A Vijay Kedia-owned SME stock has taken the spotlight on Dalal Street, rallying 16% in just two trading sessions after reports confirmed that its US-based subsidiary is preparing for a Nasdaq listing. The stock, which trades on the BSE SME platform, saw a surge in volumes and investor interest following the announcement, with analysts citing the potential for global expansion and valuation unlocking as key drivers.
The company in question—Precision Metaliks Ltd—is a Hyderabad-based manufacturer of aluminum alloy wheels and automotive components. Its wholly owned US subsidiary, PMX Inc., is reportedly in advanced talks with investment bankers to file for an IPO on the Nasdaq by Q1 2026. The move is expected to raise capital for expansion and improve brand visibility in North America.
📈 Stock Performance: A Two-Day Breakout
Precision Metaliks shares jumped from ₹142.50 to ₹165.30 between August 19 and August 21, 2025, marking a 16% gain. The rally was accompanied by a 3x spike in trading volumes, with retail investors and HNI desks accumulating positions ahead of the Nasdaq filing.
| Date | Closing Price (₹) | Daily Change (%) | Volume (Shares) |
|---|---|---|---|
| August 19 | 142.50 | — | 1.2 lakh |
| August 20 | 154.80 | +8.6% | 3.4 lakh |
| August 21 | 165.30 | +6.8% | 4.1 lakh |
The stock has now returned over 45% in the past one month and 120% year-to-date, outperforming the broader BSE SME index.
🧭 Vijay Kedia’s Stake and Investment Philosophy
Renowned investor Vijay Kedia holds a 10.2% stake in Precision Metaliks through his proprietary firm, Kedia Securities. Known for his long-term bets on emerging businesses, Kedia has often emphasized the importance of scalable models and global ambitions.
His investment in Precision Metaliks aligns with his philosophy of identifying “visionary managements with execution capability.” The company’s push for a Nasdaq listing is seen as a validation of that thesis.
| Investor Name | Holding (%) | Mode of Investment | Remarks |
|---|---|---|---|
| Vijay Kedia | 10.2% | Kedia Securities | Long-term strategic stake |
| Promoter Group | 62.5% | Direct | Family-owned majority |
| Public Shareholding | 27.3% | Retail + HNIs | Increasing post IPO |
🏢 About Precision Metaliks Ltd
Founded in 2019, Precision Metaliks specializes in high-performance aluminum alloy wheels, catering to OEMs and aftermarket clients in India, Europe, and the US. The company operates a 1.2 lakh sq ft facility in Hyderabad and exports nearly 40% of its output.
Its US subsidiary, PMX Inc., was incorporated in Delaware in 2023 and has since signed supply agreements with two Tier-1 automotive distributors in Texas and Michigan.
| Business Segment | Revenue Share (FY25) | Key Markets | Growth Driver |
|---|---|---|---|
| Alloy Wheels | 65% | India, US, EU | Lightweight EV components |
| Forged Components | 25% | Germany, Japan | High-margin precision parts |
| Machined Castings | 10% | Domestic OEMs | Replacement demand |
The company reported ₹112 crore in revenue for FY25, with EBITDA margins of 18.4% and net profit of ₹14.6 crore.
🧾 Nasdaq IPO: What It Means for Investors
The proposed Nasdaq IPO of PMX Inc. is expected to raise $25–30 million, which will be used to set up a new manufacturing unit in Ohio and expand distribution in North America. The listing will also unlock valuation for Precision Metaliks, which holds 100% equity in the US entity.
| IPO Metric | Expected Value | Remarks |
|---|---|---|
| Fundraising Target | $25–30 million | For capex and working capital |
| Listing Timeline | Q1 2026 | Subject to SEC approval |
| Valuation Estimate | $120–140 million | Based on peer multiples |
| Parent Stake Value | ₹1,000–1,200 crore | Potential re-rating trigger |
Analysts believe that the Nasdaq listing could lead to a re-rating of Precision Metaliks on the BSE SME platform, with potential migration to the main board by FY27.
🧠 Analyst Commentary and Market Sentiment
Market experts have welcomed the development, citing it as a rare example of an SME company leveraging global capital markets. According to Pranav Mehta of Axis Securities:
“Precision Metaliks is showing signs of becoming a global player. The Nasdaq IPO will not only unlock value but also improve governance and transparency.”
Brokerage firms are expected to initiate coverage once the company migrates to the main board. For now, retail investors are advised to monitor regulatory filings and IPO progress.
📊 Financial Snapshot: FY25 vs FY24
| Metric | FY24 Value | FY25 Value | YoY Growth (%) |
|---|---|---|---|
| Revenue (₹ crore) | 86.4 | 112.0 | +29.6% |
| EBITDA Margin (%) | 16.2 | 18.4 | +220 bps |
| Net Profit (₹ crore) | 9.8 | 14.6 | +48.9% |
| Export Share (%) | 32.5 | 39.8 | +730 bps |
The company has also reduced its debt-to-equity ratio from 0.82 to 0.54, improving its financial flexibility ahead of the IPO.
🧭 Risks and Considerations
While the Nasdaq IPO offers upside potential, investors should be aware of certain risks:
- Regulatory delays in SEC approval
- Currency volatility affecting US operations
- Execution risks in setting up new facilities
- Limited liquidity on BSE SME platform
| Risk Factor | Impact Level | Mitigation Strategy |
|---|---|---|
| Regulatory Approval | High | Experienced legal advisors |
| Currency Fluctuation | Moderate | Hedging contracts in place |
| Execution Risk | Moderate | Phased capex rollout |
| SME Liquidity | High | Migration to main board planned |
📌 Conclusion
Precision Metaliks Ltd’s 16% rally in two days reflects growing investor confidence in its global ambitions, especially with its US unit eyeing a Nasdaq IPO. Backed by ace investor Vijay Kedia and driven by strong fundamentals, the company is positioning itself as a future-ready auto component player with international reach.
As the IPO process unfolds, investors will be watching closely for updates on valuation, listing timelines, and operational milestones. For now, the stock remains one of the most talked-about SME counters on Dalal Street—and its journey to Nasdaq could be just the beginning.
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Disclaimer: This article is based on publicly available financial disclosures and market reports as of August 21, 2025. It is intended for informational purposes only and does not constitute investment advice.
