IPO Synopsis
IPO Synopsis
Bengaluru-based Maini Precision Products Limited (MPPL) has filed preliminary papers with SEBI to raise funds between Rs. 800-900 crores through an initial share sale.
The initial public offering (IPO) consists of a fresh issue of equity shares aggregating to Rs. 150 crore, and an offer for sale of up to 2,54,81,705 equity shares
As a part of the OFS, promoters will offload 60,20,765 equity shares, individual shareholders will sell up to 6,45,865 equity shares, other selling shareholders will sell up to 5,13,390 shares, and investor shareholders will sell 1,83,01,685 equity shares.
ICICI Securities and IIFL Securities are the book running lead managers to the Maini Precision Products issue.
Objective of the Issue
Proceeds from the issue will be utilised:
• to repay/prepay ₹112.5 crore borrowings
• for general corporate purposes
About Maini Precision Products Ltd
Bengaluru-based Maini Precision Products Limited is an end-to-end solutions provider engaged in process design, engineering, manufacturing, testing, and supply of a variety of precision products and assemblies.
It offers a diverse and critical manufacturing and finishing processes, including machined castings, die castings, machined forgings, bar route machining, plate machining, surface treatment, heat treatment, critical assembly, as well as ancillary activities such as end of line testing, export packing and warehousing.
The products are used across various industries such as aerospace, defense, automotive Clean Powertrain, power tools, material handling, hydraulic, marine, locomotive, and electronics.
It has a diverse portfolio of over 126 product families, and more than 50 customers in 2021, making it a strategic and preferred supplier. The company has 11 manufacturing facilities, which are located in Bangalore, India
The business is diversified into two business:
(a) aerospace,
(b) automotive and industrial
Its experience in aerospace commercial programs has allowed it to associated with the defense majors based in USA, Europe and Israel for a range of defense programs. While its experience in precision engineering has enabled it to venture into
(a) the Clean Powertrain market, where it supplies to global automotive Tier I players and OEMs in USA, Europe and India for a range of Clean powertrain programs
(b) various industrial segments like power tools, locomotive, and marine, wherein it supplies to OEMs in USA, Mexico, Europe and India
Maini Precision Products Ltd Financial Status
Peer Comparison
|
Name of the company |
Total Revenue (in Rs. crores) |
Basic EPS |
NAV Rs. per share |
PE |
RoNW % |
|
Maini Precision Products |
436.80 |
-11.35 |
-5.74 |
NA |
56.84% |
|
Sona BLW Precision Forgings Limited |
1,568.64 |
3.76 |
22.76 |
185.93 |
16.50% |
|
Bharat Forge Limited |
6,505.16 |
-2.71 |
116.99 |
NA |
-2.33% |
|
Lakshmi Machine Works Limited |
1,806.10 |
41.75 |
1666.47 |
211.29 |
2.51% |
|
MTAR Technologies Limited |
247.74 |
16.99 |
154.99 |
99.88 |
9.66% |
|
Sansera Engineering Limited |
1,572.36 |
21.02 |
189.35 |
38.53 |
12.36% |
Financials
|
Particulars (in Rs. Crores) |
FY21 |
FY20 |
FY19 |
|
Revenue |
427.4 |
570.8 |
560.30 |
|
EBITDA |
13 |
39.5 |
42.6 |
|
PAT |
-46.9 |
-22.6 |
-18.4 |
|
EPS (basic in Rs.) |
-11.35 |
-5.48 |
-4.44 |
|
ROE |
56.84% |
65.8% |
168% |
|
ROCE |
0.04% |
8.4% |
11.3% |
|
Particulars (in Rs. Crores) |
FY21 |
FY20 |
FY19 |
|
Total Assets |
668.1 |
680.4 |
670.8 |
|
Share Capital |
8.26 |
8.26 |
8.26 |
|
Total Borrowings |
523.6 |
474.7 |
426.4 |
|
Particulars (in Rs. Crores) |
FY21 |
FY20 |
FY19 |
|
Net cash generated from / (used in) operating activities |
10.52 |
65.05 |
29.90 |
|
Net cash from / (used in) investing activities |
-7.30 |
-47.41 |
-119.30 |
|
Net cash flow from / (used in) financing activities |
-4.50 |
-23.52 |
97.85 |
|
Net increase (decrease) in cash and cash equivalents |
-1.28 |
-5.88 |
8.44 |
The Key points are-
IPO Key Points
-
Strengths
- Advanced manufacturing processes, engineering expertise and quality assurance
- Strategic supplier with a diversified business and product portfolio
- Diversified customer base with long-term relationships and customer stickiness
- Global delivery model, with “end-to-end” capabilities
- Robust technological, innovation and R&D capabilities with high barriers to entry, enabling us to seamlessly harness emerging trends
-
Risks
- The business is dependent on exports and the performance of geographies where the products are supplied, thus, any changes in the industries in global markets, including key markets, can hurt the business
- Incremental business pipeline may not be indicative of its future growth rate or new business orders which it will receive in the future
- Development of the products involves a lengthy and expensive process with uncertain timelines and uncertain outcomes
- Failure in anticipating, identifying, understanding and responding in timely manner to rapidly evolving technological and market trends and preferences and develop new products in demand.
- Any upstream advances in terms of value-added products by suppliers for various processes could result in them becoming the competition
- Third-party risks, as the firm is dependent on third party suppliers for raw materials and certain parts and processes used in the manufacturing of its products
How to apply for IPO?
-
Login to your 5paisa account and select the issue 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 mandate notification to block funds in
your UPI app -
Approve the mandate request on your UPI and funds
will be blocked