Arrowhead Seperation Engineering IPO: Review, Valuation & GMP

Arrowhead Seperation Engineering Limited IPO - Complete Overview

Established in 1991, Arrowhead Separation Engineering Limited, also known as Arrowhead Seperation Engineering Ltd. (ASEL), specializes in designing and manufacturing various chemical process equipment, with a particular focus on continuous drying and cooling systems. ASEL has a vision to create equipment and solutions that align with global standards.

Their primary objective is to ensure the satisfaction of our customers by providing them with high-quality products. They are committed to conducting business ethically, emphasizing honesty and transparency in all our transactions. This commitment forms the foundation for building strong and lasting relationships with their customers.

Arrowhead Separation Engineering Limited started in 1991. As of June 2023, They have 54 employees. Sometimes, they also bring in experts from the industry for certain projects.

Their main products are :

• Zero Liquid Discharge System (ZLD)
• Drum Dryer
• Rotary Dryer
• Flaker System

 

What does the Company do?

Situated in Nashik, Maharashtra, specializing in designing and making chemical process equipment, especially continuous drying and cooling systems. Their facility in Nashik covers 24,000 square ft. with experienced staff managing the manufacturing resources. The company, operational for over two decades, focuses on continuous improvement and customization to meet client needs. The factory engages in welding, grinding, and machining processes based on customer orders. 

 

 

Arrowhead Seperation Engineering Limited IPO Overview

The Arrowhead Seperation Engineering Limited IPO date is slated to be open for subscription from November 16, 2023, to November 20, 2023. This BSE SME IPO follows a Fixed Price Issue IPO.

The Arrowhead Seperation Engineering Limited IPO  price is fixed at Rs. 233 per share. The upcoming BSE SME IPO will be listed on November 29, 2023.

The total issue size of this IPO amounts to Rs.13.00 CR. Within this total issue, 50% is issued to retail investors, and 50% is issued to other investors.

 

Arrowhead Seperation Engineering Limited IPO timetable (Tentative)

Events	Date
IPO Opening Date	16 November 2023
IPO Closing Date	20 November 2023
IPO Allotment Date	23 November 2023
Refund initiation	24 November 2023
IPO Listing Date	29 November 2023

 

Arrowhead Seperation Engineering Limited IPO Details

IPO Opening & Closing Date	16 November to 20 November 2023
Face value	Rs. 10 per Share
Issue Price	Rs. 233 per Share
Lot Size	600 Shares
Price of 1 Lot	Rs. 139,800
Total Issue Size	558,000 shares (aggregating up to Rs. 13.00 Cr)
Fresh Issue	558,000 shares (aggregating up to Rs. 13.00 Cr)
Listing at	BSE, SME
Issue Type	Fixed Price Issue IPO
Registrar	Cameo Corporate Services Limited

 

Arrowhead Seperation Engineering Limited IPO Lot Details

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

 

 

Arrowhead Seperation Engineering Limited IPO Reservation

Retail Shares Offered	50%
Other Shares Offered	50%

 

Company Financial

(Amount in Lakhs)

Period	FY 23	FY 22	FY 21
Total Assets	2,070.53	1,832.23	1,567.43
Total Revenue	2,171.57	1,091.73	916.63
PAT	169.18	9.17	-179.19
Net worth	246.07	77.26	68.09
Reserve & Surplus	114.74	-3.56	-12.73
Total Borrowings	812.67	699.45	600.59

 

Revenue-Breakdown by Customers

Particulars	FY 2022-23	FY 2021-22
Income from Top 5 Customer	88.93%	63.99%
Income from Top 10 Customer	95.89%	82.15%

 

Revenue By Operations

(Amount in Lakhs)

Particulars	FY 23	FY 22	FY 21
Revenue from operations	2,150.10	1,087.13	912.29
Other Operating Income	21.47	4.60	4.34
Total Revenue from operations	2,171.57	1,091.73	916.63

 

The Objective of the Issue

The company intends to use the net proceeds for the following objectives.

• Paying back loans to non-banking financial companies (NBFCs).
• Getting funds for day-to-day business needs. 
• Using money for general business purposes.

 

Promoters and Management of Arrowhead Seperation Engineering Limited IPO

The company's promotors are Ajit Mundle and Jyoti Mundle.

Pre-issue Promoter Shareholding	50%
Post-issue Promoter Shareholding	35.09%

 

Arrowhead Seperation Engineering Limited IPO Lead Managers

Aryaman Financial Services Ltd. solely serves as the lead manager.

 

Peers of Arrowhead Seperation Engineering Limited IPO

Name of the Company	Face value (Rs. per Share)	P/ E	EPS (Basic) (Rs.)
Arrowhead Seperation Engineering Limited	10.00	18.09	12.88
Kilburn Engineering Ltd	10.00	26.38	8.66
Praj Industries Ltd	2.00	17.92	13.05

 

IPO's Valuations

To evaluate the IPO's valuation, we can utilize the information presented in the company's RHP. Arrowhead Seperation Engineering Limited IPO is fixed at Rs. 233 per share, with an EPS of Rs. 12.88. Based on the issue price the company's P/E ratio is calculated at 18.09.

 

Dividend Policy

According to Arrowhead Seperation Engineering Limited IPO, the company did not distribute dividends in the preceding fiscal years, and its capacity to declare dividends in the future hinges on its earnings and financial health.

 

 

IPO's Strengths

• Personalized products for each client.
• Experienced and skilled Executive Directors.
• Relationship with Customers & Suppliers.
• A wide range of products.

 

IPO's Weaknesses

• Sudden surge in profits over the last 15 months.
• Raises questions and concerns about the sudden increase.
• Issue appears aggressively priced.

 

IPO GMP Today

The latest GMP of Arrowhead Seperation Engineering Limited IPO is Rs. 75.

 

Conclusion

A sudden profit surge raises concerns about aggressive pricing. With an issue price of Rs. 233 per share and a P/E ratio of 18.09, investors should carefully weigh potential risks. While Arrowhead shows promise, investors should stay vigilant and consider evolving market conditions before making investment decisions.

 

 

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.

 

 

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