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Western Carriers (India) Ltd IPO : SUBSCRIBE

  • Date

    13th Sep 2024 - 18th Sep 2024

  • Price Range

    Rs. 163 to Rs.172

  • Minimum Order Quantity

    87

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Price Lot Size Issue Date Issue Size
₹ 163 to ₹ 172 87 13th Sep, 2024 – 18th Sep, 2024 ₹492.88 Cr

About Western Carriers (India) Ltd IPO

Western Carriers (India) Limited is the leading private, multi-modal, rail-focused 4PL logistics provider in India based on container volumes handled in FY23, with a 6% domestic and 2% EXIM market share. Leveraging a scalable, asset-light business model, it offers tailored 3PL and 4PL solutions, addressing complex logistics needs through integrated, end-to-end services across road, rail, sea, and air transport. Established in 1972 and acquired by the current company in 2013, the business has evolved over five decades to provide comprehensive multi-modal logistics solutions, including inventory management, warehousing, and customs clearance. The firm has longstanding relationships with key clients in sectors such as metals, FMCG, pharmaceuticals, and oil and gas, with 80% of its FY24 revenue coming from customers with over three years of engagement and a 100% retention rate for its top ten clients. Recognized for its quality and efficiency, the company has received multiple awards, including Tata Steel’s “Support for New Trials” and BALCO’s “Best Business Partner” award. Looking ahead, the company aims to enhance its service offerings, expand into new geographies, and increase operating margins by improving operational efficiencies and leveraging its expertise to attract new business. It plans to use funds from its public offering to acquire commercial vehicles and specialized containers, further strengthening its capabilities and service quality.

Objective of the Western Carriers (India) Ltd IPO

The company proposes to utilize the net proceeds towards the funding of the following objects:

  •  Prepayment or scheduled repayment of a portion of certain outstanding borrowings availed by the company;
  • Funding capital expenditure requirements of the company towards purchase of:
  • commercial vehicles;
  • 40 feet specialized containers and 20 feet normal shipping containers; and
  • reach stackers; and
  • General corporate purposes. 

Rationale To Invest In Western Carriers (India) Ltd IPO

Leading the charge in customized, end-to-end logistics solutions 

The company excels in providing customized, end-to-end logistics solutions across India, leveraging a robust mix of rail, road, sea, and air transport to deliver cost-efficient and timely services. Its asset-light approach, extensive service portfolio, and advanced technological capabilities position it uniquely in a rapidly growing market. With significant expertise in managing large-scale, complex logistics projects and a track record of timely, cost-effective delivery, the company is poised to capitalize on the burgeoning demand for multi-modal logistics solutions. The Indian logistics sector, supported by government initiatives like the PM Gati Shakti National Master Plan and anticipated market growth, provides a fertile environment for expansion. The company’s ability to offer tailored solutions, coupled with a strong operational track record and high customer satisfaction, creates substantial entry barriers and drives repeat business. Recognized for its exceptional service and innovation, the company is strategically positioned to leverage the projected growth in the rail-road multi-modal sector and overall logistics market, making it a compelling investment opportunity.   

Robust customer relationships and strong financial performance   

The company excels in maintaining strong, long-term relationships with a diverse customer base, serving 1,647 clients across various industries, including metals, FMCG and pharmaceuticals. This broad client base, combined with a high revenue contribution from top customers, underscores its role as a trusted logistics partner. The company’s revenue from its top 10 customers has consistently been a significant portion of its total revenue, demonstrating customer loyalty and stability. Its ability to deliver tailored, end-to-end logistics solutions, especially in complex projects, enhances its market position. Financially, the company shows strong growth with a steady increase in revenue, EBITDA, and profit over recent years, indicating robust operational efficiency and profitability. The asset-light model supports scalability and flexibility, with low lease costs relative to operating expenses. With low leverage and a solid balance sheet, the company is well-positioned for future growth and expansion. Overall, its proven track record, effective customer engagement, and sound financial health makes it an attractive investment opportunity in the logistics sector . 

Valuation of Western Carriers (India) Ltd IPO

The company, a dominant player in India’s logistics sector, excels in delivering comprehensive, multi-modal solutions across rail, road, sea, and air transport. Leveraging an asset-light model, it integrates services such as warehousing, customs clearance, and cargo handling, serving a broad client base of 1,647, with 71.97% of revenue concentrated among its top 10 customers. However, the company faces risks from high customer concentration, which it plans to address by diversifying into new sectors and strengthening customer relationships. Financially, it has shown robust growth, with revenue rising from Rs. 14,708.8 million in FY22 to Rs. 16,857.7 million in FY24, and EBITDA increasing significantly from Rs. 1,088.9 million to Rs. 1,518.2 million. The EBITDA margin improved from 7.4% in FY22 to 9.0% in FY24. Additionally, the company maintained a strong balance sheet, with total equity rising to Rs. 3,983.6 million and a Net Debt to EBITDA of 1.52x in FY24.  The company further plans to improve operational margins through value-added services and technology, underscoring its potential for sustained growth. Its commitment to leveraging technological advancements and expanding project logistics capabilities position it well to capitalize on the projected growth in the rail-road multi-modal sector, forecast to reach Rs. 4,667 billion by FY29. The current issue is priced at a P/E of 16.8x on the upper band based on FY24 earnings and is relatively lower than its peers. Given its strong financials, strategic initiatives, and positioning to capitalize on the expanding rail-road multi-modal sector, we recommend a “SUBSCRIBE” rating for the issue with a medium to long-term investment perspective.

What is the Western Carriers (India) Ltd IPO?

Western Carriers (India) IPO is a book built issue of Rs 492.88 crores. The issue is a combination of fresh issue of 2.33 crore shares aggregating to Rs 400.00 crores and offer for sale of 0.54 crore shares aggregating to Rs 92.88 crores. Login to your account now – https://campaign.StoxBox.in/redirect.html

To apply for the Western Carriers (India) Ltd IPO through StoxBox one can apply from the website and also from the app. Click here

Western Carriers (India) Ltd IPO is opening on 13th September 2024. Apply Now

The Lot Size of Western Carriers (India) Ltd IPO is 87 equity shares. Login to your account now – https://campaign.StoxBox.in/redirect.html

The allotment Date for Western Carriers (India) Ltd IPO is 19th September  2024. Login to your account now – https://campaign.StoxBox.in/redirect.html

The listing Date for Western Carriers (India) Ltd IPO is 23rd September 2024. Login to your account now – https://campaign.StoxBox.in/redirect.html

In the Retail segment the minimum investment required is Rs. 14,964. Login to your account now – https://campaign.StoxBox.in/redirect.html

In the Retail segment the maximum investment requirement is Rs. 194,532. Login to your account now – https://campaign.StoxBox.in/redirect.html

  • High customer concentration risk: The company faces a high risk of customer concentration, with a significant portion of its revenue dependent on a few key clients, particularly in the metals and FMCG sectors. In FY24, the top 10 customers contributed 72.0% of revenue, underscoring the company’s reliance on these industries. Fluctuations in these sectors or loss of these clients could adversely impact the company’s financial performance and stability.
  • Working capital and credit risk exposure: The company faces significant working capital challenges due to delays in payments from customers and tighter credit terms from third-party service providers. The trade receivables days increased from 77 in FY22 to 114 in FY24, while trade payables days decreased from 19 to 14 over the same period. High outstanding receivables and reduced credit periods from vendors may strain cash flows, impacting the company’s financial stability.
  • Legal proceedings and their potential impact: The company, its directors, and promoters are involved in various legal proceedings, including criminal, tax, and regulatory cases. These proceedings involve significant amounts aggregating to Rs. 30.9 million with potential risk of diverting management’s focus and resources, which may negatively impact the company’s reputation, financial condition, and operations. Notably, a criminal case against promoter Kanishka Sethia remains unresolved. Adverse outcomes in these proceedings could materially affect the company’s overall financial health.

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The Western Carriers (India) Ltd IPO be credited to the account on allotment date which is 20th September 2024. Login to your account now – https://campaign.StoxBox.in/redirect.html

The prospectus of Western Carriers (India) Ltd IPO prospectus can be find on the website of SEBI, NSE and BSE

IPO Open DateFriday, September 13, 2024
IPO Close DateWednesday, September 18, 2024
Basis of AllotmentThursday, September 19, 2024
Initiation of RefundsFriday, September 20, 2024
Credit of Shares to DematFriday, September 20, 2024
Listing DateMonday, September 23, 2024
Cut-off time for UPI mandate confirmation5 PM on September 18, 2024

P N Gadgil Jewellers Ltd IPO : SUBSCRIBE

  • Date

    10th Sep 2024 - 12th Sep 2024

  • Price Range

    Rs. 456 to Rs.480

  • Minimum Order Quantity

    31

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Price Lot Size Issue Date Issue Size
₹ 456 to ₹ 480 31 10th Sep, 2024 – 12th Sep, 2024 ₹1,100.00 Cr

About P N Gadgil Jewellers Ltd IPO

As of January 2024, P N Gadgil Jewellers Limited (PNG) stood as the second-largest organized jewellery player in Maharashtra by store count. Leveraging a heritage since 1832, PNG offers a diverse range across various price points and occasions through its sub-brands: Saptam (handcrafted gold wedding and festive jewellery), Swarajya (gold wedding jewellery blending traditional Maharashtrian and modern styles), Rings of Love (advanced gold wedding rings), The Golden Katha of Craftmanship (gold wedding necklaces and bangles with traditional dies), Flip (wedding mangalsutras), Litestyle (daily wear gold jewellery), Eiina (diamond jewellery for women), PNG Solitaire (diamond solitaires), Men of Platinum (platinum jewellery for men), Evergreen Love (platinum wedding jewellery), Pratha (gold wedding jewellery), and Yoddha (gold chains and rings for men). The company has 39 stores, including 38 in Maharashtra and Goa and one in the US. All stores are operated and managed by the company, with 28 stores owned by the company and 11 stores operated by franchisees under the FOCO (franchisee-owned and company-operated) model. PNG plans to open 12 new stores in Maharashtra by FY26. PNG’s marketing strategy includes location-based promotions, event-focused campaigns and celebrity endorsements, with awards highlighting their innovative efforts. Their commitment to quality is demonstrated by adherence to BIS hallmarking and stringent diamond certification processes. Under the leadership of promoter Saurabh Vidyadhar Gadgil, PNG has evolved from a traditional family business into a high-growth contemporary brand, supported by a skilled management team, achieving high revenue per square foot and the lowest working capital days among key organised jewellery players. The company is the fastest-growing jewellery brand in India, with a 54.6% revenue CAGR from FY22 to FY24. The company also achieved a 39.8% EBITDA growth during the same period and the highest revenue per square foot in FY24.

Objective of the P N Gadgil Jewellers Ltd IPO

The company proposes to utilize the net proceeds towards the funding of the following objects:

  • Funding expenditure towards setting up 12 new stores in Maharashtra;
  • Repayment or pre-payment, in full or part, of certain borrowings availed by the company; and
  • General corporate purposes. 

