Anand Seamless IPO

Production Output & Market Position: India is the world’s second-largest producer of crude steel, with 151.14 MT of crude steel and 145.30 MT of finished steel produced in FY25. Domestic steel demand is projected to grow by 9–10% in 2025.  

Capacity Expansion: India’s crude steel capacity reached 200.33 MT in FY25 and is projected to reach 300 MT by FY30 under the National Steel Policy 2017. Secondary steel plants, including MSMEs, accounted for 47% of total crude steel capacity in FY25.  

Per Capita Consumption: Per capita steel consumption reached 100 kg in FY26 - April to August 2025, with policy initiatives targeting 160 kg by FY31.  

Policy Support: The Union Ministry of Steel launched PLI Scheme 1.1 for specialty steel with an outlay of ₹6,322 crore to increase domestic production and reduce import dependence.  

Import Protection: The Directorate General of Trade Remedies - DGTR recommended a 12% provisional safeguard duty, alongside a government plan to reduce steel imports by 50% in FY26.  

Global Market Size: The global seamless pipes and tubes market is estimated at USD 69.9 billion in 2025 and is projected to reach USD 137.5 billion by 2035, growing at a CAGR of 7.0%.  

Oil & Gas Demand: Seamless pipes are used in drilling, casing, tubing and pipeline transmission due to their ability to withstand high pressure, high temperatures and corrosive conditions.  

Power Generation: These pipes are used in thermal and nuclear power plants for boiler tubes, superheaters, heat exchangers and condensers.  

Automotive & Engineering: Applications include axles, shock absorbers, hydraulic cylinders and transmission components.  

Indian Market Growth: Domestic demand is supported by initiatives such as Make in India and the expansion of natural gas infrastructure, including the Pradhan Mantri Urja Ganga pipeline.  

Capacity Expansion: Domestic players such as Jindal SAW, Maharashtra Seamless and ISMT are expanding their capacity and rolling capabilities to cater to infrastructure demand and exports to markets such as the Middle East and Africa.  

Global Market Size: The global heat exchanger market was valued at USD 19.7 billion in 2025 and is projected to reach USD 33.0 billion by 2033, growing at a CAGR of 6.9% from 2026 to 2033.  

Asia-Pacific Market: Asia-Pacific accounted for the largest global market share at 31.9% in 2025.  

Indian Market: The Indian heat exchanger market was valued at USD 856.4 million in 2024 and is projected to reach USD 1,428.4 million by 2033, growing at a CAGR of 5.56%.  

Chemical & Petrochemical Demand: This segment accounted for 22.6% of the market in 2025, driven by heating, cooling, distillation and condensation requirements.  

HVAC & Refrigeration: HVAC and refrigeration are among the fastest-growing end-use segments.  

Shell & Tube Heat Exchangers: Shell and tube models dominate the Indian market due to their suitability for high-pressure and high-temperature applications in refineries and power plants.  

Oil & Gas Industry: India is the third-largest oil consumer globally, while petroleum product exports stood at 64.7 MMT in FY25. Refining capacity is expected to reach 309.5 MMTPA by 2028, with long-term plans to expand total capacity to 450–500 MMT by 2030.  

Natural Gas Infrastructure: India’s natural gas pipeline network is expanding by 10,805 km, while crude oil consumption is projected to grow at a CAGR of 4.59% to reach 500 MMT by FY40.  

Petrochemical Sector: Demand for chemicals and petrochemicals in India is expected to nearly triple to US$ 1 trillion by 2040. The Paradip PCPIR region has attracted ₹73,518 crore in investments.  

Automotive Sector: The Indian automotive sector is expected to reach US$ 260–300 billion by 2026 and accounts for approximately 10% of domestic steel demand.  

Power Generation: India aims to expand non-fossil fuel electricity generation capacity to over 5,00,000 MW by 2030, supporting demand for specialised heat exchangers and boiler tubes. 

Capacity Expansion & Technology Upgradation: ₹1,159.47 lakh for capacity expansion, technology upgrades, cost optimisation and infrastructure.  

Repayment/Prepayment of Borrowings: Up to ₹703.96 lakh for repayment or prepayment of secured and unsecured loans.  

General Corporate Purposes: Balance net proceeds for capital expenditure, working capital, operating expenses and other business needs. 

Diversified Product Portfolio: Manufactures seamless tubes and pipes in carbon steel, alloy steel and stainless steel, along with various types of engineered finned tubes.  

