Defrail Technologies Ltd IPO
Status: Closed
Overview
IPO date
09 Jan 2026 to 13 Jan 2026
Face value
₹ 10 per share
Price
₹ 70 to ₹74 per share
Issue Size
1,860,800 shares
(aggregating up to ₹ 13.77 Cr)
(aggregating up to ₹ 13.77 Cr)
Allotment Date
14 Jan 2026
Listing at
NSE
Issue type
Book Building - SME
Sector
Miscellaneous
Objectives of Defrail Technologies Ltd IPO
Defrail Technologies Ltd IPO Strategy
About Defrail Technologies Ltd
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T&C*
Strengths vs Risks of Defrail Technologies Ltd
Know the pros & cons
Strengths
Good track record.- Effective market anticipation.
- Cordial relations with its clients.
- Emerging segment in India.
Risks
- Inaccuracies in the Chartered Engineer Certificate may affect the reliability of disclosures Company's reputation,
compliance requirements and its ability to provide timely and accurate information.
- The company is majorly dependent on the Rubber Hose and Assemblies products, any decline in the demand for these
products can affect its revenue and result of operations.
- The company is majorly dependent on the performance of the Automobile Sector in India. Any adverse changes in the
conditions affecting these markets can adversely impact on its business, results of operations and financial
condition.
- Under-utilization of the company's current manufacturing facility and any inability to effectively utilize its proposed manufacturing capacity could have an adverse effect on the company's business, future prospects, and future financial
performance.
- The property used by the company as its registered office and manufacturing facility are not owned by the
company. Any termination of the relevant lease/ rent agreements could adversely affect its operations.
- The company is dependents on a limited number of customers for a significant portion of its revenues. The loss of a major
customer or significant reduction in demand from any of the company's major customers may adversely affect its business,
financial condition, results of operations and prospects.
- The company's Top 10 Suppliers contribute a significant portion of its raw material. Any dispute with one or more of them
may adversely affect the company's business operations
- The company has significant power requirements for continuous running of its manufacturing units. Any disruption to
our operations on account of interruption in power supply or any irregular or significant hike in power tariffs
may have an effect on the company's business, results of operations and financial condition.
- Extensive government regulation and the impact of rubber products and components on the environment could
have a severe impact on the company's ability to continue its business operations, which could adversely affect the company's business,
results of operations and financial condition.
- The company has negative cash flows in the past and may continue to have negative cash flows in the future.
- Majority of its revenues from operations are derived from the State of Haryana. Any loss of business from
this state may adversely affect the company's revenues and profitability.
- The company's contingent liabilities as stated in its Restated Financial Statements could adversely affect the company's financial
conditions.
- There are outstanding legal proceedings involving our Company, Promoters, Group Company, KMPs and
SMPs. Any adverse decision in such proceedings may have a material adverse effect on its business, results
of operations and financial condition.
- The Company is dependent on third parties for the supply of raw materials required for its products and is
exposed to risks relating to fluctuations in prices and shortage of raw material. Further, the company does not have any
long-term supply agreements with the raw material providers.
- Any failures on the company's part to effectively manage its inventory may result in an adverse effect on the company's business,
revenue from manufacturing operations and financial condition.
- The Company may incur penalties or liabilities for delays in filings with certain provisions of ESI, EPF in the
Past Years.
- The Company has made delays in compliance with certain statutory provisions of the Companies Act, 2013. Such
delayed filings may attract penalties and prosecution against the Company and its directors which could impact
the financial position of the Company to that extent.
- The company's business is manpower intensive and any unavailability of its employees, strikes, work stoppages, demand in
salary increased or changes in regulations governing to employees may have an adverse impact on the company's cash flows
and results of operations.
- Certain intellectual property rights including the company's logo had not been registered under the Trademarks Act, 1999.
Further, any infringement of its intellectual property rights or failure to protect the company's intellectual property rights
may adversely affect its business.
- The company's insurance coverage in connection with its business may not be adequate and may adversely affect the company's
operations and profitability.
- The Company has obtained unsecured loans that may be recalled by the lenders at any time.
