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Garuda Construction and Engineering Ltd IPO : SUBSCRIBE

  • Date

    08th Oct 2024 - 10th Oct 2024

  • Price Range

    Rs. 92 to Rs. 95

  • Minimum Order Quantity

    157

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Price Lot Size Issue Date Issue Size
₹ 92 to ₹ 95 157 08th Oct, 2024 – 10th Oct, 2024 ₹ 264.10 Cr

About Garuda Construction and Engineering Ltd IPO

Garuda Construction and Engineering, a subsidiary of PKH Ventures, specializes in offering end-to-end civil construction services across various sectors, including residential, commercial, infrastructure, industrial, and hospitality projects. The company’s expertise covers a wide range of construction activities, such as the development of residential and commercial complexes, industrial facilities, and infrastructural works, as well as hospitality buildings. The services span the full spectrum of construction processes, from detailed route surveys, engineering, and design to resource mobilization, micro-scheduling, and obtaining construction permissions. This includes soil and water testing, contractor and manpower hiring, procurement of materials, laboratory testing, and the execution of construction activities in line with approved project plans. In addition, the company procures concrete building structures and composite steel structures through a network of sub-contractors based on designs provided either by developers or by in-house engineering teams. Beyond construction, the company also offers a range of supplementary services, such as Operations and Maintenance (O&M) services, Mechanical, Electrical, and Plumbing (MEP) services, and finishing works, ensuring a comprehensive suite of construction solutions under one roof.

Objective of the Garuda Construction and Engineering Ltd IPO

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

  • Working capital requirements and;
  • General corporate purposes and unidentified inorganic acquisitions.

Rationale To Invest In Garuda Construction and Engineering Ltd IPO

Exclusive and focused business approach

The primary focus of the company is civil construction of residential and commercial buildings, with recent expansion into industrial and infrastructural projects. This specialized approach has allowed the company to build a skilled team with domain-specific knowledge and experience, while developing core competencies and technical expertise in the construction industry. The company’s capabilities in civil construction position it as a provider of comprehensive construction services, primarily focusing on building construction rather than land or infrastructure development. However, the company has entered a Memorandum of Understanding (MoU) to act as a joint developer for a residential project in Thane, Maharashtra, which has yet to commence. Additionally, the company has agreements for other projects where it will assume the role of a developer. The company’s concentrated focus on building construction has strengthened its order book, resulting in a high degree of specialization in the field, contributing to the growth of operating revenues and profits

Visible growth through increasing order book

In the construction industry, an order book is a key indicator of future performance as it reflects a portion of anticipated future revenue and provides a list of projects undertaken and to be undertaken by the company. Maintaining an order book allows the company to evaluate and improve the quality of its projects. The company aims to select projects with higher margins and those that enhance its reputation, market penetration, and perception. The quality of construction and strong client relationships have contributed to the growth of the company’s order book. As of the filing of the Red Herring Prospectus, the total contract value of the company’s ongoing and upcoming projects amounts to Rs. 1,408.3 Crores.   With projects across the Mumbai Metropolitan Region (MMR), Arunachal Pradesh, Karnataka, Rajasthan, and Punjab, the growing number of construction works supports the company’s continued growth and enhanced reputation

Valuation of Garuda Construction and Engineering Ltd IPO

The company provides complete civil construction services across different sectors, including residential, commercial, infrastructure, industrial, and hospitality projects. Its main focus has been on building residential and commercial properties, but now it is expanding into industrial and infrastructure projects as well. The company has a solid track record of successfully completing various types of construction projects, such as residential, commercial, and hospitality buildings. The construction sector plays a big role in India’s economy, being the second-largest contributor after agriculture. In FY23, it made up 8.4% of the country’s total Gross Value Added (GVA). From FY18 to FY23, the sector grew at an average yearly rate of 10.6%, increasing from Rs. 2,37,500 crores to Rs. 3,92,200 crores. The sector is expected to continue growing, reaching Rs. 6,49,400 crores by FY30, with a yearly growth rate of 7.5%. With rising demand for infrastructure and strong government support, India could become the third-largest construction market in the world, and the sector could contribute 15% to the economy by 2030. Financially, the company’s revenue doubled from Rs. 77.0 crores in FY22 to Rs. 154.2 crores in FY24, showing an impressive annual growth rate of 26.0%. Its profit after tax also grew from Rs. 18.8 crores in FY22 to Rs. 36.4 crores in FY24, with an annual growth rate of 24.7%. The average debt-to-equity ratio of other companies in the industry ranged between 0.23x and 0.66x during FY19-FY23, but in FY23, company has reduced its debt & is debt-free. With an order book worth Rs. 1,408 crores, which is 9.2 times its sales, and an IPO priced at a reasonable Price-to-Earnings (P/E) ratio of 19.5x based on FY24 earnings, we recommend a “SUBSCRIBE” rating for this IPO from a long-term perspective

What is the Garuda Construction and Engineering Ltd IPO?

Garuda Construction and Engineering IPO is a book built issue of Rs 264.10 crores. The issue is a combination of fresh issue of 1.83 crore shares aggregating to Rs 173.85 crores and offer for sale of 0.95 crore shares aggregating to Rs 90.25 crores. Login to your account now.

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

Garuda Construction and Engineering Ltd IPO is opening on 08th October 2024. .Apply Now

The Lot Size of Garuda Construction and Engineering Ltd IPO is 157 equity shares.  Login to your account now

The allotment Date for Garuda Construction and Engineering Ltd IPO is 11th October  2024.  Login to your account now.

