TechEra Engineering LImited
TechEra Engineering LImited(TECHERA)
Total Shares
43,77,600
Issue Size
₹35.90 Cr
Price Band
₹75 – ₹82
Lot Size
1600 shares
Min. Investment
₹1,31,200
Max. Investment
₹1,31,200
Open Date
25 Sep, 2024
Close Date
27 Sep, 2024
Allotment
30 Sep, 2024
Listing
03 Oct, 2024
Max. Investment
₹1,31,200
Announced
25 Sep, 2024
Opening Date
25 Sep, 2024
Closing Date
27 Sep, 2024
Basis of Allotment
30 Sep, 2024
Initiation of Refunds
01 Oct, 2024
Credit of Shares
01 Oct, 2024
Listing Date
03 Oct, 2024
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About TechEra Engineering LImited IPO
Incorporated in 2018, Techera Engineering (India) Limited designs, manufactures and supplies precise tooling and components for the aerospace and defence industries. The company also provides automation system solutions.
The company makes assembly tools, jigs, fixtures, maintenance and repair tools, ground support equipment, and precision machined components. It uses advanced manufacturing technologies, such as 5-axis machining and 3D modelling, to meet the needs of its target sectors
TechEra Engineering LImited IPO Share Price and Issue Size
Issue Breakdown
Shareholding
Dilution: 36.0% increase in shares
TechEra Engineering LImited IPO Financials Health
TechEra Engineering LImited IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail Minimum | 1 | 1600 | ₹1,31,200 |
| Retail Maximum | 1 | 1600 | ₹1,31,200 |
| HNI Minimum | 2 | 3200 | ₹2,62,400 |
(All values in CR)
TechEra Engineering LImited IPO Valuation
| Metric | Value |
|---|---|
| Debt/Equity | 0.9 |
| EPS Post IPO | 2.92 |
| EPS Pre IPO | 3.97 |
| P/BV | 6.26 |
| P/E Post IPO | 28.09 |
| P/E Pre IPO | 20.65 |
| PAT Margin (%) | 12.45 |
| ROCE | 23..47% |
| ROE | 30.33% |
| RoNW | 30.33% |
(All values in CR)
Strength & Risk of TechEra Engineering LImited IPO
1. Strong partnerships, alliances and affiliations with nodal agencies in the area of defence, aerospace and automation.
2. Robust systems and processes across all functions of the company.
3. Strong technology backbone supported by a dedicated team of experienced professionals.
4. Favourable micro and macro environment.
1. Its business is dependent on the sale of its products to key customers. The loss of any of the company key customers or loss of revenue from sales to its customers could have a material adverse effect on the company's business, results of operations, financial condition, cash flows and future prospects.
2. The compan is highly dependent on a single Manufacturing Facility for the entire portion of its revenue from operations. Any disruption, breakdown or shutdown of its Manufacturing Facility may adversely affect the company's business, results of operations, financial condition, cash flows and future prospects.
3. Material adjustments have been made in the financial statements of the Company by its Independent Peer-Reviewed Auditors.
4. The Company has delayed payment of Government and statutory dues, and has been penalized.
5. The company has not complied with certain statutory provisions of the Companies Act and Rules thereunder. Such noncompliance may attract penalties and other actions against the Company and its Directors which could impact the financial position of it to that extent.
6. The Audit Reports to the Restated Financial Statements have been provided by Peer Reviewed Chartered Accountants who is not statutory auditor of the Company.
7. Its Independent Directors have not passed the online proficiency self-assessment test conducted by Indian Institute of Corporate Affairs to approve proficiency of a person to be appointed as an Independent Director of any company.
8. Any failure to compete effectively in the highly competitive global industry of high precision and mission critical components manufacturing could have a material adverse effect on its business, results of operations, financial condition, cash flows and future prospects.
9. Its contracts/ purchase orders may not be indicative of the company's future growth rate or new business orders its will receive in the future. Further, the company may not realize all of the revenue expected from its contracts/ purchase orders.
10. The company depends on third party suppliers for raw materials and other business inputs, which are on a purchase order basis. Such suppliers may not perform, or be able to perform their obligations in a timely manner, or at all and any delay, shortage, interruption, reduction in the supply of or volatility in the prices of raw materials and other business inputs on which the company relies may have a material adverse effect on its business, results of operations, financial condition, cash flows and future prospects.
