Kasturi Metal Composite IPO Makes Flat Debut, Lists at ₹64 Against Strong 17.75x Subscription

Kasturi Metal Composite Ltd, an Amravati-based company incorporated in 2005 engaged in manufacturing, supply and export of steel fiber products for industrial applications manufacturing Steel Wool Fiber for brake pads and clutches, trading Durocrete PP Fibers, and offering concrete flooring solutions through Durafloor Concrete Solution LLP marketing Duraflex and Durabond products for industries like construction, mining, and automotive offering solutions for tunnels, roads, bridges, and more ensuring structural integrity and quality, made a flat debut on BSE SME on Tuesday, February 3, 2026. After closing its IPO bidding between January 27-29, 2026, the company commenced trading flat at issue price of ₹64.00, touched high of ₹64.50 (up 0.78%) before dipping to low of ₹60.80 (down 5%) and trading around ₹63.99 (flat from issue price).

Kasturi Metal Composite Listing Details

Kasturi Metal Composite launched its IPO at ₹64 per share with minimum investment of 4,000 shares costing ₹2,56,000. The IPO received healthy response with subscription of 17.75 times - individual investors at 16.49 times, NII at 38.88 times (bNII at 46.95 times, sNII at 22.88 times), QIB at 4.00 times, total applications of 5,034.

First-Day Trading Performance

Listing Price: Kasturi Metal Composite opened at ₹64.00 representing flat listing at issue price of ₹64.00, touched high of ₹64.50 (up 0.78%) before declining to low of ₹60.80 (down 5%), trading around ₹63.99 (flat), with VWAP at ₹63.60, with turnover of ₹5.92 crore, traded volume of 9.32 lakh shares, and market capitalisation of ₹66.52 crore in line with pre-IPO market cap of ₹66.53 crore.

Growth Drivers and Challenges

Growth Drivers:

Strong Manufacturing Capabilities: Operating three units in MIDC Amravati with Unit 1 for fine wire drawing and Units 2-3 for steel fibers and mild steel wire production ensuring efficient operations and quality products serving diverse industrial applications.

Diversified Product Portfolio: Wide range of steel fiber products including Duraflex Steel Fibers for tunnels, mines, and rock stabilization, Industrial Flooring Fibers for warehouses, factories, roads, and Durabond Steel Wool Fiber with high thermal stability available in various grades.

Domestic and Export Presence: Catering to domestic markets as well as export revenue with established relationships with customers across various geographical locations serving construction, mining, and automotive industries.

Expansion Plans: Setting up new manufacturing facility (Proposed Unit IV) at Amravati with ₹13.29 crore IPO proceeds enhancing production capacity and market reach.

Challenges:

Aggressive Pricing: Analyst notes issue appears aggressively priced with bumper H1-FY26 earnings appearing to be window dressing for fancy valuations.

Bottom Line Inconsistency: Company posted growth in top lines for reported periods but bottom line marked inconsistency with PAT of ₹2.35 crore in FY24 declining to ₹2.07 crore in FY25 despite revenue growth.

Leverage Position: Total borrowings of ₹14.28 crore against net worth of ₹20.19 crore with debt-to-equity of 0.71, significant promoter dilution from 92.35% to 67.90% post-IPO.

Utilisation of IPO Proceeds

New Manufacturing Facility: ₹13.29 crore for funding capital expenditure towards mechanical and electrical works, interior work and procurement of plant and machinery for setting up new manufacturing facility at Amravati (Proposed Unit IV).

General Corporate Purpose: Remaining amount for general corporate purposes.

Financial Performance

Revenue: ₹32.29 crore for H1 FY26, ₹57.22 crore for FY25, growth from ₹50.20 crore in FY24 and ₹37.37 crore in FY23.

Net Profit: ₹2.47 crore in H1 FY26, ₹2.07 crore in FY25, versus ₹2.35 crore in FY24 and ₹1.49 crore in FY23, demonstrating improving H1 FY26 profitability with post-IPO EPS of ₹4.75 and P/E of 13.47x.