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Craftsman Automation Ltd IPO

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share holding pattern:

Share Reservation

Net Issue (%)

Promoter and Promoter Group

63.4

Public

36.6


Object of the Offer

The offer comprises of a Fresh Issue (₹150 cr) and an Offer for Sale (₹674 cr at upper end of the price band) aggregating to ₹824 cr (at upper end of the price band). Of the proceeds from the fresh issue, ₹120 cr is proposed to be utilized towards repayment/prepayment, in full or part, of certain borrowings availed by the Company.

Craftsman Automation Ltd IPO Subscription Details

Company

Craftsman Automation Ltd

Issue Type

(Book Built Portion)

Issue Size (In ` Crore)

822.79 - 823.90

Lot Size

10

Open Date

15 Mar 2021

Close Date

17 Mar 2021

Offer Price

₹1488 to ₹1490 per equity share

DRHP

Click here

Subscription Status

Category Subscription Status Shares Offered
Qualified Institutional 5.21 Times 1,105,632
Non Institutional 2.84 Times 829,225
Retail Individual 3.43 Times 1,934,857
Others - -
Total 3.81 Times 3,869,714


Craftsman Automation IPO Subscription status (Day by Day)
Date QIB NII Retail Total
March-15-2021 5.00 0.00x 0.09x 1.06x 0.55x
March-16-2021 5.00 0.56x 0.19x 2.11x 1.26x
March-17-2021 5.00 5.21x 2.84x 3.43x 3.81x

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About Craftsman Automation Ltd IPO

Craftsman Automation Ltd. (CAL) is a diversified engineering company with vertically integrated manufacturing capabilities, engaged in three business segments namely, Automotive Powertrain and Others segment (47.5% of FY20 rev. form operation), Automotive Aluminium Products segment (17.3%) and Industrial and Engineering segment (35.2%). CAL is the largest player involved in the machining of cylinder blocks and cylinder heads in the intermediate, medium and heavy commercial vehicles segment as well as in the construction equipment industry in India. As per Crisil, CAL is among the top three-four component players with respect to machining of cylinder block for the tractor segment in India. Over the years, CAL has been instrumental in import substitution for critical powertrain parts. CAL has long term relationships with several marquee domestic and global original equipment manufacturers (OEMs) and component manufacturers across its business segments which is well diversified with top 10 customers accounting for only 53.41% of revenue from operation during FY20. It owns and operates 12 strategically located manufacturing facilities across seven cities in India that are close to some of its key customers.

Business Segments
The company has three business segments, namely, 1) Automotive - Powertrain and Others segment, 2) Automotive – Aluminium Products segment and 3) Industrial and Engineering segment.

 


Craftsman Automation Ltd - Financials


(Cr., unless specified)

FY18

FY19

FY20

9MFY21

Revenue from Operations

1,512

1,818

1,492

1,023

EBITDA

305

457

407

295

EBITDA Margin (%)

20.2

25.1

27.2

28.8

Diluted EPS (₹)

15.67

48.39

20.41

25.18

ROE (%)

5.8

15.5

6.2

7.1

ROCE (%)

14.0

18.7

13.8

10.6

Debt to Equity (x)

1.4

1.4

1.54

1.2

  • Diversified engineering company with a focus on providing comprehensive solutions and manufacturing high quality, intricate and critical products, components and parts
  • CAL offers comprehensive one-stop solutions to its customers including design, process engineering and manufacturing including foundry, heat treatment, fabrication, machining and assembly facilities. CAL is diversified across end-user industries and caters to commercial vehicles, two wheelers, tractor and other segments. For instance, they manufacture cylinder blocks, cylinder heads and transmission parts which are required for tractors and trucks as well as crank cases, which are required for two wheelers. They actively pursue cross selling opportunities across segments to derive value for existing and prospective customers. This not only helps CAL in solving complex customer problems that require multi-domain expertise but also helps in penetrating different business segments of the customer and enhances its capabilities to collaborate with OEMs right from the designing of their new products. Its diversified presence across various segments and design capability provides them with the flexibility to operate successfully across business cycles and mitigate any fluctuations in the industry. CAL’s diversification of revenue across multiple customers allow it to prevent any possible customer concentration in any of its business segments. With CAL’s track record and wide product portfolio, it has been able to retain existing customers and have also been able to attract new customers.

