Acme India Industries IPO

Acme India Industries Initial Public Offering is a book-built issue of ₹121.69 crores. The issue is a combination of a fresh issue of 54.07 lakh shares aggregating to ₹105.98 crores and an offer for sale of 8.02 lakh shares aggregating to ₹15.71 crores.

Acme India Industries' Initial Public Offering has set the issue price band at ₹186 to ₹196 per share. The lot size for an application is 600 shares. The minimum amount of investment required by an individual investor is ₹2,35,200 for 1,200 shares, based on the upper price band. The minimum lot size for high-net-worth individuals is 3 lots, or 1,800 shares, amounting to ₹3,52,800.

Hem Securities Limited is the book-running lead manager, and Bigshare Services Private Limited is the registrar of the issue. The market maker of the company is Hem Finlease Private Limited.

About Acme India Industries Limited

Acme India Industries Limited was incorporated on December 22, 2021, as Acme India Industries Private Limited to acquire and take over the proprietorship business “Acme India,” established in 2012. It was converted into a public limited company and renamed Acme India Industries Limited on July 29, 2024. The company is headquartered in Dwarka, New Delhi, and is promoted by Suraj Pandey and Sadhvi Pandey.

The company operates in the Indian railway rolling stock sector, providing tender-based solutions for railway coach interiors, including turnkey furnishing of new coaches, refurbishment, upgradation and conversion of existing coaches, toilet upgradation, and supply of railway components to Indian Railways.

Its turnkey solutions cover LHB coaches, Vande Bharat trains, and other coach variants, including flooring, panelling, ceilings, toilets, ducting, seats and berths, painting, windows, and fire detection systems. Since 2017, it has completed 28 turnkey projects covering 1,610 coaches, while 1,888 coaches have been refurbished or upgraded since 2018.

The company has also completed 10,948 toilet upgrades and supplies products such as Braille signage, FRP products, sanitary ware, epoxy flooring, toilet and compartment doors, seats and berths, fire-barrier coatings, vacuum circuit breakers, and hygiene-related products.

The company has a presence across 16 railway zones, three production units, and two mid-life rehabilitation units. As of June 30, 2026, the company had an order book of ₹73,797.33 lakh across 40 orders, with toilet upgradation accounting for 46.92%, supply to private clients 31.04%, refurbishment/upgradation 9.13%, turnkey furnishing 8.51%, and supply to Indian Railways 4.40%.

As of June 30, 2026, the company had 235 employees across various functions and engages contract labour at its project sites and factories.

Industry Outlook

• Indian Railways’ passenger coach inventory exceeded 1,03,054 coaches, with the fleet growing at a 7% CAGR between FY2020-21 and FY2024-25. The expanding fleet creates demand for coach furnishing, components, refurbishment, and maintenance.
• Indian Railways manufactured 7,134 coaches in FY2024-25, up approximately 9% from 6,541 in the preceding year. The Ministry of Railways also announced plans to manufacture 17,000 general-class and non-AC sleeper coaches over five years, supporting demand for new coach interiors.
• The RHP estimates the annual turnkey coach furnishing addressable market at ₹3,908 crore, based on 8,684 new passenger coaches and an average furnishing cost of ₹45 lakh per coach.
• Coach refurbishment presents a recurring opportunity because passenger coaches have an estimated 25–30-year lifecycle and a typical 10–12-year refurbishment cycle. The RHP estimates annual refurbishment requirements of approximately 8,588 coaches, representing a potential market of ₹2,576 crore at ₹30 lakh per coach.
• The RHP reports a plan to upgrade 40,000 conventional coaches to Vande Bharat standards, incorporating improved seating, charging points, CCTV, GPS, and sanitation facilities. This creates opportunities for interior refurbishment and the supply of upgraded components.
• The RHP estimates the toilet upgradation addressable market at ₹8,741.1 crore, comprising ₹1,998 crore for approximately 19,980 coaches covered by announced upgrades and ₹6,743.1 crore in potential remaining work. The estimates assume an average cost of ₹10 lakh per coach.
• The FY2025-26 railway capital expenditure outlay was ₹2,65,200 crore, according to the RHP, including ₹58,900 crore for rolling stock and ₹12,100 crore for customer amenities. These allocations support coach procurement, refurbishment, sanitation, and passenger-comfort improvements.
• The growing technical complexity of modern trains and capacity constraints at railway workshops are creating opportunities for private companies in coach maintenance, refurbishment, and annual maintenance contracts. The RHP also identifies predictive maintenance, AI-based diagnostics, and energy-efficient retrofits as emerging areas.
• Expansion of metro rail networks offers an additional potential market for coach manufacturers and furnishing suppliers. Projects cited in the RHP include 32 new train sets for Chennai Metro Phase 2 and 39 coaches for Bhubaneswar Metro Phase 1.