The listing Date for Garuda Construction and Engineering Ltd IPO is 15th October 2024.  Login to your account now

In the Retail segment the minimum investment required is Rs. 14,915. Login to your account now

In the Retail segment the maximum investment requirement is Rs. 193,895. Login to your account now

  • As a construction company, the limited experience in working with third-party entities outside of the promoter group presents challenges to the company’s growth. If the company is unable to establish a strong presence as a developer or contractor beyond group companies and related entities, its long-term growth, operational performance, and profitability could be restricted. A significant portion of the company’s revenue is dependent on construction projects linked to group companies and promoters, contributing 100.00% for the period ended April 30, 2024, 44.82% for Fiscal 2024, 94.62% for Fiscal 2023, and 86.65% for Fiscal 2022
  • One of the company’s promoters, Mr. Pravin Kumar Brijendra Kumar Agarwal, is involved in a criminal case filed by the Airport Police Station, which is still pending before the Metropolitan Magistrate in Andheri, Mumbai. If any negative outcome arises from this case, it could impact the reputation of the promoter and, in turn, affect the company’s business.
  • The promoter group, PKH Ventures Limited, had to withdraw its previous IPO because it wasn’t fully subscribed. The Draft Red Herring Prospectus was filed on March 23, 2022, to list shares on the National Stock Exchange and Bombay Stock Exchange. Although the Non-Institutional Investor category was oversubscribed, the Qualified Institutional Buyers (QIBs) didn’t meet their commitments, so the overall subscription fell short. Since the 90% minimum subscription wasn’t reached, PKH Ventures Limited decided to withdraw the IPO and informed the Registrar of Companies, National Stock Exchange, and Bombay Stock Exchange.

The Garuda Construction and Engineering Ltd IPO be credited to the account on allotment date which is 14th October 2024. Login to your account now 

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

IPO Open DateTuesday, October 8, 2024
IPO Close DateThursday, October 10, 2024
Basis of AllotmentFriday, October 11, 2024
Initiation of RefundsMonday, October 14, 2024
Credit of Shares to DematMonday, October 14, 2024
Listing DateTuesday, October 15, 2024
Cut-off time for UPI mandate confirmation5 PM on October 10, 2024

Diffusion Engineers Limited IPO : SUBSCRIBE

  • Date

    26th Sep 2024 - 30th Sep 2024

  • Price Range

    Rs. 159 to Rs.168

  • Minimum Order Quantity

    88

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Price Lot Size Issue Date Issue Size
₹ 159 to ₹ 168 88 26th Sep, 2024 – 30th Sep, 2024 ₹158.00 Cr

About Diffusion Engineers Limited IPO

Incorporated in 1982, Diffusion Engineers Ltd. is engaged in the manufacturing of welding consumables, wear plates, wear parts, and heavy engineering machinery for core industries. The company specializes in the repair and reconditioning of heavy machinery and equipment and also trades in anti-wear powders as well as welding and cutting machinery. Through a forward integration strategy, the company manufactures special-purpose electrodes and flux-cored wires, which are used in the production of wear-resistant plates. These plates are crucial components in the manufacturing of large industrial equipment used in key sectors such as cement, steel, power, mining, engineering, oil & gas, and sugar industries. This forward integration allows the company to enhance production efficiency, gain a competitive edge, reduce product costs, improve supply chain management, and minimize dependency on third-party suppliers. Initially, after its incorporation, Diffusion Engineers traded in welding electrodes for super-conditioning. Over time, the company expanded its operations to four manufacturing units: Units I, II, and III located in Hingna, Nagpur, while Unit IV is situated in Khapri (Uma), Nagpur. Each unit specializes in producing different products. Diffusion Engineers Ltd. holds accreditation from the National Accreditation Board for Testing and Calibration Laboratories (ISO/IEC 17025:2017) for General Requirements for the Competence of Testing & Calibration Laboratories. Additionally, they conduct multiple stringent quality checks and hold Environment Management System (EMS) certification from TÜV SÜD South Asia Private Limited, Quality Management System (QMS) – ISO 9001:2015, Occupational Health and Safety Management Systems – ISO 45001:2018, and Environment Management System – ISO 14001:2015. Approximately 91% of the company’s revenue is derived from the domestic market, with the remaining 9% coming from exports to various countries. Its overseas presence includes subsidiaries in Singapore, Turkey, and the Philippines, as well as joint ventures and associates in the United Kingdom and Malaysia. 

Objective of the Diffusion Engineers Limited IPO

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

  • Funding capital expenditure requirements towards expansion of its existing manufacturing facility at Khapri (Uma), Nagpur (“Proposed Expansion”);
  • Setting up of a new manufacturing facility at Hingna, Nagpur (“Proposed Facility”);
  • Funding working capital requirements of the company; and
  • General corporate purposes.  

Rationale To Invest In Diffusion Engineers Limited IPO

Forward integration-driven synergistic model expands business scope

In 1993, Diffusion Engineers started manufacturing welding electrodes and gradually expanded into producing flux-cored wires in 1997. Over time, they diversified into manufacturing wear plates and wear parts using flux-cored wires which were further used for manufacturing heavy engineering equipment. This transition from manufacturing of basic components to producing specialized components reflects forward integration and has allowed it to broaden its scope in the industry. Over the years, the company expanded into providing welding services for core industries and is committed to meet customer needs for welding and anti-wear solutions, enhancing the longevity and performance of heavy equipment. The primary revenue drivers are the welding electrodes, wear plates, wear parts, and heavy engineering products, contributing around 90-93% of the company’s revenues in the last three fiscal years (FY22-FY24). Additionally, the manufactured special purpose electrodes and flux cored wire are consumed in-house as well as sold to domestic as well as international customers, ensuring economies of scale and minimal wastage. Forward integration has provided multiple benefits such as increased production efficiency, cost reductions, control over supply of raw materials, and decreased reliance on third parties. 

Direct and long-standing industry relationships reduce business risks

Diffusion Engineers, with over four decades in business, have established long-standing relationships with both Indian and global customers. They cater to a diverse clientele including OEMs that service major players in the cement, steel, and power sectors, as well as direct customers. These OEMs, in turn, supply major companies within their respective industries, positioning Diffusion Engineers as a critical link in the OEM ecosystem of key industry players. Additionally, the company engages directly with core customers in the cement, steel, and power sectors, highlighting its capability to serve and meet the unique needs of these major players. The company believes that its focus on quality, customized solutions for customers, and timely delivery of products has enabled the company to establish and maintain long-term relationships, retain existing clients, and attract new ones. In FY24, customers with relationships exceeding five years contributed a significant 68.6% of total revenue, demonstrating the company’s ability to retain key clients and maintain steady income. The remaining revenue comes from new clients which reflects the company’s adaptability and growth potential.

