– By Dilip Davda
- This is the 2nd RI from the company since May 2008.
- The company is supplying its products to processors on a B2B model.
- It is engaged in extrusion of aluminium profiles as required by the users.
- It marked growth in its top and bottom lines for the reported periods.
- Based on its market trades and financial data, the issue appears fully priced.
- Well-informed investors may park moderate funds for long term.
ABOUT COMPANY:
Century Extrusions Ltd., (CEL) is engaged in business-to-business (B2B) transactions as the products manufactured by the Company needs further processing before it reaches the final consumer. It poses a portfolio of reputed customers which have been retained for over a period of three decades. Its manufacturing facility is located at WBIIDC Industrial Growth Centre, Kharagpur and is spread over 7.31 acres in the State of West Bengal. It is close to major industrial clusters in West Bengal, Orissa and Jharkhand and is well connected with other parts of the country by railroad and ports.
The Company possesses three extrusion presses (1250 MT, 1620 MT and 2700 MT) resulting in the aggregate annual production capacity of 15,000 MT, with state-of-the-art extrusion presses from UBE Machinery Corporation, Japan and Handling system from Glanco Clark, USA. The principal activity of the Company is manufacturing dies, melting and casting of billets and manufacturing of aluminium extrusions. It manufactures extrusion products with Anodizing, Powder Coating & other surface treatments based on Customer demands. Surface treatments on extruded products are done for Corrosion/Oxidation resistance.
Therefore, getting diverse industrial applications. Aluminum alloys ranging from 1000 to 7000 series are manufactured by the Company. The Company has necessary setup to supply extruded and cold drawn round bars and hexagonal bars and Tubes in straight lengths for various engineering applications. The main raw material for its products is Aluminium Billets, which is sourced mainly from National Aluminium Company Limited (NALCO) and Vedanta Aluminium Limited. Aluminium extrusions manufactured by it are used in several applications, including heat sinks, heat exchanger tubes, aluminium doors and window frames, pre-fabricated building structures etc. Aluminium extrusion products include aluminium channels, aluminium sections, aluminium flat bars, aluminium tubes and other several products out of this extrusion.
CEL specializes in the manufacture of tailor-made products, meticulously designed and produced in accordance with specific customer requirements and OEM specifications. As of March 31, 2026, it had 347 employees on its payroll, and additional 152 contract workers.
ISSUE DETAILS:
The company is coming out with its Rights Issue (RI) of 30000000 partly paid up equity shares of Re. 1 each at a fixed price of Rs. 15 per share to mobilize Rs. 45.00 cr. The RI has already opened for subscription on September 23, 2026, and will close on October 14, 2026. The company is offering RI in the ratio of 3 for 8 to its eligible stakeholders as of the record date of September 15, 2026. The company is asking for 50% money (i.e., Rs. 7.50 per share) on application for number of shares applied. Balance will be payable on one or more calls as the board of directors decide. Post allotment, RI shares will be listed on BSE and NSE. The company is spending Rs. 1.10 cr. for this RI process, and from the net proceeds, Rs. 20.00 cr. for working capital, Rs. 14.00 cr. for repayment/prepayment of certain borrowings, and Rs. 9.90 cr. for general corporate purposes.
The RI is solely lead managed by the company itself, and MUFG Intime India Pvt. Ltd. is the registrar to the issue. Sumedha Fiscal Services Ltd. is the advisor to the RI.
FINANCIAL PERFORMANCE:
On the financial performance front, for the last three fiscals, the company has posted total revenue / net profit of Rs. 375.65 cr. / Rs. 7.45 cr. (FY24), Rs. 431.95 cr. / Rs. 9.94 cr. (FY25), and 479.30 cr. / Rs. 10.97 cr. Its NAV stood at Rs. 47.60 as of March 31, 2026. As the company is highly dependent on third party products, it is playing with a high risk, as it is operating in a highly competitive and fragmented segment. It has some litigation matters pending worth Rs. 7.84 cr. Its contingent liabilities stood at Rs. 45.17 cr. as of March 31, 2026. These two factors are raising alarm.
DIVIDEND POLICY:
The company has not paid any dividends for the last three years. It will adopt a prudent dividend policy, based on its financial performance and future prospects. However, the offer document is silent on its dividend policy.
SCRIP PERFORMANCE: BASED ON BSE WEBSITE DATA: SCRIP CODE: 500083 (FV Re. 1).
The scrip last closed on cum-right basis at Rs. 22.39 on September 11, 2026, and opened on an ex-right basis at Rs. 21.89 on September 15, 2026. Since then, it has marked a high/low of Rs. 21.89 / Rs. 18.01. The scrip last closed at Rs. 18.27 as of September 29, 2026. For the last 52 weeks’ it has posted a high/low of Rs. 31.67 / Rs. 14.88.
The promoters’ holding has been constant at 52.04%L for the last three quarters ended on June 30, 2026. The counter is well maintained above the RI price to tempt investors.
CONCLUSION:
This is the 2nd RI from the company since May 2008. CEL is supplying its products to processors on a B2B model. It is engaged in extrusion of aluminium profiles as required by the users. It marked growth in its top and bottom lines for the reported periods. Based on its market trades and financial data, the issue appears fully priced. Well-informed investors may park moderate funds for 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 ).
