Adroit Industries IPO

Incorporated in 1966, Adroit Industries handles everything from forging and machining to assembly and testing in house, which helps maintain quality and cost efficiency. The company offers over 5,000 products to distributors, large component manufacturers, and OEMs, mainly used in commercial vehicles, defense, heavy equipment, and industrial machinery. Its manufacturing facilities are located in Madhya Pradesh, equipped to support large scale production.

Its customer base includes Godrej & Boyce Manufacturing Company Limited, BEML Limited, VE Commercial Vehicles Limited, Sandvik Mining and Rock Technology India Private Limited, and Oilgear India Private Limited, among other industrial and infrastructure players. Adroit exports to over 25 countries across North America, Europe, the Asia Pacific region, and other regions, maintaining long term relationships that support steady, repeat revenue.

The company is promoted by Saurabh Sangla, Mukesh Sangla, Monika Sangla, Shubhangi Trust, Shreya Trust, and Swan Irrigation.

The company's competitive strengths include a large diversified product portfolio with over 5,000 SKUs, fully integrated manufacturing operations, strong long standing customer relationships, high entry barriers supported by technical expertise and validation capabilities, a well established export network, and an experienced promoter and management team.

The Adroit Industries IPO is a bookbuilt mainboard issue aggregating up to ₹150.71 crore, comprising a fresh issue of shares worth up to ₹132.62 crore and an offer for sale of up to ₹18.09 crore, entirely from promoter entity Mukesh Sangla HUF. The issue is priced in a band of ₹126 to ₹134 per equity share, with a lot size of 111 shares, and will open on September 23, 2026, closing on September 25, 2026, with listing expected on September 30, 2026 on both the BSE and NSE.

Net proceeds from the fresh issue are earmarked for capital expenditure at the company's Dewas facility, investment in subsidiary Adroit Driveshafts Private Limited for capex at the Pithampur facility and repayment of the subsidiary's borrowings, with the remainder allocated to general corporate purposes. The company has shown consistent financial improvement, with total income rising from ₹104.49 crore in FY23 to ₹136.61 crore in FY25, profit after tax nearly tripling to ₹18.14 crore, and borrowings falling every year through steady deleveraging.

At the upper price band, the issue is priced at a post issue P/E of 28.21 times FY25 earnings, with a Return on Net Worth of 18.94% and a Price to Book Value of 4.52 times, reflecting a fairly full valuation supported by consistent profitability and an improving balance sheet. Key strengths cited include a large diversified product portfolio, fully integrated manufacturing, and an established export network across 25 countries. Key risks include an already low pre issue promoter holding of 51.30% that falls further to 36.96% post issue, and typical cyclicality tied to commercial vehicle and industrial machinery demand. Investors may find it useful to benchmark this issue against other listed auto component manufacturers when evaluating its relative valuation.