Aimtron Electronics Ltd IPO: Review, Valuation, Date & GMP

Aimtron Electronics Limited IPO - Complete Overview

Founded in 2011, Aimtron Electricals Limited specializes in offering products and solutions for electronics system design and manufacturing (ESDM) services, emphasizing high-value precision engineering products. 

The company offers a comprehensive range of services, from printed circuit board (PCB) design and assembly to the manufacturing of complete electronic systems ("Box Build"), serving domestic and global manufacturers in India, the USA, Hong Kong, the UK, Spain, and Mexico.

Their solutions primarily include printed circuit board assembly (PCBA), box build assemblies, and battery management systems for electric vehicles. 

They also provide end-to-end design solutions, encompassing conceptual design, engineering, product prototype development, and turnkey manufacturing for customers. 

Aimtron caters to multiple industry segments, offering ESDM products and services essential for industrial automation, electric vehicle mobility, IoT and embedded systems, medtech and wearables, gaming, and robotics. 

The company operates through two manufacturing facilities located in Vadodara, Gujarat, and Bengaluru, Karnataka, staffed by 131 employees, including a team of 28 engineers as of September 30, 2023, to enhance operational efficiency. 

Aimtron is certified with ISO 13485:2016 for Quality Management System for medical devices, ISO 14001:2015 for Environmental Management System, and EN ISO 9001:2015 for Management System.

 

Aimtron Electronics Limited IPO Overview

Aimtron Electronics Limited IPO date is slated to be open for subscription from May 30, 2024, to June 3, 2024. This NSE SME IPO follows a Book Built Issue IPO.

Aimtron Electronics Limited IPO price is fixed in the range of at Rs.153 to Rs.161 per share. 

The total issue size of this IPO amounts to Rs.87.02 Cr. The company has allocated 35% share to retail investors, 50% to institutional and 15% to non-institutional investors.

 

Company Financial

Compared to the financial year ending March 31, 2023, and March 31, 2022, Aimtron Electronics Limited has seen growth in total assets, net worth, and total revenue. The profit after tax and total borrowing has also increased.

Amount in Lakhs

Period	30 Sep 2023	31 Mar 2023	31 Mar 2022
Total Assets	8,992.72	8,740.02	5,904.04
Total Revenue	4,388.10	7,239.98	2,689.41
PAT	710.37	863.19	-180.15
Net worth	3,833.64	3,123.26	2,038.96
Reserve & Surplus	3,542.74	2,832.36	1,969.17
Total Borrowings	1,907.89	2,023.61	848.98

 

Operation-wise Revenue Break up

(Amount in Lakhs)

Product & Service Offerings	September 30, 2023	FY 2022-23	FY 2021-22
PCBA	3182.74	6299.77	2093.06
Box-Build	1090.96	661.41	434.18
End to End Solutions	33.07	197.19	104.67
Total	4306.77	7158.36	2631.91

 

Industry-wise Revenue Break Up

(Amount in Lakhs)

 

The Objective of the Issue

The compoany is intend to utilize the proceeds of the Issue to meet the following objects: -

1. Repayment in full or in part, of certain of the company’s outstanding borrowings.

2. Funding Capital Expenditure towards installation of additional plant and machinery.

3. Funding to meet working capital requirements.

4. General Corporate Purpose.

 

Peers of Aimtron Electronics Limited IPO

Name of the Company	Face value (Rs)	EPS (Rs)	P/E Ratio
Aimtron Electronics Limited	10	7.90	-
Kaynes Technology India Limited	10	19.61	131.71
Vinyas Innovative Technologies Limited	10	19.62	25.74
Avalon Technologies Limited	2	9.08	57.72
Syrma SGS Technology Limited	10	7.50	89.33

Evaluation

The IPO is priced within the range of Rs.153  to Rs.161 per share.

Evaluation of P/E Ratio

• Considering the FY23 EPS of Rs 10.67 from the last year, the resulting P/E ratio is 15.08x.

• Taking into account the weighted EPS of Rs 9.14 for the last three years, the P/E ratio amounts to 17.61x.

Comparative Analysis with Listed Peers

• The industry's average P/E is 76.13x.

