Updated on 19.01.2025|10:20 AM
Defrail Technologies Limited (DTL), a manufacturer of rubber components for sectors including railways, defence, and automotive, has announced its Initial Public Offering (IPO). You can check the details of this and all other upcoming and live IPOs at our IPO calendar which is updated daily.
The subscription will open on January 9, 2026 and close on January 13, 2026, with a price band of ₹70 to ₹74 per share.
The company, which is ISO 9001:2015 certified, aims to raise approximately ₹13.77 Crores through a fresh issue of 18,60,800 equity shares on the BSE SME platform.
In this article, you will find Defrail Technologies IPO GMP today, allotment date, price band, and a detailed review. For the subscription status, you can check the subscription status hub page which has subscription details of this and all the other IPOs.
Briefs of Defrail Technologies IPO Details:
- Price Band: ₹70 – ₹74 per share
- IPO Open / Close Dates: January 9, 2026 – January 13, 2026
- Lot Size: 1,600 Shares (Note: Retail Minimum Application is 2 Lots / 3,200 Shares)
- Issue Size: 18,60,800 Equity Shares / ~₹13.77 Crores
- Fresh Issue / OFS: 100% Fresh Issue
- Registrar: Maashitla Securities Pvt. Ltd.
- Listing Exchange: BSE SME
What Is The Defrail Technologies IPO GMP Today?
You can check the GMP of this and other issues at our GMP hub page which is updated regularly with gmp reviews and commentary.
Note: The Grey Market Premium (GMP) changes daily based on market demand. It is an unofficial indicator and is not regularised by SEBI, NSE, or BSE. Investors should not rely solely on GMP for investment decisions.
Listing Update:
| Type | Issue Price | Open | Gain/loss % |
| Lisiting | 74.00 | 95.00 | 28.38 |
What Are The Important Defrail Technologies IPO Dates & Allotment Schedule?
For investors planning their capital allocation, here is the critical timeline for the issue:
- IPO Open Date: Friday, January 9, 2026
- IPO Close Date: Tuesday, January 13, 2026
- Basis of Allotment Date: Wednesday, January 14, 2026
- Refund Initiation Date: Thursday, January 15, 2026
- Credit of Shares: Thursday, January 15, 2026
- Listing Date: Friday, January 19, 2026
What Are The Objectives of Defrail Technologies IPO?
The company intends to utilise the net proceeds for the following strategic purposes:
- Capital Expenditure (7.95 Crores): To fund the expansion of manufacturing facilities by acquiring advanced machinery, aiming to increase production capacity for Plant 1.
- Working Capital (1.73 Crores): To meet the incremental working capital requirements necessary for executing larger orders from Indian Railways and Defence clients.
- General Corporate Purposes: To meet ongoing operational contingencies.
How is The Financial Performance of Defrail Technologies?
The following table summarises the financial performance of the company based on restated consolidated financial statements. The significant increase in figures from FY24 to FY25 reflects the consolidation of the promoter's proprietorship firms into the corporate entity.
(Figures in ₹ Crores)
Particulars | Period Ended 30 Sep 2025 | FY 2024-25 | FY 2023-24 |
Total Income | 39.08 | 62.22 | 0.72 |
Profit After Tax (PAT) | 1.51 | 3.42 | 0.11 |
EBITDA | 3.44 | 5.78 | 0.14 |
Total Borrowing | 11.78 | 11.56 | 0.41 |
Assets | 37.22 | 33.91 | 1.22 |
Financial Analysis & Observations:
Total Income:
The company reported a Total Income of ₹62.22 Crores in FY 2024-25, a massive leap from the previous fiscal. This growth is primarily driven by the strategic consolidation of business operations, which contributed significantly to the revenue stream.
Profit After Tax (PAT):
For FY 2024-25, the company posted a PAT of ₹3.42 Crores. The company attributes its profitability to factors including its order execution capacity and operational synergies realised following the reorganisation of its legacy business units.
EBITDA:
The core operational strength is evident with an EBITDA of ₹5.78 Crores in FY 2024-25. The exponential growth compared to FY24 highlights the transition from a newly incorporated entity to a fully functional manufacturing unit with optimized production lines.
Total Borrowing:
Consolidated borrowings stood at ₹11.78 Crores as of September 30, 2025. These funds are split between long-term loans utilized for capital expenditure on advanced machinery and short-term overdraft facilities to manage working capital requirements.
Assets:
The company's total assets stood at ₹37.22 Crores as of September 2025. This increase is associated with the addition of Property, Plant, and Equipment (PPE) from Business Transfer Agreements and capital expenditure for expanding manufacturing capacity.
Note on Financial Restatement and Growth:
The substantial escalation in financial metrics for the fiscal year ended March 31, 2025, relative to March 31, 2024, is the result of a strategic corporate restructuring.