  • Strong in-house process and product design capabilities with the ability to interchange capacity and product mix
  • The company is present across various levels of the component value chain and possesses design capabilities which is unique across the competitive landscape. The company provides products and services that range from product design, prototyping, tool development, manufacturing, assembly and production of integrated components, reducing or minimizing use of, or reliance on, externally sourced components. Over the years, the company has engaged with customers from their early product design stage and have developed extensive process and product design capabilities and domain knowledge, particularly for niche, intricate, complex and highly critical automotive and non-automotive components, such as powertrain cylinder blocks and heads and camshafts.
    The company places strong focus on research and development, with an emphasis on continuous improvement in product performance, cost and reliability. CAL has utilized its in-house engineering and design capabilities to developed a diverse product portfolio including MHE such as hoists, crane kits, industrial gears/ gear boxes, storage solutions, marine engines and accessories, tool room, mould base products and special purpose machines (which includes metal cutting and nonmetal applications such as washing/ leak testing solutions), which are available to the company for captive use and application as well, and support contract manufacturing operations, while also reducing the need for reliance on third party component manufacturers or suppliers.
    CAL’s plant configurations are flexible, allowing it to move machinery from one location to another to interchange capacity, product mix, including ability to shift production lines between various segments, based on customer and operational requirements from time to time. This enables CAL to offer a diverse range of products and services to customers across a wide spectrum of industries in all three segments, thereby optimizing machine productivity, operational efficiency, time management and de-risking the business model.

  • Extensive manufacturing footprint, with strategically located manufacturing facilities
  • The company owns and operates 12 strategically located manufacturing facilities across seven cities in India, with a total built up area of over 1.5 million sq. ft. CAL’s facilities are equipped with advanced machinery and certain of the company’s facilities are located close to its key customers to enable meeting customers’ just-in-time delivery schedules, allow economies of scale and logistical advantages for customers, and to insulate them from local supply or other disruption. Two of the company’s facilities, forming its flagship integrated facility, are located at the outskirts of Coimbatore, TN. They also have two integrated facilities for aluminium pressure die casting, machining and SPM manufacturing at Bengaluru, KA. Other manufacturing facilities are satellite facilities located across automotive and engineering hubs in India and close to key customers, including three manufacturing facilities located at Pune, MH, two manufacturing facilities located at Ballabgarh near Faridabad, HR, and one manufacturing facility each located at Sriperumbudur, near Chennai TN, Jamshedpur, JH, and Pithampur near Indore, MP. The company has recently set up a new unit in Pune with high end fully automated equipment from Italian and Swiss manufacturers. This facility, which commenced operations in 2019, enables them to service the storage solutions market, catering to customers across India.

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Key Risk
  • The extent to which the coronavirus disease (COVID-19) affects its business, results of operations and financial condition will depend on future developments, which are uncertain and cannot be predicted.
  • Substantially all of its business is directly related to vehicle sales and production by customers, who consist primarily of large automotive OEMs, and demand for the company’s products is largely dependent on the industrial output of the automotive industry. The auto industry has been cyclical in nature in the past and there has been significant decline in sales even prior to COVID-19.
  • The loss of any of the key customers or significant reduction in production and sales of, or demand for production from its significant customers may adversely affect the business, results of operations and financial condition.

How to apply IPO on 5paisa app?

  • Login to your 5paisa Mobile Trading App and select the Craftsman Automation IPO in the current IPO section
  • Enter the number of lots and price at which you wish to apply for
  • Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange
  • You will receive a notification to block funds in your UPI app
  • Approve the block request
    

Craftsman Automation Ltd IPO Frequently Asked Questions

Craftsman Automation Ltd is a diversified engineering company with vertically integrated manufacturing capabilities coming up with its Initial Public Offering on Monday, March 15 with the public issue comprising a issue size of up to ₹824.00 crore.

You can apply for the Craftsman Automation IPO using any supported UPI apps. To Apply on 5paisa App follow the procedure mentioned above. For further details Click Here.

Craftsman Automation IPO will open on March 15, 2021.

The Issue Size of Craftsman Automation IPO is of face value ₹10 aggregating ₹824.00 Cr.

Craftsman Automation IPO Lot size is 10 equity shares, that means you can apply for one lot consisting 10 equity shares.

Shares of Craftsman Automation will be getting allotted on 22th March, 2021.

Craftsman Automation Shares will be getting listed on 25th March, 2021.

Here is the minimum investment calculation of Craftsman Automation IPO
Lot size – 10 * Issue Price ₹1490 = ₹14,900 Hence the minimum investment amount required to invest in Craftsman Automation IPO is 14,900 As per the maximum limit that is allowed by SEBI you can apply for 13 lots.

No, one bank account one IPO application is allowed.

Cut off Price for Craftsman Automation IPO is 14,900

Read more IPO FAQs

Contact Details of Craftsman Automation Ltd IPO

Company Contact Information

Craftsman Automation Ltd IPO
Senthel Towers IV Floor,
1078 Avanashi Road,
Coimbatore, Tamil Nadu 641018.

Phone:
Email: info@craftsmanautomation.com
Website: https://www.craftsmanautomation.com/

Craftsman Automation Ltd IPO Register

Link Intime India Pvt Ltd

Craftsman Automation Ltd IPO Lead Manager(s)

  • Axis Capital Ltd
  • IIFL Securities Ltd

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