Lamtuf files DRHP with Sebi to launch IPO, check details

Lamtuf, a company specialising in industrial laminates and composite materials, has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) for an initial public offering (IPO). This IPO will include a fresh issue of up to 1,00,00,000 equity shares and an offer-for-sale of 20,00,000 shares by existing promoters.

The IPO's face value is set at Rs 5 per share, with proceeds being allocated for various purposes. Specifically, Rs 60.43 crore from the fresh issue will be directed towards capital expenditure for expanding the company’s manufacturing facility in Telangana. Additionally, Rs 34 crore will be designated for working capital needs, alongside allocations for general corporate purposes.

Lamtuf intends to fund the expansion of its existing manufacturing facility located in the Pashamylaram Industrial Area, Telangana. The expansion project will cover a plot measuring 27,225 square yards, aimed at increasing production capabilities. This strategic move is part of the company's plan to enhance its operational scale and market presence.

The IPO will be conducted through a book-building process. In this process, not more than 50% of the shares are reserved for Qualified Institutional Buyers (QIBs), while Non-Institutional Investors (NIIs) and Retail Individual Investors (RIIs) are allotted no less than 15% and 35% of the shares, respectively.

Established in 1978, Lamtuf underwent various corporate restructurings and adopted its current name in 2022. The company manufactures a diverse range of products, including paper phenolic laminates, glass polyester composites, and phenolic/epoxy rods, serving industries like railways, automobiles, and defence.

Lamtuf’s manufacturing operations are conducted through a single facility with an annual capacity of 7,200 metric tons. Their domestic market covers 21 Indian states and 4 Union Territories, catering to over 512 clients, including public sector undertakings and multinational corporations. Key customers include High Volt Electricals Private Limited and Bharat Bijlee.

Internationally, Lamtuf exports to more than 23 customers across 15 countries. Notable export destinations include the United States, Germany, and the United Arab Emirates, with international sales comprising 45.83% of the company’s revenue for the fiscal year ending March 2025.

In terms of financial performance, Lamtuf reported a revenue increase of 8.97% to Rs 185.54 crore in the fiscal year 2025, up from Rs 170.28 crore in the previous year. The company's profit after tax rose by 10.24%, amounting to Rs 21.83 crore. This growth is attributed to increased domestic sales in sectors like electrical distribution and solar panels.

The IPO is managed by Unistone Capital as the sole book-running lead manager, with KFin Technologies appointed as the registrar. The shares are proposed to be listed on both the National Stock Exchange of India and BSE.