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HRS Aluglaze Ltd. IPO Review: A Comprehensive Analysis

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HRS Aluglaze Ltd SME IPO

HRS Aluglaze IPO Review| HRS Aluglaze Ltd SME IPO| HRS Aluglaze GMP Today| HRS Aluglaze Financial Analysis| HRS Aluglaze Price Band

Critical Dates & IPO Details

(Note: As of December 7, 2025, the Price Band is yet to be officially announced. Dates are based on latest market reports.)

MetricDetails
IPO Open DateThursday, December 11, 2025
IPO Close DateMonday, December 15, 2025
Allotment ExpectedDec 16, 2025
Listing Date (Tentative)Friday, December 19, 2025
Face Value₹10 Per Equity Share
Price BandTo Be Announced (TBA)
Lot SizeTBA
Total Issue Size58,00,000 Equity Shares (Fresh Issue)
Listing ExchangeBSE SME
Lead ManagerCumulative Capital Pvt Ltd
RegistrarPurva Sharegistry (India) Pvt. Ltd.

Deep Dive Analysis: HRS Aluglaze Ltd. IPO

(This analysis aims to provide an exhaustive look at the company, exceeding standard review lengths to give you a competitive edge.)

1. Business Model & Industry Overview

Core Operations

HRS Aluglaze Ltd. operates in the niche but rapidly expanding sector of architectural aluminum and glass glazing. The company specializes in the design, manufacturing, and installation of façade systems. Their product portfolio is critical for modern urban infrastructure, including:

  • Curtain Walls: The outer covering of a building in which the outer walls are non-structural, utilized extensively in high-rise commercial towers.
  • Aluminum Windows & Doors: Premium, high-durability fixtures for residential and institutional projects.
  • Cladding Systems: Aluminum Composite Panel (ACP) cladding used for weather resistance and aesthetic finish.
  • Glazing Systems: Structural glazing that provides the “all-glass” look popular in corporate parks.

The “Rajoda” Expansion

A significant portion of the IPO proceeds is allocated to setting up a new automated façade assembly and glass glazing line in Rajoda, Ahmedabad. This signals a shift from manual/semi-automated processing to a fully industrialized model. This facility will also include a 1000 kWp solar PV plant, indicating a strategic move to reduce power costs—a major overhead in metal fabrication.

Client Base & Revenue Streams

The company operates on a B2B (Business to Business) model. Their primary clients are:

  1. Real Estate Developers: For residential high-rises and townships.
  2. Institutional Contractors: For hospitals, colleges, and government buildings.
  3. Industrial Projects: Factory facades and office blocks.

Unlike B2C companies, HRS Aluglaze relies on long-term contracts and tender-based projects. This ensures revenue visibility but concentrates risk on the execution cycle of the construction industry.

2. Financial Health (The FY25 Surge)

The financial trajectory of HRS Aluglaze is one of aggressive growth, particularly in the last fiscal year.

Revenue Growth

  • FY23 Revenue: ₹22.55 Crore
  • FY25 Revenue: ₹42.10 Crore
  • Analysis: The company has nearly doubled its top line in just two years. This CAGR (Compound Annual Growth Rate) suggests strong demand for their specific glazing solutions or successful acquisition of larger ticket-size contracts.

Profitability (PAT)

  • FY25 Net Profit: ₹5.14 Crore
  • Analysis: Profitability has surged approximately 6x compared to previous years. A net profit margin of roughly 12.2% (5.14 Cr on 42.10 Cr revenue) is healthy for a manufacturing/EPC (Engineering, Procurement, Construction) player, where margins are typically squeezed by raw material costs.

Balance Sheet Strength

  • Net Worth: Increased from ₹8.17 Cr to ₹20.10 Cr. This buildup of reserves enhances the book value per share.
  • Debt Concerns: Total borrowings have doubled from ₹17.90 Cr to ₹38.65 Cr.
    • Critical Note: A Debt-to-Equity ratio approaching 2:1 is high. Investors must scrutinize if the fresh issue proceeds will be used to retire some of this high-cost debt to improve the bottom line.

3. SWOT Analysis

Strengths

  • Integrated Capabilities: In-house design, manufacturing, and installation control quality and timelines better than competitors who outsource installation.
  • Strong Financial Momentum: The 6x jump in profits in FY25 demonstrates operational leverage—revenue grew, but costs didn’t grow as fast, leading to profit expansion.
  • Experienced Promoters: The Shah family (Rupesh, Pinky, Hrishikesh) has established industry relationships in the Gujarat region, a hub for construction activity.

Weaknesses

  • High Debt Levels: With borrowings significantly outpacing equity (pre-IPO), the company has a high interest burden. Rising interest rates could eat into future margins.
  • Regional Concentration: While they take projects elsewhere, a heavy reliance on the Gujarat market exposes them to regional economic downturns.
  • Working Capital Intensive: The façade business requires heavy upfront investment in aluminum and glass, with payments often delayed by builders.

Opportunities

  • Smart Cities & Infra Boom: India’s push for “Smart Cities” and modern airports/metros requires massive amounts of structural glazing and aluminum facades.
  • Green Building Norms: Modern glazing is essential for energy-efficient (LEED certified) buildings. HRS’s new facility could cater to this premium segment.

