A Public Offering of Shares Signals Business Expansion
Manilam Industries is preparing to offer its shares to the public through an Initial Public Offering (IPO). This move allows the company to raise capital for various business needs. The IPO is structured as a book-build issue, aiming to raise approximately ₹39.95 crores. Investors will have the chance to purchase shares within a set price range, with the goal of this offering being to fuel the company's growth and operational plans.
Understanding the Manilam Industries IPO Offer
The Manilam Industries IPO involves both new shares being issued and some existing shares being sold.
Fresh Issue: The company plans to issue 0.47 crore shares, valued at ₹32.42 crore. This capital will directly go into the company's coffers.
Offer for Sale (OFS): An additional 0.11 crore shares will be offered for sale, worth ₹7.53 crore. This means existing shareholders are selling a portion of their stake.
Total Issue Size: Combining the fresh issue and OFS, the IPO is expected to be around ₹40 crores.
Listing Venue: The shares are slated to be listed on the NSE SME platform.
Financial Performance Overview
Manilam Industries has shown an upward trend in its profit after tax (PAT) over the past few years.
Profit After Tax (PAT):
FY23: ₹1.53 crore
FY24: ₹3.10 crore (nearly double FY23)
FY25: ₹7.38 crore (more than double FY24)
Total Income: The company's total income has seen some variation:
FY23: ₹148.82 crore
FY24: ₹138.04 crore
FY25: ₹142.16 crore
Revenue Breakdown: Decorative laminates are the primary source of income, making up 83.33 percent of revenue in FY25.
Cash Flow Concerns: The company has reported negative cash flow from operating activities in recent years:
FY23: ₹2.85 crore
FY24: ₹4.19 crore
This pattern could signal a need for further funding in the future, potentially impacting business operations.
Use of Raised Funds
The capital raised through the IPO is earmarked for specific business purposes.
Working Capital: A significant portion, ₹16.65 crore, is allocated for working capital requirements.
Loan Repayment: ₹3.50 crore is set aside for repaying loans.
Capital Expenditure: ₹3.45 crore will be used for capital expenditure, which includes purchasing equipment, machinery, and solar panels.
Key IPO Details and Timeline
The public offering has a defined schedule for investors.
| Parameter | Detail |
|---|---|
| Price Band | ₹65 to ₹69 per share |
| Lot Size | 2,000 shares |
| Minimum Bid | 4,000 shares (valued at ₹2,76,000) |
| IPO Opens | February 20, 2026 |
| IPO Closes | February 24, 2026 |
| Allotment Date | February 25, 2026 |
| Listing Date | February 27, 2026 |
Investor Categories and Allocation
Shares in the IPO are divided among different investor groups.
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| Investor Category | Shares Offered | Percentage (%) |
|---|---|---|
| Anchor Investors | 16,38,000 | 28.29 |
| QIB (Ex. Anchor) | 11,04,000 | 19.07 |
| NII (HNI) | 8,28,000 | 14.30 |
| Retail Investors | 19,28,000 | 33.30 |
| Market Maker | 2,92,000 | 5.04 |
| Total Shares | 57,90,000 | 100.00 |
Promoters and Shareholding
The company is backed by its promoters, whose stake will change post-IPO.
Promoters: Manilam Retail India Pvt. Ltd., Mr. Umesh Kumar Nemani, Mr. Manoj Kumar Agrawal, and Mr. Aman Kumar Nemani.
Pre-Issue Promoter Holding: 78.79%
Post-Issue Promoter Holding: Expected to be around 61.85%
Financial Health Indicators (FY2025 Estimates)
Some key financial metrics provide insight into the company's performance.
Return on Equity (ROE): 24.46%
Return on Capital Employed (ROCE): 34.58%
PAT Margin: 5.27%
Debt to Equity Ratio: 1.84
Expert Observations
While the company shows growth in profit, concerns about negative cash flow have been noted. Analysts point out that sustained negative cash flows could necessitate future financing. The IPO aims to address some immediate financial needs, including working capital and debt reduction. The pricing is set within a band, allowing the market to signal its valuation.
Sources Used
The Economic Times: https://economictimes.indiatimes.com/markets/ipos/fpos/manilam-industries-ipo-check-gmp-price-band-subscription-and-other-details/articleshow/128586674.cms
Context: Provides core IPO details including fresh issue, OFS, PAT figures, price band, and fund utilization.
Chittorgarh: https://www.chittorgarh.com/ipo/manilam-industries-ipo/2727/
Context: Details shareholding structure pre- and post-issue, investor category allocations, and total issue size.
NewsAirInsight: https://newsairinsight.com/manilam-industries-ipo-check-gmp-price-band-subscription-and-other-details-news-air-insight/
Context: Repeats key information on issue size, PAT, fund usage, price band, and lot size, corroborating other sources.
gmpipowatch.in: https://www.gmpipowatch.in/ipo/manilam-industries
Context: Lists IPO parameters, including price band, lot size, minimum investment, and key dates, alongside financial data for FY2025 and peer comparison.
ipo360.in: https://www.ipo360.in/company/manilam-industries-india-limited-ipo
Context: Confirms IPO opening and closing dates, price band, and allotment date.
Context: Highlights PAT increase, notes negative cash flow from operations, and details revenue contribution from laminates.
