Om Metallogic coming with IPO to raise Rs 22.35 crore

Om Metallogic 

• Om Metallogic is coming out with an initial public offering (IPO) of 25,98,400 equity shares of face value of Rs 10 each for cash at a fixed price of Rs 86 per equity share. 
• The issue will open on September 29, 2025 and will close on October 1, 2025.
• The shares will be listed on SME Platform of BSE.
• The share is priced at 8.60 times higher to its face value of Rs 10.
• Book running lead manager to the issue is Corporate Makers Capital.
• Compliance Officer for the issue is Prachi Gupta. 

Profile of the company

Incorporated in 2011, Om Metallogic is an aluminium recycling company, primarily engaged in processing aluminium-based metal scrap to manufacture aluminium alloys in the form of ingots. The versatile properties of aluminium and its alloys, results in it being used in automobiles Industry. Aluminium alloys are used in mostly automobiles components due to its stiffness, corrosion resistance and excellent strength to weight ratio.

Its manufacturing facility has accreditations such as ISO 9001:2015 for quality management systems. Its manufacturing unit is situated in an area of 33600 sq. feet at Ballabhgarh, Haryana, India, and has 5,280 Ton per Annum installed capacity for processing aluminium scrap. Its manufacturing facility is strategically located near to majority of its customers’ manufacturing facilities allowing it to optimise its deliveries, reduce lead times and facilitate greater interaction with its customers.

Its Promoters have been instrumental in the business growth of the company and are actively engaged in corporate strategy and planning. The company is promoted by Manish Sharma and Seema Sharma who were the subscribers to the memorandum of Association at the time of Incorporation of the company, they are also the Executive Directors of the Company. Its promoters are the guiding force behind the strategic decisions of the company and under their guidance, the company has been able to successfully execute its business strategies over the years.

Proceed is being used for:

• Financing the Capital expenditure requirements for the purchase of Equipment/Machineries for existing manufacturing facility
• To part finance the requirement of working capital
• Repayment/pre-payment, in full or in part, of certain borrowings availed by the company
• Meeting General corporate purposes

Industry Overview

The India Aluminium Market, valued at $13.77 billion in 2024, continues to demonstrate strong growth potential with a projected CAGR of 6.27% through 2030. The demand for aluminium remains robust across key industries such as automotive, construction, electrical, and packaging, driven by its lightweight, high-strength, and corrosion-resistant properties. In FY 2025, the automotive sector sustained its trajectory as a major growth driver. The transition toward electric vehicles (EVs) significantly accelerated the use of aluminium in lightweight structures and battery enclosures. With India aiming to achieve 30% EV penetration by 2030, the demand for aluminium-intensive components is expected to grow steadily. 

Aluminium is 100% recyclable and consumes 95% less and releases 95% less greenhouse gases as compared to primary aluminium and there is no loss of properties or quality during the recycling process. Products of aluminium, such as, UBC (Used Beverages Can), aluminium foils, plates and automotive components can be easily recycled, thereby, saving energy and reducing greenhouse emissions. Aluminium recycling process is less capital intensive than primary metal production as the process requires only 5% of energy, i.e.,13-15 thousand units of power for producing one tonne of aluminium through primary route.

Recycling of aluminium saves about 6 kg of bauxite/kg and 14 kWh of electrical energy /kg of primary aluminium. Besides, it keeps the emission levels of greenhouse gases as low as 5% from the actual emission experienced during primary production. Further, recycling facilitates reduced stress on the use of bauxite and thereby preserving about six lakh tonnes of bauxite resources every year.

Pros and strengths

In-house manufacturing facility supported by technology driven process: It presently carries all its manufacturing operations through its production facility located at Haryana, India, which has 5,280 Ton per Annum installed capacity for processing aluminium scrap. It has been able to setup an efficient, technology driven manufacturing process that has helped it to manufacture its products in accordance with the requirements and specifications of its customers in a cost-effective manner. Its infrastructure in the manufacturing facility gives it the flexibility to process various types of metal scrap, and manufacture alloys in line with the required composition and also enables it to process and utilize various types of scrap. 

