HRS Aluglaze Limited Makes Exceptional Debut with 31.25% Premium, Lists at ₹126.00 Against Outstanding Subscription

HRS Aluglaze Limited, incorporated in 2012 engaged in design, manufacturing, and installation of aluminum products including windows, doors, curtain walls, cladding, and glazing systems providing standard and customized solutions to builders, contractors, architects, and institutions along with material supply and procurement support, made an exceptional debut on BSE SME on December 18, 2025. After closing its IPO bidding between December 11-15, 2025, the company commenced trading with a premium of 31.25% opening at ₹126.00 and hit upper circuit at ₹132.30 (up 37.81%).

HRS Aluglaze Limited Listing Details

HRS Aluglaze launched its IPO at ₹96 per share with minimum investment of 2,400 shares costing ₹2,30,400. The IPO received outstanding response with subscription of 44.83 times - individual investors at 49.54 times, QIB at 19.48 times, NII at 82.13 times.

First-Day Trading Performance

Listing Price: HRS Aluglaze opened at ₹126.00 representing premium of 31.25% from issue price of ₹96.00, quickly hit upper circuit at ₹132.30 (up 37.81%), with stock exceeding grey market expectations of 23% premium indicating strong market enthusiasm, reflecting exceptional investor demand for aluminum products manufacturer defying weak market sentiment with outstanding subscription of 44.83 times.

Growth Drivers and Challenges

Growth Drivers:

Exceptional Growth Trajectory: Revenue increased 56% and PAT surged 188% between FY24 and FY25, exceptional ROE of 34.24%, ROCE of 15.97%, RoNW of 34.24%, healthy PAT margin of 12.22%, strong EBITDA margin of 25.42% demonstrating operational excellence.

Strong Order Book: As of September 2025, company had orders on hand worth approximately ₹103 crore providing revenue visibility, 28 active projects across diverse client base, proven track record with strong client relationships.

Challenges:

Aggressive Valuation: Issue appears aggressively priced according to analyst review with recommendation only for well-informed, risk seekers, and cash surplus investors while others should ignore, post-issue P/E of 20.40x appears elevated.

High Leverage: Debt-to-equity ratio of 1.92 representing one of highest leverage ratios among SME IPOs, total borrowings of ₹38.66 crore against net worth of ₹20.11 crore creating significant financial risk.

Competitive Market: Operating in highly competitive and fragmented aluminum products manufacturing and installation segment, project-based revenue model creating lumpiness and execution risks, significant promoter dilution from 100% to 72.49%, vulnerable to aluminum price volatility, real estate sector cycles, and project delays, limited operational history with just 13 years operations, small scale with 90 personnel raising scalability concerns.

Utilisation of IPO Proceeds

Capacity Expansion: ₹18.30 crore for funding capital expenditure to set up assembly and glass glazing line at Rajoda for facade work enhancing manufacturing capabilities.

Working Capital: ₹19.00 crore for funding working capital requirements supporting project execution, inventory management, and business operations.

General Corporate Purposes: ₹7.62 crore allocated for general corporate purposes supporting operational needs and strategic initiatives.

Financial Performance

Revenue: ₹42.14 crore for FY25, impressive growth of 56% from ₹26.97 crore in FY24, reflecting expanding project pipeline and successful execution across doors and windows, curtain walls, cladding, and glazing systems.

Net Profit: ₹5.15 crore in FY25, strong growth of 188% from ₹1.79 crore in FY24.

Financial Metrics: Exceptional ROE of 34.24%, ROCE of 15.97%, high debt-to-equity of 1.92, RoNW of 34.24%, healthy PAT margin of 12.22%, strong EBITDA margin of 25.42%, price-to-book of 6.53x, post-issue EPS of ₹4.71, P/E of 20.40x, net worth of ₹20.11 crore, total borrowings of ₹38.66 crore, order book of ₹103 crore, and market capitalisation of ₹255.03 crore representing exceptional listing premium of 31.25% hitting upper circuit at 37.81% despite analyst concerns about aggressive pricing and high leverage.