Valuation of Diffusion Engineers Limited IPO

Diffusion Engineers operates in the manufacturing of welding consumables, wear plates, wear parts, and heavy engineering machinery for core industries. They also provide specialized and customized repair and reconditioning services for heavy machinery and equipment. Additionally, the company is involved in trading of anti-wear powders, as well as welding and cutting machinery. They follow a synergistic business model, focusing on forward integration by manufacturing both basic and specialized products, which gives them a competitive edge and broadens its scope in the industry. With a diverse customer base of OEMs and direct customers both domestically and internationally, Diffusion Engineers demonstrates its ability to meet specific needs of major players in sectors like cement, steel, and power. The company’s long-standing relationships with customers generate a significant portion of its revenue, ensuring steady income growth. As India continues to experience rapid industrialization and increasing demand for improved infrastructure, the welding consumables market is estimated at around Rs. 51 billion in FY24, with projections of Rs. 64-66 billion by FY27. To meet this growing demand, the company is strategically planning to expand its manufacturing activities. Diffusion Engineers ranks among the top three industry players in terms of CAGR for operating income, profitability, and EBITDA between FY21 and FY24. The company demonstrated substantial revenue growth from FY22 to FY24, with a CAGR of 16.6%. The company’s profit after tax (PAT) also rose significantly, from Rs. 170.5 million in FY22 to Rs. 308.0 million in FY24. The current issue is priced at a P/E ratio of 11.7x on the upper price band based on FY24 earnings, which is relatively lower compared to its peers. Therefore, we recommend a SUBSCRIBE rating for this issue with a medium to long-term investment perspective.

What is the Diffusion Engineers Limited IPO?

Diffusion Engineers IPO is a book built issue of Rs 158.00 crores. The issue is entirely a fresh issue of 0.94 crore shares. Diffusion Engineers IPO opens for subscription on September 26, 2024 and closes on September 30, 2024. The allotment for the Diffusion Engineers IPO is expected to be finalized on Tuesday, October 1, 2024. Diffusion Engineers IPO will list on BSE, NSE with tentative listing date fixed as Friday, October 4, 2024. Login to your account now.

To apply for the Diffusion Engineers Limited IPO through StoxBox one can apply from the website and also from the app. Click here

Diffusion Engineers Limited IPO is opening on 26th September 2024. .Apply Now

The Lot Size of Diffusion Engineers Limited IPO is 88 equity shares.  Login to your account now

The allotment Date for Diffusion Engineers Limited IPO is 01st October  2024.  Login to your account now.

The listing Date for Diffusion Engineers Limited IPO is 04th October 2024.  Login to your account now

In the Retail segment the minimum investment required is Rs. 14,784. Login to your account now

In the Retail segment the maximum investment requirement is Rs. 192,192. Login to your account now

  • The company faces significant risks due to its reliance on several industries, including cement and power, which are vulnerable to economic downturns. Its increasing dependence on the domestic market and a small number of key customers, 20.81% of revenue from the top five and 29.43% from the top ten, heightens the risk of revenue loss if existing arrangements fail.
  • The company faces significant risks related to obtaining necessary approvals, licenses, and permits, which could delay its capital expenditure plans. Additionally, the orders for the required machinery are still pending. These delays or cost overruns in setting up the Proposed Facilities may adversely impact its financial condition, operations, and growth prospects, putting overall project execution at risk.
  • The company faces significant risks due to past non-compliance with the Companies Act, including incorrect filings and untraceable corporate records. These issues may result in penalties and adversely affect its reputation and financial condition. Additionally, ongoing regulatory scrutiny and the potential for future compliance failures pose risks to the company’s operations and growth prospects.

The Diffusion Engineers Limited IPO be credited to the account on allotment date which is 03rd  October 2024. Login to your account now 

The prospectus of Diffusion Engineers Limited IPO prospectus can be find on the website of SEBI, NSE and BSE

IPO Open DateThursday, September 26, 2024
IPO Close DateMonday, September 30, 2024
Basis of AllotmentTuesday, October 1, 2024
Initiation of RefundsThursday, October 3, 2024
Credit of Shares to DematThursday, October 3, 2024
Listing DateFriday, October 4, 2024
Cut-off time for UPI mandate confirmation5 PM on September 30, 2024

KRN Heat Exchanger and Refrigeration Ltd IPO : SUBSCRIBE

  • Date

    25th Sep 2024 - 27th Sep 2024

  • Price Range

    Rs. 209 to Rs.220

  • Minimum Order Quantity

    65

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Price Lot Size Issue Date Issue Size
₹ 209 to ₹ 220 65 25th Sep, 2024 – 27th Sep, 2024 ₹341.95 Cr

About KRN Heat Exchanger and Refrigeration Ltd IPO

KRN Heat Exchanger and Refrigeration Ltd. (KHERL) is involved in the manufacturing of fin and tube type heat exchangers for the Heat Ventilation Air Conditioning and Refrigeration (HVAC&R) industry. KHERL manufactures heat exchangers of various shapes and sizes, as per the requirement of the client. The company’s product portfolio consists of condenser coils, evaporator units, evaporator coils, header/copper parts, fluid & steam parts and sheet metal parts. Their products find application in a range of air conditioning, heating & ventilation, refrigeration and process cooling application. KHERL is able to generate a majority of its income from sales of condenser cells (55.2%) and  evaporator coils (37.5%). The company’s manufacturing operations are carried out at its consolidated manufacturing facility consisting of two industrial plots, located in RIICO industrial area, Rajasthan. KHERL also incorporated a wholly owned subsidiary (KRN HVAC Products Pvt. Ltd.) on 7th April 2023 to further expand its product range and aims to forward integrate to venture into the distribution and sales channel. The company has a customer base consisting of Daikin, Schnieder, Kirloskar Chillers, Blue Star, Climaventa and Frigel among others. The company derives 33.3%/55.1%/72.3% from its top 1/top 5/top 10 customers. The company relies on a limited number of suppliers for raw materials, with top 1/top 5/top 10 suppliers supplying 14.9%/57.7%/78.0% of the materials. The company also plans to set up a new manufacturing facility in Neemrana, Rajasthan with an aim to  diversify its product portfolio.

