Understanding Shariah Compliance in IPOs and Stocks:
Investing wisely is essential for both financial growth and ethical alignment. For those interested in making investments that comply with Islamic law, understanding the Shariah status of Initial Public Offerings (IPOs) and stocks is crucial. This article aims to provide insights into the Shariah compliance of Sampat Aluminium Ltd, ensuring that your investment choices are not only profitable but also ethical.
Table of Contents
Analyzing The Company
Company Name: Sampat Aluminium Ltd
Industry: Non – Ferrous Metals
Listing At: BSE SME
Overview:
Sampat Aluminium Ltd is an Indian company established in 1999 that manufactures and trades in aluminum wire rods and wires. The company’s products are crucial for various industries like power transmission, construction, automotive, and telecommunications due to their lightweight and conductive properties.
The company operates a manufacturing plant in Kalol, Gujarat, with an 8,400 MTPA capacity, utilizing the ‘Properzi process’ for efficient production. As of July 2025, it had 26 employees.
Key strengths include a diverse customer base, a strong supplier network, a wide geographic presence, and an experienced management team, which has contributed to a track record of growth and profitability. The company is in the process of an IPO to be listed on the BSE SME.
Shariah Status
The IPO is Shariah Compliant, please see below image.
IPO Timeline (Tentative Schedule)
- IPO Open Date: Monday, September 17, 2025
- IPO Close Date: Wednesday, September 19, 2025
- Tentative Allotment: Thursday, September 22, 2025
- Initiation of Refunds: Monday, September 23, 2025
- Credit of Shares to Demat: Monday, September 23, 2025
- Tentative Listing Date: Tuesday, September 24, 2025
- Cut-off time for UPI mandate confirmation: 5 PM on September 19, 2025
Lot Size
| Investor Type | Minimum Shares | Minimum Amount | Maximum Shares | Maximum Amount |
| Individual investors (Retail) | 2,400 | ₹2,88,000 | 2,400 | ₹2,88,000 |
| S-HNI | 3,600 | ₹4,32,000 | 67,200 | ₹8,64,000 |
| B-HNI | 78,400 | ₹10,08,000 | Not specified | Not specified |
Financials
Based on the financial data, Sampat Aluminium Ltd. experienced a decline in its total income from the financial year ending March 31, 2024, to the one ending March 31, 2025. However, despite this revenue decrease, the company’s profit after tax (PAT) saw a significant increase during the same period. The company also demonstrated growth in its assets, net worth, and reserves and surplus, while its total borrowings also increased. The EBITDA, a measure of operational profitability, also grew. Overall, the company appears to be growing its balance sheet and profitability despite a recent drop in total income.
KPI
| KPI | Values |
|---|---|
| ROE | 42.42% |
| ROCE | 23.13% |
| Debt/Equity | 1.05 |
| RoNW | 30.82% |
| PAT Margin | 5.22% |
| EBITDA Margin | 8.70% |
| Price to Book Value | 3.13 |
LINKS
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SEBI Disclaimer
Investing in IPOs involves risks. Please read the offer document carefully before investing. This article is for informational purposes only and does not constitute financial advice. Investors should consult their financial advisors before making any investment decisions.