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Mandeep Auto Industries IPO: Review, Valuation, Date & GMP
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Table of Contents
- Mandeep Auto Industries Limited IPO- Complete Overview
- Mandeep Auto Industries Ltd. IPO Overview
- Company Financial
- The Objective of the Issue
- Peers of Mandeep Auto Industries Limited
- Evaluation
- IPO's Strengths
- IPO's Weaknesses
- IPO GMP Today
- Mandeep Auto Industries IPO Promoter Holding
- Promoters and Management of Mandeep Auto Industries Limited
- Mandeep Auto Industries IPO Lead Manager and Registrar
- Dividend Policy
- Conclusion
Mandeep Auto Industries Limited IPO- Complete Overview
The Mandeep Auto Industries IPO is priced at Rs 25.25 crores. This is an entirely new issue of 37.68 lakh shares.
The IPO of Mandeep Auto Industries opens on May 13, 2024, and closes on May 15, 2024. A final allotment for the Mandeep Auto Industries IPO is expected to take place on Thursday, May 16, 2024. The tentative listing date for Mandeep Auto Industries IPO is Tuesday, May 21, 2024.
The IPO price for Mandeep Auto Industries is Rs.67 per share. A minimum lot size of 2000 shares is required for an application. Retail investors are required to invest at least $134,000. For HNI, a minimum investment of 2 lots (4,000 shares) is required.
Mandeep Auto Industries IPO is being managed by Jawa Capital Services Private Limited, with Cameo Corporate Services Limited acting as registrar. After Trade Broking is the market maker for Mandeep Auto Industries' IPO.
Mandeep Auto Industries Ltd. IPO Overview
Mandeep Auto Industries Ltd manufactures and supplies sheet metal components, auto parts, sprocket gears, and machined components to cater to the automobile industry. The company's main focus is on automobiles, but additionally supplies tractors, earth moving equipment, material handling equipment, Indian railways, defence, machine tools, among other items. The company's focus is machining and press components. In addition to domestic OEMs (original equipment manufacturers), the company has a fairly impressive client list. Among its clients are JL Auto Parts Tube Investments of India, Rockman Industries, Manvi Automobiles, Jain Industrial Products, etc. It has over 50 employees on its rolls as well as additional contract workers.
Address:
MANDEEP AUTO INDUSTRIES LIMITED
Plot No 26, Nangla,
Faridabad Haryana -121001
Phone: +91-129-2440045
E-mail: info@mandeepautoindustries.com
Website: www.mandeepautoindustries.com
Company Financial
During the financial year ending March 31, 2023, and March 31, 2022, Mandeep Auto Industries Limited's revenue rose by 36.03% and profit after tax (PAT) rose by 62.17%.
Period Ended |
31 Dec 2023 |
31 Mar 2023 |
31 Mar 2022 |
Assets |
2,424.73 |
1,963.15 |
1,297.81 |
Revenue |
1,656.76 |
2,978.74 |
2,189.73 |
Profit After Tax |
214.93 |
104.91 |
64.69 |
Net Worth |
820.80 |
453.54 |
413.61 |
Reserves and Surplus |
163.81 |
The Objective of the Issue
Expansion, debt repayment, and working capital funding are the main objectives of Mandeep Auto Industries Limited.
- Construction of a new building, purchase of equipment/machinery, and other assets to expand the existing Manufacturing Facility located at Plot No 26, Nangla, Faridabad Haryana -121001. Investing in new buildings, machinery, and equipment will enable the company to expand its manufacturing facility by INR 908.37 lakhs. The expansion will enhance production capacity and efficiency-word count-by integrating with existing operations.
- The company plans on repaying/prepaying certain borrowings it has taken out: To reduce indebtedness, improve equity base, and enhance leverage capacity for future business growth and expansion, they plan to use INR 684.16 Lakhs to repay/prepay term loans and bank working capital.
- Working capital needs: They intend to use INR 608.82 lakhs to fund their working capital requirements, which are crucial for business growth. Their company currently relies on internal accruals, share capital, and bank financing, with aggregate limits of INR 711 Lakhs and INR 125 Lakhs.
- The company will use the balance funds of INR 234.27 lakhs to prepay/payback borrowings, to execute strategic initiatives, to acquire, to invest in future subsidiaries, to develop business, to conduct R&D, to purchase fixed assets, and meet various expenses.
Peers of Mandeep Auto Industries Limited
Growth was stable at Mandeep Auto Industries. Profitability was robust at Kranti Industries. In spite of losses, Porwal Auto Components reported significant revenue growth. As a result of strong revenue and profit growth, Lumax Auto Technologies outperformed its competitors.
Company |
Face Value (Rs.) |
P/E (Rs.) |
EPS (Rs.) |
Mandeep Auto Industries Limited |
10 |
3.11 |
21.57 |
Kranti Industries Limited |
10 |
49.95 |
1.95 |
Porwal Auto Components Limited |
10 |
-76.13 |
-0.68 |
Lumax Auto Technologies Limited |
7 |
34.28 |
10.79 |
Evaluation
Period |
FY 2021 |
FY 2022 |
FY 2023 |
EPS |
– |
– |
– |
PE ratio |
– |
– |
– |
RONW (%) |
17.76 |
15.64 |
23.13 |
NAV |
– |
– |
– |
ROCE (%) |
29.13 |
20.07 |
31.59 |
EBITDA (%) |
8.04 |
6.58 |
7.42 |
Debt/Equity |
0.54 |
0.74 |
1.83 |
IPO's Strengths
- Domestic demand and capital investment will drive India's growth in FY 2023-24, supported by structural reforms like IBC and GST, strong balance sheets, and expansion of digital infrastructure. Global inflationary pressures and recessionary tendencies in major advanced economies are potential downside risks.
