager for the IPO, while Cameo Corporate Services Limited has been appointed as Registrar to the issue.

Systematic Industries’ IPO marks a significant step in expanding its financial base while addressing growth opportunities in power and telecom-linked infrastructure markets. With strong revenue growth and established operations, the offering highlights both the potential and the risks faced by steel wire manufacturers operating in cyclical and capital-intensive industries

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