What Is the Susan Electricals SME IPO All About?
Reviewed by Kanishk Dev Bangia, NISM Series XV Certified Research Analyst
Last Updated: June 2026 | Reg No: NISM-202300182946
When people think about stock market listings, they often picture technology startups, consumer brands, or companies making headlines across business channels.
But some of the most important businesses in the economy operate far from the spotlight.
Every apartment building, office complex, factory, shopping mall, and infrastructure project depends on a network of wires and cables hidden behind walls and beneath roads. Without them, modern life simply doesn't function.
That is what makes the Susan Electricals SME IPO an interesting story.
The company operates in India's electrical wires and cables industry, a sector that rarely attracts public attention but remains closely linked to construction, industrial growth, urbanisation, and infrastructure development.
As the company prepares to list on the BSE SME platform, let's look at what the business does, how it has grown, what the financials reveal, and what beginners should understand before reading about IPOs like this one.
What Does the Company Do?
Susan Electricals is an electrical products manufacturer with operations based in Sahibabad, Ghaziabad, one of the major industrial clusters in the National Capital Region.
The company's registered office is located in New Delhi, while its manufacturing facility operates from the Sahibabad industrial area.
The electrical wires and cables industry serves as a backbone for multiple sectors of the economy. Whether it is residential housing, commercial construction, industrial projects, power distribution, or infrastructure development, cables are a critical component.
Companies operating in this segment typically manufacture products such as:
· Electrical wires for homes and commercial buildings
· Power cables for industrial applications
· Flexible cables and multi-core wires
· Distribution cables used in infrastructure and utility projects
Demand in this sector tends to be linked to broader economic activity. When construction, manufacturing, and infrastructure spending increase, demand for electrical products often follows.
Quick Company Snapshot
Industry: Electrical Wires & Cables
Manufacturing Facility: Sahibabad, Ghaziabad, Uttar Pradesh
Registered Office: New Delhi
Promoters: Vishal Jain and Mahak Jain
Pre-IPO Promoter Holding: 96.64%
Listing Platform: BSE SME
Key Takeaway
Susan Electricals operates in a sector that benefits from long-term infrastructure and construction demand, making it a classic industrial manufacturing business rather than a high-growth technology company.
The Financial Story: Growth Is the Headline
For many IPOs, the most important question is simple:
Is the business actually growing?
Looking at the reported financials, the answer appears to be yes.
The revenue trend is particularly noteworthy.
Revenue increased from ₹77.56 crore in FY23 to ₹136.05 crore in FY25, representing substantial business expansion in just two years. More interestingly, the company generated ₹154.12 crore of revenue in the first nine months of FY26, already surpassing the previous full financial year.
However, revenue growth is only part of the story.
The real improvement can be seen in profitability.
Profit after tax increased from just ₹0.40 crore in FY23 to ₹5.65 crore in FY25. For the nine months ending December 2025, profit had already reached ₹7.93 crore.
This suggests the company has not only expanded sales but has also become more efficient at converting revenue into earnings.
Key Takeaway
Rapid revenue growth gets attention, but improving profitability is often the more important signal because it indicates that growth is becoming economically meaningful.
Understanding the Margins and Debt
Not every business operates with software-like profit margins.
Manufacturing businesses often work under very different economics.
Susan Electricals reported:
· EBITDA Margin: 8.84%
· PAT Margin: 4.16%
· Debt-to-Equity Ratio: 2.52
At first glance, a 4.16% profit margin may appear low.
However, this is not unusual in the electrical wires and cables industry.
Companies in this sector often deal with raw materials such as copper, aluminium, and PVC, whose prices can fluctuate significantly. Competition is also intense, making it difficult to pass every cost increase directly to customers.
The debt-to-equity ratio of 2.52 deserves attention as well.
This means the company had approximately ₹2.52 of debt for every ₹1 of shareholder equity.
Debt can accelerate growth when business conditions remain favourable. However, it also increases financial risk because interest obligations continue regardless of business performance.
Key Takeaway
The company's improving profits are encouraging, but investors should also pay attention to leverage levels and the inherently thin margins common in the industry.
How Is the IPO Structured?
The IPO is being launched as a Bookbuilding Issue on the BSE SME platform.
The issue consists of two components:
Fresh Issue
47.80 lakh equity shares
Offer for Sale (OFS)
6.20 lakh equity shares
Total Issue Size
54 lakh equity shares
The company plans to use proceeds from the fresh issue primarily for:
· Expansion of the manufacturing facility
· Working capital requirements
· General corporate purposes
A large portion of the proceeds has been earmarked for working capital, which is common in manufacturing businesses that must maintain inventory, manage receivables, and support growing sales volumes.
