Premier Industrial Corporation Limited files DRHP with SEBI

Premier Industrial Corporation Limited one of the fastest growing manufacturers in both powders as well as wires categories of welding consumables industry has filed its Draft Red Herring Prospectus (DRHP) with market regulator Securities and Exchange Board of India (SEBI).

The company’s initial public offering comprises 27,900,000 equity shares of face value ₹10 each, including a fresh issue of up to 22,500,000 equity shares and an offer for sale of up to 5,400,000 equity shares.

The Offer for sale constitutes up to 2,170,800 equity shares aggregating by Arvind Chhotalal Morzaria, up to 1,740,030 equity shares by Dilip Chhotalal Morzaria, up to 1,078,770 equity shares by Subhash Chhotalal Morzaria, up to 341,895 equity shares by Lalit Navinchandra Morzaria and up to 68,505 equity shares by Nirmala Navinchandra Morzaria collectively the known as the selling shareholders.

In consultation with the BRLMs, Premier Industrial Corporation Limited may consider a Pre-IPO aggregating up to Rs 30 cr prior to filing of its RHP. If undertaken the amount raised would be reduced from the fresh issue.

The company plans to utilize its net proceeds for financing the capital expenditure requirements towards setting up a new wire manufacturing facility at Village Honad, Khalapur, Raigad, Maharashtra, and for financing the capital expenditure required for the expansion of the existing manufacturing facility at the Wada Unit, situated at Gut Nos. 33 and 39, Mauje Abje (Vaitarna Nagar), Wada, Palghar, Maharashtra, by increasing the manufacturing capacity of certain existing products. Further, the proceeds will also be utilized for funding the working capital requirements of the company and for general corporate purposes.

Premier Industrial Corporation Limited is amongst the few players who operate in both powders as well as wires categories of welding consumables industry. Their product portfolio spans ferro alloy, metal, chemical and mineral powders as well as low and non-alloy, stainless steel and nickel-based alloy wires. According to CRISIL report, Premier offers the widest range of metal, ferro alloy, chemical and minerals-based powders, among its peers.  During FY25, they contributed to approximately 8% (4.9 KTPA) of the overall demand for metal and ferro alloy powder generated in the domestic welding raw material & consumables industry. 

The company demonstrated exceptional financial performance between fiscal years 2020 and 2025. It was one of the fastest-growing players in the welding consumables industry, achieving a revenue CAGR of approximately 20%, notably outpacing peers like Diffusion Engineers (16% CAGR). This growth translated into superior profitability, with EBITDA CAGR at 31.4% and Profit After Tax (PAT) CAGR at 32.6%, both significantly exceeding the average peer group CAGRs (which ranged from 18.0% to 19.4% for EBITDA and 13.7% to 19.6% for PAT). Furthermore, the company showed dramatic margin improvement, as its Operating Profit Margin (OPM) nearly doubled from 8.7% in FY23 to 16.8% in FY25. This starkly contrasts with the peer set, whose OPM remained relatively stable. Similarly, the Net Profit Margin (NPM) soared from 3.4% to 10.7% over the same period, far exceeding the stable 8.4% to 9.2% NPM range reported by the peer group.

Premier Industrial Corporation Limited commenced business operations in 1979, through their predecessor partnership firm M/s. Premier Industrial Corporation, which was primarily authorized to engage as dealer in metal and ferro alloys and manufacturer of foundry materials. Over the years they have diversified their product portfolio to include alloy and metal wires and expanded our business operations into exports market.

Unistone Capital Private Limited is the sole Book Running Lead Manager to the issue.