The Sellowrap Industries IPO is generating significant buzz as it opens for subscription in July 2025. As a potential investor, understanding every facet of this opportunity is crucial. This comprehensive guide delivers everything you need – from real-time Grey Market Premium (GMP) insights and financial deep dives to reservation quotas and expert recommendations – empowering you to make an informed decision.
About IPO Details
Sellowrap Industries is entering the public markets with a fresh issue of 36.48 lakh shares, aiming to raise ₹30.28 Crores. The IPO is structured as a book-built issue, meaning the final price will be determined based on investor demand within the set band. Here are the critical specifics:
| Parameter | Details |
|---|---|
| IPO Open Date | July 25, 2025 |
| IPO Close Date | July 29, 2025 |
| Face Value | ₹10 per share |
| Price Band | ₹79 to ₹83 per share |
| Lot Size | 1,600 Shares |
| Issue Type | 100% Fresh Issue |
| Total Issue Size | 36,48,000 shares (₹30.28 Cr) |
| Market Maker Reservation | 1,82,400 shares (₹1.51 Cr) – Gretex Share Broking |
| Net Public Offer | 34,65,600 shares (₹28.76 Cr) |
| Listing Exchange | NSE SME |
| Pre-Issue Shares | 1,00,96,220 shares |
| Post-Issue Shares | 1,37,44,220 shares |
About the IPO Company Details
Sellowrap Industries Limited (SIL), established in 1983, is a specialized manufacturer of precision components serving the automotive and white goods sectors. Their core expertise lies in:
- Plastic Injection Moulding: Producing critical interior and exterior parts.
- PU Foam Moulding & EPP Moulding: Creating lightweight, impact-resistant components.
- Screen Sealing Solutions: Essential for electronics and appliances.
- Adhesive & Non-Adhesive Labels/Stickers: For branding and functional applications.
Competitive Strengths:
- Quality Focus: Commitment to “Zero Defects,” stringent quality control, and safety standards.
- Diverse Portfolio: Catering to automotive (OEMs) and non-automotive industries (white goods).
- Established Relationships: Long-term partnerships with marquee domestic and global clients.
- Integrated Manufacturing: Four strategically located plants (Gurugram, Ranipet, Kancheepuram, Pune) equipped with advanced technology, centralized R&D, and warehousing.
- Wide Reach: Distribution across 15 Indian states and exports to Brazil, China, Germany, Poland, and the UK.
- Experienced Team: Supported by a workforce of 159 permanent and 549 contractual employees (as of Jan 31, 2025).
IPO GMP (Grey Market Premium)
Live Grey Market Premium (GMP) Update (As of Today – 2025): ₹14 (16.87%)
- Live GMP (As of July 25, 2025): ₹[Insert Current GMP – *e.g., 12-15*] (Subject to change daily). [Note: GMP is highly dynamic. Check reputable financial news portals like ET Markets, Moneycontrol, or Chittorgarh for real-time updates closer to the subscription date.]
- Interpretation: A positive GMP indicates grey market sentiment expects the stock to list at a premium over the issue price. Current levels suggest an estimated listing price around ₹[Issue Price + GMP] per share. Investors should note GMP reflects unofficial sentiment and carries inherent risk.
Note: GMP fluctuates daily. Check our IPO GMP Tracker for real-time updates.
IPO Company Financial Data
Sellowrap has demonstrated impressive growth in recent years, particularly in profitability:
| Financials (₹ Crore) | FY 2025 | FY 2024 | FY 2023 | Growth (FY25 vs FY24) |
|---|---|---|---|---|
| Total Revenue | 163.31 | 139.09 | 133.43 | 17.41% ↑ |
| Profit After Tax (PAT) | 9.97 | 5.95 | 2.86 | 67.56% ↑ |
| EBITDA | 22.32 | 14.72 | 8.81 | 51.63% ↑ |
| Total Assets | 143.02 | 99.79 | 92.82 | 43.32% ↑ |
| Net Worth | 46.93 | 32.96 | 27.02 | 42.32% ↑ |
| Reserves & Surplus | 43.43 | 30.06 | 24.12 | 44.48% ↑ |
| Total Borrowings | 38.00 | 31.69 | 30.02 | 19.91% ↑ |
Key Takeaways:
- Robust Revenue Growth: Consistent top-line expansion.
- Explosive Profitability: PAT surged 68% in FY25, indicating improved operational efficiency and scale benefits.
- Strengthening Balance Sheet: Significant growth in Net Worth and Assets supports future expansion.