Rationale To Invest In P N Gadgil Jewellers Ltd IPO

PNG leverages its heritage to drive rapid expansion and establish market leadership

PNG, a well-established and trusted legacy jewellery brand in Maharashtra, has significantly expanded its footprint with 39 stores, including 38 in Maharashtra and Goa and one in the US, by July 31, 2024. Drawing on its rich heritage dating back to 1832, PNG offers a broad spectrum of jewellery through its sub-brands: Saptam, Swarajya, Rings of Love, The Golden Katha of Craftmanship, Flip, Litestyle, Eiina, PNG Solitaire, Men of Platinum, Evergreen Love, Pratha, and Yoddha. These collections cater to diverse needs, from traditional wedding and festive jewellery to modern, everyday pieces in gold, diamond, and platinum. Demonstrating robust financial performance, PNG achieved a 54.6% CAGR in revenue and a 39.8% increase in EBITDA from FY22 to FY24, with the highest revenue per square foot in FY24. Maharashtra leads as the largest market for BIS-registered jewellery outlets, representing 17% of India’s total jewellery stores. As part of its growth strategy, PNG has leveraged its brand strength to strategically expand into under-served markets, particularly Tier II and Tier III cities in Maharashtra, addressing demand-supply gaps in these regions. The company plans to open 12 new stores in Maharashtra by FY26 and is enhancing its digital presence through its website and mobile app. PNG’s marketing strategies, including celebrity endorsements, strategic exhibitions, and social media campaigns, along with its rigorous quality control practices – such as adherence to BIS hallmarking and Kimberley certification for conflict-free diamonds – solidify its strong market position and customer loyalty.

Diversified product portfolio catering to varied customer profile and taste reflected in strong financial performance

As of March 31, 2024, PNG showcased a diverse product portfolio with over 10,000 SKUs in gold, 1,200 in silver, 2,700 in platinum, and 24,000 in diamond jewellery. The company’s eight gold sub-brands and four dedicated to diamond and platinum jewellery cater to various customer niches, offering traditional and contemporary designs for different occasions. Leveraging its legacy, PNG tailors its extensive range to meet the preferences of Maharashtra’s consumers, evident in collections like Swarajya, which blends traditional Maharashtrian motifs with modern styles. This broad selection spans all price points, making PNG a “one-stop-shop” for consumers across income levels. The company’s commitment to innovation is demonstrated by its launch of 291, 159, and 106 new designs over the past three fiscal years. Owing to its diversified portfolio, PNG has registered strong financials, with a 54.6% CAGR in revenue from Rs. 25,556.34 million in FY22 to Rs. 61,109.45 million in FY24. EBITDA increased by 39.8%, and revenue per square foot reached the highest among key jewellery players in India. PNG’s operational efficiency, effective capital management, and robust product offerings underscore its market leadership and expansion strategy.

Valuation of P N Gadgil Jewellers Ltd IPO

India’s dynamic jewellery market thrives on the country’s deep cultural affinity for gold, which serves as a store of wealth, a hedge against inflation, and collateral for loans. As the fifth-largest importer of gold with significant reserves, India exhibits strong demand for both traditional and contemporary jewellery, fueled by rising disposable incomes and technological advancements. The jewellery market is highly seasonal, with consumer spending peaking during weddings, festivals, and agricultural harvests, requiring tailored marketing and localized product strategies. PNG, with its rich heritage and extensive product portfolio, has established itself as a leading player in the Indian jewellery market. The company offers a broad range of products, including over 10,000 SKUs in gold, 1,200 in silver, 2,700 in platinum, and 24,000 in diamond jewellery, catering to diverse customer needs across various price points. Operating 39 stores – 38 in Maharashtra and Goa and one in the US – PNG has capitalized on its strong brand presence in Maharashtra and strategically expanded into underserved markets like Tier I and Tier II cities. To address demand-supply gaps, the company plans to add 12 new stores in Maharashtra by FY26. Financially, PNG demonstrated robust financial performance, with revenue and EBITDA registering strong growth during FY2022-24 period. As on 31 March 2024 , the company’s net debt stood at Rs. 3,965 million, a portion of which is planned for repayment. On the upper band, the issue is priced at a P/E of 36.7x based on FY24 earnings, and aligns well with its peers. Given PNG’s strategic expansion in under-served markets, strong digital presence and innovative marketing strategies, we recommend a “SUBSCRIBE” rating for the issue with a medium to long-term investment perspective.

What is the P N Gadgil Jewellers Ltd IPO?

P N Gadgil Jewellers IPO is a book built issue of Rs 1,100.00 crores. The issue is a combination of fresh issue of 1.77 crore shares aggregating to Rs 850.00 crores and offer for sale of 0.52 crore shares aggregating to Rs 250.00 crores. Login to your account now – https://campaign.StoxBox.in/redirect.html

To apply for the P N Gadgil Jewellers LtdIPO through StoxBox one can apply from the website and also from the app. Click here

P N Gadgil Jewellers Ltd IPO is opening on 10th September 2024. Apply Now

The Lot Size of P N Gadgil Jewellers Ltd IPO is 31 equity shares. Login to your account now – https://campaign.StoxBox.in/redirect.html

The allotment Date for P N Gadgil Jewellers Ltd IPO is 12th September  2024. Login to your account now – https://campaign.StoxBox.in/redirect.html

The listing Date for P N Gadgil Jewellers Ltd  IPO is 17th September 2024. Login to your account now – https://campaign.StoxBox.in/redirect.html

In the Retail segment the minimum investment required is Rs. 14,880. Login to your account now – https://campaign.StoxBox.in/redirect.html

In the Retail segment the maximum investment requirement is Rs. 193,440. Login to your account now – https://campaign.StoxBox.in/redirect.html

  • Impact of raw material price changes on PNG: PNG faces risks due to changes in the prices of gold, silver, and diamonds, which can affect its costs and profits. Fluctuations in raw material prices and the company’s reliance on suppliers can impact its financial performance and operations.
  • Risk from geographic concentration and key store dependency: PNG’s business is heavily concentrated in Maharashtra, especially Pune, with top stores significantly contributing to revenue. Any adverse developments in this region or closure of major stores could severely impact the company’s financial health and operational stability.
  • Brand dependence and reputational risks for PNG: PNG’s success is deeply tied to its flagship brand and sub-brands like “PNG,” with negative publicity or brand damage potentially impacting its reputation and financial performance. The continued use of the “P N Gadgil” name by former partners further complicate matters, as any issues with these third parties could confuse customers and pose additional reputational risks.

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The P N Gadgil Jewellers Ltd IPO be credited to the account on allotment date which is 16th September 2024. Login to your account now – https://campaign.StoxBox.in/redirect.html

The prospectus of P N Gadgil Jewellers Ltd IPO prospectus can be find on the website of SEBI, NSE and BSE

IPO Open DateTuesday, September 10, 2024
IPO Close DateThursday, September 12, 2024
Basis of AllotmentFriday, September 13, 2024
Initiation of RefundsMonday, September 16, 2024
Credit of Shares to DematMonday, September 16, 2024
Listing DateTuesday, September 17, 2024
Cut-off time for UPI mandate confirmation5 PM on September 12, 2024

Kross Ltd IPO : SUBSCRIBE

  • Date

    09th Sep 2024 - 11th Sep 2024

  • Price Range

    Rs. 228 to Rs. 240

  • Minimum Order Quantity

    62

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Price Lot Size Issue Date Issue Size
₹ 228 to ₹ 240 62 09th Sep, 2024 – 11th Sepr, 2024 ₹500.00 Cr

About Kross Ltd IPO

Kross Ltd. is an auto ancillary player, engaged in the manufacturing and supply of trailer axle, suspension assembly and an extensive range of forged and precision machined high performance safety critical parts for M&HCV and farm equipment segment. With over three decades of experience, the company depends on its product development capabilities to design and deliver proprietary products. The company specializes in manufacturing of safety critical components for M&HCVs which include axle shafts, suspension linkages, bevel gears, rear end spindles and a wide variety of tractor components for hydraulic lift arrangement, power take-off shafts and front axle spindles. Kross boasts a diversified client base consisting of M&HCV and farm equipment OEMs and tier 1 suppliers to OEMs in the segment. The company has been able to maintain healthy relationships with large Indian OEMs including Ashok Leyland, an Indian farm equipment OEM and Tata International DLT. The company has also been able to attract new international customers such as Leax Falun AB and a Japan based OEM manufacturing commercial vehicles. Kross operates its five manufacturing facilities in Jamshedpur, Jharkhand, equipped with (i) forging presses and upsetters equipped with induction billet heaters, (ii) foundry with a high-pressure mould line, (iii) high-precision machining equipment, (iv) in-house cathodic electro-disposition plant, powder coating, spray painting and, (v) heat treatment furnaces and induction hardening equipment. The company has a manufacturing capacity of forged parts of upto 40 kg input weight. The company further plans to expand its existing capacity and improve its product offering range through expansion of its existing facilities.

Objective of the Kross Ltd IPO

The net proceeds from the fresh issue will be used towards the following purposes:

  • Funding of capital expenditure requirements of the company towards purchase of machinery and equipment;
  • Repayment or prepayment, in full or in part, of all or a portion of certain outstanding borrowings availed by the company, from banks and financial institutions;
  • Funding working capital requirements of the company; and
  • General corporate purposes.

Rationale To Invest In Kross Ltd IPO

Leveraging experience and technology for market expansion and efficiency

Over three decades of valuable experience have helped Kross to establish many long-standing relationships with customers. This strength of the company can largely be attributed to its ability to deliver customized offerings, as per the needs and requirements of its customers, in addition to the company’s track record of consistent delivery of quality and cost-effective products. Engaging with clients throughout the product development further helps the company to better understand the client’s requirement and helps in anticipating future plans of customers. This enables the company to forecast, plan and manufacture accordingly, aiding the company to achieve enhanced operational efficiency and improved productivity. Owing to the healthy track record of the company and diversified portfolio, the company is also able to steadily attract new customers including international customers. The company further plans to utilize a part of the offering to introduce technology for axle beam extrusion and seamless tube manufacturing. This technological advancement will provide a first-mover advantage, enhancing the company’s capability to serve its clients. Given the high demand for extrusion beams among OEMs, the company is well-positioned to benefit from this positive development.

Comprehensive integration strategy enhances operational efficiency and market position

The company has backward integrated with design, process engineering, forging, casting and machining capabilities which enables the company to ensure greater control over process, delivery timelines, quality and pricing. Such integration reduces the company’s dependence on third parties, improves production process and enhances operational efficiency. It further helps the company to capitalise on the upcoming trends. With the help of in-house facility, the company is able to meet customer requirement without relying on external vendors. This enables the company to closely monitor product quality, control production expenses, and plan delivery schedules. To further enhance the backward integration, the company aims to utilize a part of offering to further fund towards capex. The installation of new machinery and equipment will enable the company to increase its production capacity, scale operations, on board new customers, introduce new products, and better serve existing customers. Moreover, the company has also forward integrated with a network of sales and service location across key states in India for its trailer axles and suspension assemblies. On the back of such comprehensive integration, the company will be able to provide all round services to its customers, further strengthening its position in the market.

