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Veteran Investors Eye SME Gems: Rs 25 Cr Bet
29 Oct
Summary
- Mukul Agrawal invests Rs 25 crore via warrants in a tungsten defence firm.
- Vijay Kedia holds a stake in Ashutosh Fibre, a technical textile manufacturer.
- Both companies trade on NSE Emerge, a platform for SMEs with lighter disclosure rules.
Market veterans Mukul Agrawal and Vijay Kedia are increasing their presence in the SME sector, with recent filings revealing substantial investments. Mukul Agrawal, through Param Capital, has committed approximately Rs 25 crore via warrants to Innomet Advanced Materials, a Hyderabad-based company specializing in metal powders and tungsten parts for defence and aerospace.
Innomet Advanced Materials, established in 1984, supplies components for rockets and counts HAL and BDL among its clients. Agrawal's warrants were issued at Rs 210 each, a 60% premium over earlier share and warrant issues. This investment comes as the company benefits from China's tungsten export curbs, potentially making India an alternative supplier.
Meanwhile, Vijay Kedia, known for his focus on small companies, holds a pre-IPO stake in Ashutosh Fibre, a Gujarat-based manufacturer of technical yarns. The company, which listed in September 2026, saw its IPO subscribed over 130 times. Kedia's current holding is 4.73%, valued at approximately Rs 13.2 crore.
Ashutosh Fibre's financials show a significant margin expansion to 26% due to a richer product mix and favorable input prices. Innomet, on the other hand, exhibits strong sales growth but a shrinking profit line, with its valuation at a P/E of 228x, reflecting a bet on its order book. Investors are advised caution due to the lighter disclosure rules and potential exit challenges in SME stocks.
