Sellowrap Industries IPO Lists at 8.43% Premium, Backed by Strong Investor Demand

The automotive components manufacturer, Sellowrap Industries Limited, made a decent debut on the NSE SME platform on August 1, 2025. After closing its IPO bidding between July 25 - July 29, 2025, the company commenced trading with an 8.43% premium to its issue price, delivering solid returns to investors backed by strong subscription response in the automotive manufacturing sector.

Sellowrap Industries Listing Details

Sellowrap Industries Limited launched its IPO at ₹83 per share with minimum investment of 3,200 shares costing ₹2,65,600. The IPO received exceptional response with subscription of 65.09 times - NII segment leading at remarkable 117.81 times, retail investors at 68.74 times, whilst QIB participation remained moderate at 18.76 times, reflecting strong retail and HNI confidence in automotive component manufacturing.

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First-Day Trading Performance Outlook

Listing Price: The Sellowrap Industries share price opened at ₹90 on NSE SME, representing a premium of 8.43% from the issue price of ₹83, delivering solid gains of approximately ₹22,400 per lot for allotted investors and demonstrating positive investor confidence in automotive component suppliers.

Sellowrap Industries delivered decent debut performance with moderate premium reflecting investor interest in automotive component companies with established OEM relationships.

Growth Drivers and Challenges

Growth Drivers:

Established OEM Relationships: Long-term partnerships with marquee domestic and global OEMs providing revenue stability and growth opportunities in automotive sector.

Diversified Product Portfolio: Comprehensive range including plastic injection moulding, PU-foam-moulding, and EPP moulding components serving automotive and white goods industries.

Multi-Location Manufacturing: Four manufacturing facilities with advanced technology and centralized R&D ensuring quality standards and operational efficiency.

Strong Financial Performance: Revenue growth of 17% and exceptional PAT growth of 68% in FY25 with healthy ROE of 21.25% demonstrating operational improvement.

Challenges:

Automotive Sector Cyclicality: Business dependent on automotive industry cycles and OEM production schedules affecting demand patterns and revenue predictability.

High Working Capital Requirements: Manufacturing business requiring substantial inventory and receivables management affecting cash flow dynamics.

Competitive Market Environment: Operating in the competitive automotive component sector with pricing pressures from established players.

Moderate QIB Interest: Lower institutional subscription at 18.76 times indicating selective institutional appetite for automotive component companies.

Utilisation of IPO Proceeds

Capital Expenditure: ₹12.40 crore for purchase of plant & machinery, infrastructure development, and auxiliary equipment enhancing manufacturing capabilities.

Working Capital Requirements: ₹10.00 crore for funding operational needs supporting business expansion and inventory management.

General Corporate Purposes: Remaining funds for strategic initiatives and operational requirements.

Financial Performance of Sellowrap Industries

Revenue: ₹163.31 crore for FY25, showing solid 17% growth from ₹139.09 crore in FY24, reflecting recovery in automotive sector and successful client expansion.

Net Profit: ₹9.97 crore in FY25, demonstrating impressive 68% growth from ₹5.95 crore in FY24, with significant profitability improvement through operational efficiency and scale benefits.

Financial Metrics: Strong ROE of 21.25%, healthy ROCE of 18.86%, moderate debt-to-equity of 0.81, modest PAT margin of 6.14%, EBITDA margin of 13.74%, and market capitalisation of ₹114.08 crore.

Sellowrap Industries represents a solid investment opportunity in the automotive components sector with decent listing performance delivering 8.43% premium backed by strong subscription response of 65.09 times.