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16 Nov 2024
Megatherm Induction Limited IPO
Megatherm deals in Metal Heating & Melting Equipment and possesses the strength to meet Thermal Challenges through Induction. Megatherm has a diverse product portfolio and is recognized and preferred by its ever-extending list of domestic and international clientele. Their 3000+ installations are spread over 55 countries around the globe. Megatherm is differentiated from other manufacturers primarily due to product innovation & continuous R&D. Over the years Megatherm has led the way for most major design changes and additions to induction technologies which was later incorporated by the industry.
Megatherm Induction IPO is a book built issue of Rs 53.91 crores. The issue is entirely a fresh issue of 49.92 lakh shares. Megatherm Induction IPO price band is set at ₹100 to ₹108 per share. The minimum lot size for an application is 1200 Shares. Hem Securities Limited is the book running lead manager of the Megatherm Induction IPO, while Bigshare Services Pvt Ltd is the registrar for the issue. The market maker for Megatherm Induction IPO is Hem Finlease.
Megatherm Induction IPO Overview
| Detail | Description |
|---|---|
| IPO Date | January 29, 2024 to January 31, 2024 |
| Listing Date | February 5, 2024 |
| Face Value | ₹10 per share |
| Price Band | ₹100 to ₹108 per share |
| Lot Size | 1200 Shares |
| Total Issue Size | 4,992,000 shares (aggregating up to ₹53.91 Cr) |
| Fresh Issue | 4,992,000 shares (aggregating up to ₹53.91 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | NSE SME |
| Share holding pre issue | 13,848,729 |
| Share holding post issue | 18,840,729 |
| Market Maker portion | 250,800 shares Hem Finlease |
Megatherm Induction IPO Timeline (Tentative Schedule)
| Detail | Description |
|---|---|
| IPO Open Date | Monday, January 29, 2024 |
| IPO Close Date | Wednesday, January 31, 2024 |
| Basis of Allotment | Thursday, February 1, 2024 |
| Initiation of Refunds | Friday, February 2, 2024 |
| Credit of Shares to Demat | Friday, February 2, 2024 |
| Listing Date | Monday, February 5, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on January 31, 2024 |
Megatherm Induction IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 1200 | ₹129,600 |
| Retail (Max) | 1 | 1200 | ₹129,600 |
| HNI (Min) | 2 | 2,400 | ₹259,200 |
Megatherm Induction IPO Reservation
| Investor Category | Shares Offered |
|---|---|
| Anchor Investor Shares Offered | 1,422,000 (28.49%) |
| Market Maker Shares Offered | 250,800 (5.02%) |
| QIB Shares Offered | 948,000 (18.99%) |
| NII (HNI) Shares Offered | 711,600 (14.25%) | Retail Shares Offered | 1,659,600 (33.25%) |
| Total Shares Offered | 4,992,000 (100%) |
Megatherm Induction IPO Promoter Holding
| Share Holding Pre Issue | 98.92% |
| Share Holding Post Issue | 72.71% |
Megatherm Induction IPO Anchor Investors Details
| Bid Date | January 25, 2024 |
| Shares Offered | 1,422,000 |
| Anchor Portion Size (In Cr.) | 15.36 |
| Anchor lock-in period end date for 50% shares (30 Days) | March 2, 2024 |
| Anchor lock-in period end date for remaining shares (90 Days) | May 1, 2024 |
Company & Financials
Incorporated in 2010, Megatherm Induction Limited manufactures induction heating and melting products using electrical induction such as induction melting furnaces and induction heating equipment. Megatherm Induction is a subsidiary of Megatherm Electronics Private Limited. The company also manufactures upstream and downstream equipment and machinery for steelworks, such as transformers, ladle refining furnaces, continuous casting machines, fume extraction systems, etc., as well as electric arc furnaces for the alloy and special steel industry. The company also offers turnkey solutions for steel plants, which include the planning, engineering, delivery, assembly and commissioning of steel plants with its own or outsourced systems and machines, as well as customer service with maintenance contracts and spare parts business. Megatherm Induction's manufacturing unit is located in Kharagpur and has a production capacity of around 300 furnaces and transformers (as of March 31, 2023). The company exports products to South America, Africa, the Gulf region, Europe, SAARC and Southeast Asia.