Defrail Technologies Limited was incorporated in October 2023; therefore, the financial data for FY 2023-24 pertains solely to the nascent operations of the newly formed entity. In April 2024, the Company acquired the running businesses of two sole proprietorships—M/s Impex Hitech Rubber and M/s Vikas Rubber Industries—on a going concern basis via Business Transfer Agreements (BTAs).
Consequently:
The financial statements for FY 2024-25 reflect the consolidated revenue and asset base of these acquired legacy operations, resulting in the observed jump in figures.
P/E Ratio and Peer Comparison
Based on its Fiscal Year 2025 earnings per share (EPS) of ₹6.82, the IPO is priced at a Price-to-Earnings (P/E) multiple of approximately 10.85x at the upper end of the price band (₹74).
P/E Ratio = ₹74 (Price) / ₹6.82(Earnings Per Share)
P/E Ratio ≈ 10.85x
Peer Comparison Table (FY 2024-25 Data)
Company | P/E Ratio |
Defrail Technologies | ~10.85 |
Pentagon Rubber | 86.59 |
Gujarat Reclaim | 265.72 |
Analysis:
Defrail Technologies is entering the market at a P/E multiple of approximately 10.85 times. When benchmarked against listed peers in the specialised rubber and industrial component sector, such as Pentagon Rubber (86.59x) and Gujarat Reclaim (265.72x), the issue appears to be priced at a significant discount.
Industry Outlook
Growth Potential:
The Indian rubber components market is expanding, fueled by the robust growth of the automotive sector and increased government spending on railway infrastructure.Market Trends:There is a rising demand for specialized, high-performance rubber parts in the defence and railway sectors. RDSO-approved vendors like DTL are well-positioned to benefit from the stringent quality requirements and entry barriers in these segments.
What Are The Strengths and Risks of Defrail Technologies IPO?
Strengths:
- RDSO Approval: Being an approved vendor for Indian Railways provides a stable and high-volume revenue stream with limited competition.
- Diversified Portfolio: The company serves multiple high-growth sectors, including Automotive, Railways, and Defence, reducing sector-specific risks.
- Operational Efficiency: The integration of legacy businesses has streamlined operations, leading to improved margins and asset utilisation.
Risks:
- Customer Concentration: A significant portion of revenue (over 83% in FY25) comes from a single customer. Loss of this key client could severely impact financials.
- Raw Material Volatility: The business is sensitive to price fluctuations in rubber polymers, and the lack of long-term supply contracts adds to this risk.
- Lease Dependency: Operating from leased premises poses a risk of business disruption if lease agreements are not renewed favorably.
Key Considerations for Investors
This section is for information purposes only and does not constitute financial advice.
Investors should note the Minimum Investment structure.
- Minimum Application: The lot size is 1,600 Shares. Based on the data provided, the minimum application for Retail Individual Investors is 2 Lots (3,200 Shares), amounting to ₹2,36,800. Note: This investment amount exceeds the typical ₹2 Lakh retail limit, which implies this category may technically be treated as Small-HNI.
- Valuation: At ~10.85x P/E, the valuation is compelling compared to industry peers.
- Risk Profile: While the growth trajectory is strong, the high customer concentration is a critical risk factor to monitor.
Standard Disclaimer: This article is strictly for educational purposes. Please consult a SEBI-registered investment advisor before making any investment decisions.
Key Takeaways
- IPO Price: ₹74 per share (Upper Band).
- Min Investment: ₹2,36,800 (3,200 Shares).
- Allotment Date: January 14, 2026
- Listing: BSE SME platform on January 19, 2026.
FAQs on Defrail Technologies IPO
What is Defrail Technologies IPO GMP today?
The GMP is a dynamic market sentiment indicator. You can check the gmp at our gmp hub page.
What is Defrail Technologies IPO price band?
The price band is fixed at ₹70 to ₹74 per equity share.
What is Defrail Technologies IPO allotment date?
The allotment status is expected to be finalized on Wednesday, January 14, 2026.
How to check Defrail Technologies IPO allotment status?
Investors can check the status on the website of Maashitla Securities Pvt. Ltd. (the Registrar) or via the BSE IPO allotment portal. You can check allotment status of this and other IPOs at our ipo allotment status hub page.
What is Defrail Technologies IPO listing date?
The shares are tentatively scheduled to list on Friday, January 19, 2026.
Investment Perspective on Defrail Technologies IPO
Defrail Technologies offers a specialized play in the industrial rubber segment with strong government certifications. The attractive valuation relative to peers provides a margin of safety, but the high customer concentration and minimum investment ticket size are key factors for investors to weigh.
Disclaimer:
For informational purposes only. Not investment advice. Please read the RHP and consult your advisor before investing.
