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22-Sep-2023 16:26 Hrs IST |
Saakshi Medtech and Panels coming with IPO to raise Rs 45 crore
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<p></p><div style="text-align: justify;"><span style="font-weight: bold;">Saakshi Medtech and Panels</span></div><div style="text-align: justify;"><br></div><div style="text-align: justify;"><ul><li>Saakshi Medtech and Panels is coming out with an initial public offering (IPO) of 46,56,000 shares of Rs 10 each in a price band Rs 92-97 per equity share. </li><li>The issue will open for subscription on September 25, 2023 and will close on September 27, 2023.</li><li>The shares will be listed on NSE Emerge.</li><li>The face value of the share is Rs 10 and is priced 9.20 times of its face value on the lower side and 9.70 times on the higher side.</li><li>Book running lead manager to the issue is HEM Securities.</li><li>Compliance Officer for the issue is Shweta Pursnani.</li></ul></div><div style="text-align: justify;"><span style="font-weight: bold;">Profile of the company</span></div><div style="text-align: justify;"><br></div><div style="text-align: justify;">Saakshi Medtech and Panels is a diversified company engaged in manufacturing of: i) Electrical Control Panels and Cabinets used in elevators, air compressors, renewal energy industry, oil & gas exploration industry, electrical vehicle charging stations etc, ii) Medical X Ray System used in healthcare industry iii) Fabrication works for locomotives and (iv) wire harness division for its captive consumption in electrical control panels and for supply to air compressor industry. The company's in-house engineering and design capabilities help it to offer diversified products and solutions to its customers in each of the product categories in which it operates. The company's comprehensive solutions include design, process engineering and manufacturing including fabrication, assembly and testing facilities. The hardware components are imported or sourced from local suppliers which are then programmed and assembled at its manufacturing facilities.</div><div style="text-align: justify;"><br></div><div style="text-align: justify;">The company designs, program and assemble Electrical Control Panels and Cabinets comprising of micro controller, programmable logic controllers and SCADA system. These Electrical control panels are essential for industrial automation. They provide higher-level monitoring and control various functions of machines to define, organize, and meet production objectives. The end users for its products in this category include OEMs producing elevators, wind turbines, air compressors, oil & gas exploration equipment, electrical vehicle charging stations or diesel generators. These panels direct input and output of equipment in which they are installed like: monitoring directional movement of wind turbines, bi-lateral movement of elevators, set automatic load and unload of pressure in air compressors used in CNG petrol pumps, metal industry, forging industry, chemical industry, aviation industry and allied industries, vibration and temperature monitoring in oil and gas exploration equipment, for charging of EV batteries and alarming of DG sets. </div><div style="text-align: justify;"><br></div><div style="text-align: justify;"><span style="font-weight: bold;">Proceed is being used for:</span></div><div style="text-align: justify;"><br></div><div style="text-align: justify;"><ul><li>Repayment in full or in part of certain of its outstanding borrowings</li><li>Funding to meet working capital requirements</li><li>General Corporate Purpose</li></ul></div><div style="text-align: justify;"><span style="font-weight: bold;">Industry overview</span></div><div style="text-align: justify;"><br></div><div style="text-align: justify;">India's Capital Goods manufacturing industry serves as a strong base for its engagement across sectors such as Engineering, Construction, Infrastructure and Consumer goods, amongst others. It accounts for 27% of the total factories in the industrial sector and represents 63% of the overall foreign collaborations. Capital Goods sector contributes to 12% of India's manufacturing output and 1.8% to GDP. Market valuation of the capital goods industry was $43.2 billion in FY22. Moreover, Indian Electrical equipment is the largest sub-sector followed by Plant equipment & Earth moving/ mining machinery. The electrical equipment market share in India is expected to increase by $33.74 billion from 2021 to 2025, and the market's growth momentum will accelerate at a CAGR of 9%. Investment in engineering R&D sector is expected to reach $63 billion by 2025.