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Kasturi Metal Composite

Kasturi Metal Composite is coming out with an initial public offering (IPO) of 27,52,000 shares in a price band of Rs 61-64 per equity share. 

The issue will open on January 27, 2026 and will close on January 29, 2026.

The shares will be listed on SME Platform of BSE.

The face value of the share is Rs 10 and is priced 6.10 times of its face value on the lower side and 6.40 times on the higher side.

Book running lead manager to the issue is HEM Securities.

Compliance Officer for the issue is Madhu Awasthi.

Profile of the company

Kasturi Metal Composite, incorporated in 2005, is engaged in manufacturing, supply and export of steel fiber products for industrial applications. Its product portfolio includes Loose Hook-End Steel Fiber, Glued Hook-End Steel Fiber and Flat Crimped Steel Fiber, available in various sizes and configurations for fiber-reinforced concrete applications. Additionally, it manufactures Steel Wool Fiber, which is widely utilized in the production of friction linings for brake pads and clutches. Furthermore, it trades Macro Synthetic PP Fibers under its ‘Durocrete’ brand and operates a subsidiary, Durafloor Concrete Solution LLP, which specializes in providing tailored concrete flooring solutions. It offers comprehensive solutions that enhance the structural integrity and performance of concrete and other composite materials.

The company markets its products under the 'Duraflex' and 'Durabond' brands, serving a diverse range of industries, including construction, engineering, warehousing, logistics, mining, infrastructure, and automotive. These products are utilized in various applications such as tunnel shotcrete, precast concrete, industrial and warehouse flooring, roads, pavements, tunnel mining, and automotive friction linings. Additionally, they are used in hydroelectric plants, road and rail tunnels, underground caverns, bridges, and highways, ensuring structural integrity. With 20 years of experience in understanding customer requirements, it remains committed to delivering quality, safe, and value-driven solutions.

It operates three manufacturing units in the MIDC industrial area of Amravati, Maharashtra, ensuring operational efficiency and seamless production. Each of its manufacturing facilities is equipped with machinery, including wire drawing machines, wet and dry wire systems, and specialized equipment for steel fiber and steel wool fiber production. To ensure quality standards, it has an in-house quality control laboratory that conducts inspections before and after production. Additionally, it outsources product testing to NABL accredited laboratories as per client requirements to ensure compliance with industry benchmarks. It has been awarded ISO 9001:2015 certification for its Quality Management System (QMS) and has received ZED (Zero Effect, Zero Defect) Silver and Bronze Certifications for manufacturing steel fibers and steel wool fiber products.

Proceed is being used for:

Funding the capital expenditure towards, mechanical and electrical works, interior work and procurement of plant and machinery for setting up a new manufacturing facility at Amravati, Maharashtra (Proposed Unit IV)

General corporate purpose

Industry Overview

India is the second largest producer of crude steel. Steel has contributed immensely towards India’s economic growth. The growth in the Indian steel sector has been driven by the domestic availability of raw materials such as iron ore and cost-effective labour. Consequently, the steel sector has been a major contributor to India's manufacturing output. The main sectors demanding steel are construction and infrastructure, which account for the largest portion of consumption, followed by the automotive and transportation sector. Other significant sectors include packaging, machinery, and energy. Steel is a de-regulated sector and government acts as a facilitator, by creating conclusive policy environment for development of the steel sector. Government of India has notified National Steel Policy, 2017 which envisages development of a technologically advanced and globally competitive steel industry that provides environment for attaining self-sufficiency in steel production by providing policy support and guidance to steel producers. National Steel Policy covers all aspects of steel sector such as steel demand, steel capacity, raw material security, infrastructure and logistics, Research & Development (R&D) and energy efficiency.

