Aprameya Engineering Ltd IPO: Review, Valuation, Date & GMP

Aprameya Engineering Limited IPO - Complete Overview

Aprameya Engineering Limited IPO is an SME book-built issue IPO of Rs.29.23 crores by Aprameya Engineering Limited that was founded in September 2003, maintains prefabricated structure wards, operation theaters, newborn intensive care units (NICU), pediatric intensive care units (PICU), and intensive care units (ICU) in hospitals and medical facilities. They offer these services turnkey and also supply high-quality healthcare and diagnostic equipment to private hospitals, government institutions, and medical practitioners.

The goods manufactured by the company can be divided into two categories:

• Developing healthcare infrastructure for hospitals and medical care institutions.

• Dealing with high-value medical equipment

The e-health market is predicted to grow to $10.6 billion by 2025. In November 2021, the Government of India, the Government of Meghalaya, and the World Bank signed a $40 million health project for Meghalaya. Healthcare has risen to become one of India's most profitable and employment-generating businesses.

Since 2020, the firm has been establishing ICUs and operating theatres and has installed over 2000 critical care beds, including ICUs, NICUs, and PICUs. Modular operating theatres are being built throughout Rajasthan.

The company offers a variety of medical equipment and solutions, including an electrosurgical generator, an electrosurgical unit, a CO2 insufflator, an LED surgery light, a surgical and medical examination light, an ICU respiratory monitoring system, an ICU ventilation system, an anesthesia workstation, a jaundice meter, an anesthesia machine, and a harmonic scale.

As of August 31, 2023, the company had 44 permanent employees in charge of day-to-day operations, marketing, and accounting. Functions include business operations, marketing, and accountancy.

Dear readers, we are pleased to provide details about the approaching SME IPO. The company plans to launch its IPO on July 25, 2024. Let's take a closer look at the IPO's offerings below.

 

 

Aprameya Engineering Limited IPO Overview

Aprameya Engineering IPO of Rs.29.23 crore comprises a wholly Fresh Issue of 50.4 lac Shares (amounting to Rs.29.23 crores) out of which 35% is allocated to retail investors, 50% to institutional investors, and 15% to non-institutional-investors.

This SME IPO will be available to investors on July 25, 2024, and conclude on July 29, 2024. The anticipated listing date for the IPO is Thursday, August 1, 2024, and will be held on the NSE and SME. The price range of each Share is Rs.56 to Rs.58.

If you want to apply for the IPO, Click Here to Open a Demat Account.

 

Company Financial

The company's revenue decreased by 16.23%, while profit after tax (PAT) decreased by 35.62% during the financial years ending March 31, 2024, and March 31, 2023. 

Below is the synopsis of the company's financial data for the financial year ending March 31, 2024.

• The total revenue of the company is Rs.6,562.22 lac.

• The net worth of the company is Rs.2,336.76 lac.

• The company's EBITDA is Rs.593.07 lac.

• The total assets of the company are Rs.7,560.42 lac.
  
  

(Amount in lac)

Period	31 Mar 2024	31 Mar 2023	31 Mar 2022
Total Assets	7,560.42	6,189.03	4,870.84
Total Revenue	6,562.22	7,833.35	20,026.16
PAT	345.67	536.92	1,661.91
Net Worth	2,336.76	1,992.49	1,452.94
Reserve & Surplus	936.76	592.49	752.94
Borrowing	4,204.83	2,873.95	1,368.28

 

Revenue Bifurcation

Below is the revenue breakdown for various activities:

(Amount in lac)

Net Cash Flow In Multiple Activities	FY 2024	FY 2023	FY 2022
Net Cash Flow Operating Activities	-997.50	-1,349.04	-36.80
Net Cash Flow Investing Activities	-99.82	-182.86	-264.85
Net Cash Flow Financing Activities	1110.84	1,304.09	549.94

Segment-wise Revenue Breakdown For The Last Three FYs

(Values in Lac)

Business	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022
Healthcare Infrastructure	4578.76	6460.55	11505.29
High-Value Medical Equipment	1802.69	1277.16	8383.50
Operating	134.78	74.20	110.67

 

The Objective Of The Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• To fulfill incremental working capital requirements (including augmentation of Long-Term Working Capital).

• Corporate Purposes.

