Acme India Industries IPO (30 Sep-06 Oct) Analysis
Updated: 5 hours ago
SME IPO Analysis | BSE SME Platform | 100% Book Built Offer (Fresh Issue and Offer for Sale) | Regulation 229(2) and 253(1)
Based on Red Herring Prospectus dated September 24, 2026 | Railway Coach Interior Furnishing, Refurbishment and Toilet Upgradation | New Delhi
STATUS: RHP FILED | Fresh Issue and Offer for Sale | Regulation 229(2) and 253(1) | BSE SME Platform | Price Band: [TBD] | No Comparable Listed Peer | Bidding Dates: [TBD] | All Figures in Rs. Lakhs
Acme India Industries Limited began as a sole proprietorship, Acme India, started by the promoter in 2012, was incorporated as Acme India Industries Private Limited on December 22, 2021, and converted to a public company in July 2024.
The registered office is at Plot No. 34, Second Floor, Dwarka Sector 3, New Delhi, Delhi 110078. The website is https://acmeindia.co/. The promoters are Suraj Pandey and Sadhvi Pandey. Bhawna is Company Secretary and Compliance Officer.
The company operates in the Indian railway rolling stock sector, providing turnkey interior furnishing solutions for new railway coaches, refurbishment, upgradation and conversion of old coaches, and upgradation of toilet facilities, alongside manufacture and supply of related components such as braille signage, fibre reinforced plastic products, epoxy flooring, toilet and intercommunication doors, and hygiene equipment.
The company has executed 28 turnkey furnishing projects covering 1,610 coaches since 2017, refurbished and upgraded 1,888 coaches since 2018, and completed 10,948 toilet upgrades, with a presence across 16 railway zones, one manufacturing unit in Sonipat, Haryana of over 92,000 square feet, and two mid life rehabilitation units.
It is ISO 9001:2015 certified by TUV Nord Group and ISO 15085 certified for welding, and empanelled as a Business Associate under a Navratna PSU. Revenue from Indian Railways fell from 88.00% in FY2024 and 91.54% in FY2025 to 46.77% in FY2026, as orders from Public Sector Undertakings of Indian Railways grew. The financial year ends March 31.
Key Basics
This is an SME book built issue on the BSE SME platform, made under Regulation 229(2) and 253(1) of the SEBI ICDR Regulations. The RHP is dated September 24, 2026. The Price Band, lot size and Bid dates remain undetermined at this stage.
Field | Value |
Document Type | Red Herring Prospectus dated September 24, 2026. Price Band, lot size and Bid dates are [TBD]. |
Platform | BSE SME. Designated Stock Exchange: BSE. |
Issue Structure | Fresh Issue of up to 54,07,200 Equity Shares plus an Offer for Sale of up to 8,01,600 Equity Shares by promoter Suraj Pandey. Total Offer up to 62,08,800 shares. |
Face Value | Rs.10 per Equity Share |
Selling Shareholder WACA | Rs.4.88 per Equity Share for Suraj Pandey, as certified by the statutory auditor |
Pre IPO Placement | 10,80,000 Equity Shares allotted on December 12, 2025 at Rs.190 per share, aggregating Rs.2,052.00 Lakhs, which reduced the size of this Offer |
BRLM | Not identified in the extracted document |
Registrar | Not identified in the extracted document |
Bid Dates | [TBD] |
What distinguishes this issue is the gap between the promoter's original cost and the price paid by recent investors: Suraj Pandey is selling at a weighted average cost of Rs.4.88 per share, while a Pre IPO Placement of 10,80,000 shares was completed only months earlier at Rs.190 per share, a difference investors should weigh when assessing the Offer Price once it is set.
How Will the IPO Money Be Used?
This is a Fresh Issue plus an Offer for Sale. The company receives no proceeds from the Offer for Sale; those proceeds go to promoter Suraj Pandey.
Object | Amount (Rs. Lakhs) | Details |
Working capital | 3,800.00 |
|
Repayment or prepayment of borrowings | 4,100.00 |
|
Capital expenditure: additional plant and machinery | 627.30 |
|
General corporate purposes | [TBD] | Capped at 15% of Gross Proceeds or Rs.1,000.00 Lakhs, whichever is lower. |
Total Net Proceeds | [TBD] | To be finalised once the Offer Price is set. |
The three quantified objects total Rs.8,527.30 Lakhs, all scheduled for deployment entirely in Fiscal 2027. Debt repayment is the single largest object, ahead of working capital, and capital expenditure on machinery is comparatively modest. None of the objects has been appraised by a bank or financial institution.
Financial Performance
Revenue, EBITDA, and Profitability
Consolidated (Rs. Lakhs) | FY2026 | FY2025 | FY2024 |
Revenue from Operations | 26,370.77 | 20,999.52 | 21,343.46 |
EBITDA | 3,981.59 | 2,875.56 | 2,957.07 |
EBITDA Margin | 15.10% | 13.69% | 13.85% |
Profit After Tax | 2,435.77 | 1,645.68 | 1,920.73 |
PAT Margin | 9.24% | 7.84% | 9.00% |
EPS, Basic and Diluted (Rs.) | 14.10 | 9.91 | 11.68 |
Return on Net Worth | 23.52% | 29.72% | 53.91% |
Return on Capital Employed | 23.20% | 24.03% | 30.08% |
Revenue grew 25.58% in FY2026 to Rs.26,370.77 Lakhs, after a slight decline the year before, and PAT grew 48.02% to Rs.2,435.77 Lakhs. EBITDA margin and PAT margin both improved to three year highs of 15.10% and 9.24% respectively.
