Liotech Industries Limited – IPO Analysis
Liotech Industries Limited – IPO Analysis
BSE SME Fixed Price Issue
Company Snapshot
| Parameter | Details |
|---|
| Company Name | Liotech Industries Limited |
| Incorporated | June 17, 2020 (Gujarat) |
| Industry | Hardware Structures & Accessories (Iron & Steel) |
| Registered Office | Shapar, Rajkot, Gujarat |
| Manufacturing Unit | 12,632 sq. ft. at Rajkot, Gujarat |
| Promoters | Hitesh M. Bhuva, Hetal Bhuva, Vipul Bhuva & Family |
| Employees | 16 (as of Sept 30, 2025) |
| ISO Certification | ISO 9001:2015 |
IPO Details
| Parameter | Details |
|---|
| IPO Open Date | June 01, 2026 (Monday) |
| IPO Close Date | June 03, 2026 (Wednesday) |
| Issue Price | ₹321 per share (FV ₹10) |
| Issue Type | 100% Fixed Price |
| Total Issue Size | 11,22,000 shares (₹36.02 Cr) |
| Fresh Issue | 9,00,000 shares (₹28.89 Cr) |
| Offer for Sale (OFS) | 2,22,000 shares (₹7.13 Cr) |
| Market Maker Portion | 58,000 shares (₹1.86 Cr) |
| Listing On | BSE SME Platform |
| Lead Manager | Wealth Mine Networks Limited |
| Registrar | KFin Technologies Limited |
| Pre-Issue Shares | 30,00,000 |
| Post-Issue Shares | 39,00,000 |
| Lot Size | As per BSE SME norms |
Offer for Sale – Selling Shareholders
| Seller | Shares | WACA (₹) |
|---|
| Mrs. Pushpaben M. Bhuva | 1,11,000 | ₹20.00 |
| Mr. Mansukhbhai K. Bhuva | 1,11,000 | ₹0.00 |
Note: Selling shareholders acquired shares at ₹0-20 vs IPO price ₹321. The OFS component does not bring any capital into the company.
Objects of the Issue (Use of Funds)
| Purpose | Amount (₹ Lakhs) | % of Net Proceeds |
|---|
| New Machinery (Capex) | 800.00 | 32.95% |
| Working Capital | 700.00 | 28.83% |
| Loan Repayment | 495.00 | 20.39% |
| General Corporate Purpose | 433.20 | 17.84% |
| Total Net Proceeds | 2,428.20 | 100% |
Offer expenses estimated at ₹4.61 Cr (~16% of total issue size). Machinery will be purchased from Patel Machinery (quotation dated April 2026). Loans to be repaid are from ICICI Bank (Cash Credit + Term Loans, total outstanding ₹512.88 Lakhs as of April 30, 2026).
What Does the Company Do?
Liotech Industries manufactures hardware structures and accessories used in doors, furniture, and construction. Products include door kits, hinges (cut & butt, parliament, W, Z, duck), gate hooks, aldrop, locks, handles, tower bolts, and shelf bottoms — over 150 specifications. The company also trades in items like door stoppers, magnets, table brackets, bed lifters, and bell magnets.
They operate a single manufacturing facility in Rajkot, Gujarat, and primarily serve B2B customers across ~9 states. Gujarat contributes the largest share of revenue. The business model covers designing, manufacturing, quality testing, packaging, and logistics.
Financial Summary
| Metric (₹ Lakhs) |
9M Dec-25 |
FY25 |
FY24 |
FY23 |
| Revenue | 5,160 | 4,068 | 2,786 | 850 |
| Total Income | 5,179 | 4,069 | 2,787 | 850 |
| EBITDA | 839 | 656 | 445 | 87 |
| EBITDA Margin % | 16.25% | 16.13% | 15.97% | 10.28% |
| PAT | 549 | 416 | 293 | 35 |
| PAT Margin % | 10.64% | 10.24% | 10.50% | 4.06% |
| EPS (₹) | 18.29* | 13.88 | 10.42 | 2.72 |
| Net Worth | 1,593 | 1,045 | 628 | 236 |
| Total Debt | 481 | 422 | 355 | 138 |
| ROE % | 34.44%* | 39.86% | 46.58% | 14.65% |
| ROCE % | 44.45%* | 50.43% | 47.53% | 14.75% |
*9-month period (Apr–Dec 2025), not annualised. Revenue & profit figures rounded to nearest lakh.
Revenue Mix
| Source | 9M Dec-25 | FY25 | FY24 | FY23 |
|---|
| Manufacturing | 100% | 93.68% | 73.35% | 68.30% |
| Trading | 0% | 6.32% | 26.65% | 31.70% |
The company has gradually shifted from trading to manufacturing over the years, reaching 100% manufacturing revenue in the 9-month period ended December 2025.
