INDO SMC
- INDO SMC is coming out with an initial public offering (IPO) of 61,71,000 shares in a price band of Rs 141-149 per equity share.
- The issue will open on January 13, 2026 and will close on January 15, 2026.
- The shares will be listed on SME Platform of BSE.
- The face value of the share is Rs 10 and is priced 14.10 of its face value on the lower side and 14.90 times on the higher side.
- Book running lead manager to the issue is GYR Capital Advisors.
- Compliance Officer for the issue is Avani Patel.
Profile of the company
INDO SMC is an ISO 9001:2015 certified company mainly engaged in the design and manufacturing of enclosure box for energy meters, high tension current transformer (HTCT), high tension potential transformer (HTPT), low tension current transformer (LTCT), LT/HT distribution boxes and panels, fiberglass reinforced plastic (FRP) Grating, junction boxes, feeder pillars and other power distribution and circuit protection switchgears. Its products are crafted from materials such as sheet moulding compounds (SMC), fiberglass reinforced plastic (FRP), copper, mild steel and stainless steel, etc.
The company’s business primarily comprises of (i) sheet moulding compound division, under which it manufactures enclosure box for energy meters, SMC sheet and SMC chequered plates, (ii) fiberglass reinforced plastic in which it manufactures grating plates and (iii) electrical component division where it manufactures HTCT, HTPT, LTCT, feeder pillars and other power distribution and circuit protection switchgears. The company follows Indian Standards (IS) which are IS:13410 for SMC materials and IS:14772 for enclosure. The company has in-house testing laboratories to ensure products meet quality requirements and suitable material composition.
All the incoming materials are tested, and the finished product must comply with quality standards. Along with these quality certifications quality checks, it has been certified with ISO 14001:2015 for all products which it is manufacturing and supplying to its customers. In FRP, products such as FRP pultruded products, FRP moulded gratings and FRP storage tanks, these products are customized to a variety of industrial applications. FRP is a composite material made of polymer resins reinforced with fibres like fibreglass, carbon, or aramid. This combination has many advantages, including corrosion resistance, chemical resistance, high strength, lightweight characteristics, electrical and thermal non-conductivity, and ease of manufacturing.
Proceed is being used for:
- Funding capital expenditure of the company to purchase Plant and Machinery
- Funding the working capital requirements of the company
- General corporate purposes
Industry Overview
The Sheet Molding Compound (SMC) marketplace contains composite substances crafted from a aggregate of resin, filler, and chopped fibers, commonly utilized in car, construction, and electric programs. SMC offers blessings inclusive of lightweight properties, excessive energy, corrosion resistance, and great design flexibility, making it a preferred opportunity to metals in many commercial sectors. The growing demand for long lasting and fee-effective materials in transportation, energy, and customer items is fuelling SMC adoption international. A key emerging trend in the SMC market share is the developing use of SMC in manufacturing electric powered automobile (EV) components. As the EV industry expands, automakers are more and more in search of light-weight but long-lasting materials to enhance battery efficiency and vehicle performance. SMC’s specific aggregate of high strength-to-weight ratio, corrosion resistance, and thermal stability makes it ideal for producing battery enclosures, structural panels, and underbody shields. These properties help enhance vehicle variety and safety while helping complicated design necessities.
Meanwhile, the Fiber-Reinforced Polymer Composites Market size is estimated at $79.06 billion in 2025, and is expected to reach $102.01 billion by 2030, at a CAGR of 5.23% during the forecast period (2025-2030). Rising demand for lightweight, corrosion-resistant parts in transportation, wind energy, and infrastructure continues to widen the application envelope. Bio-based resins, closed-loop recycling systems, and thermoplastic matrices are moving from pilot scale to series production, signalling a decisive shift toward circular-economy solutions. Manufacturers are investing in vertical integration to insulate against carbon-fibre price swings and to improve supply-chain resilience. Regulatory pressure in Europe to restrict landfill disposal of composites is accelerating the commercialization of recyclable thermosets and repurposed carbon fibres.
The transformer market is experiencing significant growth due to rising electricity demand, renewable energy integration, and advancements in smart grid technology. Governments worldwide are investing in grid modernization and energy-efficient infrastructure, increasing the demand for high-performance transformers. The increasing adoption of electric vehicles (EVs) and rapid urbanization further drive market expansion. Additionally, industries are upgrading outdated transformer systems to reduce energy losses and improve operational efficiency. Technological advancements, such as dry-type and eco-friendly transformers, are gaining popularity due to their low maintenance, enhanced safety, and reduced environmental impact. The shift toward digital transformers with IoT-based monitoring systems enables predictive maintenance, reducing downtime and operational costs.
Pros and strengths
Diverse product range: The company’s diverse range of products strengthens its market position by catering to multiple industries, leveraging the versatility and durability of Sheet Moulding Compound (SMC) technology. Its range of products include electricity meter boxes, FRP (Fiber-Reinforced-Polymer) materials, and high- and low-tension capacitors, each designed to meet specific industry needs. The SMC-based electricity meter boxes offer durability and resistance to corrosion, moisture and UV radiation, making them ideal for India’s expanding electrical grid and harsh environmental conditions.