IPO Application Details & Lot Size
Applying requires careful attention to lot size and investment amounts:
| Investor Category | Minimum Lots | Minimum Shares | Minimum Investment (₹) | Maximum Investment (Retail/HNI Segments) |
|---|---|---|---|---|
| Retail Individual (Min) | 2 Lots | 3,200 Shares | ₹2,65,600 (@ ₹83) | ₹2,65,600 (Cap for Retail) |
| S-HNI (Min) | 3 Lots | 4,800 Shares | ₹3,98,400 (@ ₹83) | Up to 7 Lots (11,200 Shares / ₹9,29,600) |
| B-HNI (Min) | 8 Lots | 12,800 Shares | ₹10,62,400 (@ ₹83) | No Upper Limit (Within NII Quota) |
- Cut-off Time: UPI Mandate confirmation must be completed by 5:00 PM on July 29, 2025.
- How to Apply: Via ASBA through your bank or trading platform using UPI.
IPO Reservation Quota
The net public offer of 34,65,600 shares is allocated as follows:
| Investor Category | Reservation (% of Net Issue) | Reservation (Shares – Approx.) |
|---|---|---|
| Qualified Institutional Buyers (QIB) | Not more than 50% | ~17,32,800 shares |
| Non-Institutional Investors (NII) | Not less than 15% | ~5,19,840 shares |
| Retail Individual Investors (RII) | Not less than 35% | ~12,12,960 shares |
| Market Maker | Already allocated 1,82,400 shares | – |
IPO Promoter Holding Details
The Poddar family holds the controlling stake:
- Promoters: Mr. Saurabh Poddar, Mr. Sushil Kumar Poddar, Ms. Pooja Poddar, M/s. Saurabh Marketing Private Limited & Sushil Kumar Poddar (HUF).
- Pre-IPO Holding: 92.18% (1,00,96,220 shares).
- Post-IPO Holding: 67.71% (Approx. 93,07,000 shares out of 1,37,44,220 total shares).
- Equity Dilution: 24.47% (Reflecting significant promoter skin-in-the-game post-listing).
IPO Timeline (Tentative Schedule)
Mark these critical dates:
| Event | Tentative Date |
|---|---|
| IPO Opening Date | Friday, July 25, 2025 |
| IPO Closing Date | Tuesday, July 29, 2025 |
| Basis of Allotment Finalization | Wednesday, July 30, 2025 |
| Initiation of Refunds | Thursday, July 31, 2025 |
| Credit of Shares to Demat | Thursday, July 31, 2025 |
| Listing Date | Friday, August 1, 2025 |
IPO Anchor Investor Details
- As per the RHP filed, the company may allocate shares to Anchor Investors a day before the IPO opening (July 24, 2025). Specific names and allocation details will be disclosed post-book closure. *[Check NSE/BSE website for the Anchor Book post-July 24th].*
IPO Key Performance Indicators (KPI)
Based on FY25 financials and post-IPO capital structure:
| KPI | Value (Pre-IPO) | Value (Post-IPO) | Remarks |
|---|---|---|---|
| Return on Equity (RoE) | 21.25% | Diluted | Strong profitability relative to equity |
| Return on Capital Employed (RoCE) | 18.86% | Diluted | Efficient capital utilization |
| Return on Net Worth (RoNW) | 21.44% | Diluted | High return for shareholders |
| Debt-to-Equity Ratio | 0.81 | ~0.60* (Post-issue) | Moderate leverage; improves post-fund raise |
| PAT Margin | 6.14% | Similar | Healthy and growing net profit margin |
| EBITDA Margin | 13.74% | Similar | Solid operating profitability |
| Earnings Per Share (EPS – ₹) | 9.88 (Basic FY25) | 7.26 (Diluted FY25) | Dilution expected post-issue |
| Price-to-Earnings (P/E) | 8.4x (Pre) | 11.44x (Post) | Key valuation metric; compares to peers |
| Price-to-Book Value (P/BV) | – | 1.70x (Post) | Based on Post-IPO Net Worth |
| *Estimated based on fund infusion reducing debt. |
IPO Company Contact Details
- Registered Office: Sellowrap Industries Ltd., 208, Plot No C 5, Abhishek Building, Dalia Estate, New Link Road, Andheri (W), Mumbai, Maharashtra – 400053
- Phone: +91-22-6675 0560
- Email: contact@sellowrap.com
- Website: https://www.sellowrap.com/
IPO Registrar Details
Purva Sharegistry India Pvt Ltd handles allotment, refunds, and share transfers:
- Phone: +91-022-23018261 / 23016761
- Email: newissue@purvashare.com
- Website: https://www.purvashare.com/investor-service/ipo-query
- IPO Status Link: Check Purva Sharegistry website post-allotment date.
IPO Recommendation: Buy Or Not?
The decision hinges on risk appetite and investment horizon:
- Strengths (Subscribe Arguments):
- Strong FY25 financial performance (Revenue +17%, PAT +68%).
- Established position in growing automotive/components sector.
- Long-term relationships with reputed OEMs.
- Modern manufacturing infrastructure and pan-India presence.
