Indobell Insulation Limited, a manufacturer of insulation products, is preparing for its market debut through an initial public offering (IPO) valued at ₹10.14 crores. This entirely fresh issue will offer 22.05 lakh shares, with the subscription window opening on January 6, 2025, and closing on January 8, 2025. Investors can track the company's progress as it gears up for its listing on the BSE SME platform, scheduled for January 13, 2025.
The IPO offers equity shares of ₹10 face value at a fixed price of ₹46 per share, with a lot size of 3,000 shares. Retail investors can participate with a minimum investment of ₹138,000 (1 lot), while High Net-worth Individuals (HNI) are invited to subscribe with a minimum of ₹276,000 (2 lots). The post-subscription timeline is swift, with share allotments expected by January 9, 2025, ahead of the company’s listing. As Indobell Insulation embarks on this exciting journey, it presents an attractive investment opportunity for those looking to explore the emerging market.
Indobell Insulation Limited IPO is a fundraise worth ₹10.14 crores comprising purely of a fresh issue with 111,000 shares reserved for the market maker Black Fox Financial Private Limited. Retail investors are being offered 50% of the net issue and other investors will have access to the remaining 50% of the issue. The IPO will be available for subscription from January 6, 2025, to January 8, 2025, providing an opportunity for investors looking to gain a stake in the insulation manufacturing segment.
| Indobell Insulation IPO date | January 6, 2025 - January 8, 2025 |
| Fixed price | ₹46 per share |
| Face value | ₹10 per share |
| Lot size | 3,000 shares |
| Issue type | Fixed price issue IPO |
| Fresh issue size | 22,05,000 shares amounting to ₹10.14 crores |
| Total issue size | 22,05,000 shares amounting to ₹10.14 crores |
| Listing at | BSE SME |
| Market maker portion | 111,000 - Black Fox Financial Pvt Ltd |
| Shareholding post-issue | 62,99,952 |
| Shareholding pre-issue | 40,94,952 |
The Indobell Insulation Limited IPO opens for subscription on January 6, 2025, and closes on January 8, 2025, with allotment scheduled for January 9, 2025.
| IPO open date | January 6, 2025 (Monday) |
| IPO close date | January 8, 2025 (Wednesday) |
| Basis of allotment | January 9, 2025 (Thursday) |
| Initiation of refunds | January 10, 2025 (Friday) |
| Credit of shares to Demat account | January 10, 2025 (Friday) |
| Listing date on BSE / NSE SME | January 13, 2025 (Monday) |
| Cut-off time for UPI mandate confirmation | 5 PM on January 8, 2025 (Wednesday) |
Indobell Insulation Limited, established in May 1972, specializes in manufacturing insulation products such as nodulated and granulated wool (including ceramic and mineral fiber nodules) and prefabricated thermal insulation jackets. These products cater to residential, commercial, and industrial applications, along with a range of related insulation materials. The company also offers customized insulation solutions, tailored to specific project needs, including various sizes, shapes, and densities, supported by 3D and 2D designs, manufacturing drawings, and thermal analysis.
With manufacturing facilities located in West Bengal and Maharashtra, Indobell Insulation holds several quality certifications, including ISO 9001:2015 (Quality Management System), ISO 14001:2015 (Environmental Management System), and ISO 45001:2018 (Occupational Health & Safety Management System). As of December 30, 2024, the company employs 31 staff across different departments.
The objectives of the issue are to fund capital expenditure for acquiring additional plant and machinery, meet working capital requirements, and cover general corporate purposes.