Key Valuation Metrics
| Metric | Value |
|---|
| Face Value | ₹10 |
| Offer Price | ₹321 (32.1x Face Value) |
| P/E (FY25 EPS ₹13.88) | 23.13x |
| P/E (9M Dec-25 EPS ₹18.29) | 17.55x |
| NAV per share (Dec-25) | ₹53.12 |
| NAV post-issue | ₹114.94 |
| Industry Avg. P/E (Steel – Med & Small) | 23.78x |
| Market Cap at IPO Price | ~₹125 Cr (post-issue) |
| Price-to-NAV (pre-issue) | ~6.04x |
Shareholding Pattern
| Category | Pre-Issue % | Post-Issue % |
|---|
| Promoter & Promoter Group | 100% | ~71.23% |
| Public | 0% | ~28.77% |
Capacity Utilisation
| Year | Installed (MT) | Actual (MT) | Utilisation % |
|---|
| FY23 | 619 | 458 | 74.04% |
| FY24 | 1,512 | 1,279 | 84.60% |
| FY25 | 2,459 | 2,174 | 88.43% |
| FY26 (Proj.) | 4,759 | 3,608 | 75.81% |
Customer Concentration
| Metric | 9M Dec-25 | FY25 | FY24 | FY23 |
|---|
| Top 1 Customer % | 16.64% | 14.38% | 15.89% | 64.98% |
| Top 5 Customers % | 75.44% | 61.25% | 69.40% | 90.30% |
| Top 10 Customers % | 99.28% | 91.43% | 97.87% | 98.45% |
Key Management
| Name | Designation |
|---|
| Mr. Hiteshbhai M. Bhuva | Managing Director |
| Mrs. Hetal Hitesh Bhuva | Non-Executive Director |
| Mrs. Femina Vipulbhai Bhuva | CFO |
| Ms. Pooja Nakul Jain | Company Secretary |
| Mr. Mihir N. Vyas | Independent Director |
| Mr. Amar M. Petiwale | Independent Director |
Other Key Points
- Contingent Liabilities: NIL (across all reported periods)
- Dividend Policy: No dividends declared historically
- Statutory Auditor changed in 2025 (B B Gusani resigned due to preoccupation; replaced by D G M S & Co.)
- Confirmed work orders worth ~₹865.10 Lakhs as of prospectus date
- Company incorporated only ~6 years ago (June 2020)
- Converted to Public Limited in April 2024
- No green shoe option, no IPO grading, no monitoring agency
- Offer expenses ~₹5.76 Cr total (~16% of total issue size)
Pros & Cons for Investors
✅ Pros
| # | Point |
|---|
| 1 | Strong Revenue Growth: Revenue grew from ₹850 Lakhs (FY23) to ₹5,160 Lakhs in just 9 months of FY26 — a multi-fold jump in 3 years. |
| 2 | Improving Margins: EBITDA margin improved from 10.28% (FY23) to ~16% (FY25 & 9M FY26). PAT margins also rose from 4% to ~10.5%. |
| 3 | Shift to Manufacturing: Revenue mix moved from 68% manufacturing (FY23) to 100% manufacturing (9M Dec-25), indicating higher value-add. |
| 4 | High ROCE & ROE: ROCE above 44% and ROE above 34% for the latest period show strong capital efficiency. |
| 5 | NIL Contingent Liabilities: No pending legal or contingent risks reported across all years. |
| 6 | Capacity Expansion Plan: Clear capex plan with 34 new machines to expand production capabilities — CNC laser, bending, pipe cutting, injection moulding etc. |
| 7 | Moderate Valuation: P/E of ~23x on FY25 EPS is around the industry average of 23.78x for Steel Medium & Small companies. |
| 8 | ISO 9001:2015 Certified & UK CPR Compliant: Quality certifications add credibility to products. |
| 9 | Order Book Visibility: Confirmed work orders of ₹865 Lakhs as on date of prospectus. |
⚠️ Cons / Risk Factors
| # | Point |
|---|
| 1 | Extreme Customer Concentration: Top 10 customers contribute 91-99% of revenue. Loss of even 1-2 key clients can severely impact business. |
| 2 | Very Young Company: Incorporated only in June 2020 (~6 years old). Limited operating track record to evaluate consistency. |
| 3 | Tiny Team: Just 16 employees. Heavily dependent on promoter family for operations, finance, and management. |
| 4 | Single Manufacturing Unit: One facility in Rajkot (12,632 sq ft). Any disruption (fire, flood, regulatory) can halt entire operations. |
| 5 | Family-Run Business: Promoters, MD, CFO, and directors are all from the same family. Limited professional management diversity. |
| 6 | Offer for Sale Component: ₹7.13 Cr of the issue is OFS — promoters selling shares acquired at ₹0-20 at ₹321. This money does not come to the company. |
| 7 | High Offer Expenses: ~16% of total issue size going towards offer-related expenses (lead manager fees, underwriting, marketing etc.). |
| 8 | Geographic Concentration: Majority revenue from Gujarat and limited states. No export revenue reported. |
| 9 | No Long-Term Contracts: Business runs on order-to-order basis without long-term customer agreements. |
| 10 | No Peer Comparison Available: Company itself states no listed peers exist for direct comparison, making valuation benchmarking difficult. |
| 11 | Auditor Changed Recently: Statutory auditor changed in 2025 (previous auditor resigned citing preoccupation). |
| 12 | Rapid Growth Sustainability Unclear: Revenue jumped from ₹8.5 Cr to ₹51.6 Cr in ~2.5 years. Whether this pace is sustainable post-listing needs scrutiny. |
| 13 | No Dividend History: The company has not paid any dividends to date. |
| 14 | NAV Gap: NAV per share is ₹53.12 while the offer price is ₹321 — a premium of ~6x over book value. |
⚠️ Disclaimer: This analysis is prepared purely for educational and informational purposes based on publicly available IPO prospectus data. This is NOT a recommendation to buy, sell, or hold any securities. As per SEBI guidelines, investors must conduct their own due diligence and consult a SEBI-registered investment advisor before making any investment decisions. Past performance does not guarantee future results. The author assumes no responsibility for any financial loss or gain arising from the use of this information. Investments in equity and equity-related securities involve risk including the risk of losing your entire investment.
Source: Prospectus dated May 23, 2026, filed with ROC. Data extracted from Restated Financial Statements audited by D G M S & Co., Chartered Accountants.
