Om Metallogic Makes Weak Debut with 1.16% Discount, Lists at ₹85.00 Against Weak Subscription

Om Metallogic Limited, the aluminium recycling company manufacturing high-quality aluminium alloys in forms of cubes, ingots, shots, and notch bars from scrap metal, made a disappointing debut on BSE SME on October 7, 2025. After closing its IPO bidding between September 29-October 1, 2025, the company commenced trading with a 1.16% discount opening at ₹85 and remained flat with losses of 1.16%.

Om Metallogic Listing Details

Om Metallogic Limited launched its IPO at ₹86 per share with a minimum investment of 3,200 shares costing ₹2,75,200. The IPO received weak response with a subscription of just 1.47 times — individual investors at 2.53 times and NIIs at 0.41 times.

First-Day Trading Performance Outlook

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Listing Price: Om Metallogic share price opened at ₹85 representing a discount of 1.16% from the issue price, and remained flat, delivering losses of 1.16% for investors reflecting cautious market sentiment towards the metal recycling sector.

Growth Drivers and Challenges

Growth Drivers:

• Diversified Product Portfolio: Comprehensive recycling of non-ferrous metals including aluminium, copper, brass, and zinc with manufacturing of standardized and custom alloy ingots serving automotive, electrical, construction, and manufacturing sectors.
• Technology-Driven Operations: State-of-the-art production facility in Ballabhgarh, Haryana with 5,280 TPA capacity and monthly capacity of 800 tons utilizing advanced machinery for efficient transformation of scrap metal into premium aluminium products.

Challenges:

• Revenue Stagnation History: FY23 and FY24 top line remained almost static at around ₹38 crore before FY25 jump to ₹60 crore raising questions about sustainability of growth trajectory in competitive metal recycling segment.
• Small Scale and High Risk: Very small operational scale with workforce of just 17 employees, small paid-up equity indicating longer gestation for migration, post-issue P/E of 16.42x appearing fully priced representing "High Risk/Low Return" proposition.

Utilisation of IPO Proceeds

• Manufacturing Expansion: ₹2.31 crore for modernization and expansion of existing manufacturing unit enhancing production capabilities and operational efficiency in aluminium recycling business.
• Working Capital and Debt: ₹8.50 crore for working capital requirements supporting inventory management and operations, plus ₹6.00 crore for debt repayment improving financial leverage from 0.88x debt-to-equity ratio.
• General Corporate Purposes: ₹3.33 crore supporting business operations and strategic initiatives for sustained growth in competitive metal recycling segment.

Financial Performance of Om Metallogic

• Revenue: ₹60.41 crore for FY25, showing impressive growth of 55% from ₹38.91 crore in FY24, though FY23 and FY24 remained almost static raising concerns about growth sustainability.
• Net Profit: ₹4.12 crore in FY25, representing exceptional growth of 86% from ₹2.22 crore in FY24, indicating substantial operational leverage and margin expansion benefits despite revenue stagnation history.
• Financial Metrics: Outstanding ROE of 42.37%, impressive ROCE of 55.50%, elevated debt-to-equity ratio of 0.88, modest PAT margin of 6.87%, moderate EBITDA margin of 10.40%, and estimated market capitalisation of ₹66.83 crore.