Both RoNW and RoCE have fallen every year despite growing absolute profit, from 53.91% and 30.08% in FY2024 to 23.52% and 23.20% in FY2026, as net worth roughly tripled on retained earnings and the Rs.2,052.00 Lakhs Pre IPO Placement.
The shift in revenue mix is striking: Indian Railways direct revenue fell from 88.00% of FY2024 revenue to 46.77% in FY2026 as PSU linked orders grew to fill the gap.
Balance Sheet and Cash Flow
Consolidated (Rs. Lakhs) | FY2026 | FY2025 | FY2024 |
Total Assets | 38,278.95 | 27,245.35 | 21,760.24 |
Total Equity | 10,354.71 | 5,536.82 | 3,580.80 |
Trade Receivables | 25,218.46 | 15,822.19 | 15,377.09 |
Short Term Borrowings | 8,466.30 | 8,026.44 | 6,802.13 |
Net Cash from Operating Activities | (1,150.16) | 2,397.28 | (609.37) |
Total Contingent Liabilities | 9,463.66 | 7,559.85 | 2,903.81 |
NAV per Share (Rs.) | 59.94 | 33.33 | 21.67 |
Operating cash flow turned negative in FY2026, Rs.1,150.16 Lakhs used, reversing positive generation of Rs.2,397.28 Lakhs in FY2025, as trade receivables jumped Rs.9,396.27 Lakhs during the year, nearly double the Rs.5,371.25 Lakhs increase in revenue itself.
Total contingent liabilities more than tripled over two years, from Rs.2,903.81 Lakhs in FY2024 to Rs.9,463.66 Lakhs in FY2026, including Rs.1,469.15 Lakhs of income tax and TDS demands, Rs.7,390.17 Lakhs of bank guarantees and letters of credit, and Rs.267.98 Lakhs of income tax matters pending before the ITAT. NAV per share nearly doubled from Rs.33.33 to Rs.59.94.
How Does It Compare to Peers?
The RHP states plainly that there are no listed companies in India engaged in a business similar to the company's, so no industry peer comparison is provided.
Metric | Acme India Industries | Listed Peers |
EPS (Rs.) | 14.10 | None disclosed |
P/E (x) | [TBD] | Not applicable |
NAV per Share (Rs.) | 59.94 | Not applicable |
RoNW (%) | 23.52% | Not applicable |
With no peer set, investors have no external market benchmark for this Offer's pricing and must rely instead on the company's own three year trend, and on the Rs.190 per share Pre IPO Placement completed in December 2025 as one reference point for how recent institutional or private investors have valued the business.
Key Risks
• Operating cash flow turned negative in FY2026, Rs.1,150.16 Lakhs used, reversing positive generation of Rs.2,397.28 Lakhs the year before, as trade receivables jumped Rs.9,396.27 Lakhs during the year, nearly double the Rs.5,371.25 Lakhs increase in revenue itself.
• Total contingent liabilities more than tripled over two years, from Rs.2,903.81 Lakhs in FY2024 to Rs.9,463.66 Lakhs in FY2026, including Rs.1,469.15 Lakhs of income tax and TDS demands and Rs.267.98 Lakhs pending before the Income Tax Appellate Tribunal.
• No comparable listed peer exists for this business anywhere in India, by the RHP's own admission, leaving investors without an external market benchmark for the Offer Price.
• The business remains entirely dependent on Indian Railways and its affiliated Public Sector Undertakings, and the company itself states any change in Ministry of Railways policy could lead to contracts being foreclosed, terminated, restructured or renegotiated.
• The promoter selling shareholder's weighted average cost of Rs.4.88 per share sits far below the Rs.190 per share paid in the Pre IPO Placement completed in December 2025, a gap investors should weigh once the Offer Price is set.
• Both RoNW and RoCE have declined every year shown despite growing absolute profit, from 53.91% and 30.08% in FY2024 to 23.52% and 23.20% in FY2026, as the equity base expanded faster than earnings.
• Revenue mix shifted sharply within a single year, from 88.00% direct Indian Railways revenue in FY2024 to 46.77% in FY2026 as PSU linked orders grew; investors should understand whether this reflects genuine diversification or a reclassification of essentially the same underlying end customer.
• The company operates a single manufacturing unit in Sonipat, Haryana, so any disruption there directly affects the entire business.
• Industry data in this RHP comes from a report commissioned and paid for by the company itself from Dun and Bradstreet.
• Tender based contract awards in the IREPS electronic procurement system mean revenue visibility depends on winning individual tenders rather than long term committed contracts.
• None of the three quantified Net Proceeds objects has been appraised by a bank or financial institution, and the repayment of borrowings object, the single largest, does not reduce the company's ongoing working capital needs.
Positives to Note
• Revenue grew from Rs.21,343.46 Lakhs in FY2024 to Rs.26,370.77 Lakhs in FY2026, and PAT grew from Rs.1,920.73 Lakhs to Rs.2,435.77 Lakhs over the same period.
• EBITDA margin and PAT margin both improved to three year highs in FY2026, 15.10% and 9.24% respectively.
• The company holds ISO 9001:2015 and ISO 15085 certifications and empanelment as a Business Associate under a Navratna PSU, credentials that support ongoing eligibility for railway tenders.
• NAV per share nearly doubled from Rs.33.33 in FY2025 to Rs.59.94 in FY2026.
• The company has a demonstrated execution track record across 28 turnkey furnishing projects, 1,888 refurbished coaches and 10,948 toilet upgrades, spanning 16 railway zones.
Disclaimer
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