Objective of the KRN Heat Exchanger and Refrigeration Ltd IPO

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

  • Investment in its wholly owned subsidiary KRN HVAC Products Private Limited in the form of equity, for setting up a new manufacturing facility at Neemrana, Alwar, Rajasthan (“proposed project”); and
  • General corporate purposes.

Rationale To Invest In KRN Heat Exchanger and Refrigeration Ltd IPO

Comprehensive manufacturing setup along with quality control ensures customer stickiness

KHERL’s consolidated manufacturing unit is equipped and capable of carrying out end to end     manufacturing activities. The company is equipped with full service capabilities under one roof,    enabling them to meet the varying requirements of clients.  Such a setup enables the company to     command control over quality and ensure cost advantages. KHERL also maintains an in-house    facility for quality checks of its products. The products undergo various quality control checks to   ensure quality products to their clients. The comprehensive quality check facility enables the company to track the quality of its materials and products throughout their manufacturing lifecycle, ensuring correct delivery of its products to its clients, which in turn helps the company to maintain healthy long-term relationships.

Strategic expansion of product portfolio and customer base to strengthen business visibility

KHERL has served a total of 112 customers during FY23, selling their products across 17 states and exports to nine countries. Owing to the high contribution of the top 10 clients to its revenue pool, the company aims to mitigate this risk by expanding its customer network and introduction of new product designs. The company plans to expand its customer base by improving its sales and distribution network while expanding its presence in other regions to reach out to a larger market. The company plans to enhance its existing product portfolio and product design to cater to a wide spectrum of   clients, ensuring that the company is well positioned to capitalize on emerging market opportunities while being able to cater efficiently to its existing customer base.

Valuation of KRN Heat Exchanger and Refrigeration Ltd IPO

KHERL is engaged in the manufacturing of fin and tube type heat exchangers for HVAC&R industry. The company has been able to maintain healthy long term relationships with many clients on the back of its ability to cater to the varying requirements of its clients. The company also boasts a comprehensive manufacturing unit which enables end-to-end production and active quality control, ensuring cost advantages and quality products. In addition, with KHERL’s strategy to de-risk its customer portfolio, the company is aiming to expand its customer base across geographies and effectively enhance its existing product spectrum. On the financial front, the company’s Revenue/EBITDA/PAT stood at Rs. 3,083 million/585 million/391 million for FY24. The EBITDA and PAT margins stood at 18.9% and 12.6%, respectively. Additionally, the company has maintained ROE/ROCE of 29.7%/24.2%, while D/E was at 1x. On the macro front, the HVAC market in India is on a strong growth trajectory, fuelled by rapid urbanization, rising disposable incomes, various government initiatives and the increasing need for energy-efficient solutions amidst changing climatic conditions. On the back of such development, the company is well equipped to leverage multiple economic and industrial tailwinds, further strengthening its position in the market. The issue is valued at a P/E of 25.3x on the upper price band based on FY24 earnings, which is deemed to be fair. Therefore, we recommend a SUBSCRIBE rating for the issue.

IPO About
What is the KRN Heat Exchanger and Refrigeration Ltd IPO?

KRN Heat Exchanger IPO is a book built issue of Rs 341.95 crores. The issue is entirely a fresh issue of 1.55 crore shares. KRN Heat Exchanger IPO opens for subscription on September 25, 2024 and closes on September 27, 2024. The allotment for the KRN Heat Exchanger IPO is expected to be finalized on Monday, September 30, 2024. KRN Heat Exchanger IPO will list on BSE, NSE with tentative listing date fixed as Thursday, October 3, 2024. Login to your account now.

To apply for the KRN Heat Exchanger and Refrigeration Ltd IPO through StoxBox one can apply from the website and also from the app. Click here

KRN Heat Exchanger and Refrigeration Ltd IPO is opening on 25th September 2024.Apply Now

The Lot Size of KRN Heat Exchanger and Refrigeration Ltd IPO is 65 equity shares.  Login to your account now

The allotment Date for KRN Heat Exchanger and Refrigeration Ltd IPO is 30th September  2024.  Login to your account now.

The listing Date for KRN Heat Exchanger and Refrigeration Ltd IPO is 03rd October 2024.  Login to your account now

In the Retail segment the minimum investment required is Rs. 14,300. Login to your account now

In the Retail segment the maximum investment requirement is Rs. 185,900. Login to your account now

  • The company derives a majority of its revenue from its top 10 customers. In addition, the company also does not have any long term contracts with any of its customers. Thus, a delay or cancellation of orders by any such customer will have adverse material effect on the operations of the company.
  • The company relies on top 10 of its suppliers for 80% of its supplies. Any delays or cancellation of supplies from the supplier will have adverse effects on the operations of the company.
  • KHERL does not have any long-term contracts with any of its suppliers. Further they are heavily dependent on overseas suppliers to ensure quality supplies as per quality specifications. Any shortfall in the supply of raw materials or an increase in raw material costs or other input costs or any country specific challenges may adversely affect the pricing and supply of products.

