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16 Nov 2024
Presstonic Engineering IPO: A Journey into Metro Rail Manufacturing
Introduction:
Presstonic Engineering Limited, a stalwart in manufacturing products for Metro Rail Rolling Stock, Metro Rail Signalling, and Infrastructure, recently marked its entry into the capital market with a Fixed Price IPO of Rs 23.30 crores. This blog navigates through the key aspects of Presstonic Engineering's IPO, from its bidding phase to listing, and provides an insightful overview of the company's performance post-IPO.
Key Dates:
| Bidding Period | December 11 to December 13, 2023 |
|---|---|
| Allotment Date | December 14, 2023 |
| Listing Date | December 18, 2023 |
Issue Details:
| Issue Size | ₹23.30 Crores |
|---|---|
| Price | ₹72 per share |
| Lot Size | 1600 Shares |
| Minimum Investment | ₹115,200 for retail investors |
Financial Overview:
| Total Issue Size | Fresh Issue |
|---|---|
| 3,236,800 shares, aggregating up to ₹23.30 Cr | 3,236,800 shares |
Shareholding Structure:
| Pre-Issue | Post-Issue |
|---|---|
| 4,470,680 shares | 7,707,480 shares |
Market Maker Segment:
| Nikunj Stock Brokers | 163,200 shares |
|---|
IPO Management:
| Lead Managers | Registrar | Market Maker |
|---|---|---|
| Finshore Management Services Limited | Cameo Corporate Services Limited | Nikunj Stock Brokers |
Subscription Insights:
The Presstonic Engineering IPO witnessed a robust subscription of 168.25 times, indicating significant investor interest across categories. Retail investors showcased remarkable enthusiasm with a subscription of 188.94 times, while Non-Institutional Investors (NII) demonstrated strong interest with a subscription of 133.56 times.
IPO Journey Timeline:
| IPO Open Date | IPO Close Date | Basis of Allotment | Refunds Initiation | Shares Credited to Demat | Listing Date |
|---|---|---|---|---|---|
| December 11, 2023 | December 13, 2023 | December 14, 2023 | December 15, 2023 | December 15, 2023 | December 18, 2023 |
Lot Size:
Investors had the flexibility to bid for a minimum of 1600 shares, with the following investment parameters for retail investors and High Net Worth Individuals (HNIs):
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 1600 | ₹115,200 |
| Retail (Max) | 1 | 1600 | ₹115,200 |
| HNI (Min) | 2 | 3,200 | ₹230,400 |
Presstonic Engineering IPO Reservation:
The IPO featured a reservation of 3,236,800 shares, allocating significant portions to Non-Institutional Investors (NII) and Retail Individual Investors (RII).
About Presstonic Engineering Limited:
Established in 1996, Presstonic Engineering Limited specializes in manufacturing products for Metro Rail Rolling Stock, Metro Rail Signalling, and Infrastructure. The company's diverse product portfolio includes rolling stock interior and non-interior products, metro rail signaling products, and various infrastructure-related offerings.
Manufacturing Facility:
Presstonic Engineering operates from its manufacturing facility located in Viswaneedam, Bangalore, spread over 28,317.50 sq. ft.
Financial Snapshot:
As of September 30, 2023, Presstonic Engineering exhibited notable financial figures:
| Metric | Values |
|---|---|
| Assets | ₹2,850.69 Lakhs |
| Revenue | ₹1,431.67 Lakhs |
| Profit After Tax | ₹152.21 Lakhs |
| Net Worth | ₹645.57 Lakhs |
| Reserves and Surplus | ₹198.50 Lakhs |
Key Performance Indicators:
- - Market Capitalization: ₹55.49 Crores
- - Return on Equity (ROE): 115%
- - Return on Capital Employed (ROCE): 87%
- - Debt/Equity: 0.98
- - Return on Net Worth (RoNW): 51.92%
Objects of the Issue:
The IPO's proceeds will be allocated towards:
- - Funding Capital Expenditure for additional plant and machinery.
- - Prepayment of certain borrowings.
- - Meeting Working Capital Requirements.
- - Covering Issue Expenses.
- - General Corporate Purposes.
Conclusion:
Presstonic Engineering Limited, with its substantial experience in manufacturing metro rail-related products, has shown commendable growth. The sudden surge in its bottom lines from FY23 onwards has prompted careful consideration. Priced based on super FY24 annualized earnings, the issue may appear fully valued. Informed investors, considering the company's sustained growth and potential for medium to long-term rewards, may find Presstonic Engineering an interesting proposition.
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