- Any loss of or breakdown of operations at the company's manufacturing facility may have a material adverse effect on its
business, financial condition and results of operations.
- The company is entirely dependent on third-party logistics service providers for the transportation of raw materials
and finished products.
- the company faces competition, including from other large and established competitors, and the company may fails to compete
successfully against existing or new competitors, which may reduce the demand for the company's Products which may lead
to reduced prices, operating margins, profits and further result in decline in revenue.
- The average cost of acquisition of Equity Shares by its Promoters could be lower than the Issue Price.
- The Company is yet to place orders for 100% of the plant & machineries for our proposed object, as specified in
the Objects of the Issue. Any delay in placing orders, procurement of plant & machineries may delay the company's
implementation schedule and may also lead to increase in price of these plant & machineries, further affecting
its revenue and profitability
- The company generally do business with its customers on a purchase order basis and do not enter into long-term contracts
with most of them.
- The company requires certain approvals and licenses in the ordinary course of business and the failures to successfully
obtain/renew such registrations would adversely affect its operations, results of operations and financial
condition.
- The company's failures to identify and understand evolving industry trends and preferences and to develop new products to
meet its customers' demands may materially adversely affect the company's business.
- There is no monitoring agency appointed by the Company and the deployments of funds are at the discretion of
its Management and the company's Board of Directors, though it shall be monitored by the Audit Committee.
- Fluctuation of Interest rate may adversely affect the Company's business.
- The Company has entered into certain related party transactions at arm length price in the past and may continue
to do so in the future.
- In addition to normal remuneration, other benefits and reimbursement of expenses of some of the company's directors and
Key Management Personnel who are interested in the Company to the extent of their shareholding and dividend
entitlement in the Company.
- Educational certificates of Mr. Dinesh Aggarwal is not traceable.
- The Company's operation and growth is dependent upon successful implementation of its business strategies.
- The company's success is dependent on its Promoters, senior management and skilled manpower. The company's inability to attract
and retain key personnel or the loss of services of its Promoters or Managing Director and Directors may have
an adverse effect on the company's business prospects.
- The results of operations and cash flows could be adversely affected if the Company are unable to collect the dues
and receivables from, the clients.
- If the company fails to maintain an effective system of internal controls, the company may not be able to successfully manage or
accurately report its financial risk.
- The company's could be harmed by employee misconduct, errors, fraud, theft, misbehaviour, negligence, or data theft, which
are difficult to detect, and any such incidents could adversely affect its financial condition, results of operations,
and reputation.
- There is no assurance that the Company's equity shares will be successfully listed on the stock exchange, which
may impact its fundraising plans and future growth.
- Certain key performance indicators for certain listed industry peers included in this Red Herring Prospectus have
been sourced from public sources and there is no assurance that such financial and other industry information is
complete.
- Any variation in the utilization of the Net Proceeds would be subject to certain compliance requirements, including
prior shareholders' approval.
- The company has not identified any alternate source of funding and hence any failure or delay on its part to mobilize the
required resources or any shortfall in the issue proceeds may delay the implementation schedule.
- Potential conflicts of interest may arise due to the involvement of the company's Promoters, Directors and certain Group
Companies in businesses similar to that of the Company.
- The Company's future funding requirements, in the form of further issue of capital or other securities and/or
loans that might be availed by us, may turn out to be prejudicial to the interest of the shareholders depending upon
the terms and conditions on which they are raised.
- Industry information included in this Red Herring Prospectus has been derived from an industry report from
various websites. The reliability on the forecasts of the reports could be incorrect and would significantly impact
its operations.
- The company's marketing and advertising activities may not be successful in increasing the popularity of the Company
among customers. If the company's marketing or advertising initiatives are not effective, this may affect the popularity of
the Company.
- The company will continue to be controlled by its Promoter and Promoter Group after the completion of the Issue, which
will allow them to influence the outcome of matters submitted for approval of the company's shareholders.
Defrail Technologies Ltd Peer Comparison
Understand the company’s industry standing
Defrail technologies Ltd
Pentagon Rubber Ltd
Gujrat Reclaim & Rubber Product Ltd
Face Value
10
10
10
Standalone / Consolidated
Standalone
Standalone
Standalone
Total Income Rs. Cr.