Meanwhile, the government has launched the second round of PLI scheme for Specialty Steel. Ministry of Steel has come out with PLI scheme 1.1 for specialty Steel for five product categories which is the same as the existing PLI Scheme to enable further participation as industry participants requested the ministry for relaxation. The PLI scheme 1.1 shall be implemented during the production period of FY 2025-26 to FY 2029-30. PLI Scheme 1.1 covers five product categories in line with the existing PLI Scheme, namely Coated / Plated Steel Products, High Strength / Wear resistant Steel, Specialty Rails, Alloy Steel Products & Steel wires and Electrical Steel. Besides, the government has imposed 12% safeguard duty on the import of certain non-alloy and alloy steel flat products. This measure is a timely and necessary step to protect domestic steel manufacturers from the adverse impact of import surges and to ensure fair competition in the market. This move will provide critical relief to domestic producers, especially small and medium-scale enterprises, who have faced immense pressure from rising imports.

India's steel sector is likely to continue its upward trajectory in coming time amid strong government thrust for infrastructure development and housing for all. Government initiatives such as ‘Smart Cities’ and ‘Affordable Housing’ as well as building of industrial corridors will boost India’s steel demand. Transforming agriculture and agri-livelihoods is expected to provide a strong indirect boost to steel production and demand by increasing rural incomes, which in turn will drive the need for steel and steel products. Direct support to the MSME sector is likely to create further opportunities for the steel industry, fostering its development in the coming days. With India currently being a net importer of steel and exports showing a downward trend, a renewed emphasis on export-driven growth could serve as a significant advantage for the domestic steel sector.

Pros and strengths

Manufacturing excellence and operational efficiency: Its core strength lies in its manufacturing capabilities, which enable it to efficiently meet evolving customer demands. It operates three manufacturing units within the MIDC industrial area of Amravati, Maharashtra, each specializing in distinct production processes. These facilities are equipped with latest machinery and automation systems, ensuring precision, operational efficiency, and adherence to stringent quality standards. The first unit is dedicated to fine wire drawing, forming the foundation for steel fiber and steel wool fiber production. The second unit focuses on the manufacturing of high-performance steel fibers, which are widely used in fiber-reinforced concrete applications. The third unit specializes in producing steel wool fibers, an essential component in friction linings for automotive brake pads and clutches. By optimizing operations across these specialized units, it enhances production capacity while maintaining rigorous quality control measures at every stage.

Stringent quality control mechanism ensuring standardized product quality: The company is committed to maintaining the quality standards for its product offerings. It strictly adheres to the quality standards prescribed by its customers and implements a rigorous quality control mechanism at every stage of the manufacturing process. This ensures that both its raw materials and finished products conform to its customers' requirements and successfully pass all validations and quality checks. As a testament to its commitment to quality, the company has received ISO 9001:2015 certification for quality management systems. Additionally, based on client requirements, it also outsources product inspection and testing to NABL-accredited laboratories, ensuring compliance with the stringent quality benchmarks. It has also earned ZED (Zero Effect, Zero Defect) Silver and Bronze certifications for its steel fibers and steel wool fibers, showing its commitment to quality and sustainability. This quality focus has been key to its success, helping it grow while providing value to customers.

Established relationships with customers across various geographical locations: The company has diversified revenue from multiple geographical locations across India i.e. Tamilnadu, Odisha, Maharashtra, Rajasthan, Gujarat, Telangana, West Bengal, Madhya Pradesh, Goa etc. and a small portion of revenue from outside India i.e. Nepal, New Zealand, Bhutan and Dubai. It generates revenue through both domestic sales and exports, catering to clients in four countries. Its revenue distribution from export sales stood at 1.88%, 16.56%, 4.56% and 11.76%, while domestic sales accounted for 98.12%, 98.34%, 95.44%, 88.24% of the total revenue for the period ending September 30, 2025, and the fiscal years 2025, 2024 and 2023 respectively. Currently, it markets its products to more than 10 states within India and gradually it intends to expand its business operations to other geographical locations as well.

Risks and concerns

Dependency on key suppliers for raw materials: The company is primarily dependent upon few key suppliers within limited geographical location for procurement of raw materials. Therefore, it cannot assure that it will always have a steady supply of raw materials at favorable prices. For the period ending September 30, 2025, and the financial years ended March 31, 2025, 2024, and 2023, purchases from its top ten suppliers amounted to Rs 1342.30 lakh, Rs 2403.41 lakh, Rs. 2,923.63 lakh and Rs 2,593.12 lakh, respectively, which represented 84.89%, 76.79%, 90.54% and 99.74%, of its total raw material purchases. Any disruption in the supply of raw materials from such selective suppliers and geographical location could have a material adverse effect on its business operations and financial conditions.