Acme India Industries IPO Objectives

The company proposes to utilise the net proceeds from the IPO for the following objectives:

• Funding to meet working capital requirements.
• Repayment and/or pre-payment, in full or part, of borrowing availed by the company.
• Funding capital expenditure towards the purchase of additional plant & machinery.
• Towards general corporate purposes.

Financial Performance of Acme India Industries Limited

Acme India Industries Limited Peer Details Comparison

As per the RHP, it states that there are no listed companies in India engaged in a business similar to Acme India Industries Limited, and therefore it does not provide an industry peer comparison.

Strengths and Opportunities of Acme India Industries IPO

1. Established presence in the Indian railway sector with 28 turnkey furnishing projects covering 1,610 coaches, 1,888 coaches refurbished/upgraded, and 10,948 toilet upgrades, with operations spanning 16 railway zones and 28 coach variants.
2. The company has a diversified product and service portfolio covering turnkey furnishing, refurbishment, coach conversion, toilet upgradation, and supply of railway components, supported by in-house manufacturing and vendor relationships that the RHP states help optimise costs.
3. A substantial order book of ₹73,797.33 lakh across 40 orders as of June 30, 2026, provides revenue visibility, with toilet upgradation contributing ₹34,627.82 lakh (46.92%) and private-client supplies contributing ₹22,908.86 lakh (31.04%).
4. The company operates manufacturing facilities with over 116,000 sq. ft. of combined area, along with laboratory and testing facilities, and holds ISO 9001:2015 and ISO 15085 certifications, supporting compliance with railway quality and manufacturing requirements.
5. The RHP estimates an annual addressable market of ₹3,908 crore for new coach furnishing, ₹2,576 crore for coach refurbishment, and ₹1,998 crore for announced toilet upgrades, providing scope for expansion across the company’s existing business segments.
6. Planned railway modernisation provides additional opportunities, including the proposed upgrade of 40,000 conventional coaches to Vande Bharat standards and the manufacture of 17,000 general-class and non-AC sleeper coaches over five years, potentially increasing demand for furnishing, refurbishment, sanitation, and related components.

Risks and Threats of Acme India Industries IPO

1. The company is substantially dependent on Indian Railways, which contributed ₹12,306.45 lakh, or 46.77% of total revenue, in FY26. Any adverse change in Ministry of Railways policies, reduction in railway spending, or preference for public-sector enterprises could affect contracts and revenue.
2. A significant portion of the company’s business is tender-based, and there is no assurance that its future bids will be accepted. Competitive bidding, pricing pressure, and failure to meet prescribed pre-qualification criteria could affect future order wins despite the ₹73,797.33 lakh order book as of June 30, 2026.
3. The business is exposed to quality and execution risks, as railway customers conduct inspections and require strict compliance with specifications. Defects or non-compliance could result in rework, replacement costs, penalties, and loss of future contract opportunities.
4. The company depends on a limited number of suppliers for raw materials and does not maintain long-term contracts with suppliers. In FY26, purchases from indigenous suppliers stood at ₹8,234.08 lakh, while imported purchases were ₹117.17 lakh; disruptions in supply, pricing, or quality could affect manufacturing and delivery schedules.
5. The company faces working-capital and cash-flow pressure because of long receivable cycles, inventory requirements, and bank guarantees. Trade receivables increased from ₹15,374.99 lakh in FY24 to ₹26,309.35 lakh in FY26, while the RHP states that working-capital requirements have been supported through bank borrowings and internal accruals.
6. The company has outstanding legal and tax proceedings, including 8 direct-tax cases involving ₹498.39 lakh and 5 indirect-tax cases involving ₹1,327.50 lakh. The RHP also discloses other material proceedings, including a dispute involving Schneider Electric Infrastructure Limited over alleged outstanding dues of ₹208.88 lakh after invocation of a ₹50 lakh bank guarantee.

Acme India Industries IPO Reservation