Electro Force India IPO  - Complete Overview

Established in 2010, Electro Force (India) Private Limited is a certified company specialising in the design and manufacturing of electrical components, metal/plastic contact parts. Operating on a business-to-business (B2B) model, the company has been a reliable supplier of high-grade precision metal electrical contact parts, connectors, and assemblies to industries such as electronics, lighting, and switchgear in India.

Located in Vasai, Maharashtra, their manufacturing unit provides end-to-end solutions under the B2B model, offering services encompassing design, manufacturing, quality testing, packaging, and logistics. With a focus on integrated services for Indian manufacturers of electrical components, Electro Force excels in precision metal stamping, assembly, and moulding.

The company specialises in precision sheet metal components, high-speed metal stamping, plastic injection mouldings, insert and over-molding, sub-assemblies, and value-added services. Their expertise extends to diverse industries, including electronics, lighting, and engineering. Electro Force's capabilities cover the entire process from concept and design to final delivery, allowing them to continually enhance their product offerings over the past 13 years. Their accumulated experience enables them to assist customers in creating new designs, incorporating advanced technologies, and optimising manufacturing facilities to better meet evolving customer needs.

 

Electro Force India IPO Overview

Electro Force India IPO date is slated to be open for subscription from December 19, 2023, to December 21, 2023. This NSE SME IPO follows a Fixed Price Issue IPO.

Electro Force India IPO price is fixed at Rs. 93 per share. The upcoming NSE SME IPO will be listed on December 27, 2023.

The total issue size of this IPO amounts to Rs.80.68  CR. Within this total issue, 50% is issued to retail investors, and 50% is issued to other investors.

 

 

 

Electro Force India IPO timetable (Tentative)

Events	Date
IPO Opening Date	19 December 2023
IPO Closing Date	21 December 2023
IPO Allotment Date	22 December 2023
Refund initiation	26 December 2023
IPO Listing Date	27 December 2023

 

Electro Force India IPO Details

IPO opening & closing date	19 December to 21 December 2023
Face value	Rs. 10 per share
Issue Price	Rs. 93 per share
Lot Size	1200 Shares
Price of 1 lot	Rs. 1,11,600
Total Issue Size	8,674,800 shares (aggregating up to Rs. 80.68 CR)
Offer for sale	2,674,800 shares of Rs.10 (aggregating up to Rs.24.88 CR)
Fresh issue	6,000,000 shares (aggregating up to Rs.55.80 CR)
Listing at	NSE SME
Issue Type	Fixed Price Issue IPO
Registrar	Skyline Financial Services Private Ltd

Electro Force India IPO Lot Details

Application	Lot	Shares
Minimum Lot Investment (Retail)	1 lot	1200
Maximum Lot Investment (Retail)	1 lot	1200
Minimum Lot Investment (HNI)	2 lot	2,400

 

Electro Force India IPO Reservation

Retail Shares Offered	50%
Other Shares Offered	50%

 

Company Financial

(Amount in Lakhs)

Period	Sep 30  FY 23	Mar 31  FY 23	Mar 31  FY 22
Total Assets	7,827.00	7,231.51	7,231.51
Total Revenue	2,314.19	3,028.81	3,443.55
PAT	711.08	799.60	864.26
Net worth	2,546.41	1,835.33	1,035.73
Reserve & Surplus	806.41	95.33	535.73

 

Revenue By operations

 Electro Force (India) Limited's total revenue from operations for Sept 30 FY23 is Rs. 2,310.43, indicating consistent revenue performance compared to FY22.

(amount in Lakhs)

Particulars	Sep 30 FY 23	Mar 31  FY 23	Mar 31  FY 22
Revenue from operations	2,310.43	3,025.04	3,439.65
Other Operating Income	3.76	3.78	3.90
Total Revenue from operations	2,314.19	3,028.81	3,443.55

 

 

 

 

The objective of the Issue

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

• Funding additional working capital requirements of the company

• Pursuing Inorganic Growth

• General corporate purposes

 

Promoters and Management of Electro Force India IPO

1. Pravin Kumar

2. Brijendra Kumar Agarwal

Pre-issue Promoter Shareholding	100.00%
Post-issue Promoter Shareholding	62.93%

 

Electro Force India IPO Lead Managers:

•  First Overseas Capital Limited

 

Peers of Electro Force India IPO

Electro Force (India) Limited, with a face value of Rs. 10, exhibits competitive RoNw and P/E ratio compared to its peers.

Name of the company	Face value (Rs. per share)	RoNw	P/ E	EPS (Basic) (Rs.)
Electro Force (India) Limited	10	43.57	20.22	4.60
Centum Electronics Limited	10	31.77	191.78	7.62
RIR Power Electronics Limited	10	18.08	100.74	8.69

 

Evaluation

The IPO is priced in the range of Rs 93 per share.

Evaluation of P/E Ratio

- Considering the FY23 EPS of Rs 4.60 from the last year, the resulting P/E ratio is 20.22x.

Comparative Analysis with Listed Peers

- Centum Electronics Limited has a P/E ratio of 191.78x (the highest).

- RIR Power Electronics Limited has a P/E ratio of 100.74x (the lowest).

- The industry's average P/E is 146.26x.

Consequently, the IPO Price at a P/E of  20.22x and comparing it from the average industry P/E of 146.26x it will be considered highly undervalued.
 

Dividend Policy

The company hasn't paid dividends in past fiscal years. Whether we can pay them in the future depends on factors like profits, past dividend trends, capital needs, legal restrictions, and other relevant considerations evaluated by our Board.

 

IPO's Strengths

1.Experienced Management: Together with their qualified team, they aim to seize market opportunities, secure new business, and expand their product portfolio.

2.Quality & Service Excellence: Our commitment to high-quality services and products, coupled with advanced manufacturing, secures customer loyalty and strategic supplier status.
3.In-house R&D Expertise: Our cutting-edge in-house R&D ensures quick adaptation to customer needs, fostering innovation and satisfaction.

4.Versatile Product Offerings: Multi-technological capabilities and customer-centric innovation drive our growth as a preferred vendor, consistently expanding our product range.

 

IPO's Weaknesses

1.Power Supply Risks: Dependency on continuous power supply exposes us to disruptions. Power interruptions may increase costs and affect business.

2.Customer Concentration Risks: Limited B2B customers pose risks like order cancellations, impacting revenue and operations

3.Lack of Patents for Processes: Absence of patents may allow competitors to develop similar products, impacting competitive advantage.

4.Legal Proceedings Impact: Ongoing legal proceedings may adversely affect financial condition, business reputation, and operations. 

5.GST Return Delays Impact: Historical GST return delays expose us to legal actions, affecting financial condition and operations.

 

IPO GMP Today

The Last GMP of Electro Force India was Rs.0.

 

Conclusion

Electro Force India, established in 2010, stands as a certified company excelling in the design and manufacturing of electrical components and metal/plastic contact parts. Operating through a B2B model, the company has been a reliable supplier to industries like electronics, lighting, and switchgear, showcasing prowess in precision metal stamping, assembly, and moulding. With a focus on integrated services and a strong presence in diverse industries, Electro Force India is poised for continued growth.

 

 

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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