Nuclear energy stock engaged in designing and manufacturing high-precision & heavy-duty mechanical seals widely employed in various nuclear & thermal projects in focus following successful fundraising to expand into the areas of advanced mechanical seals for defence and nuclear applications.
Price action
With a market capitalization of Rs. 512 Crores, the shares of Sealmatic India Limited closed at Rs. 600 per equity share, down by 0.06 percent from its previous day’s close price of Rs. 600.35.
What Happened
The board of directors of Sealmatic India Limited had earlier considered and approved raising funds to the extent of upto Rs. 25 Crores by creating, issuing, offering, and allotting to the extent of 4.3 Lakh fully paid-up equity shares of the face value of Rs. 10 through, by way of a preferential issue on a private placement basis.
Following this Aegis Investment Fund PCC has announced an investment of Rs 25 crores into the company through the preferential issue announced by Sealmatic Limited. This involves the issuance of 3.93 Lakh equity shares at Rs 636 per share.
This fundraising aligns with Sealmatic India Limited’s aim to accelerate the establishment of strategic business units in key regions such as the Middle East, Europe, and the United States of America.
Followed by targeted investments in high-growth API markets mainly in India & Middle East and drive the development of advanced mechanical seals for defence and nuclear applications, which includes stern tube seals, primary reactor seals, and API 682 4th Edition.
Management Comments
Mr Umar AK Balwa, Managing Director of Sealmatic says “The capital raised will be invested in expanding market and service/product capabilities in Middle East, USA & Europe, which are expected to grow exponentially over the next 5 years, driven by the adoption of new technologies in the field of mechanical seals for critical API, Defense and Nuclear applications.
Sealmatic, which already has a presence in the above sectors and regions, will invest in the value chain to become a dominant player, providing expanded products and services to oil & gas, refineries, petrochemical, defense, nuclear, and other critical industries.
We are excited to have Aegis Investment Fund PCC Niveza onboard and the investment from them will support the company’s strategic expansion and growth initiatives into key industry verticals, with relevant technology solutions, including key leadership hiring and
significantly expanding its sales and business development efforts in Middle East, Europe, North America and other emerging markets.
About the Company
Sealmatic India Limited is engaged in designing and manufacturing high-precision & heavy-duty mechanical seals that are widely employed in various power plant applications both nuclear & thermal.
Sealmatic’s API-compliant mechanical seals offer technically competent, practical solutions that provide significantly greater safety and process reliability in refining technology, petrochemical, oil & gas, and chemical industries.
The mechanical seals market size is forecasted to increase by USD 1.73 billion at a CAGR of 5.55 percent between 2025 and 2030.
Clientele Base
Sealmatic India Limited has a strong customer base with well-known players like Reliance Industries Limited, IOCL, BPCL, HPCL, Oil India, BHEL, NTPC, ONGC, JSPL, GAIL, GSECL and many others.
Financials & Ratios
Its revenue from operations grew by 19 percent from Rs. 37.01 Crores in H1FY24 to Rs. 43.93 Crores in H1FY25, accompanied by profits of Rs. 6.59 Crores to Rs. 6.46 Crores.
In terms of return ratios, it has reported a return on equity (ROE) of 10.43 percent and a return on capital employed (ROCE) of 13.78 percent. In terms of liquidity, it has reported a debt-to-equity ratio of 0.06.
Written by: Bharath K.S
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