Megatherm Induction Limited Financial Information
| Period Ended | 30 Sep 2023 | 31 Mar 2023 | 31 Mar 2022 | 31 Mar 2021 | ||||||||||||||||||||||||||||||||||||
| Assets | 21,040.28 | 19,197.87 | 17,262.76 | 14,645.06 | ||||||||||||||||||||||||||||||||||||
| Revenue | 14,732.31 | 26,643.84 | 18,846.92 | 10,927.03 | ||||||||||||||||||||||||||||||||||||
| Profit After Tax | 759.34 | 1,400.41 | 110.10 | 309.12 | ||||||||||||||||||||||||||||||||||||
| Net Worth | 5,821.98 | 5,062.64 | 3,662.23 | 3,512.13 | ||||||||||||||||||||||||||||||||||||
| Reserves and Surplus | 4,437.11 | 4,139.39 | 2,738.98 | 2,598.88 | ||||||||||||||||||||||||||||||||||||
| Total Borrowing | 4,480.46 | 4,282.04 | 4,038.80 | 4,327.04 | ||||||||||||||||||||||||||||||||||||
| Amount in ₹ Lakhs | ||||||||||||||||||||||||||||||||||||||||
Key Performance Indicator
| KPI | Values |
|---|---|
| ROE | 27.66% |
| ROCE | 27.47% |
| Debt/Equity | 1.67 |
| RoNW | 27.66% |
| P/BV | 2.95 |
| Pre IPO | Post IPO | |
|---|---|---|
| EPS (Rs) | 10.11 | 8.06 |
| P/E (x) | 10.68 | 13.4 |
Objectives of Megatherm Induction IPO
The company intends to utilize the proceeds of the Issue to meet the following objectives:
- 1. Funding capital expenditure towards the construction of factory shed and installation of additional plant and machinery.
- 2. To meet Working Capital requirements.
- 3. General Corporate Purpose.
Megatherm Induction IPO Review
The company is engaged in manufacturing and marketing of induction heating and melting products and related services. It marked growth in its top lines for the reported periods, but the bottom line posted a fluctuating pattern. In fact, the sudden boost in its bottom lines for the last 18 months’ not only raises eyebrows, but also the concern over its sustainability. Based on its annualized boosted earnings, the issue appears fully priced. Well-informed investors may park funds for the medium term.
FAQs for Megatherm Induction IPO
-
What Is The Size Of The Megatherm Induction IPO?
The Megatherm Induction IPO issue includes a fresh Issue of up to 49,92,000 Equity Shares. The company intends to use the funds raised to secure funds for factory expansion, working capital, and general corporate needs.
-
What Is The Price Band Of Megatherm Induction IPO?
The price band of Megatherm Induction IPO is INR 100-108 per share.
-
When will Megatherm Induction Limited's IPO be allotted?
The Basis of Allotment will happen on January 31, 2024.
-
When will Megatherm Induction Limited's IPO open for subscription?
The IPO subscription window will open on Thursday, January 25, 2024.
-
What minimum lot size can retail investors subscribe to?
The minimum lot size retail investors can subscribe to be announced.
-
When will Megatherm Induction Limited list on exchanges?
Megatherm Induction Ltd IPO will be listed on the NSE SME on Friday, February 02, 2024.
Megatherm Induction IPO Subscription Status
Category
Subscription (times)
QIB
105.14
NII
307.04
Retail
200.51
Total
196.11
RHP:
RHP of Megatherm Induction Limited IPO
Anchor Investor Link:
Anchor Investor Link of Megatherm Induction Limited IPO
-
What Is The Size Of The Megatherm Induction IPO?
The Megatherm Induction IPO issue includes a fresh Issue of up to 49,92,000 Equity Shares. The company intends to use the funds raised to secure funds for factory expansion, working capital, and general corporate needs.
-
What Is The Price Band Of Megatherm Induction IPO?
The price band of Megatherm Induction IPO is INR 100-108 per share.
-
When will Megatherm Induction Limited's IPO be allotted?
The Basis of Allotment will happen on January 31, 2024.
-
When will Megatherm Induction Limited's IPO open for subscription?
The IPO subscription window will open on Thursday, January 25, 2024.
-
What minimum lot size can retail investors subscribe to?
The minimum lot size retail investors can subscribe to be announced.
-
When will Megatherm Induction Limited list on exchanges?
Megatherm Induction Ltd IPO will be listed on the NSE SME on Friday, February 02, 2024.
Megatherm Induction IPO Subscription Status
| Category | Subscription (times) |
|---|---|
| QIB | 105.14 |
| NII | 307.04 |
| Retail | 200.51 |
| Total | 196.11 |
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