Valuation of Kross Ltd IPO

Kross Ltd. is a diversified player focused on manufacturing and supply of auto components for M&HCV and farm equipment segment. With over three decades of experience, Kross delivers customized, high-quality, and cost-effective products, fostering strong relationships with both domestic and international customers. The company’s comprehensive backward and forward integration enhances operational efficiency, quality control, and market responsiveness. The upcoming technological advancements in axle beam extrusion and seamless tube manufacturing are set to provide a first-mover advantage, further strengthening Kross’s market position. On the macro front, the growth in M&HCV and farm equipment segment will largely be driven by the country’s improving industrial activity, consistent agricultural activity & output, and government’s emphasis on industrial development. Moreover, with increasing focus on Atmanirbhar Bharat and various PLI schemes, Kross is well positioned to benefit from economical tailwinds. With the China +1 move working in favour of Indian OEMs, the company is well positioned to capitalise on such international opportunity as well, further enhancing the company’s geographical coverage. Financially, the company was able to grow its revenue from Rs. 2,975 million in FY22 to Rs. 6,203 million in FY24, indicating strong growth trajectory in its core business activity. EBITDA/PAT also rose from Rs. 240/122 million in FY22 to Rs. 808/449 million in FY24. The rising profitability highlights company’s ability to manage costs effectively. There was a noticeable hike in finance costs, but it didn’t seem to have a significant impact on the profitability of the company. The issue is valued at a P/E of 28.9x on the upper price band based on FY24 earnings, which is deemed to be fair. Therefore, we recommend a SUBSCRIBE rating for the issue.

What is the Kross Ltd IPO?

Kross IPO is a book built issue of Rs 500.00 crores. The issue is a combination of fresh issue of 1.04 crore shares aggregating to Rs 250.00 crores and offer for sale of 1.04 crore shares aggregating to Rs 250.00 crores. Login to your account now – https://campaign.StoxBox.in/redirect.html

To apply for the Kross Ltd IPO through StoxBox one can apply from the website and also from the app. Click here

Kross LtdIPO is opening on 09th September 2024. Apply Now

The Lot Size of Kross Ltd IPO is 62 equity shares. Login to your account now – https://campaign.StoxBox.in/redirect.html

The allotment Date for Kross Ltd IPO is 12th September  2024. Login to your account now – https://campaign.StoxBox.in/redirect.html

The listing Date for Kross Ltd IPO is 16th September 2024. Login to your account now – https://campaign.StoxBox.in/redirect.html

In the Retail segment the minimum investment required is Rs. 14,880. Login to your account now – https://campaign.StoxBox.in/redirect.html

In the Retail segment the maximum investment requirement is Rs. 193,440. Login to your account now – https://campaign.StoxBox.in/redirect.html

  • Customer concentration risk – The company’s top five customers contributed a significant portion (more than 66.00% in each of the previous three Fiscals) of its revenues. The loss of a major customer or reduction in demand for its key products from any of its major customers may adversely affect the company’s business.
  • Product concentration risk – Any reduction in demand for its key products on account of regulatory changes or changes in technologies including but not limited to shift in renewable/green energy would have a material adverse effect on its business and financial condition.
  • Lack of long-term contracts – Kross does not have firm commitment agreements with its customers. If the customer chose not to source their requirements from the company, there may be a material adverse effect on its business.
  • Product quality risk – The company is subject to strict quality requirements and any product defect issues or failure by the company to comply with quality standards could adversely affect its business and results of operations.
  • Login to your account now – https://campaign.StoxBox.in/redirect.html

The Kross Ltd IPO be credited to the account on allotment date which is 13th September 2024. Login to your account now – https://campaign.StoxBox.in/redirect.html

The prospectus of Kross LtdIPO prospectus can be find on the website of SEBI, NSE and BSE

IPO Open DateMonday, September 9, 2024
IPO Close DateWednesday, September 11, 2024
Basis of AllotmentThursday, September 12, 2024
Initiation of RefundsFriday, September 13, 2024
Credit of Shares to DematFriday, September 13, 2024
Listing DateMonday, September 16, 2024
Cut-off time for UPI mandate confirmation5 PM on September 11, 2024

Tolins Tyres Limited IPO : SUBSCRIBE

  • Date

    09th Sep 2024 - 11th Sep 2024

  • Price Range

    Rs. 215 to Rs. 226

  • Minimum Order Quantity

    66

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Price Lot Size Issue Date Issue Size
₹ 215 to ₹ 226 66 09th Sep, 2024 – 11th Sep, 2024 ₹230.00 Cr

About Tolins Tyres Ltd IPO

Tolins Tyres Ltd. (TTL) is a player in the tyre industry, known for its diverse product portfolio and extensive presence across India. TTL specializes in the production of bias tyres under the “Tolins Tyres” brand for a wide range of vehicles, including light commercial vehicles (LCVs), two-wheelers, three-wheelers, agricultural vehicles, and precured tread rubber. Additionally, the company manufactures auto ancillary products such as bonding gums, vulcanizing solutions, and tyre flaps & tubes. While the company’s primary market is India, they also export to the Middle East, the ASEAN region, and Africa. The company has each of its product BIS approved which is mandatory for manufacturing and marketing tyres in India. The company operates three manufacturing facilities: two in Mattoor, Kalady, Kerala, and one in the Al Hamra Industrial Zone, Ras Al Khaimah, UAE. These facilities cover approximately 8.99 acres and include a built-up area of 126,488 sq. ft. for end-to-end product development, including in-house design, production, and quality testing units. TTL has a consolidated manufacturing capacity of 1.51 million tyres, 12,486 tons of tread rubber, and 17,160 tons of rubber compound. The company generates 24.3% of its revenue from tyre business, while tread rubber contributes 75.7% of the revenue. Over the years, TTL has established itself as a leading provider of tyre retreading solutions nationwide and exports its products to 40 countries.

Objective of the Tolins Tyres Ltd IPO

The net proceeds from the fresh issue will be used towards the following purposes:

  • Repayment and / or prepayment, in full, of certain outstanding loans availed by the company;
  • Augmentation of long-term working capital requirements of the company;
  • Investment in its wholly owned subsidiary, Tolin Rubbers Private Ltd. to repay and/ or prepay, in full, certain of its short term and long-term borrowings and augmentation of its working capital requirements; and
  • General corporate purposes.

 

Rationale To Invest In Tolins Tyres Ltd IPO

Diverse portfolio and quality standards propel market reach

Over its three decades of rich experience, TTL has been able to foster healthy relationships with several established Indian and global customers like Marangoni GRP, Kerala Agro Machinery Corporation Ltd. (KAMCO), Redlands Motors, Tyre Grip. etc. for products. With the help of its diverse product portfolio, the company is able to cater to a wide spectrum of customers which includes OEMs, domestic dealer network and depots across the country. The company’s strength lies in its ability to tailor products to meet customer requirements and its long-standing track record of consistently delivering high-quality, cost-effective solutions. The company engages with key customers at various stages of product development to help the company understand customer requirement and future plans better, enabling the company to forecast, plan and manufacture products accordingly. Another aspect which contributes to the growth of its client base and retention could be attributed to the quality of products which adhere to the various qualitative standards. Owing to the various quality checks, the company is able to provide high quality and tailor-made products with minimum recall ratio which was as low as 0.2% in FY24. With the help of its in-house facilities, the company is able to further improve the quality of its products which ensures a competitive edge in the market. Moreover, the company has also been accredited with Department of Transportation certificate from the US for exporting its products and E mark E32 for Europe.

Integrated manufacturing operations driving margin expansion

The company’s manufacturing operations are backward integrated, encompassing raw materials, design, process engineering, machining capabilities, and mold production. This integration grants the company greater control over its processes, delivery timelines, pricing, and quality. Additionally, backward integration allows the company to remain agile, responding swiftly to emerging trends by developing molds and new products in anticipation of market demands. Furthermore, the company has forward integrated with a network of dealers across key states, ensuring effective control over product sales and distribution. This forward integration enhances customer service and satisfaction. The company also has a computer-aided design and computer aided manufacturing packages which helps TTL to create three dimensional models, in addition to a simulation software which enables manufacturing with higher accuracy. Such comprehensive integration of its operations reduces the company’s dependence on third parties, streamlines production processes, and improves operational efficiency. The financial benefits of these integrations are evident in the company’s performance. Between FY22 and FY24, the company expanded its EBITDA margins by 1147 basis points, and its PAT margin grew from 0.56% in FY22 to 11.65% in FY24. This robust margin expansion highlights the company’s ability to manage operations and costs efficiently while achieving significant growth.

 

Valuation of Tolins Tyres Ltd IPO

Tolins Tyres Ltd. relies on its product development capabilities to design and deliver proprietary products such as pre-cured tread rubber and bias tyres that fir market requirements. On the back of a consumer centric business model, the company has been successfully able to build a sustainable long-standing relationship with its customers. With the help of its comprehensively integrated operations, the company is effectively able to manufacture products which aligns with the client’s requirement. Such synergies within its operation enables the company to benefit from enhanced operational efficiency and cost management. This synergy is further reflected in the company’s financial performance, showcasing its ability to adapt to market demands and maintain a competitive edge. On the financial front, the company’s Revenue/EBITDA/PAT grew at a CAGR of 41.6%/174.9%/519.8% during FY2022-24 period, driven by the company’s cost effective and efficient production capabilities. Kross maintained a ROCE of 23.6% in FY24 vs 2.6% in FY22, which highlights the company’s effective utilization of capital investment to drive growth and profitability. The company also plans to prudently manage its debt by utilizing the fund from the offering. Their commitment to manage debt is well reflected in their balance sheet, maintaining a debt/equity ratio of 1.2x in FY24 vs 8.2x in FY22. On the sectoral front, the domestic tyre industry is poised for growth due to rising vehicle demand and the expanding automobile sector, which boosts the need for replacement tyres. Additionally, the increasing acceptance of Indian tyres in international markets is driving significant growth in tyre exports. The treads industry in India, catering to this demand, is also thriving thanks to higher vehicle ownership, improved road infrastructure, and rising disposable incomes. On account of such favourable macro trends, the company is expected to ride on the sectoral tailwinds and capitalise on market opportunities. The issue is valued at a P/E of 23.7x on the upper price band based on FY24 earnings, which is deemed fair compared to its peers. Therefore, we recommend a SUBSCRIBE rating for the issue.

What is the Tolins Tyres Ltd IPO?