</div><div style="text-align: justify;"><br></div><div style="text-align: justify;">Meanwhile, the electric vehicle (EV) market is estimated to reach Rs 50,000 crore ($7.09 billion) in India by 2025. In the year 2021, India's spending on electrical architecture development, such as battery development, electrification, emotors, and power electronics, came up to Rs 48,215 crore ($6.39 billion). In December 2021, Hyundai announced plans to invest Rs 4,000 crore ($530.25 million) in R&D in India, with the goal of launching six EVs by 2028. In February 2022, a memorandum of understanding (MoU) was signed between electric two-wheeler company Ather Energy and Electric Supply Companies (ESCOMs) of Karnataka for setting up 1,000 fast charging stations across the state.</div><div style="text-align: justify;">Further, The Indian market for medical equipment is predicted to increase to $50 billion by 2025. As of 2020, the medical devices market is estimated to be at $12 billion in India.</div><div style="text-align: justify;"><br></div><div style="text-align: justify;">India is the 4th largest Asian medical devices market after Japan, China, and South Korea, and among the top 20 medical devices markets globally. India has an overall 75-80% import dependency on medical devices. Export of medical devices from India stood at US$ 2.53 billion in FY21. The US, Germany, China, Brazil, Iran, etc. are a few key countries that import Indian medical devices. Gujarat, Maharashtra, Karnataka, Haryana, Andhra Pradesh, Telangana and Tamil Nadu are the manufacturing hubs for medical devices in India.In Bio Asia 2021, key stakeholders in the panel discussion on medical technologies stated that India would become self - sufficient in domestic medical devices manufacturing by 2025-26. The panel observed that the government is taking supportive measures such as promoting indigenous manufacturing of high-tech medical devices, production-linked incentive schemes (PLIs) on medical devices, boosting new medical devices park, etc. to boost overall growth of the domestic medical devices market in India. </div><div style="text-align: justify;"><br></div><div style="text-align: justify;"><span style="font-weight: bold;">Pros and strengths</span></div><div style="text-align: justify;"><br></div><div style="text-align: justify;"><span style="font-weight: bold;">Diversified range of products: </span>The company is strategically well placed to run various business verticals under one umbrella. Its diversified range of products cater to Healthcare industry and to the Industrial and Engineering segment of Renewable Energy, locomotives, elevators, air compressors, Diesel Generators electrical vehicle charging stations etc. The company's core competencies include product prototype design and development, functional testing, validation and verification. The company's focus on maintaining quality across its product verticals and on continuous technological upgradation of its electric control panels, together with its extensive sales and marketing efforts have enabled it to expand its operations over the years.</div><div style="text-align: justify;"><br></div><div style="text-align: justify;"><span style="font-weight: bold;">Engineering expertise with complex product manufacturing capability:</span> The company has comprehensive in-house capabilities of designing and manufacturing precision engineering products. The company manufactures and assembles a wide range of critical assemblies and precision components with close tolerances through its precision machining, assembly, and specialized fabrication facilities, for onward usage by its customers in the relevant industry. All raw materials procured for manufacturing its products are sourced from trusted vendors and its quality control team applies stringent quality measurements at every manufacturing stage to ensure low rejection rate such that its finished product confirms to the exact requirement of its customers and successfully passes all test, validations and quality checks.</div><div style="text-align: justify;"><br></div><div style="text-align: justify;"><span style="font-weight: bold;">Long term and well-established relationships with OEM customers: </span>The company has long term relationships with several original equipment manufacturers (OEMs) and component manufacturers across its various product categories. Most of its business comprises direct supply to its OEM customers, for few of which it has entered into long term agreements, which are renewed from time to time. With its track record and wide product portfolio, it has been able to retain its existing customers and also been able to attract new customers.