Key Takeaway
Most of the issue consists of fresh shares, meaning the majority of funds raised will flow into the business rather than to selling shareholders.
Fresh Issue vs Offer for Sale: Why It Matters
Many beginners overlook this distinction, but it is one of the most important aspects of an IPO.
Fresh Issue
The company creates new shares and sells them to investors.
The money raised goes directly to the company.
Offer for Sale (OFS)
Existing shareholders sell part of their stake.
The proceeds go to those shareholders, not to the company.
In Susan Electricals' case, the fresh issue is significantly larger than the OFS component.
That suggests the primary objective is raising capital for business growth rather than providing a major exit opportunity for existing shareholders.
Key Takeaway
When evaluating an IPO, understanding where the money goes is often just as important as understanding how much money is being raised.
What Can Peer Comparisons Tell Us?
No company operates in isolation.
That is why investors often compare a business against similar listed peers.
Metrics commonly examined include:
· Earnings Per Share (EPS)
· Price-to-Earnings Ratio (P/E)
· Return on Net Worth (RoNW)
· Net Asset Value (NAV)
Peer analysis helps investors understand whether a company appears more profitable, more efficient, or more aggressively valued than others operating in the same industry.
However, peer comparisons should always be viewed alongside factors such as company size, growth rates, product mix, and business model.
Key Takeaway
Peer comparisons provide useful context, but no single ratio can fully determine whether a company is attractive or unattractive.
The Promoter Story
Before the IPO, promoters Vishal Jain and Mahak Jain collectively owned approximately 96.64% of the company.
This level of ownership is common among founder-led SME businesses.
In many cases, such companies have grown primarily through promoter capital, retained earnings, and bank borrowings rather than private equity funding.
After listing, ownership becomes more diversified, and the company enters a new phase of accountability.
Publicly listed companies must comply with stock exchange disclosure requirements, publish regular financial results, and operate under greater investor scrutiny.
Key Takeaway
An IPO is not only a fundraising event. It is also a transition from a privately controlled business to a publicly accountable company.
Why Infrastructure-Linked IPOs Matter
India's long-term growth story depends heavily on infrastructure.
From housing and commercial construction to renewable energy projects and industrial expansion, electrical products remain essential to economic activity.
As government spending and private investment continue to support infrastructure development, companies involved in electrical equipment, cables, and power distribution remain closely tied to that broader trend.
The BSE SME platform has increasingly become a gateway for such businesses to access public capital markets and fund future expansion.
For investors and market observers, these IPOs offer insight into the industries that quietly support India's economic development.
Key Takeaway
Infrastructure-focused businesses may not generate the excitement of technology companies, but they often play a critical role in the country's long-term growth story.
Final Thoughts
The Susan Electricals SME IPO tells a fairly straightforward story.
It is a manufacturing company operating in a practical, infrastructure-linked sector. Revenue has grown rapidly over the last few years. Profitability has improved significantly. The company is seeking capital to support expansion and working capital requirements.
At the same time, the financials highlight realities common across many industrial businesses: thin margins, dependence on commodity-linked inputs, and relatively high leverage.
For beginners, perhaps the biggest lesson from this IPO is that stock markets are not only about consumer brands and technology startups.
They are also about the businesses that build, power, and support the broader economy.
Understanding those businesses often provides a deeper appreciation of how capital markets and economic growth work together.
Frequently Asked Questions (FAQs)
1. What is a Bookbuilding IPO?
A bookbuilding IPO allows investors to bid within a specified price band, helping determine the final issue price based on demand.
2. Why is the company raising money?
The proceeds are intended for facility expansion, working capital requirements, and general corporate purposes.
3. Why are profit margins low in the wires and cables industry?
The sector is highly competitive and depends heavily on commodity-linked raw materials such as copper and aluminium, which can compress margins.
4. What should beginners focus on when reading an IPO prospectus?
Business model, revenue growth, profitability trends, debt levels, risks, use of proceeds, and promoter background are generally among the most important areas to understand.
Disclaimer:
This is written for educational and informational purposes only. Nothing here constitutes investment advice or a recommendation to buy or sell securities. All data is sourced from publicly available information. Investments in securities markets are subject to market risks — please read all offer documents carefully before investing.
