Defrail Technologies Ltd IPO

Miscellaneous

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Price Band

₹70 – ₹74

Lot Size

1600

Minimum Bid Quantity

3200

Minimum Investment

₹236800

Issue Size

₹13.77Cr

Opens

2026-01-09

Closes

2026-01-13

Listing

19-01-2026

Subscription Status

Qualified Institutional Buyers

71.09 x

Non-Institutional Investor

119.15 x

Retail Individual Investor

99.31 x

Total

97.21 x

IPO Details

Issue Type

FP

Face Value

₹10

Tick Size

1

ISIN

INE0ZE201010

Pre-Apply Available

No

Daily Bidding Time

10:00:00 - 17:00:00

About the Company

Defrail Technologies Ltd manufactures rubber parts and components, including rubber hoses and assemblies, rubber profiles and beadings, and rubber moulding parts for automotive, railway, and defence applications. The company supplies products such as diesel and petroleum hose pipes, liquefied petroleum gas (LPG) hose pipes, nylon tubes, gaskets, grommets, air intake hoses, aluminium window rubber beadings, ethylene propylene diene monomer (EPDM) rubber profiles, and rubber sponge profiles, and it provides design and customisation based on client requirements. Its operations are primarily business-to-business (B2B), with some sales to government customers such as Railways and Defence through the government e-marketplace (GeM). The company operates two manufacturing plants in Faridabad, Haryana.

Pros

  • • Defrail Technologies claims to have received approved vendor status from the Research Designs and Standards Organisation (RDSO), effective 8 July 2024, for the manufacture and supply of air brake hose couplings, brake pipes, and feed pipes. This approval allows the company to participate in the Indian Railways supply chain and bid for railway tenders. It also indicates compliance with RDSO-prescribed technical and quality standards.
  • • The company claims to manufacture a wide range of rubber components used in the automobile, railway, and defence sectors. Its product portfolio includes hoses, seals, gaskets, bellows, and moulded components. This sectoral diversification helps reduce dependence on a single industry and limits exposure to sector-specific demand risks.
  • • The company is ISO 9001:2015 certified for its quality management systems.

Cons

  • • Rubber hose and assemblies accounted for Rs 38.71 crore (99.33 percent) of the company’s revenue for the period ended September 30, 2025; Rs 59.79 crore (96.80 percent) in FY25; Rs 27.86 crore (-) in FY24, and Rs 31.32 crore (93.15 percent) (sole proprietorship) in FY23. This level of dependence makes the company’s revenue sensitive to changes in demand, customer preferences, or technological shifts affecting this product category. Any adverse decline in demand for rubber hose and assembly products could significantly impact the company’s revenue, cash flows, and financial position.
  • • The automobile industry accounted for Rs 35.55 crore (91.22 percent) of the company’s revenue for the period ended September 30, 2025; Rs 55.74 crore (90.25 percent) in FY25; Rs 25.98 crore (-) in FY24, and Rs 30.09 crore (89.49 percent) (sole proprietorship) in FY23. This concentration exposes the company to sector-specific risks arising from regulatory changes, economic conditions, interest rate movements, and shifts in consumer demand within the Indian automobile market. Any slowdown in the automobile sector or unfavourable policy or market developments in India could negatively impact the company’s business, results of operations, and financial condition.
  • • The top customer alone accounted for Rs 31.82 crore (81.65 percent) of the company’s revenue for the period ended September 30, 2025; Rs 51.83 crore (83.91 percent) in FY25; Rs 23.22 crore (-) in FY24, and Rs 30.32 crore (90.18 percent) in FY23. Loss of this customer, non-renewal of purchase orders, or a material reduction in demand from this client could negatively impact the company’s revenue, cash flows, and financial condition.

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