Reliance on limited customer base: The substantial portion of its revenues has been dependent upon few customers. For instance, its top 10 customers for the period ended September 30, 2025 and for the financial year ended on March 31, 2025, March 31, 2024 and March 31, 2023 accounted for Rs 2114.04 lakh, Rs 3714.98 lakh, Rs 3489.74 lakh and Rs 3049.39 lakh respectively 65.98%, 65.19% 70.16% and 82.14% of its revenue from operations for the respective year. It caters to a diverse range of industries, including construction, engineering, warehousing, logistics, mining, infrastructure, and automotive. Its reliance on a limited number of customers for its business exposes it to risks, that may include, but are not limited to, reductions, delays or cancellation of orders from its significant customers, a failure to negotiate favorable terms with its key customers or the loss of these customers, all of which would have a material adverse effect on the business, financial condition, results of operations, cash flows and future prospects of the company.

Exposure to demand fluctuations for steel fiber products: It is engaged in the manufacturing of Steel Fiber and Steel Wool Fiber which are used in industrial flooring, precast tunnel lining and brake pads and linings. It generates a significant portion of its revenue from its key product i.e. Duraflex Steel Fiber which contributed to 37.62%, 41.13%, 61.15% and 65.68% of its revenue from operations for period ended September 30, 2025, Fiscal 2025, 2024 and 2023 respectively. Through its subsidiary, it also supplies industrial flooring products and concrete flooring solutions, including flooring work, polishing, densification, and FM Certification. Any decline in the sales of Duraflex Steel Fiber on account of any reason including increased competition, pricing pressures or fluctuations in the demand for or supply of such products may adversely affect its business, results of operations and financial condition. Any inability on its end to anticipate and adapt to technological changes or evolving consumer preferences and/or any decrease in the demand for its key product may adversely impact its business prospects and financial performance.

Outlook

Kasturi Metal Composite is specialized in manufacturing steel fiber products for industrial applications. Its portfolio includes Loose Hook-End, Glued Hook-End, and Flat Crimped Steel Fibers, along with Steel Wool Fiber. Operating under Duraflex, Durabond, and Durocrete brands, it serves construction, engineering, automotive, and infrastructure sectors. On the concern side, the company is primarily dependent upon few key suppliers within limited geographical location for procurement of raw materials. Any disruption in the supply of raw materials from such selective suppliers and geographical location could have a material adverse effect on its business operations and financial conditions. Moreover, its business is dependent on its manufacturing unit. Any disruption, breakdown or failure of machinery, disruption to power sources or any temporary shutdown of its manufacturing unit, may have a material adverse effect on its business, results of operations, financial condition and cash flows.

The company is coming out with a maiden IPO of 27,52,000 equity shares of face value of Rs 10 each. The issue has been offered in a price band of Rs 61-64 per equity share. The aggregate size of the offer is around Rs 16.78 crore to Rs 17.61 crore based on lower and upper price band respectively. On performance front, the revenue from operation for FY25 stood at Rs 5697.22 lakh whereas in FY24 it was Rs 4974.55 lakh representing an increase of 14.53%. However, profit after tax for the period ended March 31, 2025, stood at Rs 207.37 lakh and for the year ended March 31, 2024 it was Rs 235.14 lakh representing a decrease of 11.81%.

The company intends to expand its manufacturing capabilities. It is currently in the process of setting up a new manufacturing unit in Amravati district, Maharashtra. This 15330 sq. mtr. facility is owned by the company, and construction of part of the factory building has already been initiated. The new manufacturing unit will feature both a new product line and expanded steel fiber manufacturing with increased installed capacity machines. Requisite machineries including High Speed Straight Line Wire Drawing Machines, Steel fiber forming lines, Macro PP production Line, and other miscellaneous equipment will be purchased and installed at this facility. Further, it currently markets its products to 4 countries and multiple regions in India and aims to expand into new international markets and untapped domestic areas. By diversifying geographically, it aims to reduce risks and protect against fluctuations from business concentration in specific areas.