Strong manufacturing capabilities: The company’s strong manufacturing capabilities serve as a cornerstone for its competitive strength, allowing the company to meet large-scale demand while maintaining high-quality standards. The company operates with advanced production processes designed to maximize efficiency and reduce production time, which is critical for meeting the high-volume needs of utility companies, infrastructure projects, and industrial clients. The company’s facilities are equipped with the advanced machinery for SMC (Sheet Moulding Compound) production, enabling the creation of durable, precision-engineered components such as electricity meter boxes, FRP materials, and capacitors. These modern capabilities allow the company to produce products with consistent quality and scale production quickly to accommodate large orders or new product launches.
Robust quality assurance and control: The company’s commitment to quality assurance and control is cornerstone of its business operations, ensuring the delivery of high-performance and reliable products. It adheres to stringent quality standards, leveraging advanced testing facilities to conduct comprehensive checks at every stage of production. From raw material procurement to the final product, every process is meticulously monitored, supported by a skilled QA/QC team. By aligning with recognized standards and certifications, it ensures compliance with safety and performance norms. This customer-centric approach to quality not only enhances customer satisfaction but also reinforces its reputation as a trusted and reliable supplier in the industry.
Risks and concerns
Customer concentration and order cancellation risk: Maximum revenue comes from few limited customers. The company has garnered 82.94%, 65.75%, 75.92% and 87.97% of its total revenue from top ten customers for the period ended September 30, 2025 and financial year ended March 31, 2025, 2024 and 2023, respectively. It presently does not have any long-term or exclusive arrangements with any of its customers. It cannot assure that it will be able to sell the quantities it has historically supplied to such customers. In the event its competitors’ products offer better margins to such customers or otherwise incentivize them, there can be no assurance that its customers will continue to place orders with it. In addition, the company’s customers may also cancel purchase orders at short notice or without notice, which could have an impact on its inventory management. In the event of frequent cancellations of purchase orders, the same could have a material adverse effect on its business, financial condition, results of operations and cash flows.
Dependence on key suppliers may impact raw material availability and pricing: The company procures a large portion of its raw materials from a few key suppliers, with whom it does not have any long-term supply contracts and therefore, it cannot assure that it shall always have a steady supply of raw materials at prices favourable to the company. For the period ended September 30, 2025 and financial year ended March 31, 2025, 2024 and 2023, purchases from its top ten suppliers amounted to Rs 8531.49, Rs 3,178.50 lakh, Rs 1,620.93 lakh and Rs 572.64 lakh respectively which represented 92.31%, 32.14%, 65.29% and 73.80% of its total raw material Consumed. Further, discontinuation of such supply or a failure of these suppliers to adhere to the delivery schedule or the required quality could hamper its production schedule and therefore affect its business and results of operations.
Dependence on a specific geographic region could adversely affect operations: The company derives a substantial portion of its revenue from operations in the State of Gujarat and Maharashtra. For the period ended on September 30, 2025, around 90.20% of its total revenue was generated from customers located within Gujarat and Maharashtra. Consequently, its business performance is significantly dependent on the economic and industrial conditions prevailing in this region. Any adverse developments in the State of Gujarat and Maharashtra -- including changes in government policies, political instability, natural calamities, labor unrest, or a slowdown in industrial activity -- could materially and adversely affect its operations, revenue, and profitability. Further, its overdependence on a specific geographic region limits its ability to offset regional risks through diversification. While it intends to expand its operations to other regions in India, there can be no assurance that such efforts will be successful or that revenue from other regions will mitigate the impact of any regional downturn in Gujarat and Maharashtra.
Outlook
INDO SMC is engaged in the design and manufacture of a diversified range of products catering to electrical, industrial, and infrastructural applications. The company has in-house testing laboratories to ensure products meet quality requirements and suitable material composition. It has robust quality assurance and control. On the concern side, the company is primarily dependent upon few key suppliers for procurement of raw materials. Any disruption in the supply of raw materials from such selective suppliers and geographical location could have a material adverse effect on its business operations and financial conditions. Also, its revenue is largely dependent on the orders received from the customers through competitive bidding process.
The company is coming out with a maiden IPO of 61,71,000 equity shares of face value of Rs 10 each. The issue has been offered in a price band of Rs 141-149 per equity share. The aggregate size of the offer is around Rs 87.01 crore to Rs 91.95 crore based on lower and upper price band respectively. On performance front, revenue from operations of the company for Fiscal 2025 was Rs 13,869.25 lakh against Rs 2,803.38 lakh for Fiscal 2024, reflecting a substantial increase of 394.73%. Moreover, Profit after tax for the Fiscal 2025 were at Rs 1,544.09 lakh against profit after tax of Rs 300.36 lakh in fiscal 2024, an increase of 414.08%.
The company leverages its extensive market knowledge and expertise to drive business expansion and capitalize on emerging opportunities. With a deep understanding of industry trends and customer demands, the company strategically positions itself to address evolving market needs. This approach enables the company diversify its product portfolio, explore new geographies, and penetrate untapped markets. By leveraging its experienced and qualified management and established relationships, it wants to effectively identify growth opportunities and adapts to changing dynamics, ensuring a competitive edge. This strategy not only strengthens its market presence but also fosters sustainable growth and long-term profitability.
