Energy-Mission Machineries (India) IPO: Review, Valuation & GMP

Energy-Mission Machineries (India) Limited IPO  - Complete Overview

Founded in 2011, Energy-Mission Machineries (India) Limited specializes in designing and manufacturing CNC, NC, and conventional metal forming machines to meet the metal fabrication needs of various industrial sectors.

The company offers a comprehensive range of metal forming machines, including press brake machines, shearing machines, plate rolling machines, ironworkers machines, hydraulic presses, and busbar bending, cutting & punching machines.

These machines find applications across diverse industries such as automotive, steel, pre-engineered buildings, furniture, HVAC, agricultural equipment, road construction equipment, elevators, food processing machinery, metalworking workshops, and more.

With over 600 variants of metal forming machines, the company has supplied 1487 machines to over 1050 customers during the last three fiscal years and the five-month period from April ’23 to August ’23. Its products are not only popular in India but also in several countries worldwide, including the USA, Switzerland, Russia, Nepal, Kenya, Uganda, UAE, Saudi Arabia, and other Middle Eastern countries.

In addition to machines, the company provides machinery tools and spare parts to support after-sales services, including die punch, shearing blade, roller set, holding spring, limit switch, foot switch, seal kit, linear scale, etc.

As of October 31, 2023, the company's sales & marketing team consisted of 20 employees, supported by an after-sales service team of 22 employees. 

In fiscal year 2023 alone, the company sold 500 machines to over 400 customers.

It operates through its manufacturing facility in Sanand (District - Ahmedabad), spread over an extensive land area of over 18,234 square meters.

Energy-Mission Machineries (India) Limited IPO Overview:

Energy-Mission Machineries (India) Limited IPO date is slated to be open for subscription from May 9, 2024, to May 13, 2024. This NSE SME IPO follows a Book Built Issue IPO.

Energy-Mission Machineries (India) Limited IPO price is fixed in the range of Rs.131 to Rs.138 per share. 

The total issue size of this IPO amounts to Rs.41.15 Cr. The company has allocated shares 35% 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, Energy-Mission Machineries (India) 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	31 Aug 2023	31 Mar 2023	31 Mar 2022
Total Assets	9,042.31	8,258.65	7,382.45
Total Revenue	4,947.77	10,066.12	7,906.57
PAT	466.29	790.01	336.17
Net worth	2,819.31	2,353.02	1,563.01
Reserve & Surplus	1,984.86	2,074.87	1,284.86
Total Borrowings	2,421.27	2,187.82	2,457.23

Product mix in terms of revenue contribution

(Amount in Lakhs)

Category	Apr-Aug’23	FY 23	FY 22
Press Brake Machine
Hydraulic CNC Press Brake Machine	3105.35	6707.43	4268.19
Hydraulic NC Press Brake Machine	217.22	529.03	498
Hydraulic Press Brake Machine	238.78	529.73	562.34
Others	-	-	88.6
Total	3561.35	7766.2	5417.13
Shearing Machine
Hydraulic Shearing Machine	334.46	777.77	848.52
Hydraulic NC Shearing Machine	456.01	491.4	707.22
Total	790.47	1269.17	1555.74
Plate Rolling Machine
Hydraulic plate rolling Machine	29.25	220.69	92.80
Total	29.25	220.69	92.80
Busbar Machine
Hydraulic busbar Machine	31.35	49.37	115.14
Total	31.35	49.37	115.14
Press Machine
Hydraulic press Machine	106.82	58.76	218.08
Total	106.82	58.76	218.08
Iron Worker Machine
Hydraulic Iron Worker (Sigma) Machine	32.52	63.58	68.09
Total	32.52	63.58	68.09
Components and spare parts
Various items	324.25	438.56	319.08
Total	324.25	438.56	319.08
Maintenance Services
Maintenance Services	25.57	35.15	17.06
Total	25.57	35.15	17.06
Grand Total	4901.58	9901.48	7803.12

 

 

The Objective of the Issue

The company intend to utilize the proceeds of the net issue to meet the following objectives:

1. Financing the capital expenditure for civil construction work at the current manufacturing unit situated in Sanand, District Ahmedabad, Gujarat.