Tolins Tyres IPO is a book built issue of Rs 230.00 crores. The issue is a combination of fresh issue of 0.88 crore shares aggregating to Rs 200.00 crores and offer for sale of 0.13 crore shares aggregating to Rs 30.00 crores. Login to your account now – https://campaign.StoxBox.in/redirect.html

To apply for the Tolins Tyres Ltd IPO through StoxBox one can apply from the website and also from the app. Click here

Tolins Tyres Ltd IPO is opening on 09th September 2024. Apply Now

The Lot Size of Tolins Tyres Ltd IPO is 66 equity shares. Login to your account now – https://campaign.StoxBox.in/redirect.html

The allotment Date for Tolins Tyres Ltd IPO is 12th September  2024. Login to your account now – https://campaign.StoxBox.in/redirect.html

The listing Date for Tolins Tyres Ltd IPO is 16th September 2024. Login to your account now – https://campaign.StoxBox.in/redirect.html

In the Retail segment the minimum investment required is Rs. 14,916. Login to your account now – https://campaign.StoxBox.in/redirect.html

In the Retail segment the maximum investment requirement is Rs. 193,908. Login to your account now – https://campaign.StoxBox.in/redirect.html

  • The company does not enter into contractual agreements with its distributors and dealers and any failure to maintain the relationship with these dealers & distributors or find competent replacements could affect the sales of its products.
  • TTL faces competition from both domestic as well as multinational corporations and its inability to compete effectively could result in loss of customers and market share, which could have an adverse effect on the business.
  • The company is dependent on contract labour and any disruption to the supply of such labour for its manufacturing facilities or company’s inability to control the composition and cost of its contract labour could adversely affect its business and results of operations.

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The Tolins Tyres Ltd IPO be credited to the account on allotment date which is 13th September 2024. Login to your account now – https://campaign.StoxBox.in/redirect.html

The prospectus of Tolins Tyres Ltd IPO prospectus can be find on the website of SEBI, NSE and BSE

IPO Open DateMonday, September 9, 2024
IPO Close DateWednesday, September 11, 2024
Basis of AllotmentThursday, September 12, 2024
Initiation of RefundsFriday, September 13, 2024
Credit of Shares to DematFriday, September 13, 2024
Listing DateMonday, September 16, 2024
Cut-off time for UPI mandate confirmation5 PM on September 11, 2024

Bajaj Housing Finance Limited IPO : SUBSCRIBE

  • Date

    09th Sep 2024 - 11th Sep 2024

  • Price Range

    Rs. 66 to Rs. 70

  • Minimum Order Quantity

    214

Apply Now
Download Now
Price Lot Size Issue Date Issue Size
₹ 66 to ₹ 70 214 09th Sep, 2024 – 11th Sep, 2024 ₹6,560.00 Cr

About Bajaj Housing Finance Ltd IPO

Bajaj Housing Finance is a non-deposit-taking Housing Finance Company (HFC), registered with the National Housing Bank (NHB) since 2015, and engaged in mortgage lending since FY18. The company offers a wide range of financial solutions tailored to individuals and corporate entities for the purchase and renovation of homes and commercial spaces. Its mortgage product suite is comprehensive and comprises (i) home loans, (ii) loans against property (LAP), (iii) lease rental discounting, and (iv) developer financing. Furthermore, the company primarily emphasizes individual retail housing loans, complemented by a diversified collection of lease rental discounting and developer loans. Consequently, the company’s financial products cater to every customer segment, from individual homebuyers to large-scale developers. Bajaj Housing Finance’s strategic focus is on low-risk and fast-growing home loan customers. As of March 31, 2024, home loans contributed 57.8% of AUM, of which 87.5% pertained to salaried customers, 4.3% were self-employed professional customers and 8.2% self-employed non-professional customers. As of March 31, 2024, assets under management (AUM) were Rs. 913.7 bn, reflecting a CAGR of 30.9% between FY22 and FY24. Further, as of June 30, 2024, the average ticket size of home loans was Rs. 4.6 mn, with an average loan-to-value ratio of 69.3% as of June 30, 2024, and 75.5% of home loan AUM were from customers with a CIBIL score above 750.  Further, the company’s LAP, developer finance loans for residential as well as commercial construction and lease rental discounting against commercial properties comprised 10.0%, 11.2%, and 19.5% of AUM as of June 30, 2024, respectively. The company is a diversified business group with interests across various sectors. As of June 30, 2024, they had 323,881 active customers, with 83.2% home loan customers. The company’s overall loan disbursements were Rs. 446.6 bn in FY24, indicating a growth in business and market reach. To support offerings, Bajaj Housing had a network of 215 branches as of June 30, 2024, spread across 174 locations in 20 states and three union territories, which are overseen by six centralized hubs for retail underwriting and seven centralized processing hubs for loan processing.

Objective of the Bajaj Housing Finance Ltd IPO

The net proceeds from the fresh issue will be used towards the following purposes:

  • Augmenting capital base to meet future business requirements of company towards onward lending;
  • General corporate purposes. 

Rationale To Invest In Bajaj Housing Finance Ltd IPO

Second largest HFC with proven track record of strong growth led by diversified portfolio

The company has demonstrated a consistent growth trajectory over its seven-year operational history. This includes navigating significant challenges such as the NBFC crisis, the downturn of key industry players, and the unprecedented impact of the COVID-19 pandemic. This resilience highlights the company’s robust business model and active management decision. The company’s business model and strong risk management policies have been crucial in sustaining this growth momentum. Consequently, according to the CRISIL MI&A Report, the company has grown to be the second-largest HFC and the eighth-largest NBFC-UL in India (in terms of AUM) as of March 31, 2024. Bajaj Finance AUM has grown at a CAGR of 30.9% from FY22 to FY24. This strong growth highlights the company’s ability to expand its market presence and increase its financial performance. The company’s strength also lies in its strategic diversification, offering an extensive range of financial solutions that cater to the nuanced needs of both retail and commercial clients. The company’s diversified product portfolio combined with its extensive customer base and focus on cross-selling allows it to benefit from the growth in the housing finance market.

Widespread recognition as a reliable retail brand with strong brand equity

The Bajaj group of businesses are retail-focused enterprises that have gained recognition among Indian consumers. The Bajaj brand has consequently evolved into a recognized retail brand and contributed to the recognition and growth of the business. Additionally, the company’s market position is reflected in its strong credit ratings, underscoring its financial stability and investor confidence.  The financial services businesses of the Bajaj group are primarily carried out through subsidiaries of Bajaj Finserv Ltd., one of which is Bajaj Finance Ltd., the parent company. The company along with other subsidiaries of Bajaj Finance Ltd, conducts its operations under the Bajaj Finserv brand. To further leverage and strengthen the brand among the customer base, the company has created their website and application under Bajaj Finserv to ensure that customers remain engaged with the brand positioned to tap into its extensive experience in scaling financial services.  Bajaj Finance Ltd.’s proven track record in effectively growing its lending business serves as a strong foundation for it to expand its mortgage lending operations. On April 7, 2022, and April 3, 2024, the company successfully secured an additional capital infusion of Rs. 25 bn and Rs. 20 bn, respectively via a rights issue to Bajaj Finance Ltd. This infusion reflects the parent company’s support and commitment and also provides them with a dependable credit line, ensuring ready access to funds.

 

Valuation of Bajaj Housing Finance Ltd IPO

Bajaj Housing Finance Ltd. is the largest non-deposit-taking HFC promoted by Bajaj Finance Ltd. and has been engaged in mortgage lending since FY18, with an AUM of Rs. 971 bn as of Q1FY25.  The HFC operates through a network of 215 branches, focusing its segment efforts on the top 20-30 cities while concentrating its commercial segment activities in the top 8 metro cities. This strategic geographic focus aligns with the broader industry trends. In addition, the HFC has also maintained a comprehensive risk management framework supported by digitized processes tailored to each product offering, ensuring early warning systems that track key indicators, such as bounce rates and overdue positions. Further, the company has a strong in-house four-tier collections infrastructure comprising touch-free collection (tele-calling), field collection, legal recovery, and settlement to help them with loan collections. It has also set up a specialized collections team to manage cases where collections are overdue for a certain period as well as a separate team to focus on the resolution of cases through SARFAESI (Act). As a result, the collection efficiency improved from 98.4% in FY22 to 99.5% in FY24. These credit and risk management policies have helped it to maintain the lowest GNPA and NNPA amongst the industry peers. The company’s AUM has grown at a CAGR of 30.9% between FY22 and FY24. This growth trajectory positions the company as the fourth fastest-growing NBFC within the upper-layer category (as per RBI) in India. The company has demonstrated robust performance through strategic emphasis on enhancing direct home loan origination and increasing Average Ticket Size across its product suite. These measures have contributed to an improved Opex/Asset ratio in recent years. Additionally, the strategic shift in AUM and product mix has mitigated the adverse effects of rising funding costs on the portfolio spread. The issue is valued at a P/BV of 3.8x on the upper price band based on FY24 book value, which is fairly valued. We, therefore, recommend a Subscribe rating for the issue on the back of a strong credit underwriting process and risk management framework which helps in mitigating adverse effects on the asset quality.

What is the Bajaj Housing Finance Ltd IPO?

Bajaj Housing Finance IPO is a book built issue of Rs 6,560.00 crores. The issue is a combination of fresh issue of 50.86 crore shares aggregating to Rs 3,560.00 crores and offer for sale of 42.86 crore shares aggregating to Rs 3,000.00 crores. Login to your account now – https://campaign.stoxbox.in/redirect.html

To apply for the Bajaj Housing Finance Ltd IPO through StoxBox one can apply from the website and also from the app. Click here

Bajaj Housing Finance Ltd IPO is opening on 09th September 2024. Apply Now 

The Lot Size of Bajaj Housing Finance Ltd IPO is 214 equity shares. Login to your account now – https://campaign.stoxbox.in/redirect.html

The allotment Date for Bajaj Housing Finance Ltd IPO is 12th September  2024. Login to your account now – https://campaign.stoxbox.in/redirect.html

 The listing Date for Bajaj Housing Finance Ltd IPO is 16th September 2024. Login to your account now – https://campaign.stoxbox.in/redirect.html

In the Retail segment the minimum investment required is Rs. 14,980. Login to your account now – https://campaign.stoxbox.in/redirect.html

 In the Retail segment the maximum investment requirement is Rs. 194,740. Login to your account now – https://campaign.stoxbox.in/redirect.html

  • The company’s inability to fully recover the collateral value or the sums due from defaulted loans promptly or entirely could adversely affect business, results of operations, cash flows, and financial condition.
  • If the company is unable to control the level of Gross Non-Performing Assets/Stage 3 Assets in the portfolio effectively or is unable to maintain adequate provisioning coverage or if there is any change in regulatory-mandated provisioning requirements, its financial condition and results of operations could get adversely affected.
  • If a company fails to comply with the requirements stipulated by the Reserve Bank of India, it could harm business, results of operations, cash flows, and financial condition.
  • The company AUM is concentrated in four states and the union territory of New Delhi and any adverse developments in these regions could harm business, results of operations, cash flows, and financial condition.