The KRN Heat Exchanger and Refrigeration Ltd IPO be credited to the account on allotment date which is 01st October 2024. Login to your account now 

The prospectus of KRN Heat Exchanger and Refrigeration Ltd IPO prospectus can be find on the website of SEBI, NSE and BSE

IPO Open DateWednesday, September 25, 2024
IPO Close DateFriday, September 27, 2024
Basis of AllotmentMonday, September 30, 2024
Initiation of RefundsTuesday, October 1, 2024
Credit of Shares to DematTuesday, October 1, 2024
Listing DateThursday, October 3, 2024
Cut-off time for UPI mandate confirmation5 PM on September 27, 2024

Manba Finance Ltd IPO : SUBSCRIBE

  • Date

    23rd Sep 2024 - 25th Sep 2024

  • Price Range

    Rs. 114 to Rs.120

  • Minimum Order Quantity

    125

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Price Lot Size Issue Date Issue Size
₹ 114 to ₹ 120 125 23rd Sep, 2024 – 25th Sep, 2024 ₹150.84 Cr

About Manba Finance Ltd IPO

Manba Finance Ltd. (MFL), headquartered in Mumbai, is a Non-Banking Financial Company that offers financial solutions for new two-wheelers, three-wheelers, electric vehicles, used cars, small business loans, and personal loans. As of March 31, 2024, MFL reported Assets Under Management (AUM) exceeding Rs. 9,000 million, with 97.9% of its loan portfolio focused on new vehicle loans. The company operates across 66 locations in six states, building strong relationships with over 1,100 dealers, including more than 190 electric vehicle dealers. Targeting salaried and self-employed individuals, MFL customizes its offerings to meet diverse customer needs and has recently expanded to include used car loans, small business loans, and personal loans. Typically, MFL finances up to 85% of a vehicle’s on-road price, encouraging customers to contribute the remaining balance to foster financial discipline. With a centralized credit team of 1,344 employees, MFL maintains a gross Non-Performing Asset (NPA) ratio of 3.95% for FY24 and reported a profit after tax of Rs. 314.2 million. The company’s average cost of borrowings stands at approximately 11.98%. Favorable credit ratings from agencies like CARE and Acuite further emphasize MFL’s strong financial health and commitment to effective risk management. 

Objective of the Manba Finance Ltd IPO

The company proposes to utilize net proceeds towards augmenting the capital base to meet the company’s future capital requirements.  

Rationale To Invest In Manba Finance Ltd IPO

Comprehensive collections infrastructure ensures strong asset quality metrics 

The company has established a robust collections infrastructure to maintain asset quality, supported by a three-tier system of tele-calling, field collections, and legal recovery. With over 80% of monthly collections processed via NACH on scheduled EMI dates, an in-house team of 446 personnel ensures timely monitoring and early detection of defaults to minimize Gross NPAs, which have been steadily improving (3.95% in FY24, down from 4.94% in FY22). The company also engages external collection agencies as needed, adhering to RBI guidelines. Its tech-enabled collections team efficiently manages customer data and prioritizes overdue accounts, using soft collections strategies like SMS reminders and tele-calls in early delinquency stages. Legal action is initiated for accounts classified as NPAs when other recovery methods fail, showcasing a comprehensive and proactive approach to maintaining financial health.

Strong dealer relationships and diversified funding drive sustainable growth

The company, having started as an NBFC in 1998, built strong relationships with over 1,100 dealers, including 190 EV dealers, across six states. These dealers act as critical touchpoints for vehicle financing, helping to generate leads and facilitating quick loan turnarounds through tech-enabled processes. The company supports its dealer network with customer-specific schemes, incentives, and marketing initiatives. It has expanded operations to 66 locations with a focus on underpenetrated markets, driving growth in its AUM from Rs. 4,958.3 million in FY22 to Rs. 9,368.6 million in FY24 at a CAGR of 37.5%. Its funding is sourced from a diversified base of public and private sector banks, NBFCs, and NCD issuances. Additionally, a co-lending arrangement with Muthoot Capital Services further enhances its capital access. With a disciplined approach to cost-effective borrowing and market expansion, the company is well-positioned for sustained growth.

Valuation of Manba Finance Ltd IPO

The NBFC industry in India is poised for robust growth across segments such as two-wheelers, three-wheelers and MSME lending, driven by increasing finance penetration and consumer demand. With projected market share of 65% in two-wheeler financing and 35% in MSME loans, NBFCs are enhancing their competitiveness through digital initiatives and improved customer experiences, despite challenges like high default rates. Manba Finance Ltd. operates primarily in the funding business for two-wheelers and three-wheelers and has recently expanded its services to include personal loans, business loans, and used car loans. The company offers its services through over 1,100 dealers across six states. The company’s assets under management (AUM) grew from Rs. 4,958.3 million in FY22 to Rs. 9,368.6 million in FY24, reflecting a CAGR of 37.5%. Profit after tax rose from Rs. 97.4 million in FY22 to Rs. 314.2 million in FY24, with RoCE margins improving from 6.42% to 15.66%. Net NPA also decreased from 4.30% to 3.16%. With an average borrowing cost of 11.98% and lending rates above 20%, the company plans to use current issue proceeds to expand its offerings further. The current issue is priced at a P/BV of 2.3x based on FY24 book value, indicating a fair valuation. With its strategic focus on customer satisfaction and innovative products, Manba Finance is well-equipped to meet evolving market needs. We recommend a “SUBSCRIBE” rating for the issue with a medium to long-term investment perspective.

What is the Manba Finance Ltd IPO?

Manba Finance IPO is a book built issue of Rs 150.84 crores. The issue is entirely a fresh issue of 1.26 crore shares. Manba Finance IPO opens for subscription on September 23, 2024 and closes on September 25, 2024. The allotment for the Manba Finance IPO is expected to be finalized on Thursday, September 26, 2024. Manba Finance IPO will list on BSE, NSE with tentative listing date fixed as Monday, September 30, 2024. Login to your account now.

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

Manba Finance Ltd IPO is opening on 23rd September 2024.Apply Now

The Lot Size of Manba Finance Ltd IPO is 125 equity shares.  Login to your account now

The allotment Date for Manba Finance Ltd IPO is 26th September  2024.  Login to your account now.

