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13 October 2023

Meson Valves India IPO: Navigating the Industrial Flow

Introduction:

Meson Valves India Limited, formerly known as Sander Meson India Private Limited, was established in 2016. It operates as a supplier of valves, actuators, strainers, and remote-control valve systems. The company serves both domestic and international markets, offering a range of industrial components and related services.

IPO Snapshot:

The Meson Valves India IPO raised ₹31.09 crores through a fresh issue of 30.48 lakh shares. The IPO subscription period took place from September 8, 2023, to September 12, 2023. The allotment of shares was finalized on September 15, 2023, and the shares were listed on BSE SME on September 21, 2023. The IPO was priced at ₹102 per share, with a minimum lot size of 1200 shares, requiring a minimum investment of ₹122,400 for retail investors.

Key Players:

Shreni Shares Private Limited served as the book running lead manager of the Meson Valves India IPO, and Maashitla Securities Private Limited acted as the registrar for the issue. Shreni Shares also served as the market maker for this IPO.

Stock Performance:

As of September 28, 2023, Meson Valves India Limited's stock (Arrow) was trading at ₹213.15, marking a 3.77% decrease. The stock opened at ₹218.00, reached a high of ₹225.00, hit a low of ₹211.90, and had a previous closing price of ₹221.50. The total traded value amounted to 1,62,000 shares. The 52-week high and low were ₹235.45 and ₹193.80, respectively.

Ownership Structure:

Pre-issue shareholding was at 46.91%, while post-issue, it stands at 32.83%.

Performance Indicators:

Key performance indicators for the Meson Valves India IPO included a P/E (Price-to-Earnings) ratio of 15.47 and a Market Capitalization of ₹103.63 crores.

Objectives of the Issue:

The net proceeds from the IPO were allocated for the following purposes:

1. Purchase of Plant and Machinery for setting up of Manufacturing unit.
2. Funding working capital requirements.
3. General corporate purposes.

Expert Opinion:

Expressed concerns about the issue's pricing, particularly in light of the company's plans to enter manufacturing activities. He also highlighted concerns about the sustainability of profit margins. He suggested that investors may consider avoiding this IPO.

Subscription Status:

The Meson Valves India IPO witnessed strong demand, with a subscription rate of 173.65 times as of September 12, 2023. Retail investors showed significant interest with a subscription rate of 203.02 times. Non-Institutional Investors (NII) participated actively, with a subscription rate of 132.74 times.

Conclusion:

Meson Valves India Limited operates in the industrial components sector, supplying valves and related products. Investors should carefully evaluate the company's business model, financials, and future prospects before considering this IPO. Additionally, it's important to assess your investment objectives and risk tolerance when making investment decisions.

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