Utkal Speciality Industries India IPO: Fresh Issue of 54.24 Lakh Shares to Fund Expansion and Debt Reduction

Bhubaneswar, September 26 –  Utkal Speciality Industries India Ltd has filed draft papers with SEBI for an initial public offering (IPO) consisting of 54.24 lakh equity shares of ₹10 face value each. The issue is entirely new, without an offer for sale, and the company’s shares are proposed for listing on the NSE Emerge platform. The issue price band will be determined in consultation with the book-running lead manager, Affinity Global Capital Market Pvt. Ltd.

Utkal Speciality Industries India IPO Use of Proceeds

The company has several purposes for which it intends to use the funds obtained from the IPO. The amount of approximately ₹ 1,100 lakh will be utilized for repayment or prepayment of borrowings, ₹338.53 lakh will be used for working capital requirements, and ₹957.52 lakh will be used for capital expenditure to prepare a manufacturing plant in Khurda, Odisha. The rest shall be employed generally to the corporate purposes and costs of the offering and is likely to be incurred within the fiscal years 2026 and 2027.

Utkal Speciality Industries India IPO Financial Performance

Utkal Speciality has shown consistent growth in its financial performance. Net Worth increased to ₹2,163.68 lakh in FY25 from ₹995.45 lakh in FY24, nearly doubling year-on-year. Revenue increased to ₹5,027.94 lakh in FY25 from ₹4,415.23 lakh, indicative of stronger operations and profitability during the year.

Utkal Speciality Industries India IPO Strengths and Risks

The company identifies its product portfolio, driven by innovation, its focus on quality assurance, and efficient inventory management, as its primary advantages. Conversely, it suffers from high working capital intensity, raw material price fluctuations, ongoing capital expenditures, and significant competition in the specialty manufacturing industry.

Outlook

The IPO is anticipated to help lower debt, increase liquidity, and fund the expansion of the Khurda facility. With steady revenue increases and a focus on innovation, Utkal Speciality is in a strong position; ultimately, the success of its expansion plan will determine its long-term prospects.

REF: https://nsearchives.nseindia.com/emerge/corporates/content/Registration_25092025215809_DRHP.pdf

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