1.5293
0.6296
3.3908
EPS-Basis
2.96
0.82
6.36
EPS-Diluted
---
---
---
NAV Per Share
20.36
4.22
36.14
P/E-Basic EPS
---
86.59
265.72
P/E-Diluted EPS
---
---
---
RONW(%)
11.76
1.95
1.73
Latest NAV Period
---
---
---
Latest NAV
---
---
---
How to check the allotment status of Defrail Technologies Ltd IPO?
Follow the steps
Open link to the registrar using this URL (https://evault.kfintech.com/ipostatus/).
Select company from dropdown menu.
Enter details- PAN, Application number or DP client ID
Get your allotment status
Open link to the registrar using this URL (https://evault.kfintech.com/ipostatus/).
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The IPO opens on 09 Jan 2026 & closes on 13 Jan 2026.
The foundation of Defrail Technologies Limited, was laid in 1980 when the Promoter Mr. Dinesh Aggarwal who established Vikas Rubber Industries, a sole proprietorship firm located in Tigaon, Near Ballabgarh Village, Faridabad to manufacture various rubber parts to serve individual consumers. As the proprietorship firm expanded, it relocated in 2001 to a larger facility in Neemka Village, situated along the Tigaon Road, Near Ballabgarh, Faridabad. This facility now serves as the company's current manufacturing plant, supporting enhanced production capacity and operational efficiency.
Also, with the objective to manufacture, import, export and deal with all types of parts and by-products made of rubber streamline operations, a new corporate entity, Impex Hi-Tech Rubber Private Limited., was formed in July 2021 by the present Promoters- Ms. Ashi Aggarwal, Mr. Vivek Aggarwal and Mr. Abhishek Aggarwal.
Thereafter, in October 2023, Defrail Technologies Limited was incorporated with the main objects to manufacture components, products and by-products for the railways, defence and motor vehicles made of rubber. On 1 April 2024, through two distinct Business Transfer Agreements (BTAs), the entire ongoing businesses of M/s Vikas Rubber Industries and M/s Impex Hitech Rubber, including their assets, liabilities, operations, and goodwill, were formally transferred to the Company.
At present, Company is engaged in the business of manufacturing rubber parts & components including Rubber Hose and Assemblies, Rubber Profiles and Beadings and Rubber Moulding parts. Company operates with 2 manufacturing plants located at Faridabad, Haryana. Products have diverse application across different industries including Automotive, Railways and Defence. These products are manufactured from various raw material which includes Acrylonitrile Butadiene Rubber, Chloroprene Rubber, Ethylene Propylene Diene Rubber Monomer, Acrylonitrile Butadiene Rubber, Chloro Sulphonated Pole and Chlorinated Polyethylene.
Company has filed a Draft Prospectus and is planning the initial public offering of issuing 18,62,000 equity shares of Rs 10 each through Fresh Issue.
Defrail Technologies Ltd IPO will close on 13 Jan 2026.
- Good track record.
- Effective market anticipation.
- Cordial relations with its clients.
- Emerging segment in India.
| S.No | Promoters Name | Pre Issue Shares | Pre Issue Percentage | Post Issue Shares | Post Issue Percentage |
|---|---|---|---|---|---|
| 1 | Vivek Aggarwal | 49700 | 0.96 | 49700 | 0.71 |
| 2 | Abhishek Aggarwal | 49700 | 0.96 | 49700 | 0.71 |
| 3 | Ashi Aggarwal | 3761908 | 72.85 | 3761908 | 53.55 |
| 4 | Dinesh Aggarwal | 1251812 | 24.24 | 1251812 | 17.82 |
| 5 | Himanshu Aggarwal | 49700 | 0.96 | 49700 | 0.71 |
| 6 | Priyanka Aggarwal | 400 | 0.01 | 400 | 0.01 |
| 7 | Nisha Aggarwal | 400 | 0.01 | 400 | 0.01 |
- Inaccuracies in the Chartered Engineer Certificate may affect the reliability of disclosures Company's reputation, compliance requirements and its ability to provide timely and accurate information.