</div><div style="text-align: justify;"><br></div><div style="text-align: justify;"><span style="font-weight: bold;">Risks and concerns</span></div><div style="text-align: justify;"><br></div><div style="text-align: justify;"><span style="font-weight: bold;">Maximum revenue comes from few key customers: </span>The company is dependent on certain key customers for sale of its products. For the fiscals 2023, 2022 and 2021, its top five customers contributed to 93.08%, 90.45% and 90.57% of its revenue from operations. The loss of these customers or a loss of revenue from sales to these customers may materially affect its business, financial condition, results of operations and cash flows. As a result, the volume of sales to its customers may vary due to changes in its customers' sourcing strategies. The company cannot assure that it will be able to significantly reduce customer concentration in the future. Most of its business comprises direct supply to its OEM customers, for which it does not have long term agreements.</div><div style="text-align: justify;"><br></div><div style="text-align: justify;"><span style="font-weight: bold;">Significantly dependent on sale of Electrical Control Panels and Cabinet: </span>The company's financial performance in last three financial years are significantly dependent on its revenue from sales of Electrical Control Panels and Cabinets, which represented 69.75%, 63.57% and 53.44% of its revenue from operations. The company cannot assure that it will increase its market share in the future for these products. Demand for these products depends primarily on its Top 5 customers. Further, the products may be substituted by product up gradation and the company may be unable to upgrade these products. It may not be able to introduce new product that are in faster-growing and more profitable categories. Any of these factors could have a material adverse impact on its financial condition and the results of operations.</div><div style="text-align: justify;"><br></div><div style="text-align: justify;"><span style="font-weight: bold;">Geographical constrain: </span>The company manufactures and supplies its products to customers in different geographies within and outside India from its three manufacturing facilities located in Pune. Since, its entire revenue is currently from products manufactured at the said manufacturing facilities, any disruption to its manufacturing facilities may result in production shutdowns. Further, any communal agitations in any parts of Pune causing significant loss to infrastructure, shutdown of business and industry or damage to property may affect its operations. This geographical concentration of its manufacturing facilities may adversely affect its operations, business and financial condition</div><div style="text-align: justify;"><br></div><div style="text-align: justify;"><span style="font-weight: bold;">Outlook</span></div><div style="text-align: justify;"><br></div><div style="text-align: justify;">Saakshi Medtech and Panels Private Limited is engaged in the designing, programing, and assembling of Electrical Control Panels and Cabinets comprising microcontrollers, programmable logic controllers, and SCADA systems. The company has three manufacturing units in Pune, Maharashtra, with a total built-up area of approx. 9600 sq mtr. On the concern side, the company's business is dependent on the sale of its products to certain key customers. The loss of any of these customers or loss of revenue from sales to these customers could have a material adverse effect on the business, financial condition, results of operations and cash flows. Moreover, the company is significantly dependent on the sale of Electrical Control Panels and Cabinets. An inability to anticipate or adapt to evolving up gradation of the required products or inability to ensure product quality or reduction in the demand of these products may adversely impact its revenue from operations and growth prospects.</div><div style="text-align: justify;"><br></div><div style="text-align: justify;">The issue has been offered in a price band of Rs 92-97 per equity share. The aggregate size of the offer is Rs 42.84 crore to Rs 45.16 crore based on lower and upper price band respectively. On performance front, the company's total income for the financial year 2022-23 stood at Rs 122.20 crore whereas in Financial Year 2021-22 the same stood at Rs 91.69 crore representing an increase of 33.28%. The main reason of increase was increase in the volume of business operations of the company. Net profit before tax for the FY23 surged 31.01% to Rs 16.56 crore as compared to Rs 12.64 crore in the financial year 2021-22. Meanwhile, the company's manufacturing and engineering capabilities enable it to capitalize on the growing opportunities and emerging trends in its industry, particularly in manufacturing Medical X-Ray System, where the Production Linked Incentive Scheme (PLI) Promoting Domestic Manufacturing of Medical Devices and Production Linked Incentive Scheme for Pharmaceuticals (PLI 2.0) have been introduced to provide an impetus to India's vision of becoming a global manufacturing hub for medical devices. In this context, the company has received CDSCO Approval and it is well-poised to capitalize on these opportunities and initiatives by the Government of India, creating value for all of the stakeholders involved, in the process. Going forward, a significant demand for its products is generated in India owing to its government's objective to enhance domestic sourcing as well as self-reliance, and that its ability to supply technologically advanced products enables it to tap growth opportunities.</div><p></p>
