What is Krupalu Metals IPO GMP Today?
As of today, the Krupalu Metals IPO GMP is at ₹0. This means that the estimated listing price is ₹72, with no expected listing gains. This is a crucial detail for investors to consider. Unlike a book-build IPO, where GMP reflects price discovery, a fixed-price issue has no such flexibility. The lack of a premium in the grey market suggests that the market sentiment is neutral to cautious, and investors should rely solely on the company's fundamentals for their investment decision.
A Look at the Business: Krupalu Metals
Krupalu Metals Limited is a Jamnagar-based manufacturer specializing in brass and copper products. The company's business model is centered on producing a wide range of products for various industries, including electrical, automotive, and construction.
The company's product portfolio includes:
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Brass and copper sheets and strips.
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Customized metal components like cutting components, inserts, pipe fittings, and terminals.
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Value-added products such as bus bars and electrical components.
The company's manufacturing facility is strategically located in Jamnagar, Gujarat, which is famously known as the "Brass City of India." This geographical advantage gives the company access to a skilled workforce and a robust supply chain.
Factual Data at a Glance:
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Total IPO Size: A fixed-price issue of ₹13.48 crores, which is entirely a fresh issue of 0.19 crore shares.
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IPO Dates: The subscription window is open from September 8, 2025, and closes on September 11, 2025.
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Listing Timeline: Allotment is expected to be finalized on September 12, 2025, with a tentative listing date of September 16, 2025, on the BSE SME platform.
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Price: The fixed price is ₹72.00 per share.
Financial Performance: A Positive Trajectory
Krupalu Metals has demonstrated a strong and consistent financial performance.
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Revenue from Operations: The company's revenue has increased from ₹37.12 crore in FY24 to ₹48.50 crore in FY25, a growth of over 30%.
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Profit After Tax (PAT): PAT has also shown robust growth, rising from ₹1.55 crore in FY24 to ₹2.15 crore in FY25, a jump of nearly 39%.
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Key Ratios: The company has an impressive Return on Net Worth (RoNW) of 35.12% for FY25, indicating strong profitability and efficient use of equity.
The company's consistent growth in both its top and bottom lines is a key positive for this IPO.
The Local Perspective: Metals in Jamnagar, Gujarat
Gujarat is a major manufacturing hub, and its city of Jamnagar is a cornerstone of the brass and copper industry in India. The presence of a high concentration of manufacturers, a skilled labor pool, and a well-established supply chain creates a favorable ecosystem for companies like Krupalu Metals. This locational advantage, combined with the company's plans to use the IPO proceeds for capacity expansion, positions it well to capitalize on the growing domestic and international demand for its products. The investment in new machinery will allow the company to produce a wider range of products and increase its overall capacity.
Key Risks and Investment Considerations
While the company has a strong growth story, there are risks to consider. The IPO valuation, at a P/E of 19.67 based on FY25 earnings, appears aggressive compared to some industry peers. The company also operates in a highly competitive and fragmented market. However, the fact that the IPO is a 100% fresh issue is a significant positive, as the funds will be used directly for company growth and not for promoter exit.
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Investment Details:
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Price per share: The fixed price is ₹72.00.
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Lot Size for Application: The lot size is 1,600 shares.
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Minimum Retail Investment: Retail investors can apply for a minimum of 2 lots, amounting to ₹2,30,400.
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HNI Lot Size: The minimum investment for HNIs is 3 lots (4,800 shares), amounting to ₹3,45,600.
FAQs
1. Is a fixed-price IPO better than a book-build IPO?
Neither is inherently better. A fixed-price IPO offers certainty in pricing but might not fully capitalize on high demand. A book-build IPO allows for price discovery and can lead to higher listing gains if there is strong investor interest.
2. What is the business model of Krupalu Metals?
The company manufactures and trades brass and copper products, including sheets, strips, and a wide range of customized components for various industries, operating on a B2B model.
3. How will the IPO proceeds be used?
The entire proceeds from this fresh issue will be used to fund capital expenditure for new plant and machinery, to meet working capital requirements, and for general corporate purposes.
4. What is the significance of the company's location in Jamnagar?
Jamnagar is a well-known hub for the brass and copper industry in India. This location provides a strategic advantage in terms of raw material sourcing, skilled labor, and a strong network of clients and suppliers