The listing Date for Manba Finance Ltd IPO is 30th September 2024.  Login to your account now

In the Retail segment the minimum investment required is Rs. 15,000. Login to your account now

In the Retail segment the maximum investment requirement is Rs. 195,000. Login to your account now

  •  Intensifying competition in the financial sector: The company faces growing competition from established players like Arman Financial Services, MAS Financial Services, and Baid Finserv, alongside new entrants in the lending space including e-commerce and payment platforms. With a higher cost of borrowing and regulatory challenges, competitors may offer more attractive lending rates. This increasing competition may impact profitability, market share, and the ability to implement cost-effective growth strategies, potentially adversely affecting the company’s financial condition, operational results, and cash flows.
  • Lack of product diversification: New vehicle loans constitute 97.9% of the company’s assets under management, reflecting a heavy reliance on a single product segment. Despite recent diversification efforts into used car loans, small business loans, and personal loans, the company may struggle to achieve significant growth in these areas. This lack of diversity could limit future growth prospects and adversely affect financial stability if the new vehicle loan market does not perform as expected.
  • Negative cash flows and operational vulnerabilities: The company faced negative cash flows from operating activities of Rs. 1,411.4 million in FY24 and Rs. 1,240.3 million in FY23, primarily due to increased loan disbursements, which may continue to impact financial stability and growth plans. Additionally, reliance on cash recoveries exposes the business to risks of fraud and theft. Contingent liabilities, including disputed taxes of Rs. 22.7 million, further threaten financial health, highlighting the need for effective risk management strategies.

The Manba Finance Ltd IPO be credited to the account on allotment date which is 27th September 2024. Login to your account now 

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

IPO Open DateMonday, September 23, 2024
IPO Close DateWednesday, September 25, 2024
Basis of AllotmentThursday, September 26, 2024
Initiation of RefundsThursday, September 26, 2024
Credit of Shares to DematFriday, September 27, 2024
Listing DateMonday, September 30, 2024
Cut-off time for UPI mandate confirmation5 PM on September 25, 2024

Arkade Developers Limited IPO : SUBSCRIBE

  • Date

    16th Sep 2024 - 19th Sep 2024

  • Price Range

    Rs. 121 to Rs.128

  • Minimum Order Quantity

    110

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Price Lot Size Issue Date Issue Size
₹ 121 to ₹ 128 110 16th Sep, 2024 – 19th Sep, 2024 ₹410.00 Cr

About Arkade Developers Limited IPO

Arkade Developers Limited, a prominent real estate development company, has been focusing on creating premium lifestyle residential properties in Mumbai, Maharashtra since 2017. The company operates in two main areas: the development and construction of new residential premises on acquired land, and the redevelopment of existing properties. As of June 30, 2024, Arkade Developers developed 2.20 million square feet of residential property, including areas developed through partnerships where they hold a majority stake. Currently, the company has six ongoing projects, of which three are new and three are redevelopment projects. The majority of its revenue comes from new projects since Fiscal 2023. Between 2017 and the first quarter of 2024, the company launched 1,220 residential units and sold 1,045 units across various markets in the Mumbai Metropolitan Region (MMR). From CY 2003 to March 2024, Arkade Developers has successfully completed the redevelopment of 10 projects in Mumbai’s western suburbs and one project in south-central Mumbai, totaling approximately 1,000,000 square feet. This achievement positions them as one of the significant players in the redevelopment sector in Mumbai’s western suburbs. Over the years, the company has developed projects across different price points. Currently, they are working on a project with unit prices ranging from Rs. 9.4 million to Rs. 62.5 million. Over the last two decades, they have completed 28 projects, generally financed through a combination of promoter equity and internal accruals. These include 11 projects completed independently, eight projects managed by their Promoter through his proprietorship, and 9 projects developed in partnership with other third parties. In total, these projects encompass more than 4.5 million square feet of development and have served approximately 4,000 customers. The company’s in-house team manages all aspects of project development, from conceptualization to completion, including land acquisition, legal matters, construction, and marketing and sales. They engage empaneled professionals on a project-by-project basis, considering factors such as project scale, availability, and cost.

Objective of the Arkade Developers Limited IPO

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

  • Funding a part of the costs to be incurred in the development of the ongoing projects (viz. Arkade Nest, Prachi CHSL and C-Unit) (funding development expenses); and
  • Funding acquisition of yet-to-be identified land for real estate projects and general corporate purposes.  

Rationale To Invest In Arkade Developers Limited IPO

Strong in-house resources ensure all-round and timely development of projects

Arkade Developers, a leading real estate development company in Mumbai, leverages its comprehensive in-house resources to manage projects from initiation to completion. This includes dedicated teams for legal, business development, purchases and contracts, and sales and marketing. The legal team ensures thorough due diligence for property acquisitions and skillfully negotiates redevelopment agreements, mitigating potential disputes. The sales team excels in advertising, networking with channel partners, and devising strategies to foster strong customer relationships, recognizing that satisfied customers are their best brand ambassadors. The marketing team conducts extensive market research and develops comprehensive strategies to achieve marketing objectives, identifying target markets and selecting effective channels such as digital advertising, social media, print media, and events. Their efficient use of traditional techniques and third-party resources like real estate-focused digital search platforms, ensures targeted outreach, resulting in increased property sales and sustained business growth. This strategic approach positions Arkade Developers for continued success and growth in the competitive real estate market, making it a compelling investment opportunity. 

Leading market presence in lucrative and select micro markets of Mumbai

Arkade Developers is among the top 10 leading developers in select micro markets in the Mumbai region. They are highly rated primarily in the western suburbs in micro markets like Borivali West, Goregaon East, Santacruz West and Andheri East where they have a high percentage of total supply and total absorption cumulatively. Their strong market presence is highlighted by a high percentage of total supply and absorption in these areas. A major factor that contributes to their growth and success is their capability to consistently deliver projects on or ahead of schedule. The seamless coordination among their various teams involved ensures that they start a project only after receiving the necessary approvals required for it.