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The Bajaj Housing Finance Ltd IPO be credited to the account on allotment date which is 13th September 2024. Login to your account now – https://campaign.stoxbox.in/redirect.html

The prospectus of Bajaj Housing Finance Ltd IPO prospectus can be find on the website of SEBI, NSE and BSE

IPO Open DateMonday, September 9, 2024
IPO Close DateWednesday, September 11, 2024
Basis of AllotmentThursday, September 12, 2024
Initiation of RefundsFriday, September 13, 2024
Credit of Shares to DematFriday, September 13, 2024
Listing DateMonday, September 16, 2024
Cut-off time for UPI mandate confirmation5 PM on September 11, 2024

Shree Tirupati Balajee Agro Trading Co. Ltd IPO : SUBSCRIBE

Shree Tirupati Balajee Agro Trading Co. Ltd. IPO: Timeline & Details
  • Date

    05th Sep 2024 - 09th Sep 2024

  • Price Range

    Rs. 78 to Rs. 83

  • Minimum Order Quantity

    180

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Download In-Depth Report
Price Lot Size Issue Date Issue Size
₹ 78 to ₹ 83 180 05th Sep, 2024 – 09th Sep, 2024 ₹169.65 Cr

About Shree Tirupati Balajee Agro Trading Co. Ltd IPO

Shree Tirupati Balajee Agro Trading Company Limited, established in October 2001, stands out as a key player in the flexible bulk packaging sector, specializing in Flexible Intermediate Bulk Containers (FIBCs) and related products such as woven sacks and industrial packaging solutions. Serving diverse industries, including chemicals, food, and mining, it provides efficient bulk packaging that simplifies transportation and storage, reducing labor costs. With over 20 years of experience, the company operates five manufacturing units. Units I and II are certified with ISO 9001:2015 and ISO 14001:2018. Unit III is certified with ISO 9001:2015, ISO 45001:2018, ISO 14001:2015, ISO 14064-1:2018, and SEDEX SMETA four-pillar. The company’s certifications cover the production of Flexible Intermediate Bulk Containers (FIBCs), woven sacks, and fabrics of PP (Polypropylene) and HDPE (High-Density Polyethylene). It also manages several subsidiaries, including Honourable Packaging Private Limited (HPPL), Shree Tirupati Balajee FIBC Limited (STBFL), and Jagannath Plastics Private Limited (JPPL), underscoring its extensive reach and production capacity. Offering a wide range of products, including UN-certified bulk bags, thermal insulation bags, and fire retardant bags, the company highlights its ability to cater to varied industry needs. The company’s commitment to quality is evident in its rigorous testing processes and various certifications, while its sustainability efforts are demonstrated by investments in solar power. Financially robust, the company shows significant revenue growth and profitability, supported by a diverse global customer base. Its innovative solutions and adherence to high standards position it as a leading force in the global flexible bulk packaging market.

Objective of the Shree Tirupati Balajee Agro Trading Co. Ltd IPO

The company proposes to utilize the net proceeds towards the funding of the following objects:

  • Repayment and/or prepayment, in part or full, of certain of the outstanding borrowings availed by the company;
  • Investment in the subsidiaries HPPL, STBFL and JPPL for repayment and/or prepayment, in part or whole, of certain outstanding borrowings availed;
  • Funding the incremental working capital requirements of the company;
  • Investment in the subsidiaries HPPL, STBFL and JPPL for funding working capital requirements;
  • General corporate purposes. 

Rationale To Invest In Shree Tirupati Balajee Agro Trading Co. Ltd IPO

Leading player in FIBC packaging and provides cost-effective and environmentally friendly solutions to diversified customer base 

Shree Tirupati Balajee Agro Trading Company Limited, a key player in the FIBCs market, offers a diverse range of packaging solutions to a broad customer base and maintains a notable international presence with exports to 38 countries, thereby mitigating the risk of dependence on any single market. The FIBCs, made from lightweight polypropylene, can hold between 500 kg and 2,000 kg, making them suitable for various products such as grains, chemicals, mining materials, and construction materials. The design of these FIBCs not only reduces transportation costs but also simplifies handling with forklifts, providing a more economical and efficient alternative to traditional paper and metal packaging. Due to these advantages, FIBCs are gaining popularity and experiencing growing demand, particularly in the Asia-Pacific region and across industries like food and beverage, chemicals, and pharmaceuticals. As the global market increasingly favors sustainable packaging solutions, the cost-efficiency and environmental benefits of FIBCs continue to drive their adoption and market growth. The company is well-positioned to leverage these market dynamics effectively.

Integrated manufacturing facility and quality control measures offer advantage in the marketplace

The company operates five strategically located manufacturing facilities in Indore, Madhya Pradesh, near major industrial hubs with good connectivity to transport networks. These facilities span 21,613 square meters with an extrusion capacity of approximately 2,300 metric tons per month, and utilize about 2,200 metric tons per month. The company consistently upgrades its infrastructure and technology to enhance productivity and reduce costs. It adheres to stringent quality standards, with certifications including ISO 9001:2015, ISO 22000:2018, ISO 14001:2015, ISO 45001:2018, SEDEX SMETA, and BRCGS. An in-house laboratory supports ongoing testing and quality control, addressing any issues in real time. The company is also focused on innovation, led by a chemical engineer, with ongoing product development and patent pursuits for advanced weaving processes to improve FIBC strength. These integrated manufacturing capabilities and quality measures enable the company to meet market demands with high-quality products at competitive prices. 

Valuation of Shree Tirupati Balajee Agro Trading Co. LtdIPO

The FIBC market is set for significant growth, driven by increasing demand across various industries and the expanding e-commerce sector. Since their introduction in India in the early 1990s, FIBCs have become a key export product, with Indian production reaching nearly 65 countries. This growth is supported by strong domestic demand in sectors such as chemicals, food products, construction materials, and agriculture, coupled with favorable government policies like Make-in-India that enhance manufacturing and international trade. Shree Tirupati Balajee Agro Trading Co. Ltd. has established itself as a prominent player in the FIBC and industrial packaging sector, benefiting from substantial market demand and a global footprint. Despite facing risks from regulatory changes affecting plastic use, raw material supply fluctuations, and regional concentration of manufacturing facilities, the company has demonstrated steady financial growth. It reported a revenue CAGR of 10.2%, increasing from Rs. 4,442 million in FY22 to Rs. 5,397 million in FY24. EBITDA margins improved from 7% in FY22 to 11% in FY24, while PAT rose from Rs. 137 million in FY22 to Rs. 361 million in FY24, with an EPS of Rs. 5.7 in FY24. The current issue is priced at a P/E ratio of 14.5x on upper price band based on FY24 earnings, aligning well with its peers. Given the industry’s promising growth trajectory and the company’s strategic focus on capacity optimization, new product development, and expansion in domestic and global presence, we recommend a “SUBSCRIBE” rating for the issue with a medium to long-term investment perspective.  

What is the Shree Tirupati Balajee Agro Trading Co. Ltd IPO?

Shree Tirupati Balajee IPO is a book built issue of Rs 169.65 crores. The issue is a combination of fresh issue of 1.48 crore shares aggregating to Rs 122.43 crores and offer for sale of 0.57 crore shares aggregating to Rs 47.23 crores.

To apply for the Shree Tirupati Balajee Agro Trading Co. Ltd IPO through StoxBox one can apply from the website and also from the app. Click here

Shree Tirupati Balajee Agro Trading Co. Ltd IPO is opening on 05th September 2024

The Lot Size of Shree Tirupati Balajee Agro Trading Co. Ltd IPO is 180 equity shares

The allotment Date for Shree Tirupati Balajee Agro Trading Co. Ltd IPO is 10th September  2024

The listing Date for Shree Tirupati Balajee Agro Trading Co. Ltd IPO is 12th September 2024

In the Retail segment the minimum investment required is Rs. 14,940

In the Retail segment the maximum investment requirement is Rs. 194,220

  • Potential impact of plastic regulations on operations: The company faces potential risks from increasing global efforts to ban plastic products. The company’s primary offerings, such as FIBCs and woven fabrics, rely on polypropylene, a plastic material. The upcoming legislative restrictions, particularly in India and export markets, could adversely affect its revenue and operations. Despite efforts in recycling and emission reduction, these regulations present a significant risk.
  • Risks from raw material supply and pricing: The company faces significant risks due to reliance on short-term raw material contracts and exposure to price fluctuations. With no long-term supply agreements, the company is vulnerable to changes in raw material availability and costs, which can impact margins, sales, and operations. Key suppliers contribute a substantial portion of total purchases, adding to the variability in supply and pricing.
  • Regional concentration risks: The company’s five manufacturing facilities are all located in Pithampur, Madhya Pradesh, creating a concentration risk. Any significant disruption, such as natural disasters, political instability, or production delays in this region, could severely impact the company’s business, financial condition, and operations.  

The Shree Tirupati Balajee Agro Trading Co. Ltd IPO be credited to the account on allotment date which is 11th September 2024

The prospectus of Shree Tirupati Balajee Agro Trading Co. Ltd IPO prospectus can be find on the website of SEBI, NSE and BSE

IPO Open DateThursday, September 5, 2024
IPO Close DateMonday, September 9, 2024
Basis of AllotmentTuesday, September 10, 2024
Initiation of RefundsWednesday, September 11, 2024
Credit of Shares to DematWednesday, September 11, 2024
Listing DateThursday, September 12, 2024
Cut-off time for UPI mandate confirmation5 PM on September 9, 2024

Gala Precision Engineering Ltd IPO : SUBSCRIBE

Gala Precision Engineering Ltd IPO: Timeline & Details
  • Date

    2nd Sept, 2024 - 4th Sept, 2024

  • Price Range

    Rs. 503 to Rs.526

  • Minimum Order Quantity

    28

Apply Now
Price Lot Size Issue Date Issue Size
₹ 503 to ₹ 526 28 02nd Sep, 2024 – 04th Sep, 2024 ₹167.93 Cr

About Gala Precision Engineering Ltd IPO

Gala Precision Engineering Ltd (GPEL) is a precision component manufacturer of technical springs like disc & strip springs (DSS) including wedge lock washers (WLW); coil & spiral springs (CSS) and special fastening solutions (SFS) with over thirty years of experience. These components are supplied to OEMs, Tier-1 and channel partners. The company caters to various sectors like renewable energy including wind turbine and hydro power plants, automotive, railways and various industrial segments such as electrical, off highway equipment, infrastructure and general engineering. GPEL’s business is primarily divided into two divisions; the springs technology division, which manufactures DSS, WLW & CSS and the SFS, which produces anchor bolts, studs and nuts. The spring technology contributes 80.11%
of the company’s revenue, while fastening and surface engineering solutions contributes 19.34% and 0.54% respectively in FY24. The company operates from its two manufacturing units in Wada, Palghar, Maharashtra, and holds all the certifications required to manufacture and supply its products including IATF16949 and ISO 9001:2015. These certificates enable the company to serve both domestic as well as international customers. The company generates the majority of its business from India, with 37.5% coming from the international market. GPEL has a global client base of over 175 customers and exports to 25 countries. The company has an annual production capacity of 246.46 million units of springs & washers and 0.42 million units of fasteners. GPEL plans to establish a new manufacturing facility in Vallam-Vadagal, SIPCOT, Sriperumbuddur, Tamil Nadu, to develop various high tensile fasteners and new products like bolts, with the motive to expand its existing portfolio.

