₹2,34,000 / 1200 shares
Systematic Industries IPO Details
RHP/DRHPIssue Date
24 Sep - 26 Sep'25
Investment/lot
₹2,34,000
Price Range
₹185 - ₹195
Lot Size
1200
IPO Size
₹109.67 - ₹115.6 Cr
Schedule of Systematic Industries
Start date
24/09/2025
End date
26/09/2025
Allotment of bids
Refund Initiation
Listing on exchange
About Systematic Industries IPO
The offer consists of both a fresh issue and an offer for sale component. The fresh issue will include up to 55,28,000 equity shares of face value of ₹10/- each. The offer for sale portion includes up to 4,00,000 equity shares of face value of ₹10/- each. The total number of shares and aggregate amount are yet to be finalised.
Objectives of Systematic Industries IPO
- Repayment and/or prepayment, in full or in part, of borrowings availed by the company.
- General corporate purposes.
Systematic Industries IPO Valuation
| Detail | Information |
|---|---|
Upper Price Band | TBA |
Fresh Issue | Up to 55,28,000 equity shares of face value of ₹10/- each |
Offer for Sale | Up to 4,00,000 equity shares of face value of ₹10/- each |
EPS (in ₹) for FY24 | 7.38 |
Share Offer and Subscription Details
| Investor Category | Shares Offered |
|---|---|
QIBs | Not more than 50% of the net offer |
Non-institutional Investors (NIIs) | Not less than 15% of the net offer |
Retail-individual Investors (RIIs) | Not less than 35% of the net offer |
Industry Outlook
The market size of the steel wire industry grew at a CAGR of 7.6% from CY19 to CY24, reaching an estimated market size of USD 11,340 crore by CY24. It is further projected to grow at a CAGR of 6% from CY24 to CY30, reaching a market size of USD 16,120 crore by CY30. Rising demand in the main industries like construction, automotive, and mining has been fuelling the growth of the steel wire market. With rapid urbanisation and growing investments in infrastructure, the need for steel wire for construction projects including bridges, roads, and electrical grids has surged.
By type, carbon steel wire dominates the market in terms of value, holding an estimated market share of 62.9% as of CY24. The market for carbon steel wire has grown by a CAGR of 6.7% from CY19 to CY24, reaching an estimated value of USD 7,140 crore in CY24. Looking ahead, it is projected to grow at a CAGR of 5.2% from CY24 to CY30, reaching a market size of USD 9,670 crore by CY30.
The market size of the galvanised steel wire industry grew at a CAGR of 7.4% from CY19 to CY24, reaching an estimated market size of USD 170 crore by CY24. It is further projected to grow at a CAGR of 6.2% from CY24 to CY30, reaching a market size of USD 250 crore by CY30.
Stainless steel wire holds the majority share in steel wire exports from India. Steel wire exports grew at a CAGR of 9.3% from FY19 to FY24. As of FY24, the top three major export destinations of India are the UAE, the United Kingdom, and the United States of America with export shares of 12.6%, 12.1%, and 9.6% respectively. During 8MFY25, steel wire exports stood at 0.18 MT. Steel imports, on the other hand, declined at a CAGR of 1.3% from FY19 to FY24. During 8MFY25, steel wire imports stood at 0.18 MT.
Optical fibre has evolved as the most practical wired solution for backhaul, considering its extraordinary capacity. Owing to its almost limitless capacity and scalability, it is the right choice for high-capacity routes where logistics are manageable, the capacity need is high, and the potential revenue gain offsets the expense. In the coming years, its share in the mobile backhaul network is likely to increase owing to the expected growth in data traffic and the increasing requirement of backhaul for new technologies such as LTE, LTE Advanced, IMT-2020 etc. The National Broadband Mission released by the DoT in December 2019 envisaged increasing by around two-and-a-half times the number of fibreised telecom towers in the country.
