ANB Metal Cast
- ANB Metal Cast is coming out with an initial public offering (IPO) of 32,00,000 equity shares in a price band Rs 148-156 per equity share.
- The issue will open on August 8, 2025 and will close on August 12, 2025.
- The shares will be listed on SME Platform of NSE.
- The face value of the share is Rs 10 and is priced 14.80 times of its face value on the lower side and 15.60 times on the higher side.
- Book running lead manager to the issue is Sun Capital Advisory Services.
- Compliance Officer for the issue is Juhi Ronak Doshi.
Profile of the company
ANB Metal Cast specializes in manufacturing a wide range of aluminium extrusion products, including motor bodies, various profiles, round bars, solar profiles, railings, and sliding windows. The company’s products cater to a diverse array of industries, such as electronics, automotive, mechanical, solar, and architectural sectors. Its objective is to consistently deliver value to its customers by providing superior quality products and services at optimal costs, achieved through continuous improvement, integrity, and excellence in all aspects of its operations.
Its manufacturing unit is located in Rajkot, Gujarat, spanning about 50,000 sq. ft., and is dedicated to the production of aluminum extrusions and non-ferrous metal alloys. With its vast experience and high standards, it meets major industry specifications and customer requirements.
Currently, it offers a wide range of aluminum products, including hardware items, railing and architectural solutions, engineering products, kitchen profiles, and aluminum extrusion products like channels, sections, flat bars and tubes. These products are available in various profiles with a range of finishes, tolerances, and tempers, customized to meet specific customer requirements. The dies used in manufacturing these extrusions and profiles are custom-made and owned by the company. It possesses a large variety of dies, continuously expanding its collection based on customer designs and specifications to meet diverse industrial needs.
Proceed is being used for:
- Funding capital expenditure requirements for the proposed expansion in existing manufacturing facilities of the company by constructing additional floor and installation of additional plant and machineries
- Part funding long-term working capital requirement
- General corporate purposes
Industry Overview
India is the second largest aluminum producer, third largest lime producer and 4th largest iron ore producer in the world. Continued growth in production of iron ore and limestone in the current financial year reflects the robust demand conditions in the user industries viz. steel and cement. Coupled with growth in aluminum, these growth trends point towards continued strong economic activity in user sectors such as energy, infrastructure, construction, automotive and machinery. The production of iron ore has increased from 72 MMT in FY 2023-24 (April-June) to 79 MMT in FY 2024-25 (April-June), showing 9.7% growth. Limestone production rose from 114 MMT in FY 2023-24 (April-June) to 116 MMT in FY 2024-25 (April-June), with 1.8% growth. Production of manganese ore has jumped by 11% to 1.0 MMT in FY 2024-25 (April-June) from 0.9 MMT over the corresponding period of previous year.
The domestic imports of aluminum products, including scrap, are growing significantly, which is a major concern for the domestic aluminum producers. aluminum cans and containers are used extensively, world over. aluminum is also the ideal packaging material for pharmaceuticals and processed foods. In India, aluminum was consumed mainly in the Electrical sector (48%), followed by Automobile & Transport sector (15%), Construction (13%), Consumer Durables (7%), Machinery & Equipment (7%), Packaging (4%) and others (6%). In the Electrical sector, aluminum usage is in overhead conductor, and power cable used in generation, transmission and distribution of electricity. aluminum is also used in switchboards, coil windings, capacitors, etc. As per Technology Vision Document 2035, the per capita consumption of aluminum in India is among the lowest in the world with only 2.2 kg as compared to the world average of roughly 8 kg and with that of the developed nations which is 22-25 kg. Alumina is produced from bauxite. About one tonne of alumina is produced from 3 to 3.5 tonnes of bauxite and about one tonne of aluminum is produced from about two tonnes of alumina.
Indian market offers a huge potential for demand growth of aluminum Industry. To reach the global average of 11 kg per capita, India will require an additional annual consumption of 16 million tonnes, and if achieved India would become the second largest consumer in the world. Aluminum contributes to nearly 2% of manufacturing GDP and with projected consumption growth, the share (% of manufacturing GDP) may go higher. It is envisaged to expand the aluminum capacity from 4 MTPA to 12 MTPA by 2030. aluminum has forward linkages with key sectors like aviation, defence, auto, electricity, construction, packaging, machinery, marine etc. and backward linkages with mining, chemical, power, machinery etc. By speeding up investment in sectors with high backward and forward multipliers, the industrialisation process can be speeded up which would in turn enable accelerating economic growth. The cumulative demand for aluminum is set to rise by several hundred thousand tonnes by 2030.