Long-standing relationship with customers: It serves a client base of manufacturers to automotive and ancillaries units, and other units engaged in manufacturing or distribution of aluminium products. It generally does not enter into long term agreements with its customers; however, it has developed long-standing relationships with these customers. Maintaining strong relationships with its key customers is essential to its business strategy and to the growth of its business. Owing to its strong customer relationships and product quality, it has been able to retain a number of its customers for a long period of time ensuring uninterrupted supplies of its products to them. 

Focus on quality and timely delivery: It stresses on and constantly strives to maintain and improve its quality. Its focus on quality and innovation helps it to complete in the segment it deals. Intensive care is taken to determine the standard of every material/ product dispatched. Further, as a certification of the quality assurance, the company has received ISO 9001:2015 for quality management systems. Its focus on quality of products has enabled it to sustain its business model to benefit its customers.

Risks and concerns

Dependent on few customers: For the period ended March 31, 2023, March 31, 2024 and March 31, 2025, its revenue from operations from its top 10 customers contributed to 95.79%, 99.33% and 98.74% respectively of its revenues from operations. Its reliance on a limited number of customers for its business exposes it to risks, that may include, but are not limited to, reductions, delays or cancellation of orders from its significant customers, a failure to negotiate favourable terms with its key customers or the loss of these customers, all of which would have a material adverse effect on the business, financial condition, results of operations, cash flows and future prospects of the company.

Geographical constrains: For the financial year ended March 31, 2025, its revenue from its customers situated in Delhi, Haryana and Uttar Pradesh contributed 2.55%, 96.36% and 1.10% respectively of its revenue from operations. It generates major domestic sales through its customers situated in Haryana. Its business operations are majorly concentrated in certain geographical regions and any adverse developments affecting its operations in these regions could have a significant impact on its revenue and results of operations.

Dependent upon steel and automotive-parts industry: Its revenues are significantly dependent on the performance of the steel sector and automotive sector. Any material change in these factors resulting in significant reduction in vehicle sales and production could have a significant negative effect on the demand for its products. Any downturn or cyclical fluctuation in both these sectors could reduce the demand for its products which can adversely impact its business, results of operations, cash flows and financial condition. Further, the automotive industry tends to be affected directly by trends in the general economy.

Outlook 

The company is engaged in the business of Processing of Aluminium based Metal Scarp to Manufacture Aluminium Alloys in the form of Ingots. Its manufacturing facility has accreditations such as ISO 9001:2015 for quality management systems. On the concern side, the company is dependent on third party transportation providers for the delivery of its input materials and products and any disruption in their operations or a decrease in the quality of their services could affect the company's reputation and results of operations. Moreover, the company requires significant amounts of working capital for a continued growth. its inability to meet its working capital requirements may have an adverse effect on its results of operations. 

The company is coming out with an IPO of 25,98,400 equity shares of face value of Rs 10 each for cash at a fixed price of Rs 86 per equity share to mobilize Rs 22.35 crore. On performance front, its revenue from operations increased by 55.65% to Rs 5,999.62 lakh for the financial year 2024-25 from Rs 3,854.50 lakh for the financial year 2023-24. Its profit after tax increased by 100.99% to Rs 221.60 lakh for the financial year 2023-24 from Rs 110.25 lakh for the financial year 2022-23.

Meanwhile, a key strategy for increasing and growing its business is to increase the strength of its relationship with its existing customers, reaching out for new customers & widen its customer base. Its strategy is to widen its customer base geographically as well as demographically. It intends to continue to invest in its existing services so as to provide better experiences to its existing clients and also provide services for increasing the client base of the company. Moreover, it will continue to focus on further increasing its operations and improving operational effectiveness at its production facility.