Valuation of Arkade Developers Limited IPO

Arkade Developers is a rapidly expanding real estate developer in the Mumbai region, specializing in both new projects and the redevelopment of existing properties. As one of the leading developers in Mumbai’s micro markets, the company presents a compelling investment opportunity. This success is attributed to its strong in-house team and commitment to the timely completion of projects. Mumbai, known for its expansive and high-value real estate market, saw significant growth in housing supply and absorption rates in the past, creating ample development opportunities. Arkade Developers has demonstrated substantial financial growth, with a revenue CAGR of 66.5% from FY22 to FY24. The company’s Profit After Tax (PAT) increased impressively from Rs. 508.4 million in FY23 to Rs. 1,228.1 million in FY24. Its Return on Capital Employed (ROCE) also rose significantly from 24.3% in FY23 to 47.3% in FY24, highlighting the company’s efficient capital utilization to drive growth and enhance profitability. Furthermore, Arkade Developers is working towards becoming debt-free, which enhances its attractiveness to investors by ensuring that funds are not diverted towards debt repayment. Looking ahead, the company plans to expand into the eastern region of the Mumbai Metropolitan Region (MMR), Maharashtra, with a mix of commercial and residential developments. The current issue is priced at a P/E ratio of 15.8x on the upper price band based on FY24 earnings, which is relatively lower compared to its peers. Therefore, we recommend a SUBSCRIBE rating for this issue with a medium to long-term investment perspective.

What is the Arkade Developers Limited IPO?

Arkade Developers IPO is a book built issue of Rs 410.00 crores. The issue is entirely a fresh issue of 3.2 crore shares. Arkade Developers IPO opens for subscription on September 16, 2024 and closes on September 19, 2024. The allotment for the Arkade Developers IPO is expected to be finalized on Friday, September 20, 2024. Arkade Developers IPO will list on BSE, NSE with tentative listing date fixed as Tuesday, September 24, 2024. Login to your account now.

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Arkade Developers Limited IPO is opening on 16th September 2024.Apply Now

The Lot Size of Arkade Developers Limited IPO is 110 equity shares. Login to your account now

The allotment Date for Arkade Developers Limited IPO is 20th September  2024. Login to your account now.

The listing Date for Arkade Developers Limited IPO is 24th September 2024.  Login to your account now

In the Retail segment the minimum investment required is Rs. 14,080. Login to your account now

In the Retail segment the maximum investment requirement is Rs. 197,120. Login to your account now

  • The company’s inability to identify suitable redevelopment projects or acquire appropriate land for their new projects may adversely affect their business and growth.
  • The company plans to allocate a portion of the net proceeds for land acquisition, though there is no guarantee of the land’s viability or the project’s profitability.
  • Arkade Developers business is entirely focused on the Mumbai Metropolitan Region which means that any negative impact on the local real estate market could severely affect their business performance, operational results, and financial health.  

The Arkade Developers Limited IPO be credited to the account on allotment date which is 23rd September 2024. Login to your account now 

The prospectus of Arkade Developers Limited IPO prospectus can be find on the website of SEBI, NSE and BSE

IPO Open DateMonday, September 16, 2024
IPO Close DateThursday, September 19, 2024
Basis of AllotmentFriday, September 20, 2024
Initiation of RefundsMonday, September 23, 2024
Credit of Shares to DematMonday, September 23, 2024
Listing DateTuesday, September 24, 2024
Cut-off time for UPI mandate confirmation5 PM on September 19, 2024

Northern Arc Capital Ltd IPO : SUBSCRIBE

  • Date

    16th Sep 2024 - 19th Sep 2024

  • Price Range

    Rs. 249 to Rs.263

  • Minimum Order Quantity

    57

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Price Lot Size Issue Date Issue Size
₹ 249 to ₹ 263 57 16th Sep, 2024 – 19th Sep, 2024 ₹777.00 Cr

About Northern Arc Capital Ltd IPO

Northern Arc Capital Ltd. is a diversified financial services platform set up primarily to cater to the diverse retail credit requirements of the under-served households and businesses in India. Over the last 15 years, the company’s approach has been to create a differentiated and comprehensive play on the retail credit ecosystem in India spread across sectors. According to the CRISIL Report, the company is among India’s diversified NBFCs in terms of AUM as of March 31, 2024, with a business model diversified across offerings, sectors, products, geographies and borrower categories. Further, the company has one of the lowest industry-wide credit costs amongst diversified NBFCs in India as of March 31, 2024. The company has also developed domain expertise in enabling credit across focused sectors in India: MSMEs financing, microfinance (MFI), consumer finance, vehicle finance, affordable housing finance and agricultural finance. The retail credit market in India was Rs. 75.2 trillion as of FY24 and has rapidly grown at a CAGR of 16.0% during FY20 and FY24. The company caters to this retail credit market through a multi-channel approach that includes (i) Lending, Intermediate Retail Lending and Direct to Customer Lending either in collaboration with Retail Lending Partners or through a branch network to offer rural finance and MSME lending, with AUM of Rs. 117,100.19 million across 671 districts, 28 states and seven union territories in India, as of March 31, 2024; (ii) enabling credit for Originator Partners through various financing products Placements, with aggregate Placements volume of Rs. 1,019,039 mn, as of March 31, 2024; and (iii) Fund Management, with aggregate fund deployed of Rs. 120,786 mn across ten alternate investment funds (AIFs) and three portfolio management service (PMS) funds, as of March 31, 2024. The company has built an efficient and scalable business model supported by its proprietary end-to-end integrated technology product suite customized to multiple sectors.

Objective of the Northern Arc Capital Ltd IPO

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

  • Gross proceeds of the fresh Issue proposes to utilize the Net Proceeds to meet future capital requirements towards onward lending;
  • General corporate purposes.   