- The company is majorly dependent on the Rubber Hose and Assemblies products, any decline in the demand for these products can affect its revenue and result of operations.
- The company is majorly dependent on the performance of the Automobile Sector in India. Any adverse changes in the conditions affecting these markets can adversely impact on its business, results of operations and financial condition.
- Under-utilization of the company's current manufacturing facility and any inability to effectively utilize its proposed manufacturing capacity could have an adverse effect on the company's business, future prospects, and future financial performance.
- The property used by the company as its registered office and manufacturing facility are not owned by the company. Any termination of the relevant lease/ rent agreements could adversely affect its operations.
- The company is dependents on a limited number of customers for a significant portion of its revenues. The loss of a major customer or significant reduction in demand from any of the company's major customers may adversely affect its business, financial condition, results of operations and prospects.
- The company's Top 10 Suppliers contribute a significant portion of its raw material. Any dispute with one or more of them may adversely affect the company's business operations
- The company has significant power requirements for continuous running of its manufacturing units. Any disruption to our operations on account of interruption in power supply or any irregular or significant hike in power tariffs may have an effect on the company's business, results of operations and financial condition.
- Extensive government regulation and the impact of rubber products and components on the environment could have a severe impact on the company's ability to continue its business operations, which could adversely affect the company's business, results of operations and financial condition.
- The company has negative cash flows in the past and may continue to have negative cash flows in the future.
- Majority of its revenues from operations are derived from the State of Haryana. Any loss of business from this state may adversely affect the company's revenues and profitability.
- The company's contingent liabilities as stated in its Restated Financial Statements could adversely affect the company's financial conditions.
- There are outstanding legal proceedings involving our Company, Promoters, Group Company, KMPs and SMPs. Any adverse decision in such proceedings may have a material adverse effect on its business, results of operations and financial condition.
- The Company is dependent on third parties for the supply of raw materials required for its products and is exposed to risks relating to fluctuations in prices and shortage of raw material. Further, the company does not have any long-term supply agreements with the raw material providers.
- Any failures on the company's part to effectively manage its inventory may result in an adverse effect on the company's business, revenue from manufacturing operations and financial condition.
- The Company may incur penalties or liabilities for delays in filings with certain provisions of ESI, EPF in the Past Years.
- The Company has made delays in compliance with certain statutory provisions of the Companies Act, 2013. Such delayed filings may attract penalties and prosecution against the Company and its directors which could impact the financial position of the Company to that extent.
- The company's business is manpower intensive and any unavailability of its employees, strikes, work stoppages, demand in salary increased or changes in regulations governing to employees may have an adverse impact on the company's cash flows and results of operations.
- Certain intellectual property rights including the company's logo had not been registered under the Trademarks Act, 1999. Further, any infringement of its intellectual property rights or failure to protect the company's intellectual property rights may adversely affect its business.
- The company's insurance coverage in connection with its business may not be adequate and may adversely affect the company's operations and profitability.
- The Company has obtained unsecured loans that may be recalled by the lenders at any time.
- Any loss of or breakdown of operations at the company's manufacturing facility may have a material adverse effect on its business, financial condition and results of operations.
- The company is entirely dependent on third-party logistics service providers for the transportation of raw materials and finished products.
- the company faces competition, including from other large and established competitors, and the company may fails to compete successfully against existing or new competitors, which may reduce the demand for the company's Products which may lead to reduced prices, operating margins, profits and further result in decline in revenue.
- The average cost of acquisition of Equity Shares by its Promoters could be lower than the Issue Price.
- The Company is yet to place orders for 100% of the plant & machineries for our proposed object, as specified in the Objects of the Issue. Any delay in placing orders, procurement of plant & machineries may delay the company's implementation schedule and may also lead to increase in price of these plant & machineries, further affecting its revenue and profitability
- The company generally do business with its customers on a purchase order basis and do not enter into long-term contracts with most of them.
- The company requires certain approvals and licenses in the ordinary course of business and the failures to successfully obtain/renew such registrations would adversely affect its operations, results of operations and financial condition.
