—By Dilip Davda
- The company is engaged in the Indian Railway Rolling stock sector focusing on warranty maintenance of railway coaches’ interiors.
- It enjoys the status of “Business Associate” under a “Navratna” PSU.
- As of June 30, 2026, its overall order book stood at Rs. 737.97 cr.
- Based on its recent average financial data, the issue appears aggressively priced.
- However, well-informed investors may park funds for medium to long term.
ABOUT COMPANY:
Acme India Industries Ltd. (AIIL) is engaged in the Indian railway rolling stock sector, focusing on the design, manufacture and warranty maintenance of railway coach interior, wherein the business is primarily operating on a tender-based. It provides turnkey furnishing solutions for the interiors of new railway coaches, refurbishment, up-gradation and conversion of old coaches and up gradation of toilet facilities within railway coaches. Additionally, it manufactures and supplies components to Indian Railways. Its services and products are designed towards comfort, safety, hygiene and functionality in line with the specific requirements of Indian Railway and its affiliates.
Its sole proprietorship M/S Acme India began operation with the introduction of braille signage, for “Divyangjan” in the railway sector. Additionally, in 2016, the company started doing business of fire-retardant epoxy flooring, which complied with EN- 45545 standards for interior furnishings in Indian Railways. Since then, it has expanded its scope, initially focusing on manufacturing products for Indian railway coaches and later venturing into turnkey furnishing, refurbishment & up gradation of coaches and up gradation of toilets from 2017 onwards. It has footprints across 16 railway zones, 3 production units and 2 mid-life rehabilitation unit. The company has successfully executed records of 28 different variants of coaches in Indian Railways.
In the turnkey furnishing of new railway coaches, AIIL undertakes the design and installation of interiors for various types of coaches. This includes different variants of Linke Hofmann Busch (“LHB”) coaches, self-propelled units such as Vande Bharat, self-propelled inspection coaches and overhead equipment coaches like the diesel electric tower car. It executes these projects at all major railway production facilities, including the Modern Coach Factory (“MCF”) in Raebareli, the Integral Coach Factory (“ICF”) in Chennai, and the Rail Coach Factory (“RCF”) in Kapurthala. Since 2017, it has successfully completed 28 projects of turnkey furnishing, delivering a total of 1,610 coaches.
In the refurbishment, upgradation and conversion of old railway coaches, AIIL focuses on both LHB and ICF coaches. Its refurbishment operations include interior designs & redesigns, replacement of worn-out components with new upgraded materials. The typical refurbishment cycle is 10-12 years (Source: D&B Industry report). Refurbishment of LHB and ICF coaches is carried out at designated railway workshops. Since securing its first up gradation contract in 2018, the company has successfully refurbished and upgraded a total of 1,888 coaches till 30th June 2026.
The company specializes in the up-gradation and modernization of toilet facilities in railway coaches, both LHB and ICF. Till date, it has completed 10,948 units of toilet upgrades. These upgrades are designed to enhance hygiene, safety and passenger experience, aligning with the modernization efforts within the Indian Railways network. As part of refurbishment projects, old components such as washbasins, fittings, panels, and other materials are not discarded but systematically removed and handed back to Indian Railways through their established channels, thereby supporting sustainable practices and minimizing environmental impact.
AIIL is a regular manufacturer and supplier of products such as Braille signage, Fibre reinforced plastic (FRP) products and sanitary ware made of aluminum polymer composite. It is a regular supplier of products such as Epoxy flooring, decorative glass fabric reinforced plastic, toilet doors, intercommunication/Compartment doors, seat and berth, fire barrier decorative coating and hygiene related products such as Automatic Hygiene and Odur Control (AHOC), Soap dispenser, Automatic Odur Control (AOC) and vacuum circuit breakers. These products are manufactured in compliance with the specific requirements of railway standards and used in various passenger coaches. All tender related activities happen in IREPS which is Indian railways e-procurement portal.
AIIL is empaneled as a “Business Associate” under a Navratna PSU of Government of India. As of June 30, 2026, it had 43 employees on its payroll, additional third party 235 workers, in various department. It also hires contract workers as and when required. For FY26, it received highest order book from toilet upgradation worth Rs. 257.99 cr. As of June 30, 2026, its order book stood at Rs. 737.97 cr.