- The Indian automobile industry contributes significantly to the economy thanks to liberalization and FDI. The company produces a wide range of vehicles and components. The industry provides significant employment and contributes significantly to the GDP despite challenges.
- The EV revolution in India faces a skills gap, requiring engineering courses to be aligned with EV expertise. This gap can be bridged through industry-academic collaboration, exemplified by MG Motor's Dakshta program and ASDC's initiatives.
IPO's Weaknesses
A number of risks may affect Mandeep Auto Industries Limited's business continuity and investor evaluation, such as reliance on permits and licenses, potential setbacks from agriculture land categorization, and limited operating history post-acquisition.
-
For its operations, the company needs various permits, licenses, and approvals. Business may suffer if these are not renewed or issued, and penalties may be imposed for previous errors in obtaining approvals.
-
Manufacturing lands currently owned by the company and those proposed for development are classified as agricultural lands. The business and financial health may be negatively affected by delays or denials despite plans to seek construction permissions.
-
After acquiring M/s Mandeep Industries' business on June 30, 2023, it was incorporated as Mandeep Auto Industries Limited on April 19, 2023. The company has a limited operating history, making it difficult for investors to assess it.
IPO GMP Today
The Latest GMP for Mandeep Auto Industries Ltd. IPO is Rs.4
Mandeep Auto Industries Limited IPO Details
IPO Date |
May 13, 2024 to May 15, 2024 |
Listing Date |
[.] |
Face Value |
Rs.10 per share |
Price |
Rs.67 per share |
Lot Size |
2000 Shares |
Total Issue Size |
3,768,000 shares (aggregating up to Rs.25.25 Cr) |
Fresh Issue |
3,768,000 shares (aggregating up to Rs.25.25 Cr) |
Issue Type |
Fixed Price Issue IPO |
Listing At |
NSE SME |
Share holding pre issue |
6,569,894 |
Share holding post issue |
10,337,894 |
Market Maker portion |
190,000 shares |
Mandeep Auto Industries IPO Reservation
Investor Category |
Shares Offered |
Retail Shares Offered |
50% of the Net Issue |
Other Shares Offered |
50% of the net offer |
Mandeep Auto Industries IPO Timeline (Tentative Schedule)
Mandeep Auto Industries IPO opens on May 13, 2024, and closes on May 15, 2024.
IPO Open Date |
Monday, May 13, 2024 |
IPO Close Date |
Wednesday, May 15, 2024 |
Basis of Allotment |
Thursday, May 16, 2024 |
Initiation of Refunds |
Friday, May 17, 2024 |
Credit of Shares to Demat |
Friday, May 17, 2024 |
Listing Date |
Tuesday, May 21, 2024 |
Cut-off time for UPI mandate confirmation |
5 PM on May 15, 2024 |
Mandeep Auto Industries IPO Lot Size
The minimum number of shares that can be bid on by investors is 2000, and multiples of 2000 are allowed. Below is a table showing the minimum and maximum investment amounts made by retail investors and HNIs.
Application |
Lots |
Shares |
Amount |
Retail (Min) |
1 |
2000 |
Rs.134,000 |
Retail (Max) |
1 |
2000 |
Rs.134,000 |
HNI (Min) |
2 |
4,000 |
Rs.268,000 |
Mandeep Auto Industries IPO Promoter Holding
The Promoters of the company are Mr. Gurpal Singh Bedi, Mrs. Nidhi Bedi and Mr. Rajveer Bedi
Share Holding Pre Issue |
99.97% |
Share Holding Post Issue |
63.53% |
Promoters and Management of Mandeep Auto Industries Limited
The promoters of the company are Gurpal Singh Bedi, Rajveer Sing Bedi, Nidhi Bedi and Manjeet Kaur.
Mandeep Auto Industries IPO Lead Manager and Registrar
- Jawa capital services private limited- Lead Manager
- Cameo corporate services limited- Registrar.
Dividend Policy
There have been no dividends declared since the company was incorporated. As a result of its financial performance and prospects, it will adopt a prudent dividend policy.
Conclusion
The company produces specialized auto components and enjoys the preferred partner tag from the two-wheeler industry. The company's top line and bottom line both grew steadily. As demand rises, the company is expanding its capacity. The issue is fully priced based on FY24 annualized earnings. Funds can be parked for medium- to long-term gains.
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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Frequently Asked Questions
The Mandeep Auto Industries IPO opens on May 13, 2024, and closes on May 15, 2024.
The minimum amount required to participate in the IPO of Mandeep Auto Industries is 134,000 shares.
We are still waiting for the announcement of the allotment date for Mandeep Auto Industries Limited's initial public offering.
There is a price band of INR 67 per share for the issue.
Approximately 37,68,000 lakh shares will be offered by Mandeep Auto Industries, for a total of INR 25.25 crores. Funds are needed for expansion of the company's Faridabad manufacturing facility, debt repayment, working capital, and general corporate purposes.