Defrail Technologies IPO 2026:
Defrail Technologies Limited, a Haryana-based rubber components manufacturer, is launching its SME IPO on BSE SME to raise ₹13.77 crores through a fresh issue. This IPO targets investors interested in the growing automotive, railway, and defence sectors amid India’s manufacturing push.
Defrail Technologies IPO: Key Dates and Subscription Details
The Defrail Technologies IPO opens for bidding on January 9, 2026, and closes on January 13, 2026, with allotment expected on January 14 and listing on BSE SME on January 16. Priced at ₹70-₹74 per share (face value ₹10), the minimum lot size stands at 1,600 shares, requiring ₹112,000-₹118,400 per lot at the band ends.
Retail investors must apply for at least 2 lots (3,200 shares), capping at ₹236,800 (upper band). The small HNI minimum is 3 lots (4,800 shares, ₹355,200), while the big HNI starts at 9 lots (14,400 shares, ₹1,065,600). The issue allocates 33.53% to retail, 14.45% to NII, 46.95% to QIB (including anchors), and 5.07% to market makers.
| Category | Shares Offered | % of Issue | Min Application (Lots) | Amount (Upper Band ₹74) |
|---|---|---|---|---|
| Retail (RII) | 6,24,000 | 33.53% | 2 (3,200 shares) | ₹2,36,800 |
| S-HNI | 91,200 | 4.90% | 3 (4,800 shares) | ₹3,55,200 |
| B-HNI | 1,77,600 | 9.54% | 9 (14,400 shares) | ₹10,65,600 |
| QIB (incl. Anchor) | 8,73,600 | 46.95% | – | – |
| Market Maker | 94,400 | 5.07% | – | ₹69.86 lakhs |
Defrail Technologies IPO: Company Overview and Business Model
Defrail Technologies manufactures rubber hoses, assemblies, profiles, beadings, and molded parts for automotive, railway, and defense sectors. Tracing its roots to 1980 as Vikas Rubber Industries, it evolved through Impex Hitech Rubber Pvt Ltd (2008) before consolidating into the current entity in October 2023 via business transfer. Operating two plants in Faridabad, Haryana (total ~50,000 sq ft), the firm uses extrusion, braiding, vulcanization, and molding processes with polymers like NR, SBR, IIR, and CR.
As an IATF 16949:2016 and ISO 9001:2015 certified company with RDSO approval, it supplies to Indian Railways and is GEM-registered for government tenders. Products include diesel/petroleum hoses, LPG hoses, gaskets, grommets, EPDM profiles, and sponges, serving B2B and B2G clients. In-house R&D and testing ensure customization, with 298 employees as of November 2025.
Defrail Technologies IPO: Financial Performance and Growth Trajectory
Defrail posted revenue of ₹62.22 crore in FY25 (annualized from ₹0.72 crore in FY24), reflecting explosive 8,500%+ growth post-consolidation. PAT surged to ₹3.42 crore (FY25) from ₹0.11 crore (FY24), with EBITDA at ₹5.78 crore (9.29% margin). H1 FY26 (Sep 2025) showed ₹39.08 crore revenue and ₹1.51 crore PAT.
Key ratios shine:
ROE 73.72%, ROCE 24.43%, but debt/equity at 1.27 signals leverage. Assets grew to ₹33.91 crore (FY25) from ₹1.22 crore, with borrowings at ₹11.56 crore. Working capital strain appears from high inventory (₹11.91 crore) and receivables (₹9.73 crore) vs. monthly sales of ~₹6.51 crore.
| Metric (₹ Crore) | FY25 | FY24 | H1 FY26 | PAT Margin | ROCE |
|---|---|---|---|---|---|
| Revenue | 62.22 | 0.72 | 39.08 | – | – |
| EBITDA | 5.78 | 0.14 | 3.44 | 9.29% | – |
| PAT | 3.42 | 0.11 | 1.51 | 5.49% | 24.43% |
| Net Worth | 9.12 | 0.16 | 10.62 | – | – |
| Debt | 11.56 | 0.41 | 11.78 | D/E: 1.27 | |
Post-IPO market cap is ~₹52 crore at the upper band, with a P/E of 17.25 (pre-IPO EPS of ₹6.62). Promoter holding dilutes from 100% to 73.52%.
Defrail Technologies IPO: Proceeds Utilization
Net proceeds fund machinery/equipment purchase (₹7.96 crore, 57.78%), solar panel installation (₹1.73 crore, 12.56%), and general corporate purposes (₹4.08 crore). This capex aims to boost capacity in high-growth railways/defense amid India’s infra boom.
Defrail Technologies IPO: Risks and Strengths
Strengths include RDSO certification unlocking railway orders, a diversified portfolio across auto/rail/defense, in-house R&D for innovation, and stellar growth (revenue 86x in a year). Long client ties and GeM registration aid B2G stability.
Risks encompass a short track record (incorporated 2023), working capital intensity stretching cycles, client/supplier concentration, debt reliance, and SME illiquidity. Rubber price volatility and competition from unorganized players loom.
The GMP, Valuation, and Subscription Outlook is dated January 7, 2026. There is no available GMP data; investors should monitor the grey market for updates closer to the opening. en. Valuation at 17.25x P/E appears reasonable vs. the sector amid growth, but a low base inflates ratios. Strong sector tailwinds from Make in India, railway modernization (₹2.5 lakh crore budget), and defence indigenization favor subscription.
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Defrail Technologies IPO: Should You Apply? Expert Recommendation
Apply for listing gains if risk-tolerant, given the 86x revenue jump and infra alignment; target 20-40% pop, typical for SME IPOs with such profiles. Conservative investors: Avoid due to leverage, WC issues, and nascency. The retail cap of 2 lots is suitable; monitor subscriptions starting on Day 1, as Qualified Institutional Buyers (QIBs) are key. Track allotment via registrar Maashitla Securities.
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