 

 

Peers of Aprameya Engineering Limited

No listed peer as per the data provided in the DRHP.

 

Evaluation

The price of this IPO is Rs.56 to Rs.58 for each Share.

Evaluation Of P/E Ratio

Considering the FY 2023-2024, with EPS of Rs.2.47 from the last year, the resulting P/E ratio is 23.48x.

Considering the weighted EPS of Rs.4.49 for the last three years, the P/E ratio is 12.91x.

Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is NA as there are no similar listed companies engaged in similar businesses of similar size. Hence comparison is not possible.

IPO's Strengths

• The company is rapidly expanding, with a focus on developing healthcare infrastructure.

• Successfully established ICUs, NICUs, PICUs, and Operation Theatres.

• Firm relationships with a number of medical equipment vendors and manufacturers.

• A large customer base, including various private and public hospitals/medical colleges.

• Skilled promoters with a technical staff that understands the issue.

• Asset-light and scalable business model.
  
  

IPO’s Weaknesses

• The company had negative cash flows in previous years. Future negative cash flows Loss of important customers or decreased demand might significantly impact its business and financial success.

• Its business and profitability rely heavily on customer spending in the healthcare infrastructure industry. A decrease in spending in India could harm this.

• The company recently expanded into the installation, setup, and maintenance of ICU, NICU, PICU, Dialysis centers, and Operation Theatre services. However, they face risks connected with new business models and may not be effective in implementing them.

• Failure to obtain, renew, or maintain necessary permissions and approvals might negatively impact its business, financial conditions, performance, and cash flows.

• They rely heavily on the state of Rajasthan for revenue, therefore any market changes could harm the company. 

 

IPO GMP Today

The Latest GMP of Aprameya Engineering Limited IPO is Rs.30.

Aprameya Engineering Limited IPO Timetable (Tentative)

The IPO is scheduled from July 25 to July 29, 2024, with allotment on July 30, refund initiation on July 31, and listing on August 1, 2024.

 

Aprameya Engineering Limited IPO Details 

The IPO with a Face Value of Rs.10 per Share is set to start on July 25, close on 29 July, and offer a total issue size of 5,040,000 Shares (aggregating up to Rs.29.23 Cr) comprising a whole fresh issue size of 5,040,000 Shares (totaling up to Rs.29.23 Cr).

IPO Opening & Closing date	July 25, 2024 to July 29, 2024
Face Value	Rs.10 per Share
Issue Size	5,040,000 Shares (aggregating up to Rs.29.23 Cr.
Offer For Sale	NA
Fresh Issue	5,040,000 Shares (aggregating up to Rs.29.23 Cr.
Listing At	NSE, SME
Issue Type	Book Built Issue IPO
Registrar	Link Intime India Private Ltd

Aprameya Engineering Limited IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (2000 Shares) amounting to Rs.116000 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (4000 Shares) amounting to Rs.232000.

Minimum Lot Investment (Retail)	1 Lot
Maximum Lot Investment (Retail)	1 Lot
HNI (Min)	2 Lots

 

Aprameya Engineering Limited IPO Reservation

Institutional Portion	50%
Retail Portion	35%
Non-Institutional Portion	15%

 

Promoters And Management Of Aprameya Engineering Limited IPO

• Saurabh Kishorbhai Bhatt 

• Chetan Mohan Josh

Pre-Issue Promoter Shareholding	100%
Post-Issue Promoter Shareholding	73.53%

 

 

Aprameya Engineering Limited IPO Lead Managers

• Hem Securities Limited
  
  

Dividend Policy

No dividends have been declared by the company yet.

 

Conclusion

The company has experienced negative cash flow in operating activities and investing activities throughout the last few fiscal years. To achieve its goals, the company is currently launching an IPO for the general public.

We believe the information offered in this blog helps you learn about the company's financial performance. So this blog will be very useful to you if you are looking for information about the approaching IPO since it will give you reliable information about the company's, insights, financials, and past performance. If this informative blog piques your interest, you may be interested in reading our other related and useful posts on our website.

 

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.

 

We believe this blog would be very beneficial to you if you are looking for such information related to this upcoming IPO since this blog would provide you with accurate information about the company's, insights, financials, and past performance. If this informative blog matches your interest, you might be interested in reading our other related useful blogs on our website.

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.

Click Here to stay updated with the Upcoming IPOs.

 

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