Objective of the Gala Precision Engineering Ltd IPO

The net proceeds from the fresh issue will be used towards the following purposes:

  • Setting up a new facility at Vallam-Vadagal, SIPCOT, Sriperumbuddur, Tamil Nadu for manufacturing high tensile fasteners and hex bolts;
  • Funding capital expenditure requirements towards purchase of equipment, plant and machinery at Wada, Palghar, Maharashtra;
  • Repayment/ prepayment, in full or part, of certain borrowings availed by our company; and
     General corporate purposes.

Rationale To Invest In Gala Precision Engineering Ltd IPO

Comprehensive manufacturing facilities offering higher scale and flexibility

The company’s two manufacturing facilities in Wada are well-equipped with machinery, enabling them to design, develop, and produce a wide range of products. These facilities are certified with international standard including IATF 16949 for manufacturing of disc springs, spring band clamp, stamped components, coil springs and spiral springs, and ISO 9001:2015 for manufacturing and supply of disc springs, brush springs, spiral springs, retractor springs, spring cassette assemblies and special fasteners. The company also hosts state-of-the-art CNC machines, wafio Coiler from Germany and multi-side machines to meet to ensure that the company meets up to clients’ expectations. Additionally, the company also integrates software into its manufacturing processes which enables them eliminate production errors. GPEL’s ability to supply high precision and multi-purpose products can be largely attributed to its in-house product development team, which is situated in the manufacturing facility. The team currently uses design and development tools such as CAD software and iQbestspeed software to detect the ideal production speed and process safety of the springs to be produced. The company’s in-house process also includes tool design and development, blanking and forming, coiling, heat treatment, shot peening, surface finishing, springs grinding and chamfering, scragging, load testing along with inspection, quality control and surface treatments and coatings. All these processes enables the company to provide comprehensive solutions to their clients, while maintaining a strong hold over production. Such kind of integrated production process helps the company gain an edge over other competitors in terms of cost and scale.

Long-standing customer relationships and a diversified product portfolio

GPEL has over three decades of operational experience, which has allowed the company to establish many long standing relationships with their clients. This healthy supplier-customer relationship indicates the company’s strong commitment to providing quality and comprehensive solutions to its customers. Key factors that help the company maintain these relationships are high quality products, reliable supplies, development collaboration and adherence international standards. The company also engages with their clients through different stages of product development – from the design and validation stages to testing, final manufacturing, and delivery. The company also provides customized packaging and kitting services to its customers, which helps the company better understand the clients’ requirement and provide increased customer satisfaction. Moreover, the company also boasts a de-risked revenue break-up with its customers, with top five customers contributing 32% of the revenue and top 10 contributes to 47% of the revenue. GPEL’s wide range of products and their varied application have also helped them to develop a broad consumer base across geographies and industries. Owing to the company’s capability to design and develop various product according to the customer’s needs and specification, as well as cross sell multiple products to them, the company has successfully increased its wallet-share in the market. 

Valuation of Gala Precision Engineering Ltd IPO

GPEL has a rich 30 years of experience in designing, manufacturing and application engineering of highperformance standardised and customised disc springs and strip springs. The industry in which the company operates has a significant entry barrier, owing to the stringent and lengthy qualification process for production of technical springs and fasteners due to the criticality of their usage. With the help of GPEL’s rich experience as precision component manufacturer, the company is a qualified and established supplier to
OEMs, Tier 1 and channel partners. With its highly equipped manufacturing units, GPEL is able to meet its clients’ different requirements, simultaneously enjoying the competitive advantage it gains owing to the inhouse facilities that it hosts alongside technological integration. With the Indian DSS, CSS, and WLW market expected to grow driven by key sectors like industrials, mobility and renewables, and with the rapid growth trend witnessed in urban and rural economy, the company is well positioned to benefit from the economic tailwinds. The company’s plan to set up a new manufacturing unit, purchase of new machinery for its existing units as well as the aim to replace European imports in the market aligns well with the economic development and paves way for the company to enjoy increased market-share. On the financial front, company’s Revenue/EBITDA/PAT grew at a CAGR of 18.1%/40.4%/83.5%, respectively between FY22 and FY24. The company maintains a ROCE of 21.15% and ROE of 23.27 (before exceptional item). The company has a D/E ratio of 0.53, and further plans to reduce its debt by using the amount raised to pay off its debt and make prepayments of some of the borrowings the company availed. On the upper price band, the issue is valued at a P/E of 24.3x based on FY24 earnings which we feel is fairly valued compared to its listed peers. Therefore, we recommend a SUBSCRIBE rating to the issue from a medium to long term perspective.

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What is the Gala Precision Engineering Ltd IPO?

Gala Precision Engineering IPO is a book built issue of Rs 167.93 crores. The issue is a combination of fresh issue of 0.26 crore shares aggregating to Rs 135.34 crores and offer for sale of 0.06 crore shares aggregating to Rs 32.59 crores.

To apply for the Gala Precision Engineering Ltd IPO through StoxBox one can apply from the website and also from the app. Click here

Gala Precision Engineering Ltd IPO is opening on 02nd September 2024

The Lot Size of Gala Precision Engineering Ltd IPO is 28 equity shares

The allotment Date for Gala Precision Engineering Ltd IPO is 05th September  2024

The listing Date for Gala Precision Engineering Ltd IPO is 09th September 2024

In the Retail segment the minimum investment required is Rs. 14,812

In the Retail segment the maximum investment requirement is Rs. 192,556

  • The company does not have any exclusive arrangements with its customers, which means long-term supply orders are not guaranteed. As a result, its sales may fluctuate significantly from period to period due to changes in customer vendor preferences, and the company may be unable to secure repeat orders.
  • GPEL do not have long term contracts or exclusive arrangements with any of its suppliers, and a significant increase in the cost of, or a shortfall in the availability, or deterioration in the quality, of such input materials could have an adverse effect on our business and results of operations.
  • Failure to obtain or renew approvals, licenses, registrations and permits to operate its business in a timely manner, or at all, may adversely affect the business.

The Gala Precision Engineering Ltd IPO be credited to the account on allotment date which is 05th September 2024

The prospectus of Gala Precision Engineering Ltd IPO prospectus can be find on the website of SEBI, NSE and BSE

IPO Open DateMonday, September 2, 2024
IPO Close DateWednesday, September 4, 2024
Basis of AllotmentThursday, September 5, 2024
Initiation of RefundsFriday, September 6, 2024
Credit of Shares to DematFriday, September 6, 2024
Listing DateMonday, September 9, 2024
Cut-off time for UPI mandate confirmation5 PM on September 4, 2024

Baazar Style Retail Ltd IPO : SUBSCRIBE

Baazar Style Retail Ltd IPO: Timeline & Details
  • Date

    30thAugust 2024 - 03rd Sep 2024

  • Price Range

    Rs. 370 to Rs.389

  • Minimum Order Quantity

    38

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Price Lot Size Issue Date Issue Size
₹ 370 to ₹ 389 38 30th Aug, 2024 – 03nd Sep, 2024 ₹834.68 Cr

About Baazar Style Retail Ltd IPO

Baazar Style Retail Ltd. (BSRL), founded in June 2013 in Kolkata, is a major player in the value fashion retail sector, offering affordable apparel and general merchandise. Known for its “Quick Shop One Stop” concept, BSRL serves a diverse customer base with products including home furnishings. It operates 162 stores across 146 cities, holding the largest retail footprint in Eastern India among listed value retailers, with 3.0% market share in West Bengal and 2.2% in Odisha. BSRL has been the fastest-growing value retailer from 2017 to 2024 in terms of store count and revenue, with private label brands contributing 37.9% to revenue. The company boasts an Average Transaction Value of Rs. 1,039, the second highest among listed value retailers in India, and has achieved 33.7 million unit sales in FY24. Its expansion strategy includes significant store openings in key markets such as West Bengal, Odisha, and Bihar, supported by internal accruals, debt, and private equity. The average store size is 9,046 square feet, with Sales Per Square Foot of Rs. 7,758 in FY24. With the highest EBITDA margin of 14.6% among its peers, BSRL is well-positioned to capitalize on the growing value retail market in Eastern and North-Eastern India.

Objective of the Baazar Style Retail Ltd IPO

The company proposes to utilize the net proceeds towards the funding of the following objects:

  •  Prepayment or repayment of all or a portion of certain outstanding borrowings availed by the company;
  • General corporate purposes.

Rationale To Invest In Baazar Style Retail Ltd IPO

Leading value retailer in Eastern India with rapid cluster-based expansion and 3.0% market share in West Bengal and 2.2% in Odisha 

BSRL has distinguished itself as a prominent value retailer in Eastern India, demonstrating significant growth. The company has achieved an impressive CAGR of 35.8% in store count and 26.8% in revenue during FY17 to FY24, expanding its footprint to 162 stores across nine states by March 31, 2024. BSRL’s revenue reached Rs. 9,728.82 mn in FY24, with a CAGR of 32.9% during FY22 to FY24, outpacing the overall lifestyle and home value retail market’s 19.3% CAGR. Its market share stood at 3.0% in West Bengal and 2.2% in Odisha, with core markets like West Bengal, Odisha, Assam, and Bihar accounting for 87.6% of its revenue. BSRL employs a cluster-based expansion strategy, opening new stores near existing ones to enhance operational efficiency and market penetration. The company’s focus on high-street locations, a wide range of quality merchandise, and tailored local customer engagement has been effective, reflected in a low store closure rate of just 14 stores over the past three years. This strategic growth approach has solidified BSRL’s competitive edge and market position in the burgeoning Eastern and North-Eastern retail sectors.    

Strategic product assortment and private label success enhance customer loyalty and profitability  

 BSRL boasts a diverse product portfolio that includes apparel, cosmetics, imitation jewelry, consumer appliances, houseware products, and bags, catering to a wide range of customer segments from men and women to children and youngsters. In FY24, the company achieved a high Average Transaction Value of Rs. 1,038.7, reflecting its success in meeting customer preferences. BSRL effectively combines private label brands – such as Square Up, Awaya, and Miss19 – with third-party brands, with private labels contributing 37.9% to total revenue. These private labels have seen exceptional growth, with a CAGR of 64.6% from FY22 to FY24, driven by their focus on high-quality, trendy, and affordable merchandise tailored to local demand. This strategy has fostered customer loyalty, evidenced by a 71.9% repeat purchase rate in FY24. BSRL’s robust supply chain, managed through 641 suppliers and 1,226 vendors, and advanced inventory management – enhanced by data analytics tools like Tableau – has improved operational efficiency. This is highlighted by reduced inventory turnover days and increased sales per square foot. BSRL’s integrated approach to product assortment, private label development, and supply chain management has reinforced its position as a comprehensive solution for family needs, boosting both customer satisfaction and financial performance.