ISSUE DETAILS/ CAPITAL HISTORY:
The company is coming out with its maiden book building route combo IPO of 6208800 equity shares of Rs. 10 each to mobilize Rs. 121.69 cr. at the upper cap. The company has announced a price band of Rs. 186 – Rs. 196 per share. The IPO consists of 5407200 fresh equity shares (worth Rs. 105.98 cr. at the upper cap), and an Offer for Sale (OFS) of 801600 equity shares (worth Rs. 15.71 cr. at the upper cap). The minimum application to be made is for 1200 shares and in multiples of 600 shares thereon, thereafter. The issue opens for subscription on September 30, 2026 and will close on or before October 06, 2026. The shares will be listed on BSE SME. The IPO constitute 26.45% of the post-IPO paid-up capital of the company. From the net proceeds of the issue, the company will utilize Rs. 38.00 cr. for working capital, Rs. 6.27 cr. for funding capex on additional plant and machinery, Rs. 41.00 cr. for repayment/prepayment of certain borrowings, and the rest for general corporate purposes.
The IPO is solely lead managed by Hem Securities Ltd., while Bigshare Services Pvt. Ltd. is the registrar to the issue. HEM Group’s Hem Finlease Pvt. Ltd., is a market maker, and also a syndicate member.
After issuing/converting initial equity capital at par value, the company issued further equity shares in the price range of Rs. 90.00 – Rs. 190.00 per share between March 2024, and December 2025. It has also issued bonus shares in the ratio of 1 for 1 in September 2024. The average cost of the acquisition of shares by the promoters is Rs. 4.88, and Rs. 5.00 per share.
Post-IPO, company’s current paid-up equity capital of Rs. 18.06 cr. (18065000 equity shares) will stand enhanced to Rs. 23.47 cr. (23472200 equity shares). Based on the upper band of the IPO pricing, the company is looking for a market cap of Rs. 460.06 cr.
FINANCIAL PERFORMANCE:
On the financial performance front, for the last three fiscals, the company has (on a consolidated basis) posted total income/ net profit, of Rs. 215.02 cr. / Rs. 19.21 cr. (FY24), Rs. 213.45 cr. / Rs. 16.40 cr. (FY25), Rs. 267.89 cr. / Rs. 24.33 cr. (FY26). The company posted steady growth in its top and bottom lines for the reported periods. The boosted profits for FY26 (Pre-IPO year) appears a window dressing to fetch fancy valuation for IPO. Rising trade receivables year-on-year, at Rs. 252.18 cr. as of March 31, 2026, against Rs. 153.77 cr. as of March 31, 2024, and its contingent liability at Rs. 94.64 cr. as of March 31, 2026, raise alarms.
For the last three fiscals, the company has reported an average EPS of Rs. 12.30 and an average RoNW of 38.88%. The issue is priced at a P/BV of 6.39 based on its NAV of Rs. 30.65 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 18.88, and based on FY25 earnings, the P/E stands at 27.96. The issue appears aggressively priced based on its recent average earnings.
The company has posted PAT Margins of 9.00% (FY24), 7.84% (FY25), 9.24% (FY26) and RoCE margins of 30.08%, 24.03%, 23.20%, respectively for referred periods.
DIVIDEND POLICY:
The company has not paid any dividends for the reported periods of the offer document. 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 no listed peers to compare with.
MERCHANT BANKER’S TRACL RECORD:
This is the 54th mandate from Hem Securities Ltd., in the last three fiscals (including the ongoing one). Out of the last 10 listings, 2 opened at par, and the rest listed with a premium ranging from 3.70% to 90.00% on the listing date. The merchant banker has an average track record.
CONCLUSION:
AIIL is engaged in the Indian Railway Rolling stock sector focusing on warranty maintenance of railway coaches’ interiors. It enjoys the status of “Business Associate” under a “Navratna” PSU. As of June 30, 2026, its overall order book stood at Rs. 737.97 cr. Considering Railways upgradation plans, this company is heading for bright prospects ahead. Based on its recent average financial data, the issue appears aggressively priced. However, well-informed investors may park funds for medium to long 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 ).