Certifications & Approvals: Holds ISO 9001:2015, ISO 14001:2015 and ISO 45001:2018 certifications, along with PED and AD 2000 approvals and IBR recognition as a Well Known Pipe Maker and Tube Maker.  

In-House Manufacturing & Quality Control: Operates integrated facilities with cold-drawing, laser-based fin welding and in-house testing capabilities, supporting production quality and traceability.  

Established Customer Base: Supplies oil and gas companies, EPC contractors, power plants, boiler manufacturers and heat exchanger OEMs, with exports across the Middle East, Europe, Asia and the USA.  

Experienced Promoters: Promoters Kedar Mayank Choksi and Mayank Bhikhabhai Choksi have over 20 years of experience each across technical, operational and distribution functions.  

Capacity Expansion: IPO proceeds will support manufacturing consolidation and expansion at Unit-1 in Kadi, Gujarat, increasing finned tube capacity from 3,60,000 metres to 4,50,000 metres annually.  

Technology Upgradation: Plans to install a Bright Annealing Furnace, PSA Nitrogen Gas Generator, automated hydro-testing and straightening equipment to improve production capabilities.  

Oil & Gas Demand: Growth in offshore drilling, refining capacity and natural gas infrastructure can support demand for specialised tubes and pipes.  

Heat Exchanger Market Growth: Rising demand from chemical processing, HVAC and power generation can support the company’s finned tube business.  

Export Market Expansion: Plans to expand distribution across North America, the Middle East, Europe and domestic industrial markets through export teams and regional agents.  

Operational Digitisation: Implementation of ERP systems can streamline procurement, sales and manufacturing processes.  

Higher-Value Products: Greater focus on finned tubes could support the company’s move towards higher-value products. 

High Customer Concentration: The top 10 customers contributed 71.71% of revenue from operations in 6M FY26, while the top customer accounted for 17.03%. Loss or delays in orders from key customers could affect sales and cash flows.  

High Supplier Dependence: The top 5 suppliers accounted for 83.65% of raw material purchases in 6M FY26, including 30.61% from the top supplier. Supply disruptions or higher raw material costs could affect operations and margins.  

Civil Litigations: Two material civil proceedings related to labour disputes are pending before the High Court of Gujarat. The financial liability, if any, is currently not ascertainable.  

Tax Demands: The company has two indirect tax proceedings involving GST demands of ₹29.28 lakh. An income tax demand of ₹0.07 lakh is also pending against a promoter.  

Delayed Statutory Filings: The company has reported delays and clerical errors in certain ROC filings, including MSME-1, CHG-1, MGT-14 and BEN-2 forms. An application for penalty adjudication relating to delayed MSME-1 filings has also been made.  

Capital and Record Inconsistencies: Differences exist between the authorised share capital stated in the Memorandum of Association and incorporation documents. Historical bank statements related to initial share subscription payments are also unavailable.  

Past Statutory Dues Delays: The company has had instances of delayed statutory filings and payments, which could result in interest, late fees or penalties.  

Leased Manufacturing Facility: Manufacturing Unit 2 operates from leased premises under a six-year lease dated February 4, 2025. Non-renewal or termination of the lease could disrupt production.  

Land Classification Discrepancy: The 7/12 extract for Unit 1 records the land use as residential despite its industrial use. An application to correct the classification to industrial remains pending.  

Geographic Concentration: Gujarat contributed 60.42% of domestic revenue in 6M FY26, exposing the company to regional economic and policy-related risks.  

Significant Borrowings: Outstanding borrowings stood at ₹2,324.47 lakh as of September 30, 2025. The loans are secured against current assets, land and buildings, exposing the company to lender-related restrictions and enforcement risks in case of default.  

Promoter Group Competition: A Non-Compete Agreement exists with Anand Tubes Private Limited, but not with ATL Piping Products Private Limited and certain other promoter group entities. Expansion by these entities into competing businesses could create potential conflicts of interest.  

Uncommitted Machinery Orders: Machinery purchase orders for the proposed IPO-funded expansion had not been placed as of the prospectus date, which could lead to delays or higher costs in implementing the planned expansion. 

Anand Seamless IPO DRHP 

Anand Seamless IPO RHP 

Aftertrade Broking Private Limited 

Contact Number: 022-49186000 

Email Address: anandseamless.smeipo@in.mpms.mufg.com