Valuation of Baazar Style Retail Ltd IPO

BSRL, a leading one-stop shop in Eastern and North-Eastern India, has achieved substantial growth, increasing its store count to 162 across nine states, registering a CAGR of 35.8% during 2017-24 period. This expansion has enabled BSRL to capture significant market share of 3.0% in West Bengal and 2.2% in Odisha in the organized value retail sector. The company’s cluster-based expansion strategy has been instrumental in its recovery from the pandemic, driving a 23% revenue increase from Rs. 7,879 mn in FY23 to Rs. 9,729 mn in FY24, with around 38% of this revenue coming from private labels. Net profit also grew substantially, from Rs. 51 mn in FY23 to Rs. 219 mn in FY24. Currently, BSRL has a total debt of Rs. 1,782 mn, comprising Rs. 291 mn in current borrowings and Rs. 1,491 mn in non-current borrowings, with plans to reduce this debt. Despite these strengths, BSRL faces notable risks, including intense competition in the retail sector, frequent shifts in consumer trends, and a heavy reliance on apparel, which constitutes approximately 84% of its revenue. Additionally, the company depends on a broad network of third-party suppliers without long-term agreements, posing potential operational risks. The company commands a high valuation with a P/E ratio of 124x at the upper price band based on FY24 earnings. However, given the company’s efforts to enhance its financial performance, increase profitability through private labels, and expand market penetration, we recommend a “SUBSCRIBE” rating for the issue, considering its growth prospects and strategic initiatives.

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What is the Baazar Style Retail Ltd IPO?

Baazar Style Retail IPO is a book built issue of Rs 834.68 crores. The issue is a combination of fresh issue of 0.38 crore shares aggregating to Rs 148.00 crores and offer for sale of 1.77 crore shares aggregating to Rs 686.68 crores.

To apply for the Baazar Style Retail Ltd IPO through StoxBox one can apply from the website and also from the app. Click here

Baazar Style Retail Ltd IPO is opening on 30th August 2024

The Lot Size of Baazar Style Retail Ltd  IPO is 38 equity shares

The allotment Date for Baazar Style Retail Ltd IPO is 04th September  2024

The listing Date for Baazar Style Retail Ltd IPO is 06th September 2024

In the Retail segment the minimum investment required is Rs. 14,782

In the Retail segment the maximum investment requirement is Rs. 192,166

  • Intense competition challenges retail performance: The fashion and retail industry is fiercely competitive, with rapid shifts in consumer trends and technology impacting market share. Facing competition from large, well-resourced players, diverse retail formats, and rising online competitors, the company must continuously innovate and adapt to maintain its market position and financial health.
  • High dependence on apparel segment faces risk: The company depends significantly on selling apparel, which makes up 83.8% of its revenue. This reliance means any sudden changes in fashion trends or customer preferences could negatively affect its business if it fails to adapt quickly.
  • Dependence on third-party suppliers poses risks: The company relies on a diverse network of third-party suppliers without exclusive agreements, which could impact its operations if suppliers fail to deliver quality products or face disruptions. With no long-term contracts, the firm must continuously manage supplier relationships and adapt to potential supply chain issues, affecting inventory and overall business stability.

The Baazar Style Retail Ltd IPO be credited to the account on allotment date which is 05th September 2024

The prospectus of Baazar Style Retail Ltd IPO prospectus can be find on the website of SEBI, NSE and BSE

Please Select A Table From Setting!
IPO Open DateFriday, August 30, 2024
IPO Close DateTuesday, September 3, 2024
Basis of AllotmentWednesday, September 4, 2024
Initiation of RefundsThursday, September 5, 2024
Credit of Shares to DematThursday, September 5, 2024
Listing DateFriday, September 6, 2024
Cut-off time for UPI mandate confirmation5 PM on September 3, 2024

ECOS Mobility and Hospitality Ltd IPO : SUBSCRIBE

ECOS Mobility and Hospitality Ltd IPO: Timeline & Details
  • Date

    28th August, 2024 - 30th August, 2024

  • Price Range

    Rs. 318 to Rs. 334

  • Minimum Order Quantity

    44

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Price Lot Size Issue Date Issue Size
₹ 318 to ₹ 334 44 28th Aug, 2024 – 30th Aug, 2024 ₹601.20 Cr

About ECOS Mobility and Hospitality Ltd  IPO

Incorporated in February 1996, ECOS Mobility and Hospitality Ltd. is a chauffeur driven car rental service provider in India. It is the largest and most profitable chauffeur driven mobility service provider in India as of March 2023. The company is primarily engaged in providing chauffeured car rentals (CCR) and employee transportation services (ETS). For more than 25 years, it has been delivering these services to corporate clients, including Fortune 500 companies in India. The two services that the company provides, work on different models. The CCR segment is a B2B2C business, where the customers are the corporate organization, and the end consumer is an employee, client, guest or visitor of the organization. In the ETS segment, the company offers customers with solutions to manage their employee home-office-home ground transportation.  The company has a deep rooted and widespread footprint, which is highlighted by their comprehensive network, spread across 109 cities in India, spanning 21 states and 4 union territories. In FY24, the company made a total of 3,100,000 trips, average of 8,400+ trips per day through its CCR and ETS segments. The company also has an extensive global reach, servicing in over 30 countries. The company operates a fleet of more than 12,000 economy to luxury cars, mini vans, luxury coaches, etc. The company also provides specialty vehicles such as luggage vans, limousines, vintage cars and vehicles for accessible transportation for people with disability. The company operates its fleet on an asset light model, where the company strives to keep the number of vehicles they own in their fleet significantly lower than the vehicles which are sourced from its vendors. As of FY24, the company has successfully been able to reduce the number of vehicles they own, which is at 5.8% of all the vehicles they own, vs 10.5% in FY23. Out of the 109 cities where it operates, 97 cities are conducted through vendors. The company has integrated technology into their services by creating custom online booking tools and mobile applications for customers and chauffeurs. ECOS maintains a wide customer base, which consists of InterGlobe Aviation, HCL Corporation, Deloitte Consulting India, Urbanclap Technologies, IndusInd Bank, HDFC Life Insurance Company, etc.

Objective of the ECOS Mobility and Hospitality Ltd IPO

  • The company will not receive any proceeds as 100% of the issue is Offer for Sale (OFS).

Rationale To Invest In ECOS Mobility and Hospitality Ltd IPO

Long-standing customer relationships and established brand presence through operational excellence

ECOS, through its two and half decades of operational experience, has been able to establish a sustaining and long-term relationship with customers across industries. The company has an average contract age of 3-4 years with its customers. The company also boasts a robust customer retention rate of 89.8%, highlighting the company’s ability to meet customer requirements consistently. Their vehicles are equipped with top-tier amenities and driven by professionally trained and verified chauffeurs. The company provides dedicated account managers as a single point of contact for all corporate mobility needs, supported by 24/7 customer care. Their commitment to high safety and hygiene standards, rigorous fleet quality checks, and seamless technology integration has strengthened their brand in the chauffeur-driven mobility sector. This high-quality service has established their brand with minimal advertising expenditure. The company also maintains healthy relationships with its vendors and can be primarily attributed to its timely payments, incentives, consistent business and opportunity to work with good customer profile. Owing to the operational efficiency of the company, their customers benefit from the dual offerings of CCR and ETS, which together provide a comprehensive solution for corporate transportation needs. CCR and ETS significantly benefit from targeting two distinct segments while sharing the same systems and administrative infrastructure.

Integrated technology ecosystem enabling operational superiority

The company is dedicated to achieving seamless integrations between its front-end applications and back-end systems. Their emphasis on proprietary technology has allowed them to better manage their service offerings and enhance operational efficiencies by integrating service functions, thereby ensuring accuracy, reliability, and promptness in their operations. The outsourced technology team follows a structured approach to innovation and problem-solving, which has contributed to their ability to build a large customer base, strengthen customer relationships, and enhance brand recognition. The outsourced technology team has developed a range of applications that the company utilizes, including: 1) Online Booking Tool: This customizable tool integrates with customers’ travel desks through an API connection, allowing them to manage their CCR requirements efficiently. It facilitates the smooth transition of reservation data, contactless booking management, and quick access to booking and billing information. 2) Chauffeur Mobile Application: Designed for chauffeurs, this application aids in booking management and provides trip and route information. It also allows the company to monitor chauffeur performance and ensure adherence to quality standards. 3) Customer Mobile Application: This app handles all customer needs, including managing bookings and displaying chauffeur details as soon as a booking is confirmed. 4) CabDrive Pro: A recently launched full-stack corporate car hire management system, CabDrive Pro integrates with customers’ mobile applications, chauffeurs’ applications, and the RentNet application, the company’s central transport management system. 5) RentNet Application: As an end-to-end transport management software, the RentNet application offers features such as live tracking through GPS, customizable solutions, and adjustments based on feedback and incidents. It manages reservations across all cities in India, while in ETS, a third-party technology approved by the client is used to execute trips. The corporate mobility industry is shifting towards a more organized market, with corporates favouring transparent billing, single vendors nationwide, quality services, and better pricing. With digitization offering improved efficiency, autonomy, and data-driven decision-making, the company is well-positioned to capitalize on these trends through technological advancements and secure customer applications.

Valuation of ECOS Mobility and Hospitality Ltd IPO

ECOS Mobility and Hospitality is primarily engaged in the business of providing CCR and ETS, catering to corporate clients, including Fortune 500 companies in India, for over 25 years. The CCR segment operates as a B2B2C business, serving corporate companies whose end consumers are their employees, visitors, or clients. Through the ETS segment, ECOS offers solutions for managing employee ground transportation. ECOS stands as the largest and most profitable chauffeur-driven mobility provider for corporates in India. ECOS’s strong client relationships and high retention rate of 89.8% underscore its reliability and market position. Their integrated technology, including the Online Booking Tool and RentNet Application, boosts service efficiency and client satisfaction. As the industry embraces digital solutions, ECOS is well-positioned to leverage its operational excellence and advanced technology for continued growth and leadership. The market growth in the CCR and ETS segment is driven by the transition from remote work to in-office work, rise in corporate travel, expansion of office spaces and development of tier-II and tier-III cities as more corporates are willing to set up their offices in these cities owing to lower building and rental cost, enhanced mobility efficiency and greater transparency with vendor. These trends are favorable for ECOS, as the company is well-prepared to capitalize on these opportunities. The company aims to strengthen its market position by expanding into tier-II and tier-III cities, enhancing penetration in existing markets, leveraging technology for operational efficiency, and expanding globally to capitalize on future growth opportunities. The company’s financials show robust growth over three fiscal years, with total revenue increasing from Rs. 1,473.4 million in FY22 to Rs. 5,544.1 million in FY24, reflecting a CAGR of approximately 94.0%. EBITDA and PAT also saw significant rise during FY2022-24 period, with CAGR of approximately 123.2% and 151.7%, respectively, to reach Rs. 899.6 million and Rs. 625.3 million . Due to the asset light model, the company is able to reduce the cost and liabilities associated with the ownership of fleets. ECOS’s strong customer and vendor relationships, established brand presence, robust financial performance, and advanced technological ecosystem position the company favorably to capitalize on industry tailwinds. On the upper price band, the issue is valued at a P/E of 32.1x based on FY24 earnings which we feel is fairly valued. We, thus, recommend a SUBSCRIBE rating to the issue from a medium to long term perspective.