TechEra Engineering LImited IPO Subscription Status
| Investor Category | Subscription (times) | Shares Offered | Shares bid for | Total Amount (Rs Cr.) |
|---|---|---|---|---|
| Anchor | 1.00 | 12,46,400 | 12,46,400 | 10.22 |
| HNI | 129.23 | 6,24,000 | 8,06,38,400 | 661.23 |
| Market Maker | 1.00 | 2,19,200 | 2,19,200 | 1.8 |
| QIB | 31.22 | 8,32,000 | 2,59,74,400 | 212.99 |
| Retail | 66.52 | 14,56,000 | 9,68,51,200 | 794.18 |
| Total | 69.87 | 29,12,000 | 20,34,64,000 | 1 |
TechEra Engineering LImited IPO GMP
Last updated 19 Sep, 2024 · Source: aggregated grey-market dealers
| Date | IPO Price | GMP | Sub2 Sauda | Est. Listing | Est. Profit | Updated |
|---|---|---|---|---|---|---|
| 19 Sep, 2024 | 82 | ₹0▼ | -- | ₹82 (0.00%) | - | 19 Sep, 2024 |
| 20 Sep, 2024 | 82 | ₹10 | 12200 | ₹92 (12.20%) | - | 20 Sep, 2024 |
| 21 Sep, 2024 | 82 | ₹10 | 12200 | ₹92 (12.20%) | - | 21 Sep, 2024 |
| 23 Sep, 2024 | 82 | ₹10▼ | 12200 | ₹92 (12.20%) | - | 23 Sep, 2024 |
| 24 Sep, 2024 | 82 | ₹15▼ | 18200 | ₹97 (18.29%) | - | 24 Sep, 2024 |
| 25 Sep, 2024 | 82 | ₹20 | 24300 | ₹102 (24.39%) | - | 25 Sep, 2024 |
| 26 Sep, 2024 | 82 | ₹20 | 24300 | ₹102 (24.39%) | - | 26 Sep, 2024 |
| 27 Sep, 2024 | 82 | ₹20▼ | 24300 | ₹102 (24.39%) | - | 27 Sep, 2024 |
| 30 Sep, 2024 | 82 | ₹22 | 26800 | ₹104 (26.83%) | - | 30 Sep, 2024 |
| 01 Oct, 2024 | 82 | ₹22▲ | 26800 | ₹104 (26.83%) | - | 01 Oct, 2024 |
| 03 Oct, 2024 | 82 | ₹18 | 21900 | ₹100 (21.95%) | - | 03 Oct, 2024 |
Disclaimer: GMP is an unofficial signal from grey-market dealers and is not regulated by SEBI. Use it alongside subscription data and other research for informed decision-making.
How to Apply for TechEra Engineering LImited IPO
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TechEra Engineering Limited IPO Analysis
The IPO of TechEra Engineering India Limited marks a significant milestone in the company's journey, aiming to raise capital for growth, expansion, and future business development. This document provides a detailed analysis of the IPO, highlighting its key features, pros and cons, and offering potential investors an overview of what to expect from this investment.
Key Details of the TechEra Engineering IPO
- Company: TechEra Engineering India Limited
- Incorporation: October 3, 2018
- Registered Office: Pune, Maharashtra
- Promoters: Nimesh Rameshchandra Desai, Meet Nimesh Desai, Kalpana Nimesh Desai
- IPO Size: Public issue of 43,77,600 Equity Shares of ?10 each
- Issue Type: 100% Book Built Issue
- Listing Platform: SME Platform of NSE (NSE EMERGE)
- Book Running Lead Manager: SKI Capital Services Limited
- Registrar: KFin Technologies Limited
- Issue Open and Close Date: September 25, 2024, to September 27, 2024
Purpose of the IPO
The company intends to use the proceeds from the IPO to fund the following:
- Capital Expenditure: Purchase of new machinery for business expansion (? 2,000 lakhs).
- Working Capital Requirements: Strengthening day-to-day business operations (? 600 lakhs).
- Debt Repayment: Prepayment or repayment of a portion of outstanding borrowings (? 500 lakhs).
- General Corporate Purposes: To cover other business-related expenses.
Financial Overview
- Revenue: ? 3,907.66 lakhs for the year ending March 2024, showing significant growth from ? 736.74 lakhs in 2022.
- Profit After Tax: ? 482.25 lakhs in 2024, indicating a robust turnaround from a loss in 2022.
- Earnings Per Share (2024): ? 4.14
Industry Overview
TechEra Engineering operates in the aerospace and defense sector, which is expanding rapidly in India. The government’s focus on domestic production, research, and innovation presents ample growth opportunities for companies involved in high-precision engineering and manufacturing.
Pros of TechEra Engineering IPO
- Growth in Aerospace and Defense Sector: The industry is booming, with increased focus on innovation, making this a favorable time for the company.
- Experienced Promoters: TechEra is led by a team of experienced professionals who have a deep understanding of the industry.
- IPO for Expansion: Proceeds will be used for business expansion and improving operational efficiency, signaling potential future growth.
- Improving Financials: Strong revenue growth and a transition from losses to profits show a solid financial recovery.
Cons of TechEra Engineering IPO
- Industry Volatility: Aerospace and defense are subject to regulatory and political changes, which may affect future growth.
- Highly Competitive Market: The industry is competitive, with many global and domestic players vying for market share.
- Dependency on a Single Facility: The company is dependent on one manufacturing facility, which could be a risk in case of operational issues.
- IPO Risks: As with any IPO, there's uncertainty regarding stock performance post-listing.
Risk Factors
General Risks
Investments in equity come with inherent risks. Investors must consider the possibility of capital loss, especially given market volatility.
Specific Risks to TechEra Engineering
- High Dependence on Key Customers: The company relies on a few significant clients, making it vulnerable to changes in their procurement policies.
- Operational Risks: Any delays in expanding or setting up new facilities could impact profitability.
Conclusion
TechEra Engineering’s IPO is a significant opportunity for investors looking to tap into the growth of the aerospace and defense sectors. However, like any investment, there are risks. While the company shows strong financial recovery and promising future prospects, investors should carefully consider the risks associated with industry volatility, competition, and dependence on limited customers.
FAQs About Techera Engineering Limited Ipo
TechEra Engineering LImited IPO will open on 25 Sep, 2024 and close on 27 Sep, 2024. Investors must apply within this period to participate.
The TechEra Engineering LImited IPO price band is set between ₹75.00 and ₹82.00 per share. The minimum lot size is 1600, requiring an investment of at least ₹131200.00.
The TechEra Engineering LImited IPO shares are expected to be listed on 03 Oct, 2024, subject to regulatory approvals and final allotment.
You can track your TechEra Engineering LImited IPO application status on the registrar’s website: Link Intime or KFintech using your PAN, application number, or DP ID
The TechEra Engineering LImited IPO will be listed on major stock exchanges such as BSE, where you can trade shares once they are listed.