ANB Metal Cast IPO Listing: Modest 5% Premium Debut

ANB Metal Cast Limited, the aluminium extrusion manufacturer, made a modest debut on NSE SME on August 18, 2025. After closing its IPO bidding between August 8-12, 2025, the company commenced trading with a 5% premium at ₹164, later rising to ₹172.20, meeting market expectations and reflecting cautious investor confidence in the aluminium manufacturing sector.

ANB Metal Cast Listing Details

ANB Metal Cast Limited launched its IPO at ₹156 per share with a minimum investment of 1,600 shares costing ₹2,49,600. The IPO received a moderate response with a subscription of 2.22 times - NII leading at 4.29 times, individual investors at 2.39 times, and QIB at 1.04 times, indicating mixed investor interest across categories in the aluminium extrusion business.

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First-Day Trading Performance Outlook

Listing Price: The ANB Metal Cast share price opened at ₹164 on NSE SME, representing a premium of 5.13% from the issue price of ₹156, later reaching ₹172.20 to deliver a 10.38% gain for investors and meeting market expectations.

Growth Drivers and Challenges

Growth Drivers:

Strong Financial Performance: Revenue surged by 45% to ₹162.64 crore in FY25 with PAT jumping by 92% to ₹10.25 crore, reflecting robust demand for aluminium extrusion products and operational efficiency improvements.

Diverse Product Portfolio: Wide range of aluminium extrusion products, including motor bodies, solar profiles, railings, and sliding windows, catering to electronics, automotive, mechanical, solar, and architectural sectors.

Strategic Manufacturing Setup: 50,000 sq. ft. manufacturing facility in Rajkot, Gujarat, dedicated to aluminium extrusions and non-ferrous metal alloys with optimal resource utilisation capabilities.

Multi-State Market Presence: Strong distribution network across Delhi, Gujarat, Haryana, Karnataka, Maharashtra, Rajasthan, and Tamil Nadu, providing geographic diversification and market reach.
 

Challenges:

High Debt Burden: Debt-to-equity ratio of 1.01 with total borrowings of ₹34.33 crore, creating financial leverage concerns and affecting cash flow generation capabilities.

Profit Sustainability Concerns: A Sudden surge in the bottom line from ₹5.34 crore in FY24 to ₹10.25 crore in FY25 raises questions about the sustainability of current profit levels in competitive market conditions.

Small Scale Operations: Relatively small employee base of 23 personnel and limited manufacturing capacity, potentially restricting competitive positioning against larger aluminium manufacturers.

Cyclical Industry Nature: The Aluminium industry's dependence on construction and infrastructure cycles exposes the company to market volatility and demand fluctuations.
 

Utilisation of IPO Proceeds

Working Capital Requirements: ₹21.50 crore for part funding long-term working capital requirements supporting inventory management and business operations in the aluminium manufacturing sector.

Capacity Expansion: ₹13.70 crore for funding capital expenditure requirements for the proposed expansion, including constructing additional floor and installing additional plant and machinery.

General Corporate Purposes: Remaining proceeds allocated for general corporate purposes supporting business operations and strategic initiatives in the aluminium extrusion sector.

Financial Performance of ANB Metal Cast

Revenue: ₹162.64 crore for FY25, showing exceptional growth of 45% from ₹112.15 crore in FY24, reflecting strong demand for aluminium extrusion products and market expansion.

Net Profit: ₹10.25 crore in FY25, representing a remarkable growth of 92% from ₹5.34 crore in FY24, indicating substantial operational improvements and margin expansion.

Financial Metrics: Exceptional ROE of 45.91%, solid ROCE of 24.13%, debt-to-equity ratio of 1.01, strong RoNW of 45.91%, healthy PAT margin of 6.30%, robust EBITDA margin of 10.74%, Price to Book Value of 3.72, and market capitalisation of ₹184.62 crore.