Sampat Aluminium shares set to list today; GMP hints at modest debut

Sampat Aluminium will debut on the BSE SME platform on Wednesday after concluding one of the strongly subscribed issues in recent months. The Rs 30.53 crore IPO, which was open for bidding between September 17 and 19, saw overwhelming investor response with an overall subscription of 169.09 times.

The IPO comprised a fresh issue of 25.44 lakh shares priced in the band of Rs 114–120 per share. At the upper end, the company’s post-issue market capitalisation is estimated at Rs 101.77 crore.

Grey Market Premium (GMP)

Ahead of the listing, Sampat Aluminium is trading at a grey market premium (GMP) of Rs 8 per share. This translates into an expected 8% gain over the issue price of Rs 120. While not spectacular, the GMP indicates cautious optimism from the street, especially given the strong oversubscription numbers.

Subscription details

The IPO drew healthy demand across categories. The retail portion was subscribed 161.68 times, non-institutional investors (NIIs) put in bids 295.88 times their quota, and qualified institutional buyers (QIBs) subscribed 87.02 times. Anchor investors had already committed Rs 8.51 crore ahead of the opening.

Company background

Sampat Aluminium manufactures aluminium wire rods and wires using ingots and recycled scrap through the ‘Properzi process’ of continuous casting and hot rolling. Its products are widely used in electricity distribution, transformers, construction, and telecommunications, owing to aluminium’s durability, lightweight properties, and cost efficiency.

The company’s manufacturing unit at Kalol, Gujarat has an annual capacity of 8,400 metric tonnes. It offers aluminium rods ranging from 7.5 mm to 20 mm and wires in the 5.5 mm to 6.5 mm range, with purity levels of 98%–99.5%.

Financials

On the financial front, the company reported revenues of Rs 133 crore in FY25, down 11% from Rs 149 crore in FY24. Profit after tax rose marginally to Rs 6.93 crore in FY25 from Rs 6.58 crore in the previous year. Margins improved to 5.22% as the company optimised costs despite lower sales.

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