Bhadora Industries Limited is launching its Initial Public Offering (IPO) to raise ₹55.62 crore through a bookbuilding issue. This IPO will be listed on NSE and SME, offering investors an opportunity to participate in the growth of a company engaged in manufacturing industrial fasteners and components used across construction, machinery, vehicles, and infrastructure projects.
The IPO bidding window opens on 4th August 2025 and closes on 6th August 2025, with the tentative listing date on 11th August 2025. This comprehensive guide provides IPO details, financial analysis, GMP trends, subscription status, and pros and cons to help investors make an informed decision.
1. Bhadora Industries IPO Details
Bhadora Industries Limited is offering a fresh issue of 54 lakh shares with a face value of ₹10 per share. The price band is ₹97–₹103 per share, and the lot size is 1,200 shares.
| Particulars | Details |
|---|---|
| IPO Open Date | 4th August 2025 |
| IPO Close Date | 6th August 2025 |
| Allotment Date | 7th August 2025 |
| Refund Initiation | 8th August 2025 |
| Listing Date | 11th August 2025 |
| Face Value | ₹10 per share |
| Price Band | ₹97 to ₹103 per share |
| Lot Size | 1,200 shares |
| Issue Type | Bookbuilding IPO |
| Total Issue Size | ₹55.62 crore (54 lakh shares) |
| Listing Exchange | NSE & SME |
2. IPO Share Reservation
The IPO complies with SEBI’s reservation norms, distributing shares among different investor categories.
| Investor Category | Shares Offered |
|---|---|
| QIB | Not more than 50% of the issue |
| Retail | Not less than 35% of the issue |
| NII (HNI) | Not more than 15% of the issue |
This allocation ensures adequate participation from institutional investors while keeping retail opportunities open.
3. Bhadora Industries IPO GMP (Grey Market Premium)
As of 1st August 2025, the GMP stands at ₹0 per share, which implies that the estimated listing price remains ₹103, offering 0% listing gains initially.
| Date | IPO Price | GMP | Estimated Listing Price | Listing Gains |
|---|---|---|---|---|
| 01-08-2025 | ₹103.00 | ₹0.00 | ₹103.00 | 0.00% |
| 31-07-2025 | ₹103.00 | ₹0.00 | ₹103.00 | 0.00% |
| 30-07-2025 | ₹103.00 | ₹0.00 | ₹103.00 | 0.00% |
Note: GMP is highly dynamic and depends on market sentiment, subscription demand, and overall market trends.
4. Bhadora Industries Financial Performance
Financial performance plays a crucial role in determining IPO attractiveness. Bhadora Industries has demonstrated strong revenue and PAT growth over the last three years.
| Year Ended | Revenue (₹ Cr) | PAT (₹ Cr) | Assets (₹ Cr) | EBITDA (₹ Cr) | Net Worth (₹ Cr) |
|---|---|---|---|---|---|
| 31-Mar-2025 | 110.69 | 10.79 | 48.76 | 16.98 | 20.94 |
| 31-Mar-2024 | 83.27 | 4.96 | 25.87 | 6.79 | 10.15 |
| 31-Mar-2023 | 18.81 | 0.18 | 20.13 | 1.04 | 5.20 |
Key Observations
-
Revenue jumped 33% YoY, indicating strong market demand.
-
PAT surged 118% YoY, highlighting improved profitability.
-
EBITDA margin improved, and net worth doubled in one year, reflecting financial stability.
5. Technical Analysis of the IPO
Evaluating valuation metrics provides insights into whether the IPO is fairly priced.
| Metric | Value |
|---|---|
| PE Ratio (Pre-IPO) | 12.6 |
| EPS (Pre-IPO) | 8.17 |
| RoNW | 51.51% |
| ROCE | 42.41% |
| EBITDA Margin | 15.42% |
| Price-to-Book Value | 6.29 |
| Market Capitalisation | ₹191.58 Cr |
Post-IPO, the PE ratio will rise to 17.76, and EPS will adjust to 5.80 due to equity dilution.
6. Peer Comparison
Comparing with industry peers highlights Bhadora Industries’ positioning.
| Company Name | EPS | P/E | RoNW | Revenue (₹ Cr) |
|---|---|---|---|---|
| Bhadora Industries Ltd | 8.17 | 12.6 | 51.51% | 110.69 |
| Dynamic Cables Ltd | 14.74 | 27.14 | 17.34% | 771.00 |
| DCG Cables & Wires Ltd | 4.46 | 16.32 | 10.24% | 101.00 |
Bhadora Industries shows strong RoNW but lower revenue base, suggesting growth potential in a competitive market.
7. IPO Lot Size and Investment Requirements
The minimum bid size is 2 lots (2,400 shares), and the maximum for retail investors is also 2 lots.
| Investor Type | Min Shares | Min Amount | Max Shares | Max Amount |
|---|---|---|---|---|
| Retail (2 lots) | 2,400 | ₹2,47,200 | 2,400 | ₹2,47,200 |
| S-HNI (3-8 lots) | 3,600 | ₹3,70,800 | 9,600 | ₹9,88,800 |
| B-HNI (9 lots min) | 10,800 | ₹11,12,400 | – | – |
8. Promoter Holding Structure
| Shareholding | Pre-Issue | Post-Issue |
|---|---|---|
| Promoters | 92.42% | 65.59% |
Promoter dilution ensures wider market participation while retaining majority control.
9. Utilization of IPO Proceeds
Funds raised from the IPO will be used for:
-
Working capital requirements
-
General corporate purposes
10. Pros and Cons of Bhadora Industries IPO
Pros
-
Strong revenue and PAT growth
-
High RoNW and ROE indicate efficient capital utilization
-
Diversified industrial product portfolio
-
Experienced promoter group
Cons
-
Operates in a highly competitive and fragmented market
-
Limited production scale may restrict rapid expansion
-
Dependent on domestic demand and labor availability
11. Subscription Status and Investor Sentiment
The IPO subscription status will be available after 4th August 2025. A strong QIB and retail response may boost listing prospects even if initial GMP is flat.
12. Should You Invest in Bhadora Industries IPO?
Market analysts suggest that the IPO is fairly priced based on recent earnings, with medium to long-term potential. Short-term listing gains may be limited due to zero GMP, but long-term investors may benefit from consistent financial growth and strong return ratios.
Conclusion
The Bhadora Industries IPO, worth ₹55.62 crore, offers investors an opportunity to participate in a fast-growing industrial components manufacturer. While initial listing gains may be modest, the robust financials and high RoNW make it a potential medium-term investment opportunity.
Investors should evaluate subscription trends and market sentiment before finalizing their application to maximize returns.
