Mandeep Auto Industries IPO: Review, Valuation, Date & GMP

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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