Rationale To Invest In Northern Arc Capital Ltd IPO

Wide addressable and underpenetrated market provides ample growth opportunities

The market for non-banking financial companies (NBFCs) in India is poised for significant growth, driven by affordable data access, digital transformation, and an underpenetrated customer base. NBFCs have generally been able to address this opportunity due to their strong origination skills, extensive reach, better customer service, faster processing, streamlined documentation requirements, digitization of customer onboarding process, customized product offerings, local knowledge, and differentiated credit appraisal methodology. The rapid evolution of Fintechs over the last few years has added another dimension to the market served by NBFCs and has fueled rapid growth across the landscape. Moreover, the Indian retail credit market has grown steadily over the last few years and is expected to grow at a CAGR of 17-18% between FY24 and FY26 to reach Rs. 100.9 trillion by FY26. (Source: CRISIL). The company believes that this presents an opportunity to capitalize on the significant potential for growth in the retail credit market, particularly in the rural and semi-urban areas. By leveraging the company’s diversified business model and proprietary technology product suite customized to multiple sectors, it has developed strong sectoral expertise over the last 15 years in enabling credit across focused sectors. We, thus, believe that the company has further solidified its role in facilitating credit across these sectors, positioning itself as a key player in India’s rapidly growing retail credit market. 

Large ecosystem of partners, data, and technology platforms create strong network effects

The company’s technology products and data capabilities are the backbone of the ecosystem, which ensures seamless interaction between Originator Partners, Retail Lending Partners, and Investor Partners, facilitated through the technology platform Nimbus, which enables end-to-end processing of debt transactions. To deepen relationships with Originator Partners, the company has developed a proprietary technology product, Nu Score, a tailored machine learning-based scoring module designed to assist Originator Partners in the loan underwriting process and help them make effective credit decisions. Further, to enable technology-backed seamless co-lending across a network of Retail Lending Partners and Investor Partners, the company has developed nPOS. This fully integrated API-based technology solution seamlessly integrates with the systems of Originator Partners (including Retail Lending Partners) and Investor Partners, easing the co-lending process. In addition, AltiFi, an alternative retail debt investment platform, enables them to capture a broader base of retail investors, who may subsequently graduate to invest in funds. These multi-channel offerings, supported by proprietary technology and data capabilities, enable funding to the end customer and aid Originator Partners, Retail Lending Partners and Investor Partners, and AltiFi investors in expanding their outreach and accessing new debt capital pools and investment opportunities. This synergy and seamless integration create a ‘flywheel effect’, which gets accentuated with more transactions and incremental data flow. This technology-driven ecosystem strengthens the company’s competitive positioning, providing a sustainable advantage in the financial ecosystem. 

Valuation of Northern Arc Capital Ltd IPO

Northern Arc Capital Ltd. has a diversified financial services platform set up primarily to cater to the diverse retail credit requirements of India’s under-served households and businesses. The company has expertise in lending across various focus sectors in India, especially in micro, small, and medium enterprise (MSME) finance, microfinance (MFI), consumer finance, vehicle finance, affordable housing finance, and agriculture finance. The company has maintained a well-diversified funding profile underpinned by established relationships with lenders and investors, a proactive liquidity management system and a strong credit rating. The company has a diversified base of lenders (including various banks, offshore financial institutions and NBFCs), and investors provide a strong base for increased funding. On the financial front, Northern Arc is among India’s diversified NBFCs in terms of AUM as of March 31, 2024, with a business model diversified across offerings, sectors, products, geographies and borrower categories. The company’s differentiated credit underwriting processes and risk models have helped deliver strong asset quality. Northern Arc’s risk models are supported by a substantial data repository comprising over 35.17 million data points, as of March 31, 2024, on portfolios across multiple sectors assessed throughout the journey and qualitative field-level insights that aid credit assessment and monitoring. According to the CRISIL Report, the company had one of the lowest gross non-performing assets (“GNPA”) of 0.45% and net non-performing assets (“NNPA”) of 0.08% as of FY24. The issue is valued at a P/BV of 1.49x 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 differentiated credit underwriting process, which keeps their asset quality strong and risk-adjusted returns consistent across business cycles.

What is the Northern Arc Capital Ltd IPO?

Northern Arc Capital IPO is a book built issue of Rs 777.00 crores. The issue is a combination of fresh issue of 1.9 crore shares aggregating to Rs 500.00 crores and offer for sale of 1.05 crore shares aggregating to Rs 277.00 crores. . Login to your account now.

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Northern Arc Capital Ltd IPO is opening on 16th September 2024. Apply Now

The Lot Size of Northern Arc Capital Ltd IPO is 57 equity shares. Login to your account now

The allotment Date for Northern Arc Capital Ltd IPO is 20th September  2024. Login to your account now.

The listing Date for Northern Arc Capital Ltd IPO is 24th September 2024. Login to your account now

In the Retail segment the minimum investment required is Rs. 14,991. Login to your account now

In the Retail segment the maximum investment requirement is Rs. 194,883. Login to your account now

  • The company’s operates a diversified business model that exposes them to various risks. An inability to manage such risks may have an adverse effect on the business, results of operations, cash flows, and financial condition.
  • If the company borrowers’ default on their repayment obligations, this may lead to increased levels of non-performing assets (NPA), related provisions, and write-offs and adversely affect the business, results of operations, cash flows, and financial condition.
  • A significant portion of investments are in credit facilities and debt instruments that are unsecured and/or subordinated to other creditors. An inability to recover such investments may result in increased NPAs, which could adversely affect business prospects, results of operations, cash flows, and financial condition.

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The Northern Arc Capital Ltd IPO be credited to the account on allotment date which is 23rd September 2024. Login to your account now 

The prospectus of Northern Arc Capital Ltd IPO prospectus can be find on the website of SEBI, NSE and BSE

IPO Open DateMonday, September 16, 2024
IPO Close DateThursday, September 19, 2024
Basis of AllotmentFriday, September 20, 2024
Initiation of RefundsMonday, September 23, 2024
Credit of Shares to DematMonday, September 23, 2024
Listing DateTuesday, September 24, 2024
Cut-off time for UPI mandate confirmation5 PM on September 19, 2024

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

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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

Apply Now
Download In-depth Report
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

Apply Now
Download In-depth Report
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.

Login to your account now – https://campaign.StoxBox.in/redirect.html

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