- Clear utilization of funds for Capex (₹12.4 Cr) and Working Capital (₹10 Cr) to fuel growth.
- Promoters retaining significant stake (67.71% post-IPO) aligns interests.
- Concerns (Neutral/Avoid Arguments):
- Valuation: Post-IPO P/E of 11.44x appears fully priced relative to some SME peers, demanding high growth continuation.
- SME Segment Volatility: SME listings can experience higher price swings.
- Dependence on Key Sectors: Performance linked to automotive and white goods cycles.
- Execution Risk: Ability to deploy IPO funds effectively for projected growth is key.
Expert View (e.g., Dilip Davda – Chittorgarh): “SIL is engaged in the production of customized components for automotive, non-automotive, and white goods industries. It has strong long-term relationships with marquee customers. The company posted growth in its top and bottom lines for the reported periods. Based on recent financials, the issue appears fully priced. Well-informed investors may park funds for medium to long term.”
Verdict: This IPO suits risk-tolerant investors with a medium-term (1-3 years) horizon who believe in the company’s growth trajectory and the sector’s potential. The strong fundamentals are positive, but the valuation leaves less room for error. Careful consideration based on GMP trends and peer comparison is advised. Neutral to Cautious Subscribe for listing gains; potential for long-term holds exists if execution excels.
IPO RHP/DRHP
- DRHP (Draft Red Herring Prospectus): Filed with SEBI/NSE, detailing initial plans. Access via NSE Emerge website or Chittorgarh.
- RHP (Red Herring Prospectus): The final offer document, incorporating SEBI observations and price band. Crucial Reading. Contains exhaustive details on business, risks, financials, objects, promoters, and legal matters.
- Access RHP: Find the finalized Sellowrap Industries RHP on the NSE Emerge website (https://www.nseindia.com/companies-listing/corporate-filings-sme), Purva Sharegistry website, or lead manager Gretex’s platform before applying.
Offer Documents: DRHP Document , RHP Document.
IPO Review: Pros and Cons
Pros:
- Robust Financial Growth: Exceptional PAT surge (68% in FY25) and solid revenue growth.
- Niche Market Position: Established player in critical automotive/white goods components.
- Scalable Infrastructure: Four modern plants support future expansion.
- Diverse Clientele: Reduces customer concentration risk.
- Clear Fund Utilization: Focus on growth-enhancing Capex and Working Capital.
- Experienced Promoters: Significant post-IPO holding (67.71%) shows commitment.
- Export Potential: Existing international clients provide growth avenue.
Cons:
- Aggressive Post-IPO Valuation: P/E of 11.44x demands consistent high growth.
- SME Market Risk: Higher volatility and liquidity concerns compared to mainboard.
- Sector Cyclicality: Vulnerable to downturns in auto and consumer durables.
- Execution Dependency: Future success hinges on effective Capex deployment and market penetration.
- Competition: Faces pressure from established component manufacturers.
FAQ (Frequently Asked Questions)
- Q: What is the Sellowrap Industries IPO GMP today?
A: As of July 25, 2025, the GMP is approximately ₹[Insert Current GMP]. Check financial portals like ET Markets or Chittorgarh for live updates. GMP indicates grey market expectations for the listing premium. - Q: When does the Sellowrap IPO open and close?
A: It opens on July 25, 2025, and closes on July 29, 2025. - Q: What is the lot size and minimum investment?
A: The lot size is 1,600 shares. The minimum investment for retail investors is 2 lots (3,200 shares), costing ₹2,65,600 (at the upper price band of ₹83). - Q: Where will Sellowrap Industries list?
A: The shares will list on the NSE SME platform, tentatively on August 1, 2025. - Q: What is the core business of Sellowrap Industries?
A: SIL manufactures precision plastic injection moulded parts, PU foam components, EPP moulding, screen sealing parts, and labels/stickers primarily for automotive and white goods industries. - Q: How have the company’s financials performed recently?
A: SIL showed strong growth: Revenue increased 17% and Profit After Tax (PAT) surged 68% in FY25 compared to FY24. - Q: What will the company use the IPO money for?
A: Funds will be used for Capital Expenditure (₹12.40 Cr), Working Capital (₹10.00 Cr), and General Corporate Purposes. - Q: Who are the promoters, and what will their holding be post-IPO?
A: Promoters are the Poddar family entities. Their holding will reduce from 92.18% pre-IPO to 67.71% post-IPO. - Q: Who is handling the Sellowrap IPO registrar work?
A: Purva Sharegistry India Pvt Ltd is the registrar. Contact them for allotment or refund queries. - Q: Is the Sellowrap Industries IPO worth applying for?
A: The decision depends on risk appetite. The company has strong recent growth and fundamentals, but the post-IPO valuation (P/E 11.44x) is considered full. Suitable for medium-term investors comfortable with SME risks. Review the RHP, GMP, and peer valuations before deciding.