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What is the ECOS Mobility and Hospitality Ltd IPO?

ECO Mobility IPO is a book built issue of Rs 601.20 crores. The issue is entirely an offer for sale of 1.8 crore shares. ECO Mobility IPO opens for subscription on August 28, 2024 and closes on August 30, 2024. The allotment for the ECO Mobility IPO is expected to be finalized on Monday, September 2, 2024. ECO Mobility IPO will list on BSE, NSE with tentative listing date fixed as Wednesday, September 4, 2024.

To apply for the ECOS Mobility and Hospitality Ltd  IPO through StoxBox one can apply from the website and also from the app. Click here

ECOS Mobility and Hospitality Ltd  IPO is opening on 28th August 2024

The Lot Size of  ECOS Mobility and Hospitality Ltd  IPO is 44  equity shares

The allotment Date for ECOS Mobility and Hospitality Ltd  IPO is 02nd September  2024

The listing Date for ECOS Mobility and Hospitality Ltd IPO is 04th September 2024

In the Retail segment the minimum investment required is Rs. 14,696

In the Retail segment the maximum investment requirement is Rs. 191,048

  • The company is measured against high-quality service standards and governed by the terms and conditions of their contracts with customers. Any failure to comply with these standards or terms may lead to cancellation of existing and future bookings, adversely affecting company’s reputation, business operations, financial condition, and cash flows.
  • The company’s business depends on its relationships with vendors who supply vehicles and chauffeurs to them, and any adverse changes in such relationships, or its inability to enter into new relationships, could adversely affect company’s business and results of operations.
  • The company incurs significant expenditure towards its vendors and vehicle operation expenses. Any increase in factors affecting the pricing of the services provided by its vendors or cost of operating its vehicles may have an adverse impact on the company’s business, financial conditions and results of operations.

The ECOS Mobility and Hospitality Ltd IPO be credited to the account on allotment date which is 03rd September 2024

The prospectus of ECOS Mobility and Hospitality Ltd IPO prospectus can be find on the website of SEBI, NSE and BSE

Please Select A Table From Setting!
IPO Open DateWednesday, August 28, 2024
IPO Close DateFriday, August 30, 2024
Basis of AllotmentMonday, September 2, 2024
Initiation of RefundsTuesday, September 3, 2024
Credit of Shares to DematTuesday, September 3, 2024
Listing DateWednesday, September 4, 2024
Cut-off time for UPI mandate confirmation5 PM on August 30, 2024

Premier Energies Ltd IPO : SUBSCRIBE

Premier Energies Ltd. IPO: Timeline & Details
  • Date

    27th August 2024 - 29th August 2024

  • Price Range

    Rs. 427 to Rs.450

  • Minimum Order Quantity

    33

Apply Now
Price Lot Size Issue Date Issue Size
₹ 427 to ₹ 450 33 27th Aug, 2024 – 29th Aug, 2024 ₹2,830.40 Cr

About Premier Energies Ltd IPO

Premier Energies Limited is a leading force in the solar industry with 29 years of experience and a robust manufacturing footprint in Hyderabad, India, featuring a combined annual capacity of 2 GW for solar cells and 4.13 GW for solar modules. Known for its advanced production of bifacial monocrystalline PERC cells and modules, including innovative TOPCon technology, the company operates India’s first LEED Gold-rated solar manufacturing unit. It is expanding its capabilities with a new 1,000 MW TOPCon cell line. Premier Energies has achieved significant milestones, such as establishing a 75 MW cell line in 2011 and expanding to 500 MW in FY 2021, and holds a substantial order book valued at Rs. 59,265.65 million as of July 2024. The company has demonstrated impressive financial growth with a revenue CAGR of 105.7% from FY22 to FY24. It has earned recognition for its sustainability efforts, including awards from the Renewable Energy India Awards and the Government of Telangana.  

Objective of the Premier Energies Ltd IPO

The company proposes to utilize the net proceeds towards the funding of the following objects:

  •  Investment in the Subsidiary, Premier Energies Global Environment Private Limited, for part-financing the establishment of a 4 GW Solar PV TOPCon Cell and 4 GW Solar PV TOPCon Module manufacturing facility in Hyderabad, Telangana, India (the “Project”);
  • General corporate purposes.

Rationale To Invest In Premier Energies Ltd IPO

Premier Energies excels in integrated solar cell and module manufacturing and has a proven track record    

According to Frost & Sullivan, Premier Energies is India’s second-largest integrated solar cell and module manufacturer as of March 31, 2024, boasting an annual installed capacity of 2 GW for solar cells and 4.13 GW for solar modules. Despite trailing behind Mundra Solar, the largest manufacturer in the country, Premier Energies has demonstrated significant growth over the past 25 years, with their installed capacity expanding from 75 MW in 2011 to 2,000 MW for solar cells and 4,134 MW for solar modules by 2024. The company has made substantial capital investments in their manufacturing units, including a notable increase in module capacity with the latest lines in Units IV and V. Their expertise in solar cell and module production, coupled with advanced technologies like TOPCon, positions them well in the domestic and international markets. With strong vertical integration and a reputation for quality, evidenced by industry awards and significant international export achievements, Premier Energies is well-equipped to capitalize on future opportunities in the solar energy sector.   

Premier Energies boasts a diversified customer base and robust order book, with established relationships in India and overseas 

Premier Energies leverages its significant annual installed capacity and market position to offer competitive pricing, facilitating access to a broad and diverse customer base both domestically and internationally. As of the Red Herring Prospectus date, Premier Energies serves 165 domestic customers across 23 Indian states and territories and has eight international customers. The company has seen substantial growth in its customer base, with domestic customer numbers increasing from 165 in FY22 to 200 in FY24, while international customers rose from 8 to 27 during the same period. Key domestic clients include Continuum, Shakti Pumps, and First Energy, while global clients feature Arka Energy Inc. of the US. The company’s revenue from operations for FY24 was Rs. 31,437.93 million, with significant contributions from domestic and export markets. Premier Energies’ order book, valued at Rs. 59,265.65 million as of July 31, 2024, includes notable agreements with NTPC and other major customers. The company’s strategic focus on expanding manufacturing capacities and fostering new customer relationships aims to bolster its global market presence and growth prospects.

Valuation of Premier Energies Ltd IPO

Premier Energies Limited (PEL), a prominent player in integrated solar cell and module manufacturing, has shown impressive growth and financial performance over its 29-year history. As of March 31, 2024, PEL stands as the second-largest integrated solar manufacturer in India, with an annual installed capacity of 2 GW for solar cells and 4.13 GW for solar modules. For FY24, the company reported revenues of Rs. 31,437.93 million, displaying a CAGR of 105% from FY22, reflecting its strong market presence and operational efficiency. PEL’s order book, valued at Rs. 59,265.65 million as of July 31, 2024, highlights its robust demand and strategic customer relationships. The company’s net income for FY24 was Rs. 2,303 million notably positive, demonstrating a turnaround from past losses of Rs. 146 million in FY23 and indicating strong profitability. Additionally, PEL has invested heavily in expanding its manufacturing capabilities, including a new 4 GW TOPCon solar cell and module line. Despite challenges such as underutilized capacity and intense industry competition, PEL reported a profit of Rs. 1,982 million in FY24 reflecting its solid market position and growth potential. The company has demonstrated consistent enhancement in its Return on Capital Employed (ROCE), progressing from 3.6% in FY22 to 25.6% in FY24. The company’s diversified customer base, which includes major domestic and international clients, further underscores its market strength and prospects for continued expansion. The company is valued at a PE ratio of 82.1x on the upper price band based on FY24 earnings, which is reasonable compared to its peers. Given its strategic investments, strong financial recovery, and substantial order book, the company is well-positioned to capitalize on growth opportunities in the solar energy sector. Therefore, we recommend a “SUBSCRIBE” rating for medium to long-term investment. 

In-Depth Report on Premier Energies Ltd PO
What is the Premier Energies Ltd IPO?

Premier Energies IPO is a book built issue of Rs 2,830.40 crores. The issue is a combination of fresh issue of 2.87 crore shares aggregating to Rs 1,291.40 crores and offer for sale of 3.42 crore shares aggregating to Rs 1,539.00 crores.

To apply for the Premier Energies Ltd IPO through StoxBox one can apply from the website and also from the app. Click here

 Premier Energies Ltd IPO is opening on 27th August 2024

The Lot Size of Premier Energies Ltd IPO is 32 equity shares

The allotment Date for Premier Energies Ltd IPO is 30th August 2024

The listing Date for Premier Energies Ltd  IPO is 03rd September 2024

In the Retail segment the minimum investment required is Rs. 14,850

In the Retail segment the maximum investment requirement is Rs. 193,050

  • Premier Energies Financial Stability Dependent on Key Customers and Success of Solar Products: Premier Energies revenue is significantly tied to key customers and relies heavily on the success of its solar cells and modules. Any loss of major clients or changes in demand for monocrystalline solar technology could adversely impact financial performance, highlighting the company’s dependence on these factors for profitability.
  • Geographic Concentration: Premier Energies operations are concentrated in Telangana, India, with five manufacturing sites in Hyderabad and a planned facility in Seetharampur. This geographic concentration exposes the company to risks such as economic fluctuations, weather conditions, and natural disasters. Although recent disruptions have been minimal, any significant issues could adversely impact production, shipments, and financial performance.
  • Impact of Capacity Expansion on Business: Expanding annual installed capacity despite underutilization could adversely affect the company’s financial health if demand does not meet expectations. The planned 4 GW TOPCon cell and module facility aims to enhance market share and reduce costs, but if demand falls short, it may lead to increased costs and financial strain.

The Premier Energies Ltd IPO be credited to the account on allotment date which is 02nd September 2024

The prospectus of  Premier Energies Ltd IPO prospectus can be find on the website of SEBI, NSE and BSE

Please Select A Table From Setting!
IPO Open DateTuesday, August 27, 2024
IPO Close DateThursday, August 29, 2024
Basis of AllotmentFriday, August 30, 2024
Initiation of RefundsMonday, September 2, 2024
Credit of Shares to DematMonday, September 2, 2024
Listing DateTuesday, September 3, 2024
Cut-off time for UPI mandate confirmation5 PM on August 29, 2024