Associated Coaters Ltd IPO: Review, Valuation, Date & GMP

Associated Coaters Limited IPO  - Complete Overview

Established in 2017, Associated Coaters Limited specializes in pre-treatment and powder coating of aluminum extrusions for the architecture and real estate industries. 

Based in Vivekanandapur, 24 Paraganas (South), Kolkata, the company prides itself on providing timely and efficient deliveries of powder-coated aluminum sections across Kolkata, Orissa, Siliguri, Bihar, and Jharkhand.

With an annual capacity of 1,200 metric tons, including both automatic and manual coating plants, Associated Coaters is emerging as a significant player in the aluminum extrusion coating market in eastern India. 

The company runs two manual powder coating plants and an additional fully automatic powder coating plant, established in July 2017.

Certified with ISO 9001:2015, Associated Coaters Limited adheres to a robust Quality Management System, ensuring high standards in their operations and services.

Associated Coaters Limited IPO Overview

Associated Coaters Limited IPO date is slated to be open for subscription from May 30, 2024, to June 3, 2024. This BSE SME IPO follows a Fixed Price Issue IPO.

Associated Coaters Limited IPO price is fixed at Rs. 121 per share. 

The total issue size of this IPO amounts to Rs.5.11 Cr. The company has allocated 50% shares to retail investors and 50% to other investors.

Company Financial

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

(Amount in Lakhs)

Period	30 Sep 2023	31 Mar 2023	31 Mar 2022
Total Assets	370.71	296.12	201.81
Total Revenue	232.96	358.94	139.41
PAT	33.22	54.30	13.67
Net worth	103.57	70.34	16.05
Reserve & Surplus	100.57	67.34	13.05
Total Borrowings	34.90	9.90	10.10

 

The Objective of the Issue

The Company plans to use the net proceeds from the fresh issue for the following objectives:

a) Funding capital expenditure towards the installation of plant & machinery in our existing premises.

b) Working Capital Requirements.

c) General Corporate Purposes.

Peers of Associated Coaters Limited IPO

According to the Associated Coaters Limited DRHP, the company does not have any listed peers.

 

 

Evaluation

The IPO is priced at Rs.121 per share.

Evaluation of P/E Ratio

• Considering the FY23 EPS of Rs 5.84 from the last year, the resulting P/E ratio is 20.71x.

• Taking into account the weighted EPS of Rs 3.41 for the last three years, the P/E ratio amounts to 35.48x.

Comparative Analysis with Listed Peers

The company does not have any listed competitors in its industry.

IPO's Strengths 

• Demonstrated robust project execution capabilities and proven industry expertise.

• Cultivating strong customer relationships for sustained business success.

• Commitment to quality assurance excellence.

• Guided by seasoned leadership at the helm.
  
  

IPO weaknesses 

• The top five customers contribute the majority of the company's operational revenues.

• Potential conflicts of interest may exist between the company and other ventures or enterprises promoted by the company's promoter.

• The company does not have long-term supply agreements with its vendors or suppliers.

• The company requires numerous approvals, NOCs, licenses, registrations, and permits in the ordinary course of business.

• Compliance with stringent environmental, health, and safety laws and regulations, or stricter enforcement of these laws, may lead to increased liabilities and capital expenditures.

• The company competes with both organized and unorganized players within its industry.
  
  

IPO GMP Today 

The latest GMP of Associated Coaters Limited is Rs.75.

Associated Coaters Limited IPO timetable (Tentative)

Associated Coaters 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

Associated Coaters Limited IPO Details 

Associated Coaters Limited IPO, with a face value of Rs.10 per share, opens on May 30 and closes on June 3, 2024, offering 422,000 shares at Rs.121 per share, with a lot size of 1000 shares, aiming to raise Rs.5.11 Cr, and will be listed on BSE SME.

IPO opening & closing date	May 30, 2024 to June 3, 2024
Face value	Rs.10 per share
Issue Price	Rs.121 per share
Lot Size	1000 Shares
Price of 1 lot	Rs. 121,000
Issue Size	422,000 shares (aggregating up to ₹5.11 Cr)
Fresh issue	422,000 shares (aggregating up to ₹5.11 Cr)
Listing at	BSE SME
Issue Type	Fixed Price Issue IPO
Registrar	Bigshare Services Pvt Ltd

Associated Coaters Limited IPO Lot Details 

For Associated Coaters Limited IPO, the retail investor minimum and maximum lot investments are both 1 lot (1000 shares) at Rs.121,000 while for HNI investors, the minimum investment is 2 lots (2000 shares) at Rs. 242,000.

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

Associated Coaters Limited IPO Reservation

Other Investors share Portion	50%
Retail Investors share Portion	50%

Promoters and Management of Associated Coaters Limited

• Jagjit Singh Dhillon 

• Navneet Kaur.

Pre-issue Promoter shareholding	99.98%
Post-issue Promoter shareholding

 

Associated Coaters Limited IPO Lead Managers

• Gretex Corporate Services Limited
  
  

Dividend Policy

The company has not declared any dividends on equity shares in the last three financial years.

 

 

Conclusion

The company operates in a highly competitive and fragmented sector. While its revenue performance is well, the gestation period for migration is longer. Experienced investors might consider applying for the IPO, whereas others may prefer to avoid it.

 

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.

 

 

Want to start Your Journey in stock market trading and investment? Join our Stock Market Class to become beginner to expert trader! We cover everything from the basics of trading to advanced strategies for picking stocks. Plus, we're offering a special discount for women and students. Don't miss out - enroll now and kickstart your path to success in the stock market!

Open a world of Stock Market by Opening a Demat Account with your favourite Broking firm & Get a trading Strategy worth Rs.15,000!

• AngelOne
• Zerodha
• Upstox
• Alice Blue

Thank You for reading this blog.
Hope you loved the IPO analysis.
Please Comment Below with your feedback because Your feedback motivates us to deliver more such content.

 

Follow MUKUL AGRAWAL for the latest IPO news and reviews. You can connect with us on social media platforms like Twitter, Facebook, and Instagram. You can also subscribe to our YouTube Channel for the latest videos of the stock market.