Defrail Technologies IPO gives investors exposure to a fast‑scaling rubber and polymer‑based products company with very high return ratios and SME‑style risks, priced with missing P/E clarity and a relatively high minimum application size.
Defrail Technologies IPO – key details
- Defrail Technologies IPO is a SME IPO of Defrail Technologies Ltd, a rubber‑products and polymer‑based solutions company, coming to the market with a neutral review rating of 2 on .
- The IPO opens on 9 January 2026 and closes on 13 January 2026
- Allotment is on 14 January 2026
- Listing is scheduled for 16 January 2026,
- bidding cut‑off time of 5 PM on the closing day.
- Price band :- Rs 70 to Rs 74
- Total issue size :- Rs. 14 Cr
- Sale type :- Fresh Capital
- Face Value :- Rs 10 per share
- IPO Lot Size
- Investors can bid for a minimum of 3,200 shares and in multiples of 1,600 shares thereof.
- IPO reservation structure:
- Anchor investors: 5,18,400 shares (27.86%).
- QIB (ex‑anchor): 3,55,200 shares (19.09%).
- NII: 2,68,800 shares (14.45%).
- Retail: 6,24,000 shares (33.53%).
- Promoters and shareholding:
- Promoters: Vivek Aggarwal, Abhishek Aggarwal, Ashi Aggarwal and Dinesh Aggarwal.
- Promoter holding pre‑issue: 51,63,620 shares (100%).
- Promoter holding post‑issue: 70,24,420 shares (percentage not specified), implying significant dilution but continued control.
- Objective of the issue and utilisation:
- Purchase of equipment and machineries – ₹7.96 crore.
- Purchase and installation of solar panel – ₹1.73 crore.
- General corporate purposes – balance funds.
Business and financials of Defrail Technologies
|
Period Ended |
30 Sep 2025 |
31 Mar 2025 |
31 Mar 2024 |
|
37.22 |
33.91 |
1.22 |
|
|
39.08 |
62.22 |
0.72 |
|
|
1.51 |
3.42 |
0.11 |
|
|
3.44 |
5.78 |
0.14 |
|
|
10.62 |
9.12 |
0.16 |
|
|
5.46 |
3.96 |
0.11 |
|
|
11.78 |
11.56 |
0.41 |
|
|
Amount in ₹ Crore |
|||
- Profitability and valuation metrics – FY2025:
- ROE: 73.72%, indicating extremely high return on equity on a small net‑worth base.
- ROCE: 24.43%.
- EBITDA margin: 9.29%; PAT margin: 5.49%, showing moderate profitability on a rapidly scaled topline.
- Debt‑equity ratio: 1.27, pointing to notable leverage in the capital structure.
- EPS (basic): ₹6.62; RoNW: 73.72%; NAV per share: ₹17.66; P/E ratio is not available as per shared data.
- Peer group comparison (rubber segment):
- Pentagon Rubber Ltd: EPS 0.82, P/E 86.59, RoNW 1.95%, NAV ₹4.22, income ₹0.63 crore.
- Gujarat Reclaim & Rubber Products Ltd: EPS 6.36, P/E 265.72, RoNW 1.73%, NAV ₹36.14, income ₹3.39 crore, highlighting how Defrail’s RoNW is much higher but on a different scale and business profile.
Strengths
- Very strong revenue scale‑up from ₹0.72 crore in FY2024 to ₹62.22 crore in FY2025, indicating rapid ramp‑up in operations and order execution.
- High profitability improvement with PAT jumping from ₹0.11 crore in FY2024 to ₹3.42 crore in FY2025, supported by operating leverage as volumes expand.
- Exceptional return ratios with ROE and RoNW at 73.72%, suggesting efficient utilisation of equity capital and strong earnings on a relatively small net‑worth base.
- Reasonable PAT margin of 5.49% and EBITDA margin of 9.29% for a manufacturing‑type business in rubber and allied products.
- IPO proceeds earmarked for equipment and machinery worth ₹7.96 crore, which can enhance capacity, productivity and possibly new product lines.
- Planned solar panel installation of ₹1.73 crore can reduce long‑term power costs, improve margins and support ESG/green positioning.
- Balanced investor mix with anchors, QIBs, NIIs and a 33.53% retail share offers diversified demand at the time of listing.
Risks
- SME IPO with a high minimum investment of ₹2,36,800 (3,200 shares), limiting access to only higher‑ticket retail investors and increasing concentration risk.
- Sharp jump in revenue from ₹0.72 crore to ₹62.22 crore within a year raises questions on sustainability, predictability and the quality of this rapid scale‑up.
- High ROE of 73.72% is partly driven by a small equity base and leverage, which may normalise significantly as balance sheet size increases.
- Debt‑equity ratio of 1.27 indicates meaningful borrowing; any downturn in demand or margin compression could strain cash flows and debt servicing.
- PAT margin of 5.49% is moderate, offering limited cushion against raw material price volatility, especially for rubber and allied inputs.
- P/E ratio is not disclosed in the shared data, making relative valuation vs peers and risk‑reward assessment harder for Defrail Technologies IPO investors.
- Sector and customer concentration risk typical of niche manufacturing businesses, which may depend heavily on a few key clients or segments.
How To Apply for the IPO ?
- Login or Open demat account with JM Financial Services / JM PRO app: Open the JM PRO app or JM Financial Services website and log in with your credentials.
- Locate the IPO Section: Navigate to the 'IPO' section on the platform.
- Select IPO: Find and select the IPO from the list of open IPOs.
- Enter the Lot Size: Specify the number of lots you want to bid for.
- Submit Your UPI ID: Enter your UPI ID to link your payment method and submit your application.
- Approve Funds: Once you receive the bid request on your UPI app, approve it by entering your UPI PIN.
How To Check the Allotment Status of IPO?
Steps to check IPO allotment status on JM Pro app:
- Log in to the JM Pro app.
- Go to the IPO Section and then to IPO Orders.
- Select the individual IPO that you had applied for and check the allotment status.
JM Financial Services will notify you of your IPO allotment status via push notification and email
FAQs
1. What is Defrail Technologies IPO?
Defrail Technologies IPO is a SME public issue of Defrail Technologies Ltd, a rubber and polymer‑based products company, coming to the market for listing on the SME platform.
2. What does Defrail Technologies Ltd do?
Defrail Technologies operates in the rubber products space, manufacturing and supplying rubber‑based and allied components, with financials showing a sharp scale‑up in revenue between FY2024 and FY2025.
3. When will Defrail Technologies IPO open and close?
Defrail Technologies IPO opens for subscription on 9 January 2026 and closes on 13 January 2026, with a bidding cut‑off time of 5 PM on the closing day.
4. What is the allotment and listing date of Defrail Technologies IPO?
The basis of allotment will be finalised on 14 January 2026, refunds and Demat credit will take place on 15 January 2026, and the IPO is scheduled to list on 16 January 2026.
5. What is the issue size of Defrail Technologies IPO?
The exact issue size in crore is not specified in the shared extract, but the IPO comprises a fresh issue of shares leading to promoter dilution from 100% to a lower post‑issue stake.
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