Threats

  • Raw Material Volatility: Aluminum and glass prices are linked to global commodities. A sharp rise in aluminum prices (LME) can shrink margins instantly if contracts don’t have price-escalation clauses.
  • Execution Risk: Delays in the construction sector are common. If a developer stalls a project, HRS Aluglaze’s inventory and capital get stuck.

4. Peer Comparison

HRS Aluglaze competes in a fragmented market. While large players like Asahi India Glass or Saint-Gobain dominate the glass supply, the fabrication and installation (facade) market is populated by many SMEs.

Listed Peers (for context):

  • Innovators Facade Systems Ltd: A direct competitor in the facade space.
  • Global Surfaces Ltd: Operates in a similar architectural surfaces domain.
  • Spectrum Electrical Industries: (Often compared in the EPC/Contracting SME space).

Comparison Point: HRS Aluglaze’s FY25 margin of ~12% is competitive. If it prices the IPO at a P/E lower than the industry average (typically 15x-20x for construction SMEs), it could be attractive.

5. Valuation & Grey Market Premium (GMP)

The Valuation Equation

  • EPS (Earnings Per Share): Based on FY25 Profit of ₹5.14 Cr.
    • Pre-Issue Shares: ~1.4 Crore shares (estimated based on paid-up capital).
    • Approx Pre-IPO EPS: ~₹3.67.
  • P/E Ratio: We await the Price Band.
    • Scenario: If the Price Band is set around ₹50-60, the P/E would be ~15x, which is reasonable. If set above ₹80, it becomes expensive compared to peers.

GMP Trends

  • Current GMP: ₹0 / Neutral (As of Dec 7, 2025)
  • Status: The Grey Market is currently quiet. This is standard for SME IPOs before the Price Band is announced. Activity usually spikes 2-3 days before the Open Date (Dec 11).
  • Signal: A flat GMP does not necessarily mean “avoid.” It often means the market is waiting to see the valuation (Price Band) before committing premium.

6. Review Verdict: Should You Subscribe?

(Disclaimer: This is for educational purposes, not financial advice.)

The “Apply” Case:

You should consider applying if you are a high-risk investor looking for a growth story. The 6x profit jump and the expansion into automated manufacturing (Rajoda plant) are strong bullish signals. If the company uses IPO funds to reduce its high debt, the stock could re-rate significantly post-listing.

The “Avoid” Case:

The high debt-to-equity ratio is the biggest red flag. If the construction cycle slows down, servicing this debt becomes difficult. Additionally, if the Price Band values the company at a P/E > 25x, the growth is already priced in, leaving little room for listing gains.

Final Watch: Wait for the Price Band announcement.

  • Price < ₹60: Attractive.
  • Price > ₹85: Expensive.

Frequently Asked Questions (FAQ)

Q1: When does the HRS Aluglaze IPO open?

A: The IPO is scheduled to open for subscription on Thursday, December 11, 2025.

Q2: What is the minimum investment amount?

A: This will be determined once the Price Band and Lot Size are announced. For SME IPOs, the minimum investment is typically around ₹1,00,000 to ₹1,20,000.

Q3: Is HRS Aluglaze a mainboard or SME IPO?

A: It is an SME IPO and will be listed on the BSE SME platform.

Q4: Who is the registrar for the HRS Aluglaze IPO?

A: The registrar is Purva Sharegistry (India) Pvt. Ltd. You will check your allotment status on their website.

Q5: What is the current GMP of HRS Aluglaze?

A: As of December 7, the GMP is neutral (₹0). Expect updates once the price band is released.

Q6: What does the company do?

A: HRS Aluglaze manufactures and installs aluminum facades, windows, doors, and glass glazing systems for commercial and residential buildings.

HRS Aluglaze IPO Review| HRS Aluglaze Ltd SME IPO| HRS Aluglaze GMP Today| HRS Aluglaze Financial Analysis| HRS Aluglaze Price Band

Subscription:

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Subscription and GMP consider only of Open to Close

GMP Trend:

DaysGMP
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The grey market premium (GMP) is the price at which an IPO is traded in an unofficial/unregulated grey market prior to its listing. The GMP reflects how a particular company’s IPO issue might react on the day of listing. A positive GMP premiumsignals that the IPO is likely to be at profit while a negative GMP indicates that the IPO is likely to be at a discount.
It should be noted that IPO GMP is subject to extreme volatility, so an investment decision based solely on Patel Retail IPO GMP will prove risky. Therefore, before to investing, consider all factors and make the right investment decision whether to invest in Patel Retail IPO or not.

How to Check IPO Allotment Status:

Purva Shareregistry

To check IPO allotment status, follow the steps below:

  1. Click on the below allotment status check button.
  2. Select Company Name.
  3. Enter your PAN Number, Application Number or DP Client ID (Anyone).
  4. Click on Search.
Allotment Status

NSE Website

To check IPO allotment status, follow the steps below:

  1. Click on the below allotment status check button.
  2. Select Company Name.
  3. Enter your PAN Number, Application Number or DP Client ID (Anyone).
  4. Click on Search.
Allotment Status

BSE Webiste

To check IPO allotment status, follow the steps below:

  1. Click on the below allotment status check button.
  2. Select Company Name.
  3. Enter your PAN Number, Application Number or DP Client ID (Anyone).
  4. Click on Search.
Allotment Status

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