Company Information
Incorporated in the year 2000, Systematic Industries Limited is an ISO 9001:2015, ISO 14001:2015 and ISO 45001:2018 certified company operating in the steel wire industry and engaged in the business of manufacturing and supplying various steel wires and cables, catering to the needs of power transmission, infrastructure, telecommunications, agro-based and allied industries. Their product portfolio includes steel wires such as carbon steel wire (MS wire), high carbon wire (HC wire), mild steel (MS) wire, galvanised iron (GI) wire, cable armour wire, aluminium conductor steel-reinforced cable (ACSR core wire), aluminium clad steel (ACS) wire etc., along with optical ground wires (OPGW) and optical fibre cable (OFC), which have electrical and mechanical properties that are suitable for applications in power generation, data transmission and distribution, thus ensuring efficiency and reliability across various aforementioned industries.
The company started its operations with a factory situated at Village Sayli, Silvassa in Dadra & Nagar Haveli and Daman & Diu, whereby they manufactured and supplied steel wires. Gradually, they expanded their verticals by venturing into manufacturing various other steel wire products such as mild steel (MS) wire, galvanised iron (GI) wire, aluminium clad steel (ACS) wire etc.
They sell their products in approximately 25 states & union territories in India and also export their products to more than 30 countries such as Sri Lanka, Japan, Bhutan, Canada, Brazil etc.
Systematic Industries IPO Strengths
Established factories with equipped machines and processes and research and development
The company has multiple factories at different locations with a capacity of 1,00,000 MTPA across various products, industries and regions. They also manufacture Optical Ground Wire (OPGW - 6000 km annual capacity), optic fibre cables (48,000 km annual capacity), galvanised wire, wires for power industries, and high and low carbon steel wires etc. (Source: CareEdge Report). They operate from their four factories, of which three units are situated in the Union Territory of Dadra & Nagar Haveli and Daman & Diu, India, and one unit is situated in Valsad, Gujarat. They have comprehensive in-house manufacturing capabilities along with their own Research & Development Department and in-house testing lab for quality testing. Their factories are equipped with the required machinery, equipment and infrastructure such as wire drawing machine, GI plant, flattening machine, ACS cladding/aluminium tubing machine, fibre colouring machine, buffering machine, SZ stranding machine, sheathing machine, ACS wire drawing machine, ACS rewinding machine, lathe machine, drilling machine, high carbon machine, torsion machine etc., to carry out the requisite manufacturing activities as per required standards.
Catering to a wide range of industries
They offer a wide range of products with diverse applications across various industries such as power transmission, infrastructure, telecommunications, agro-based and allied industries. Their diversification of revenue across multiple verticals allows them to prevent any possible industry concentration in any of their product categories. It also ensures that their revenues are consistent across periods on account of their customers serving different industry verticals with different business or industry cycles.
Revenue from multiple geographies
Their product portfolio and quality assurance have helped them establish strong relationships with their major customers. They have diversified revenue from multiple geographical locations across India and a portion of revenue from outside India, from more than 30 countries such as Sri Lanka, Japan, Bhutan, Canada, Brazil, etc. They have generated around 91.70%, 90.54%, 92.19% and 79.37% of their total revenue from domestic sales for the period ending 31 December 2024 and the fiscal years ending 2024, 2023 and 2022 respectively, and generated around 8.30%, 9.46%, 7.81% and 20.63% of their total revenue from export sales for the period ending 31 December 2024 and the fiscal years ending 2024, 2023 and 2022 respectively. Currently, they market their products to more than 30 countries and gradually intend to expand their business operations to other geographical locations as well.
Risks of Systematic Industries IPO
Dependence on factories
They conduct their operations through their multiple factories located in the state of Gujarat & Union Territory of Dadra & Nagar Haveli and Daman & Diu. Their largest factory, which is located in Gujarat, is spread across approximately 11,988 sq. m. The core of their business relies on efficient management of the factories; however, their operations face a spectrum of operational risks, some of which are beyond their control, such as the breakdown or failure of equipment, industrial accidents, severe weather conditions and natural disasters. Any significant malfunction or breakdown of their machinery, their equipment, their reactors, their process systems or their IT systems may entail significant repair and maintenance costs and cause delays in their operations. If they are unable to repair their assets and systems in a timely manner or at all, their operations may be impacted until they procure the appropriate assets to replace them. In addition, they may be required to carry out planned shutdowns of their factories for maintenance, testing or may shut down certain facilities for capacity expansion and equipment upgrades. Such events could disrupt their operations and may have a material adverse effect on their business, financial condition and results of operations.
