ACME UNIVERSAL SAFEZONE9 LIMITED IPO

ACME UNIVERSAL SAFEZONE9 LIMITED IPO closed on 30 Sept 2026. Allotment 1 Oct 2026, listing 6 Oct 2026. Price band ₹65–₹71, lot 1600 shares, GMP +₹16 (22.54%). Track allotment on Allotly.

About ACME UNIVERSAL SAFEZONE9 LIMITED

Acme Universal Safezone 9 Limited is engaged in the manufacturing and supply of industrial safety footwear under the brand name 'ACME.' The company operates in the personal protective equipment (PPE) segment and offers safety footwear for industries including construction, oil and gas, mining, heavy engineering, automotive, pharmaceuticals, chemicals, foundries, and power generation. Its product range covers 15 product lines with EVA-rubber, nitrile rubber and PVC soles, designed for protection against impact, compression, penetration, electrical shock, heat, fire, chemicals and slipping. The company also designs customised products based on customer requirements and uses ICad3D technology for product design and visualisation. It operates four manufacturing facilities across Madhya Pradesh and Uttar Pradesh. Its products are sold through institutional sales, distributors, dealers, and…

Strengths

• The company operates four manufacturing facilities across Madhya Pradesh and Uttar Pradesh, with production stages including leather cutting, upper assembly, lasting, sole injection, finishing and packaging carried out in-house. It also has warehousing infrastructure for inventory holding, order consolidation and dispatch.
• The company claims to use Desma PU direct injection machines from Germany and Orisol automated stitching machines for sole production and stitching operations. It also uses digital process monitoring integrated with SAP S/4 HANA, along with triple density manufacturing, Phylon rubber processing, and Surge Sense technology.
• The company manufactures 15 product lines using EVA-rubber, nitrile rubber, and PVC soles. Its products address hazards including impact, penetration, electrical shock, heat, fire, chemical exposure, and slipping, and are made to standards including IS 15298, EN ISO 20345, and ASTM F2413, as applicable.
• The company claims to have a dedicated R&D unit and product testing laboratory for material selection, structural design, product development and compliance testing. The laboratory maintains batch-wise records for parameters including tensile strength, flex resistance, compression, electrical properties, and sole bond strength.
• The company exports its safety footwear to markets including the UAE, Bahrain, Saudi Arabia, Nigeria, Israel, the Netherlands, Hong Kong, Cameroon, and Mauritius. Its facilities can manufacture products to Indian and international standards within the same production infrastructure.
• The company sells through direct institutional sales, regional distributors and dealers, and digital and e-commerce channels. Its institutional customers span sectors such as construction, oil and gas, mining, automotive, pharmaceuticals, and heavy engineering, while its dealer and distributor network covers major cities across India.
• The company has long-term rate contracts and annual supply agreements with corporate customers across multiple industrial sectors. Its dedicated sales representatives handle contract negotiations, pricing, delivery schedules, and after-sales coordination.
• The company has witnessed a consistent increase in its revenue from operations. Revenue from operations increased from Rs 178.94 crore in FY24 to Rs 187.35 crore in FY25 and Rs 205.90 crore in FY26.

Risks

• A significant portion of the company’s revenue is generated from a few states. The top 10 states contributed Rs 189.23 crore (91.90%), Rs 172.58 crore (92.11%), and Rs 162.96 crore (91.07%) of revenue in FY26, FY25, and FY24, respectively, with Maharashtra contributing Rs 29.66 crore (14.40%), Rs 28.47 crore (15.20%), and Rs 28.20 crore (15.76%), respectively. Any adverse political, geographical, or economic developments, increased competition, or changes in customer demand in these states could hurt the company’s revenues and profitability.
• The company’s revenue is concentrated among a limited number of customers. Its top 10 customers contributed Rs 98.23 crore (47.71%), Rs 85.85 crore (48.82%), and Rs 80.59 crore (45.04%) of total sales in FY26, FY25, and FY24, respectively. Any loss of one or more key customers, reduction in business from them, or inability to maintain long-term contracts on commercially viable terms could adversely affect the company’s revenues, results of operations, and financial condition.
• The company depends on key raw materials, including PU and PVC sole compounds, genuine and synthetic leather, coated fabrics, steel or composite toe caps, and midsole materials for manufacturing industrial safety footwear. PU compound prices are linked to crude oil derivatives, while leather prices are affected by supply-demand conditions, export duty changes, and tannery shutdowns. The company does not have long-term fixed-price contracts with raw material suppliers and procures materials from the open market. Any sustained increase in raw material costs, particularly where price increases cannot be fully passed on under fixed-price government rate contracts, could compress its EBITDA margins.
• The company and its promoters are involved in certain pending tax proceedings in India, which are at different stages of adjudication before the concerned authorities or forums. Any adverse outcome in these proceedings could result in penalties and adversely affect the company’s reputation, profitability, financial condition and results of operations.
• The company operates in a competitive market comprising both organised and unorganised players, with no significant entry barriers. It faces competition from manufacturers, traders, suppliers, and importers of footwear, soles, leather, and related products, with competition based on product quality, pricing, customer relationships, brand recognition, and delivery timelines. Any inability to compete effectively could result in lower market share, reduced operating margins, and an adverse effect on its results of operations.
• The company had outstanding financial indebtedness of Rs 58.04 crore as of March 31, 2026. Any failure to service or repay its borrowings on time could adversely affect the company’s business, financial condition, and cash flows.
• The company had trade receivables of Rs 28.80 crore as of March 31, 2026. Any delay or failure in collecting these receivables could increase working capital requirements and adversely affect the company’s cash flows and financial condition.

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