SAMPAT ALUMINIUM IPO

Overview of the Public Offering

Key Dates for Investors

• Opening Date: 17 Sep 2025
• Closing Date: 19 Sep 2025
• UPI Payment Deadline: 19 Sep 2025 (5 PM)
• Allotment Announcement: 22 Sep 2025
• Refund Processing: 23 Sep 2025
• Demat Credit: 23 Sep 2025
• Stock Market Listing: 24 Sep 2025
• Mandate Validity End: 05 Oct 2025
• Anchor Investor Lock-in Release (50%): 22 Oct 2025
• Anchor Investor Lock-in Release (Remaining): 21 Dec 2025

*Dates may be revised as per official updates from the company and regulatory bodies.

About Sampat Aluminium: A Leader in Aluminium Long Products

Sampat Aluminium, a company with over 25 years of experience in the sector, specializes in the manufacturing of aluminium long products. Its primary offerings include a diverse range of aluminium wires and rods. The company sources its raw materials from aluminium ingots, rods, wires, and also significantly engages in the recycling of aluminium scrap, showcasing a commitment to sustainable practices.

The core of Sampat Aluminium’s manufacturing prowess lies in its utilization of the ‘Properzi process’. This advanced technique enables the company to produce continuously cast and hot-rolled aluminium products known for their quality and consistency. Their comprehensive product portfolio caters to a variety of industrial needs, featuring Aluminium Wires in popular sizes of 5.5 MM and 6.5 MM, alongside Aluminium Rods available in sizes such as 7.5 MM, 9.5 MM, 12.5 MM, 16 MM, and 20 MM. These products are meticulously manufactured to meet specific customer specifications, ensuring high client satisfaction.

With a robust operational footprint, Sampat Aluminium serves a broad market across 14 states and 2 Union Territories throughout India. This extensive reach allows the company to cater to various industries that require high-quality aluminium products, establishing its position as a significant player in the domestic aluminium manufacturing landscape.

IPO Fundraising Structure

The Sampat Aluminium IPO is structured entirely as an Offer for Sale (OFS), amounting to ₹30.53 crores. In an OFS, existing shareholders sell their shares, and the proceeds go directly to these selling shareholders, not into the company’s coffers. This differs from a fresh issue, where new shares are issued by the company to raise capital for its operations or expansion. While an OFS does not infuse fresh capital into the company, it provides liquidity to existing investors and facilitates wider public ownership, enhancing the company’s market visibility and governance.

Strategic Utilization of IPO Proceeds

Despite the IPO being an Offer for Sale, the company has outlined its strategic utilization of capital, which will be funded through other means including internal accruals or debt. The largest portion, approximately 76.4% or ₹23.32 crores, is earmarked for the establishment of a new manufacturing facility in Borisana, Mehsana. This expansion is crucial for enhancing production capacity, improving operational efficiency, and potentially broadening the company’s product range or market penetration. The remaining 23.6%, equivalent to ₹7.21 crores, has been allocated for general corporate purposes. This flexible allocation will support various operational and strategic needs, including working capital requirements, administrative expenses, and other ongoing business activities essential for sustaining growth and achieving long-term objectives.

Distinctive Strengths of Sampat Aluminium

• Extensive Industry Experience: With over 25 years in aluminium processing, the company boasts deep expertise and a proven track record, complemented by its adoption of the reliable ‘Properzi process’ technology. This long-standing presence signifies stability and accumulated knowledge in a dynamic industry.
• Comprehensive Product Range: Sampat Aluminium offers a wide array of aluminium wires and rods in various dimensions. This diversity enables the company to cater to a broad spectrum of customer needs across different industrial applications, enhancing its market adaptability.
• Widespread Market Presence: The company’s operations span across 14 states and 2 Union Territories in India. This extensive geographical reach not only ensures broad market access but also mitigates regional concentration risks, supporting sustained demand for its products.
• Commitment to Sustainability: A significant focus on recycling aluminium scrap underscores the company’s dedication to environmental sustainability. This practice not only reduces waste but also provides a cost-effective raw material source, aligning with modern ecological and economic imperatives.
• Customer-Centric Manufacturing: Producing items strictly according to customer specifications fosters strong client relationships and repeat business. This customized approach ensures that products precisely meet client requirements, reinforcing trust and loyalty.

Key Considerations and Potential Risk Factors

• Reliance on External Raw Material Suppliers: The company’s business model is heavily dependent on external suppliers for its primary raw material, aluminium. Fluctuations in supply availability or pricing from these third parties could directly impact production costs and overall profitability.
• Aluminium Market Volatility: The aluminium industry is inherently sensitive to cyclical economic trends and market price volatility. Such fluctuations can significantly affect the company’s revenue and profit margins, making financial forecasting challenging.
• Absence of Long-Term Customer Contracts: Sampat Aluminium primarily conducts its business on a purchase order basis, lacking long-term contracts with customers. This could lead to uncertainty in future demand and revenue streams, requiring constant efforts to secure new orders.
• Geographical Concentration Risk: A substantial portion of the company’s revenue is generated from operations within Gujarat and Maharashtra. This geographical concentration exposes Sampat Aluminium to regional economic downturns or regulatory changes specific to these states, posing a concentration risk.
• Historical Negative Cash Flows: The company has experienced negative net cash flows from operating activities in some past years. Persistent negative operating cash flows could indicate challenges in generating sufficient cash from core business activities, potentially impacting liquidity and future growth investments.
• Product Concentration Risk: Sampat Aluminium’s revenue is significantly dependent on Aluminium Rods and Aluminium Wire products. A downturn in demand for these specific products or increased competition in these segments could adversely affect the company’s financial performance.

Latest Subscription Performance

The subscription figures below reflect investor interest as of 5:00 PM on September 19, 2025, providing insight into the demand for Sampat Aluminium shares:

The robust subscription across all investor categories, particularly from Non-Institutional Investors (NII) and Retail Individual Investors (RII), indicates strong investor confidence and significant demand for Sampat Aluminium’s shares. The overall subscription rate of 169.09 times highlights substantial interest from the market. This enthusiastic response suggests that investors view the company’s business model, market position, and future prospects favorably. Strong subscription numbers are often considered a positive indicator for an IPO’s listing performance, reflecting a positive sentiment from various market participants.

*Subscription figures are based on exchange data and are considered reliable indicators of market interest. Any unofficial Grey Market Premium (GMP) figures are speculative and should be treated with caution.

Seamlessly Participate in the Sampat Aluminium IPO

Investors keen on participating in the Sampat Aluminium IPO can submit their applications conveniently through the official Dhan Kirti IPO platform. Ensure your application is submitted before the subscription window officially closes to be considered for allotment.