As a result, the IPO price range, with a P/E ratio ranging from 15.08x to 17.61x, seems fully priced to the industry average of 76.13x.

IPO's Strengths

• A “One Stop Shop” for electronics system design and manufacturing (ESDM) services.

• Diverse product portfolio with applications across various industry verticals.

• Engineering expertise with capabilities for complex product manufacturing.

• Long-term, well-established relationships with customers.

• Strong supply chain and sourcing network coupled with rigorous Quality Assurance.

• Experienced and qualified management and employee base.

 

IPO's Weaknesses

• The company operates in highly competitive markets, where some competitors' scale and resources may allow them to compete more effectively.

• The company is significantly dependent on revenue from the sale of PCBA.

• The company has a history of net losses, and its current profits may not reflect future performance.

• The company has previously been non-compliant with certain reporting requirements under FEMA regulations within the prescribed period.

• Reliance on certain industries for a significant portion of sales could adversely affect the company's business.

• The company is subject to strict quality requirements, customer inspections, and audits, and any failure to comply with these standards may lead to the cancellation of existing and future orders.

• A majority of the company's revenue is derived from exports, exposing it to the risks of international trade.

• The company currently benefits from EPCG licenses, which require exporting a defined amount of goods to maintain these benefits.

 

IPO GMP Today 

The Latest GMP of Aimtron Electronics Limited is Rs.25.

 

Aimtron Electronics Limited IPO Timetable (Tentative)

Aimtron Electronics Limited IPO is scheduled from May 30 to June 3, 2024, with allotment on June 4, refund initiation on June 5, and listing on June 6, 2024.

Events	Date
IPO Opening Date	May 30, 2024
IPO Closing Date	June 3, 2024
IPO Allotment Date	June 4, 2024
Refund initiation	June 5, 2024
IPO Listing Date	June 6, 2024

 

Aimtron Electronics Limited IPO Details 

Aimtron Electronics Limited IPO, with a face value of Rs.10 per share, opens on May 30 and closes on June 3, 2024, offering 5,404,800 shares at Rs.153 to Rs. 161 per share, with a lot size of 800 shares, aiming to raise Rs.87.02 Cr, and will be listed on NSE SME.

IPO Opening & Closing Date	May 30, 2024 to June 3, 2024
Face Value	Rs.10 per share
Issue Price	Rs.153 to Rs. 161 per share
Lot Size	800 Shares
Price of 1 lot	Rs. 128,800
Issue Size	5,404,800 shares (aggregating up to ₹87.02 Cr)
Offer for sale	NA
Fresh issue	5,404,800 shares (aggregating up to ₹87.02 Cr)
Listing at	NSE SME
Issue Type	Book Built Issue IPO
Registrar	Link Intime India Pvt. Ltd.

 

Aimtron Electronics Limited IPO Lot Details 

For Aimtron Electronics Limited IPO, the retail investor minimum and maximum lot investments are both 1 lot (800 shares) at Rs.128,800 while for HNI investors, the minimum investment is 2 lots (1600 shares) at Rs.257,600.

Minimum Lot Investment (Retail)	1 lot
Maximum Lot Investment (Retail)	1 lot
Minimum Lot Investment (HNI)	2 lot

 

Aimtron Electronics Limited IPO Reservation

Institutional Share Portion	50%
Non-institutional Share Portion	15%
Retail share Portion	35%

 

Promoters and Management of Aimtron Electronics Limited

• Mukesh Jeram Vasani

• Nirmal M Vasani 

• Sharmilaben Lakhanbhai Bambhaniya

Pre-issue Promoter Shareholding	100%
Post-issue Promoter Shareholding

 

Aimtron Electronics Limited IPO Lead Managers

• Hem Securities Limited

 

Dividend Policy

The Company has not declared any dividend on the Equity Shares.

Conclusion

The company specializes in providing products and solutions for electronics system design and manufacturing. Operating in a competitive environment, it has faced losses in the past but demonstrated strong growth in FY23. Seasoned investors might consider participating in the upcoming IPO to potentially earn profits.

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

 

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

 

Disclaimer: This IPO analysis is only for informational purposes and should not be considered as investment advice. Always do your research and consult with a financial advisor.

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