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22-Sep-2023 15:19 Hrs IST |
Arabian Petroleum coming with IPO to raise Rs 20.24 crore
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<p style="text-align: justify;"><span style="font-weight: bold;">Arabian Petroleum</span></p><p style="text-align: justify;"></p><ul><li>Arabian Petroleum is coming out with an initial public offering (IPO) of 28,92,000 equity shares of face value of Rs 10 each for cash at a fixed price of Rs 70 per equity share. </li><li>The issue will open for subscription on September 25, 2023 and will close on September 27, 2023.</li><li>The shares will be listed on NSE Emerge.</li><li>The share is priced 7.0 times higher to its face value of Rs 10.</li><li>Book running lead manager to the issue is Hem Securities.</li><li>Compliance Officer for the issue is Sejal Vishek Jain.</li></ul><p></p><p style="text-align: justify;"><span style="font-weight: bold;">Profile of the company</span></p><p style="text-align: justify;">The company in the business of manufacturing wide range of Lubricants including Specialty Oils, Coolants etc used for Industrial and Automotive applications. Its business is categorized into two distinctive product division: (i) Automotive Lubricants - Arzol and (ii) Industrial Lubricants - SPL. It is dedicated to consistently providing products that deliver stellar quality and comply with statutory requirements in the Automotive and Industrial Lubricants domain. The company took over the manufacturing and trading business of Industrial & Automotive Lubricants from the proprietorship firm ‘Arabian Petroleum' run by its proprietor Hemant D Mehta HUF vide Business Takeover agreement dated December 25, 2015, in the manner that all the Know- how, goodwill, clients of the proprietorship firm were transferred to the company and the company set up its own manufacturing facility at a plant in Ambernath situated at Thane, Maharashtra, India.</p><p style="text-align: justify;">Its domestic and international customers are spread across multiple industries, including pharmaceutical, FMCG, chemicals, steel, rubber and tyre, power, civil engineering, electrical appliances, textile, telecommunication, chemical, cables and conductors and automobile industry etc. Apart from private players, it also derives its revenues under the contracts from the Government sectors (both central and state) and associated entities. It is honored to be one of the suppliers of lubricants to the Indian Armed Forces and have successfully delivered lubricant products to Border Security Force (BSF), Indian Air Force (IAF) and Indian Navy across various parts of the country. It has product approval certification from Volvo Group Trucks Technology, Renault Group and MACK Trucks for its product ‘Milage Synactivs 15W-40' engine oil. It has recently received OEM approval from Bharat Earth Movers Limited (Formerly - BEML) for their entire range of products like Engine oil, hydraulic oil etc.</p><p style="text-align: justify;"><span style="font-weight: bold;">Proceed is being used for:</span></p><p style="text-align: justify;"></p><ul><li>Meeting working capital requirements</li><li>General corporate purpose</li><li>Meeting issue expenses</li></ul><p></p><p style="text-align: justify;"><span style="font-weight: bold;">Industry overview</span></p><p style="text-align: justify;">Lubricating oil is considered as a fluid structural element of machines and devices. Its main task is to create a layer in the form of a microfilm between the moving elements of the device. Due to the specific properties, lubricating oil during operation can fulfill many functions, such as minimization of friction, elimination of scuffing of rubbing machine elements, washing of carbon deposits and micro particles, anti-corrosion, cooling, and other effects. Both environmental and application properties must be supported when the lubricants content is designed. Therefore, it must be characterized not only by an accurate biodegradability rate, but also, by appropriate physicochemical properties, such as an appropriate range of the viscosity index, dynamic viscosity at negative temperatures, melt temperatures, flash points, evaporability, as well as the basic or acidic number. Lubricating oil is a mixture of base oil (>85%) and enriching additives.