The Indobell Insulation Limited’s key performance indicators, as of March 31, 2024, reflect the company's financial health with a Return on Equity of 18,21%, Return on Capital Employed (ROCE) at 28.15% and a Debt-to-Equity ratio of 0.93. The Return on Net-Worth (RoNW) stands at 18.21%, and the PAT Margin was 5.74%. The Price to Book Value was 3.32. The company’s market capitalisation is ₹28.98 crore.
| Period Ended | September 30, 2024 | March 31, 2024 | March 31, 2023 | March 31, 2022 |
| Revenue | 556.30 | 1,798.57 | 2,105.22 | 977.31 |
| Assets | 1,320.22 | 1,528.77 | 1,232.03 | 1,488.60 |
| Profit After Tax | 42.39 | 103.26 | 90.01 | 15.34 |
| Net Worth | 609.49 | 567.09 | 472.63 | 389.37 |
| Reserves & Surplus | 199.99 | 157.60 | 404.38 | 321.12 |
| Total Borrowing | 341.84 | 526.92 | 424.34 | 612.79 |
Amount in ₹ crores / lakhs
The pre-IPO EPS is at ₹2.52 while the post-IPO EPS will be ₹1.35. Similarly, the pre-IPO Price to Earnings ratio is 18,24 and will become 34.18 post-IPO.
Indobell Insulation Limited benefits from a highly experienced management team that ensures effective leadership and strategic decision-making, driving the company's growth and operational efficiency. The company's well-defined organizational structure promotes smooth and efficient operations, with clear roles and responsibilities enhancing productivity and quick decision-making. Indobell’s manufacturing facilities in West Bengal and Maharashtra are equipped with advanced technology, allowing the company to meet the diverse insulation needs of residential, commercial, and industrial sectors. The company has a strong focus on quality, holding ISO certifications for quality management, environmental practices, and occupational health and safety, further enhancing its reliability in the marketplace.
Additionally, Indobell offers a diversified product portfolio, including ceramic and mineral fiber nodules, as well as prefabricated thermal insulation jackets. The company also excels in providing customized insulation solutions, offering tailored designs and thermal analysis to suit specific project needs. This flexibility in its offerings, coupled with an established and efficient production infrastructure, positions Indobell as a competitive player in the insulation industry. The combination of a competent management team, seamless operations, and commitment to quality makes Indobell Insulation a strong contender in its market space.
Despite its strengths, Indobell Insulation faces several challenges that could impact its growth and stability. The company is currently involved in ongoing legal proceedings, which, if result in adverse decisions, may have a material effect on its business, operations, and financial health. Additionally, there are concerns surrounding the execution of its proposed development plans, including delays in expanding manufacturing capacity. The company has yet to place orders for the necessary machinery for facility expansion, and any setbacks in procurement could disrupt timelines and escalate costs, affecting overall business performance.
Moreover, Indobell relies heavily on a single business segment—thermal insulation products—leaving it vulnerable to fluctuations in demand or changes in product requirements. The company also faces operational risks due to its high dependence on a few major customers and suppliers, with the loss of any key client or supplier potentially having a significant adverse impact on its revenue. The company’s limited workforce, with only 31 employees, may restrict scalability for large projects, and its geographic focus on specific regions may limit growth potential. Furthermore, Indobell is exposed to competitive pressures from larger players with more established market presence, and the company faces risks from fluctuating raw material prices and economic downturns that could disrupt its operations and affect demand for its products.
Investing early in Indobell Insulation Limited could offer an opportunity to be part of the company's growth in the insulation manufacturing sector. However, investors should thoroughly evaluate factors such as the company's operational history, financial stability, industry trends, and growth plans, while also aligning the investment with their individual goals and risk tolerance. It is advisable to carefully review the offer document and consult with a professional if necessary to make a well-informed decision regarding participation in the IPO.
What is the Indobell Insulation Limited IPO?
The Indobell Insulation Limited IPO is an BSE SME offering consisting of 22.05 lakh equity shares with a face value of ₹10 per share, aiming to raise ₹10.14 crore. The fixed price has been set at ₹46 per share, with a minimum order quantity of 3,000 shares. This IPO will be open for subscription from January 6, 2025, to January 8, 2025. Finshore Management Services Limited is the book-running lead manager, Integrated Registry Management Services Private Limited is the registrar while Black Fox Financial Private Limited is the market maker.
When will the Indobell Insulation IPO open?
The Indobell Insulation Limited IPO will open for subscription on January 6, 2025, and will close on January 8, 2025.
When is the Indobell Insulation IPO listing date?
The tentative listing date for the Indobell Insulation Limited IPO is Monday, January 13, 2025.
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