A Gwalior-based industrial safety-footwear maker opens its Rs 35.93 crore BSE SME issue on September 28
Acme Universal Safezone 9 Ltd (AUSL) operates in the Personal Protective Equipment (PPE) segment — specifically industrial safety footwear under the “ACME” brand — a play on India’s occupational-safety compliance, where safety footwear is mandated across construction, oil & gas, mining, heavy engineering, automotive, pharmaceuticals, chemical processing, foundry and power generation.
Its 32+ year operating history (as a partnership firm, M/s Acme Fabrik Plast Co, from 1994) gives it deep category experience. The product range is broad and standards-compliant.
AUSL serves end users across those sectors through 15 product lines covering EVA-rubber, Nitrile Rubber and PVC sole types, addressing hazard categories including impact and compression protection, penetration resistance, electrical-shock resistance, anti-static protection, heat and fire resistance, chemical resistance and slip resistance — meeting IS 15298, EN ISO 20345, ASTM F2413 and SEDEX standards.
Its distinctive strength is combining multi-hazard protection with application-specific, customised sole-and-upper designs.
The operations are customisation-led and digitised. AUSL collects and analyses customer data to design customised products, using ICad3D design technology, PU direct-injection sole manufacturing and testing labs, and has implemented SAP S/4 HANA (ERP), CRM and HRMS systems across its units.
It operates four manufacturing facilities in Madhya Pradesh and Uttar Pradesh.
AUSL sells through direct institutional sales, regional distributors and dealers, and digital/e-commerce channels, with channel-partner warehousing at 40+ locations across India (Delhi, Mumbai, Pune, Hyderabad, Bengaluru, Chennai, Kolkata, Ahmedabad, Indore, Bhopal, etc.), plus exports to the UAE, Bahrain, Saudi Arabia, Nigeria, Israel, the Netherlands, Hong Kong, Cameroon, Mauritius and other markets. It had 1,073 employees as of March 31, 2026.
Issue Details
| Particulars | Details |
|---|---|
| Issue Opens | September 28, 2026 |
| Issue Closes | September 30, 2026 |
| Listing | BSE SME |
| Listing Date | October 6, 2026 |
| Issue Type | Book Built |
| Price Band | Rs 65 – Rs 71 per share |
| Face Value | Rs 10 |
| Issue Size | Rs 35.93 crore (50,60,800 shares, entirely fresh) |
| Min. Application | 1,600 shares (2 lots; multiples thereafter) |
| Min. Retail Investment | Rs 2,27,200 |
| Post-IPO Market Cap | Rs 135.56 crore |
| IPO as % of Post-IPO Capital | 26.50% |
| Lead Manager | Expert Global Consultants Pvt. Ltd. |
| Market Maker | JSK Securities & Services Pvt. Ltd. |
| Registrar | Maashitla Securities Pvt. Ltd. |
The issue is entirely a fresh issue. From the net proceeds, AUSL will utilise Rs 8.96 crore for capex on additional machinery, Rs 8.00 crore for working capital, Rs 3.62 crore for a solar power plant, and the rest for inorganic growth and general corporate purposes
Post-IPO, paid-up equity capital rises from Rs 14.03 crore to Rs 19.09 crore.
Price Band
At the upper band of Rs 71, on FY26 earnings the issue is valued at a P/E of about 23.13x, with a P/BV of 1.89 on the March 31, 2026 NAV of Rs 37.60 (post-IPO NAV disclosure is missing).
GMP
Grey-market interest has been flat. As of the days around opening, the Acme Universal Safezone 9 IPO GMP was 0.
Financial Performance
| Particulars (Rs cr) | FY24 | FY25 | FY26 |
|---|---|---|---|
| Total Income | 181.67 | 191.31 | 211.16 |
| Net Profit (PAT) | 7.56 | 0.80 | 5.86 |
| PAT Margin (%) | 4.23 | 0.43 | 2.84 |
| RoCE (%) | 12.48 | 2.52 | 5.54 |
Total income grew steadily from Rs 181.67 crore in FY24 to Rs 211.16 crore in FY26. PAT collapsed from Rs 7.56 crore (FY24) to just Rs 0.80 crore (FY25) — a severe ~89% setback — before partially recovering to Rs 5.86 crore (FY26), still below FY24. And notably, FY26 delivered lower net profit on higher revenue than FY24.
PAT margin swung from 4.23% to 0.43% to 2.84%, and RoCE from 12.48% to 2.52% to 5.54%. The company reported an average EPS of about Rs 3.22 and a modest average RoNW of 9.78%. Borrowings stood at Rs 58.05 crore against a net worth of Rs 52.77 crore.
Rising trade receivables year-on-year add a cash-quality concern; contingent liabilities were Rs 0.49 crore. The company has no dividend history.
Peer Comparison
Liberty Shoes, Superhouse and Mallcom (India) are peers, trading at P/Es of roughly 47.2x, 23.3x and 22.1x (as of September 25, 2026).
AUSL’s ~23x FY26 P/E sits in line with Superhouse and Mallcom, but on the FY25 base (169x) and given its volatile, thin margins and high leverage, the valuation looks aggressive for the earnings quality.
Risks to Consider
PAT collapsed ~89% in FY25 (to Rs 0.80 crore) and, even recovering to Rs 5.86 crore in FY26, remained below FY24 — with margins swinging wildly (4.23% → 0.43% → 2.84%). This is a thin-margin, cost-driven business where profitability is fragile and unpredictable.
Borrowings of Rs 58.05 crore against Rs 52.77 crore net worth is high for an SME — so finance costs weigh on already-thin margins, and returns on the new capex are critical; the raise funds capacity rather than deleveraging.
On FY26 the ask is ~23x, and on the (collapsed) FY25 base a staggering 169x — leaving little room for weak execution given the erratic earnings.
Safety footwear is competitive and cost-driven; sole-compound and raw-material prices, freight and pricing pressure can quickly erode profit, and the fragmented segment limits pricing power.
Rising trade receivables raise a cash-conversion concern, and export sales bring currency and market risk.