</p><p style="text-align: justify;">India is the second-largest lubricant consumer in the region, and third in the world, after the United States and China. The country is the fourth and sixth largest producer of commercial vehicles and passenger cars, respectively. In India, with the increasing demand for vehicles, several automakers have started investing heavily in various segments of the industry. Furthermore, the Indian government has been rolling out initiatives to attract FDI in the automotive industry, allowing 100% FDI under the automatic route. The government has also planned to introduce a new Green Urban Transport Scheme with central assistance of about INR 250 billion, to boost the growth of urban transport, along the low-carbon path, with an aim to reduce air pollution substantially.</p><p style="text-align: justify;">A major thrust has been given to Research and Development to support the Lubricant business initiatives. Following new products were developed : i) Speed - Branded Premium Petrol ii) High Performance Engine Oil for Gasoline iii) Customer specific Rust Preventive Oils iv) Gas Engine Oil for stationary natural gas engines v) Exclusive grades for Defence vi) Original Equipment Manufacturer (OEM) specific Hydraulic Oils vii) Alternate formulations for existing grades.</p><p style="text-align: justify;"><span style="font-weight: bold;">Pros and strengths</span></p><p style="text-align: justify;"><span style="font-weight: bold;">One Stop Shop for all lubricants:</span> it is one of the few manufacturers in India with comprehensive in-house capabilities of developing and manufacturing various types of Automotive and Industrial Lubricants including Specialty Oils, Coolants etc. Its products cater to multiple industries like: pharmaceutical, FMCG, chemicals, steel, rubber and tyre, power, civil engineering, electrical appliances, textile, telecommunication, chemical, cables and conductors and automobile industry etc. The company develops and manufactures a wide range of lubricating products with excellent demulsibility, oxidation and high thermal stability, low operational cost, protection against rust and corrosion, improved cleanliness, good water separating capability etc.</p><p style="text-align: justify;"><span style="font-weight: bold;">Long standing relationship with customers: </span>Its past experience in the supply of its products, ability to meet specific technical requirements of its customers, reputation for quality and safety features present in its products and the price competitiveness of its offerings, has not only strengthened its position in the market but also has enabled it to establish and maintain relationships with its customers. It strives to understand its customers' specific business needs and provide products to meet their requirements. Its ability to provide quality products as per the customer specification and its consistent customer servicing standards has enabled it to increase its customers' dependence on it.</p><p style="text-align: justify;"><span style="font-weight: bold;">Quality assurance and standards:</span> Quality Control and Quality Assurance are integral part of its manufacturing operations. Finished products are completely tested and released for sale only after the Quality Control department issues the QC release certificates. For adherence to its Quality standards it is accredited with ISO 9001:2015 - for Quality Management System for Manufacturing and supply of Industrial and Automotive Lubricants, ISO 45001:2018 for Occupational, health and Safety Management System for Manufacturing and supply of Industrial and Automotive Lubricants and ISO 14001:2015 for Environmental Management System for Manufacturing and supply of Industrial and Automotive Lubricants. Over and above there are constant checks by way of in-process controls. Its commitment of providing quality products is boasted by its industry knowledge expertise of its experienced and trained team to provide quality output to its customers.</p><p style="text-align: justify;"><span style="font-weight: bold;">Risks and concerns</span></p><p style="text-align: justify;"><span style="font-weight: bold;">Rely on third parties for transportation of raw material: </span>The success of its business depends largely on third party transportation services both for supply of its raw materials and for delivery of its finished goods. A delay in the delivery of its raw materials to its manufacturing facilities may result in the slowdown or shutdown of its operations. It is exposed to fluctuations in transportation costs. Also, if the terms offered to such logistic providers by its competitors are more favorable than those offered by it they may decline to provide their services to it. It may also be affected by transport strikes, which may affect its delivery schedules. If it is unable to secure alternate transport arrangements in a timely manner and at an acceptable cost, or at all, its business, results of operations and financial condition may be adversely affected.