Dependence on the steel wires market performance
They derive most of their revenue from operations from the manufacture and supply of steel wires. As a result, their business and financial condition are heavily dependent on the performance of the steel wires market in India and globally, and they are exposed to fluctuations in the performance of these markets. If demand for steel wires in India decreases in the future, their business, results of operations, financial condition, cash flows and prospects may be materially and adversely affected. The steel wires market may be affected by, among others, changes in government policies, government initiatives, economic conditions, government and individual spending, availability of raw material and interest rates, which may negatively affect the demand for and the valuation of their products. These and other factors may negatively contribute to changes in the prices of and demand for their steel wires and may have a material adverse effect on their business, financial condition, results of operations and cash flows.
Foreign currency fluctuation risks
They present their financial statements in Indian rupees. They export their products to Sri Lanka, Japan, Bhutan, Canada, Brazil etc., and for the period ending 31 December 2024 and FY ending 31 March 2024, 31 March 2023 and 31 March 2022, they derived revenue from exports of 8.30%, 9.46%, 7.81% and 20.63% of their total revenue from operations for respective periods. Also, they import raw material, capital assets and have made exhibition expenses in countries outside India. Although they generally seek to pass exchange rate fluctuations to their customers through increases in their prices, there can be no assurance that they will be able to do so immediately or fully, which could affect their business, financial condition, results of operations and cash flows. Thus, their global operations expose them to foreign exchange rate risks, arising from their receivables and payables. There can be no guarantee that such fluctuations will not affect their financial performance in the future as they continue to expand their operations globally.
All Financial Information about Systematic Industries
Comparison with peers
| Company Name | Revenue from Operations (₹ Cr) | P/E Ratio | EPS (Basic) (₹) | NAV per share (₹) |
|---|---|---|---|---|
Systematic Industries Ltd | 370.307 | -- | 7.38 | 37.12 |
Advait Energy Transitions Ltd (Formerly known as Advait Infratech Ltd) | 208.846 | 53.27 | 21.45 | 72.00 |
Bansal Wire Industries Ltd | 2466.031 | 58.03 | 6.18 | 33.14 |
Anchor Investor Bidding Date: TBA
Registrar: Cameo Corporate Services Limited Book Running Lead Managers: Hem Securities Limited
Business Model
The company earns its revenue through the following: Manufacturing and supplying various steel wires and cables, catering to the needs of power transmission, infrastructure, telecommunications, agro-based and allied industries.
Company Growth Trajectory
The company's total income for the financial year 2023-24 stood at ₹372.60 crores, whereas in financial year 2022-23 the same stood at ₹321.90 crores, representing an increase of 15.75%.
During the financial year 2023-24, the net revenue from operations of the company increased to ₹370.31 crores as against ₹320.48 crores in the financial year 2022-23, representing an increase of 15.55%. The main reason for the increase in revenue is due to increased sales of various steel wires. During the financial year 2023-24, the other income of the company increased to ₹2.30 crores as against ₹1.42 crores in the financial year 2022-23, representing an increase of 61.37%.
The company reported restated Profit After Tax (PAT) for the financial year 2023-24 of ₹12.41 crores in comparison to ₹6.31 crores in the financial year 2022-23, an increase of 96.53%.