Pros and strengths
Diverse product portfolio: The company’s long-term objective is to become a one-stop solution for all non-ferrous metal products, with a strong focus on aluminum extrusion offerings. Over time, it has expanded and diversified its product range and providing a variety of aluminum extrusion products to meet evolving market demands. With a large number of dies at its disposal, it can offer a wide array of customized aluminum profiles tailored made to its customers’ specific requirements. By diversifying its product offerings, it reduces dependency on any single industry and remain agile in responding to market shifts. Its ability to adjust its product lines according to customer needs ensures that it maintains a competitive edge while delivering value across various sectors.
Customization and flexibility: The ability to provide customized solutions tailored to client specifications is a significant advantage. By offering products in different sizes, shapes, and finishes, the company can meet the unique needs of diverse customers across industries. Owning a wide variety of dies for various extrusions and profiles, gives it the flexibility to add new designs based on customer requirements, which strengthens client relationships and enhances market reach.
Stringent quality control mechanism ensuring standardized product quality: Products quality is the key factor which is driving its growth and long-term success. It maintains a dedicated in-house quality control laboratory, where all pre- and post-production checks are done to ensure that its products meet the highest standards of durability, precision, and customer satisfaction. Its commitment to quality is reflected in its ISO 9001:2015 certification, signifying that its processes conform to international quality and environmental management standards.
Risks and concerns
Maximum revenue comes from limited customers: The company relies on a limited number of high-volume customers for a significant portion of its revenues, with its top ten customers contributing 92.08%, 87.00% and 79.96% of its total sales for the financial years ended March 31, 2025, 2024, and 2023, respectively. This dependence on a few key customers exposes it to several risks, including the potential reduction, delay, or cancellation of orders, as well as challenges in negotiating favourable terms. Any loss of these customers, or a failure to renew orders on similar terms, could materially affect its business, financial condition, cash flows, and future prospects.
Dependent on few suppliers for purchase of raw materials: The company’s top ten suppliers have accounted 93.37%, 89.48% and 80.71%, of its total purchases during the financial years ended March 31, 2025, 2024, and 2023, respectively. This significant dependence on a few high-volume suppliers exposes it to a variety of risks, including the possibility of disruptions in supply chains, fluctuations in product quality, or price instability in its raw materials. If one or more of these key suppliers’ experience challenges, such as financial difficulties, operational issues, or even discontinuation of business, it could face a shortage of essential supplies, impacting its ability to maintain stock levels and ultimately affecting its production, revenue and profitability.
Geographical constrain: The company’s manufacturing facility is located in Rajkot, Gujarat. This concentration exposes it to local and regional risks, including economic conditions, weather-related disruptions, natural disasters, demographic shifts, and unforeseen socio-political events. Any significant disturbances such as social unrest, political instability, policy changes by the state or central government, or increased competition in the region could adversely impact its business operations, financial condition, and cash flows.
Outlook
ANB Metal Cast manufactures high-quality aluminum extrusions, including motor bodies, solar profiles, railings and sliding windows. The company caters to various industries, such as electronics, automotive, mechanical, solar, and architectural sectors. The company has strong relationship with suppliers for sourcing raw materials. It has stringent quality control mechanism ensuring standardized product quality. On the concern side, a significant portion of the company’s revenue comes from key customers, and losing one or more of them, experiencing a decline in their financial health or business outlook, or facing a reduction in their demand for its products could negatively impact its business, operating results, financial condition, and cash flows. Moreover, the company is dependent on few suppliers for purchase of raw materials. Loss of any of these large suppliers may affect its business operations adversely.
The company is coming out with a maiden IPO of 32,00,000 equity shares of Rs 10 each. The issue has been offered in a price band of Rs 148-156 per equity share. The aggregate size of the offer is around Rs 47.36 crore to Rs 49.92 crore based on lower and upper price band respectively. On performance front, revenue from operations had increased by 44.99%, from Rs 11212.05 lakh in Fiscal 2024 to Rs 16256.86 lakh in Fiscal 2025. This increase in revenue was on account of rise in demand in previous year, which boosted its revenue from operations. Moreover, the company’s profit after tax had increased by 92.02% from Rs 533.63 lakh in the Fiscal 2024 to Rs 1024.71 lakh in Fiscal 2025.
As the company continues to grow and expand, its strategy is consistently meeting and exceeding quality standards. It recognizes that maintaining high-quality products is not only essential for customer satisfaction but also critical for regulatory compliance. Its focus is on ensuring that, as it scales, its commitment to delivering quality products remains unwavering. Its approach involves continuous monitoring and reviewing of product quality at every stage of the production process. By proactively addressing any quality deviations, it ensures that its products consistently meet the expectations of its customers. This focus on quality control helps it to build long-term relationships with clients. To support this strategy, the company has established a fully-equipped in-house quality control laboratory for thorough pre- and post-production checks. As its customer base diversifies and demands grow, it may also collaborate with third-party testing agencies to maintain the highest standards. This ensures that it remains agile and capable of meeting specialized quality requirements as it expands its operations.