2. Funding of capital expenditure towards installation of new plant & machineries.

3. To meet working capital requirements.

4. General Corporate Purpose .

Peers of Energy-Mission Machineries (India) Limited IPO

Name of the Company	Face Value (Rs)	EPS (Rs)	P/E Ratio
Energy-Mission Machineries (India) Limited	10	9.47	-
Macpower CNC Machines Limited	10	12.89	55.83
Jyoti CNC Automation Limited	2	1.02	424.65

 

Evaluation

The IPO is priced within the range of Rs.131 to Rs.138 per share.

Evaluation of P/E Ratio

• Considering the FY23 EPS of Rs 9.47 from the last year, the resulting P/E ratio is 14.57x.

• Taking into account the weighted EPS of Rs 6.27 for the last three years, the P/E ratio amounts to 22.00x.

Comparative Analysis with Listed Peers

• The industry's average P/E is 240.24x.

As a result, the IPO price range, with a P/E ratio ranging from 14.57x to 22.00x, seems fully priced to the industry average of 240.24x.

 

IPO's Strengths 

• The company has a diverse customer base across different industries and regions.

• Its range of products appeals to a wide variety of customers.

• It operates its own manufacturing facility.

• The company implements strict quality control measures to maintain consistent product quality.

• The experienced promoters lead a strong management team with expertise in the industry.

IPO Weaknesses 

• The company generates a considerable portion of its revenue from selling its primary product, CNC press brake machines.

• Operating in a fiercely competitive industry, heightened competition could potentially decrease its earnings.

• There are ongoing legal matters involving the company, its directors, and promoters.

• Certain approvals, licenses, registrations, and permits are necessary for the company to conduct its business.

• The company faces risks associated with fluctuations in foreign currency exchange rates.
  
  

IPO GMP Today 

The latest GMP of Energy-Mission Machineries (India) Limited is Rs.130.

Energy-Mission Machineries (India) Limited IPO timetable (Tentative)

Energy-Mission Machineries (India) Limited IPO is scheduled from May 9 to May 13, 2024, with allotment on May 14, refund initiation on May 15, and listing on May 16, 2024.

Events	Date
IPO Opening Date	May 9, 2024
IPO Closing Date	May 13, 2024
IPO Allotment Date	May 14, 2024
Refund initiation	May 15, 2024
IPO Listing Date	May 16, 2024

Energy-Mission Machineries (India) Limited IPO Details 

Energy-Mission Machineries (India) Limited IPO, with a face value of Rs.10 per share, opens on May 9 and closes on May 13, 2024, offering 2,982,000 shares at Rs.131 to Rs. 138 per share, with a lot size of 1000 shares, aiming to raise Rs.41.15 Cr, and will be listed on NSE SME.

IPO opening & closing date	May 9, 2024 to May 13, 2024
Face value	Rs. 10 per share
Issue Price	Rs. 131 to Rs. 138 per share
Lot Size	1000 shares
Price of 1 lot	138,000
Issue Size	2,982,000 shares (aggregating up to ₹41.15 Cr)
Fresh issue	2,982,000 shares (aggregating up to ₹41.15 Cr)
Listing at	NSE SME
Issue Type	Book Built Issue IPO
Registrar	Bigshare Services Pvt Ltd

Energy-Mission Machineries (India) Limited IPO Lot Details 

For Energy-Mission Machineries (India) Limited IPO, the retail investor minimum and maximum lot investments are both 1 lot (1000 shares) at Rs.138,000 while for HNI investors, the minimum investment is 2 lots (2000 shares) at Rs.276,000.

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

 

Energy-Mission Machineries (India) Limited IPO Reservation

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

Promoters and Management of Energy-Mission Machineries (India) Limited 

• Satishkumar Kanjibhai Parmar

• Dineshkumar Shankarlal Chaudhary

• Sanjay Shantukumar Khankar

• Ashokkumar Ramjibhai Panchal

• Snehal Narendra Mehta

Pre-issue Promoter shareholding	100%
Post-issue Promoter shareholding

 

Energy-Mission Machineries (India) Limited IPO Lead Managers

• Hem Securities Limited 
  
  

Dividend Policy

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

 

 

 

Conclusion

The company designs and manufactures CNC, NC, and conventional metal forming machines and has a global presence. However, the sudden increase in its profits has raised concerns. Experienced investors may consider applying for the upcoming IPO after conducting thorough evaluations to maximize 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.

 

 

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