Systematic Industries IPO Profit and Loss
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Total Income (in ₹crores) | 372.604 | 321.900 | 236.030 |
Profit Before Tax (in ₹crores) | 16.617 | 8.469 | 5.246 |
Profit After Tax (in ₹crores) | 12.405 | 6.312 | 3.910 |
EPS (Basic) ₹ | 7.38 | 3.76 | 2.33 |
EBITDA (in ₹crores) | 24.100 | 12.956 | 8.566 |
Systematic Industries IPO Balance Sheet
| Parameter | FY24 | FY23 | FY22 |
|---|---|---|---|
Profit Before Tax (in ₹crores) | 16.617 | 8.469 | 5.246 |
Net Cash from Operating Activities (₹crores) | 15.186 | (6.750) | 0.650 |
Net Cash from Investing Activities (₹crores) | (24.460) | (14.968) | (3.302) |
Net Cash from Financing Activities (₹crores) | 9.755 | 21.910 | 3.056 |
Net Cash & Cash Equivalents (₹crores) | 1.086 | 0.605 | 0.413 |
How to check allotment status of Systematic Industries IPO?
1. Visit the Registrar's Website
To check the IPO allotment status for Systematic Industries Limited IPO, visit the official website of Cameo Corporate Services Limited, the registrar for this IPO. On their IPO allotment status page, enter your Permanent Account Number (PAN), application number, or Demat account ID. Then, click the ‘Submit’ button to view your allotment status. Ensure you have the necessary details ready for a quick and accurate check.
2. Check on the Bombay Stock Exchange Website
The Bombay Stock Exchange (BSE) also has an IPO allotment status page. Go to www.bseindia.com and find the 'Investors' tab. Under 'Investors', click on 'IPO'. This will take you to the IPO allotment status page.
On the BSE IPO page, follow these steps
- Select 'Equity' from the dropdown menu
- Choose 'Systematic Industries Limited' in the next dropdown
- Enter your application number
- Enter your PAN
- Click 'Search'
Your Systematic Industries Limited IPO allotment status will be displayed.
3. Verify on the National Stock Exchange Website
The National Stock Exchange (NSE) has an IPO Bid Verification module. Use this to check Systematic Industries Limited IPO allotment status.
Go to www.nseindia.com and find the 'Invest' tab. Click on 'Verify IPO Bids' under 'Resources & Tools'. On the NSE IPO Bid Verification page, enter:
- Application number
- PAN
Then click 'Submit'. Your Systematic Industries Limited IPO bid and allotment details will be displayed.
How to apply for Systematic Industries IPO?
- Step 1: Log in to your Kotak Securities Demat account - Log in to your Demat account to access IPO investments. Next, select the current IPO section.
- Step 2: Specify IPO details - Enter the number of lots and the price you wish to apply for.
- Step 3: Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.
- Step 4: Mandate Notification - Your UPI app will receive a mandate notification to block funds.
- Step 5: Approve Request - Your funds will be blocked once you approve the mandate request on your UPI.
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.
Systematic Industries IPO FAQs
What is the minimum lot size required for Systematic Industries IPO?
The minimum lot size is 1200 shares and the investment required is ₹234000.
What is the price band of the Systematic Industries IPO?
The price band of Systematic Industries IPO is ₹185 to ₹195.
Where can I read more about Systematic Industries business?
You can read more about Systematic Industries and its IPO from the company’s red herring prospectus (RHP) here.
What is the Systematic Industries IPO?
Systematic Industries IPO consists of a fresh issue of up to 55,28,000 equity shares of face value of ₹10/- each and an offer for sale of up to 4,00,000 equity shares of face value of ₹10/- each. The total offer size combines both components and is up to 59,28,000 equity shares of face value of ₹10/- each.
Is Systematic Industries IPO coming?
Yes, Systematic Industries is expected to come up with its IPO soon.
Who is the Chairman of Systematic Industries IPO?
Siddharth Rajendra Agarwal is the Chairman of Systematic Industries IPO.
What is the lot size of shares of Systematic Industries Limited IPO?
The company hasn’t given any information on the lot size yet.
From where can I read more about the IPO of Systematic Industries Limited?
You may read more about Systematic Industries Limited and its IPO from the company’s draft red herring prospectus (DRHP) here.