- The company's failures to identify and understand evolving industry trends and preferences and to develop new products to meet its customers' demands may materially adversely affect the company's business.
- There is no monitoring agency appointed by the Company and the deployments of funds are at the discretion of its Management and the company's Board of Directors, though it shall be monitored by the Audit Committee.
- Fluctuation of Interest rate may adversely affect the Company's business.
- The Company has entered into certain related party transactions at arm length price in the past and may continue to do so in the future.
- In addition to normal remuneration, other benefits and reimbursement of expenses of some of the company's directors and Key Management Personnel who are interested in the Company to the extent of their shareholding and dividend entitlement in the Company.
- Educational certificates of Mr. Dinesh Aggarwal is not traceable.
- The Company's operation and growth is dependent upon successful implementation of its business strategies.
- The company's success is dependent on its Promoters, senior management and skilled manpower. The company's inability to attract and retain key personnel or the loss of services of its Promoters or Managing Director and Directors may have an adverse effect on the company's business prospects.
- The results of operations and cash flows could be adversely affected if the Company are unable to collect the dues and receivables from, the clients.
- If the company fails to maintain an effective system of internal controls, the company may not be able to successfully manage or accurately report its financial risk.
- The company's could be harmed by employee misconduct, errors, fraud, theft, misbehaviour, negligence, or data theft, which are difficult to detect, and any such incidents could adversely affect its financial condition, results of operations, and reputation.
- There is no assurance that the Company's equity shares will be successfully listed on the stock exchange, which may impact its fundraising plans and future growth.
- Certain key performance indicators for certain listed industry peers included in this Red Herring Prospectus have been sourced from public sources and there is no assurance that such financial and other industry information is complete.
- Any variation in the utilization of the Net Proceeds would be subject to certain compliance requirements, including prior shareholders' approval.
- The company has not identified any alternate source of funding and hence any failure or delay on its part to mobilize the required resources or any shortfall in the issue proceeds may delay the implementation schedule.
- Potential conflicts of interest may arise due to the involvement of the company's Promoters, Directors and certain Group Companies in businesses similar to that of the Company.
- The Company's future funding requirements, in the form of further issue of capital or other securities and/or loans that might be availed by us, may turn out to be prejudicial to the interest of the shareholders depending upon the terms and conditions on which they are raised.
- Industry information included in this Red Herring Prospectus has been derived from an industry report from various websites. The reliability on the forecasts of the reports could be incorrect and would significantly impact its operations.
- The company's marketing and advertising activities may not be successful in increasing the popularity of the Company among customers. If the company's marketing or advertising initiatives are not effective, this may affect the popularity of the Company.
- The company will continue to be controlled by its Promoter and Promoter Group after the completion of the Issue, which will allow them to influence the outcome of matters submitted for approval of the company's shareholders.
The Issue type of Defrail Technologies Ltd is Book Building - SME.
The minimum application for shares of Defrail Technologies Ltd is 3200.
The total shares issue of Defrail Technologies Ltd is 1860800.
Initial public offering up to 18,60,800 equity shares of Rs. 10/- each ("Equity Shares") of Defrail Technologies Limited ("DTL" or the "Company" or the "Issuer") for cash at a price of Rs.74 per equity share including a share premium of Rs.64 per equity share (the "issue price") aggregating to Rs.13.77 crores ("the Issue"). The issue includes a reservation of up to 94,400 equity shares aggregating to Rs. 0.70 crores will be reserved for subscription by market maker to the issue (the "Market Maker Reservation Portion"). The issue less the market maker reservation portion i.e. net issue of up to 17,66,400 equity shares aggregating to Rs.13.07 crores (the "Net Issue"). The public issue and net issue will constitute 26.49% and 25.15% respectively of the post-issue paid-up equity share capital of the company.
Price Band: Rs. 74 per equity share of face value Rs. 10/- each.
The floor price is 7.4 times of the face value of the equity shares.
Bids can be made for a minimum of 3200 equity shares and in multiples of 1600 equity shares thereafter.