</p><p style="text-align: justify;"><span style="font-weight: bold;">Operate in competitive business environment: </span>The business of manufacturing of lubricants is very competitive. It competes on the basis of its ability to fulfil its contractual obligations including the quality and timely delivery of products. Its competitors may have substantially greater financial, management, research and marketing resources than it has as a result of which they may be able to utilise their resources and economies of scale to develop improved products, divert sales away from it by winning broader contracts or hire its employees by offering more lucrative compensation packages.</p><p style="text-align: justify;"><span style="font-weight: bold;">Working capital requirements: </span>Its business requires significant working capital including in connection with its manufacturing operations, financing its inventory, providing bank guarantees, purchase of raw materials and its development of new or customized products which may be adversely affected by changes in terms of credit and payment. Delays in payment under on-going contracts or reduction of advance payments due to lower order intake or inventory and work in progress increases and/or accelerated payments to suppliers, fixed deposits to facilitate bank guarantees to its customers, could adversely affect its working capital, lower its cash flows and materially increase the amount of working capital to be funded.</p><p style="text-align: justify;"><span style="font-weight: bold;">Outlook</span></p><p style="text-align: justify;"><span style="text-align: left;">Arabian Petroleum</span> is engaged in the business of manufacturing a wide range of Lubricants including speciality Oils, Coolants, etc used for application in automobiles and industrial machines and appliances. Its business is categorized into two distinctive product division: (i) Automotive Lubricants - Arzol and (ii) (Industrial Lubricants - SPL. It is dedicated to consistently providing products that deliver stellar quality and comply with statutory requirements in the Automotive and Industrial Lubricants domain. On the concern side, the business of manufacturing of lubricants is very competitive. It competes on the basis of its ability to fulfil its contractual obligations including the quality and timely delivery of products.</p><p style="text-align: justify;">The company is coming out with an IPO of 28,92,000 equity shares of face value of Rs 10 each for cash at a fixed price of Rs 70 per equity share to mobilize Rs 20.24 crore. On performance front, the company's total income for the financial year 2022-23 stood at Rs 24,394.68 lakh whereas in Financial Year 2021-22 the same stood at Rs 19,159.10 lakh representing an increase of 27.33%. The main reason of increase was increase in the volume of business operations of the company. The Profit after tax for the year increase by 17.41% from net profit of Rs 414.34 lakh in financial year 2021-22 to net profit Rs 486.48 lakh in financial year 2022-23. Meanwhile, it aims to continue to maintain its focus on cost management, including in-house integrated manufacturing capabilities across its business to deliver growth as well as to achieve economies of scale. It will continues to seek to manage its supply chain costs through optimal inventory levels, economic orders and other measures. Economies of scale will also enable it to continuously improve its operational efficiencies.<br></p>
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22-Sep-2023 11:45 Hrs IST |
Updater Services coming with IPO to raise upto Rs 669 crore
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21-Sep-2023 16:50 Hrs IST |
Inspire Films coming with IPO to raise Rs 21.23 crore
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21-Sep-2023 16:24 Hrs IST |
Newjaisa Technologies coming with IPO to raise Rs 39.93 crore
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21-Sep-2023 14:44 Hrs IST |
Digikore Studios coming with IPO to raise Rs 30.48 crore
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20-Sep-2023 16:56 Hrs IST |
Manoj Vaibhav Gems 'N' Jewellers coming up with IPO to raise upto Rs 281.52 crore
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20-Sep-2023 16:34 Hrs IST |
Organic Recycling Systems coming with IPO to raise Rs 50 crore
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20-Sep-2023 16:09 Hrs IST |
JSW Infrastructure coming up with IPO to raise upto Rs 2948.67 crore
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20-Sep-2023 16:03 Hrs IST |
Hi-Green Carbon coming with IPO to raise Rs 52.80 crore
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