— By Dilip Davda
- The company is engaged in the manufacturing and supply of industrial safety footwear under the brand name “ACME”
- It is operating in a highly competitive and fragmented segment.
- Though it posted steady growth in its top lines for the reported periods, it marked severe setback in bottom lines for FY25.
- Based on its recent average financial data, the issue appears aggressively priced.
- Only well-informed/risk seeker/cash surplus investors may park moderate funds for medium term.
ALERT: IN VIEW OF THE LIKELY BANK STRIKE FROM 28.09.26 TO 30.09.26, THE IPOS/PRIMARY OFFERS THAT ARE FALLING BETWEEN THESE THREE DAYS, IPOS SCHEDULE TIME LINE MAY CHANGE AND THE REVISED DATES WILL GET EFFECTIVE FOR OPENING AND / OR CLOSING SCHEDULES, AS THE CASE MAY BE. INVESTORS ARE REQUESTED TO MAKE A NOTE OF THIS.
ABOUT COMPANY:
Acme Universal Safezone 9 Ltd. (AUSL) is engaged in the manufacturing and supply of industrial safety footwear under the brand name ‘ACME’. The Company operates in the Personal Protective Equipment (PPE) segment, specifically in the industrial safety footwear sub-segment. Safety footwear use is mandated under applicable occupational health and safety regulations across sectors including construction, oil and gas, mining, heavy engineering, automotive, pharmaceuticals, chemical processing, foundry, and power generation.
The Company serves end users across all these sectors through 15 product lines covering EVA-rubber, Nitrile Rubber, and PVC sole types, addressing hazard categories including impact and compression protection, penetration resistance, electrical shock resistance, anti-static protection, heat and fire resistance, chemical resistance and slip resistance.
It collects data from the customers, analyses the data and then design a customized product which cater to the needs of customers. The company undertakes manufacturing and supply of finished products for customers depending upon the demand of Product. Design and visualization are carried out using ICad3D technology. The Company has implemented SAP S/4 HANA for enterprise resource planning across its manufacturing units, covering finance, operations, and logistics. CRM systems are used for customer management and HRMS platforms for workforce management and employee data analytics.
As on the date of this Red Herring Prospectus, the Company operates four manufacturing facilities, located in the state Madhya Pradesh and Uttar Pradesh. The Company distributes its products through direct institutional sales, regional distributors & dealers and digital & e-commerce channels with channel-partner warehousing at more than 40 locations across India covering cities including New Delhi, Mumbai, Pune, Hyderabad, Bengaluru, Chennai, Kolkata, Ahmedabad, Indore and Bhopal among others. Export sales are made to the United Arab Emirates, Bahrain, Saudi Arabia, Nigeria, Israel, Netherlands, Hong Kong, Cameroon, Mauritius and other markets. As of March 31, 2026, it had 1073 employees on its payroll.
ISSUE DETAILS/ CAPITAL HISTORY:
The company is coming out with its maiden book building route IPO of 5060800 equity shares of Rs. 10 each to mobilize Rs. 35.93 cr. at the upper cap. The company has announced a price band of Rs. 65 – Rs. 71 per share. The minimum application to be made is for 2400 shares and in multiples of 1200 shares thereon, thereafter. The issue opens for subscription on September 28, 2026 and will close on September 30, 2026. The shares will be listed on BSE SME. The IPO constitute 26.50% of the post-IPO paid-up capital of the company. From the net proceeds of the issue, the company will utilize Rs. 8.00 cr. for working capital, Rs. 3.62 cr. for capex on installation of solar power plant, Rs. 8.96cr.capex on installation of additional machinery, and the rest for inorganic growth / general corporate purposes.
The IPO is solely lead managed by Expert Global Consultants Pvt. Ltd., while Maashitla Securities Pvt. Ltd. is the registrar to the issue. JSK Securities & Services Pvt. Ltd. is a market maker.
After issuing/converting initial equity capital at par value, the company also issued further equity shares at affixed price of Rs. 190 per share (based on Rs. 10 FV) in October 2024. It has also issued bonus shares in the ratio of 2 for 1 in February 2026. The average cost of the acquisition of shares by the promoters is Rs. 3.53, and Rs. 6.21 per share.
Post-IPO, company’s current paid-up equity capital of Rs. 14.03 cr. (14032620 equity shares) will stand enhanced to Rs. 19.09 cr. (19092620 equity shares). Based on the upper band of the IPO pricing, the company is looking for a market cap of Rs. 135.56 cr.
FINANCIAL PERFORMANCE:
On the financial performance front, for the last three fiscals, the company has posted total income/ net profit, of Rs. 181.67 cr. / Rs. 7.56 cr. (FY24), Rs. 191.31 cr. / Rs. 0.80 cr. (FY25), Rs. 211.16 cr. / Rs. 5.86 cr. (FY26). The company posted steady growth in its top lines for the reported periods, but marked sharp setback for FY25, and lower net on higher top line for FY26. Rising trade receivables year-on-year, raise concerns. Its contingent liability stood at Rs. 0.49 cr. as of March 31, 2026.
For the last three fiscals, the company has reported an average EPS of Rs. 3.22 (basic) and an average RoNW of 9.78%. The issue is priced at a P/BV of 1.89 based on its NAV of Rs. 37.60 per share as of March 31, 2026, but its post-IPO NAV data is missing from the offer documents
If we attribute FY26 earnings to its post-IPO fully diluted paid-up equity capital, then the asking price is at a P/E of 23.13, and based on FY25 earnings, the P/E stands at 169.04. The issue appears aggressively priced based on its recent average earnings.
The company has posted PAT Margins of 4.23% (FY24), 0.43% (FY25), 2.84% (FY26) and RoCE margins of 12.48%, 2.52%, 5.54%, respectively for referred periods.
DIVIDEND POLICY:
The company has not paid any dividends since its incorporation. It will adopt a prudent dividend policy, based on its financial performance and future prospects.
COMPARISON WITH LISTED PEERS:
As per the offer document, the company has shown Liberty Shoes, Superhouse, Mallcom (India), as its listed peers. They are currently trading at a P/E of 47.2, 23.3, and 22.1 (as of September 25, 2026). However, they are not truly comparable on an apple-to-apple basis. This comparison appears as an eye-wash.
MERCHANT BANKER’S TRACL RECORD:
This is the 16th mandate from Expert Global, in the last three fiscals (including the ongoing one). Out of the last 10 listings, 2 opened at discount, and the rest listed with a premium ranging from 6.31% to 90.00% on the listing date.
CONCLUSION:
AUSL is engaged in the manufacturing and supply of industrial safety footwear under the brand name “ACME”. It is operating in a highly competitive and fragmented segment. Though it posted steady growth in its top lines for the reported periods, it marked severe setback in bottom lines for FY25. Based on its recent average financial data, the issue appears aggressively priced. Only well-informed/risk seeker/cash surplus investors may park moderate funds for medium term.
Review By Dilip Davda on August, 2026
Review Author
DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. My reviews do not cover GMP market and operators game plans. Readers must consult a qualified financial advisor before making any actual investment decisions, based the on information published here. With entry barriers, SEBI wants only well-informed investors to participate in such offers. With crazy listings in the recent past, SME IPOs drew the attention of investors across the board and lead to seer madness. However, as SME issues have entry barriers and continued low preference from the broking community, any reader taking decisions based on any information published here does so entirely at their own risk. The above information is based on information available as of date coupled with market perceptions. The Author has no plans to invest in this offer.
About Dilip Davda
Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.
Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detailed fundamental and financial analysis of companies coming up with IPOs helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.
(Dilip Davda -SEBI registered Research Analyst-Mumbai,
Registration no. INH000003127 (Perpetual)
Email id: dilip_davda@rediffmail.com ).
