Presstonic Engineering IPO: Review, Valuation, Date & GMP

Presstonic Engineering Limited IPO  - Complete Overview

Established in 1996 and located in North Bangalore, Karnataka, Presstonic Engineering is a specialized manufacturer of Metro Rail Rolling Stock Products, Metro Rail Signalling Products, and Infrastructure Products. The company serves renowned Global and Domestic OEMs engaged in the Rail and Metro Rail Rolling stock and Signalling equipment manufacturing and servicing sectors.

Occupying approximately 28,317.50 sq. ft., their manufacturing facility, situated at Sy. No. 2, Khatha No. 145, Hoysala Main Road, Pillappa Industrial Layout, Srigandhadakavalu, Sunkadakatte, Viswaneedam, Bangalore – 560091, is equipped with cutting-edge machinery, equipment, and instruments. This allows the facility to produce a diverse range of products for Railways and Metros.

Commencing its manufacturing operations in the Metro Rail Segment in 2011, Presstonic Engineering has consistently expanded its presence, diversified service offerings, and bolstered its capabilities and expertise.

 

Presstonic Engineering Limited IPO Overview

Presstonic Engineering Limited's IPO date is slated to be open for subscription from December 11, 2023, to December 13, 2023. This NSE SME IPO follows a Fixed Price Issue IPO.

The Presstonic Engineering Limited IPO price is Rs. 72 per share. The upcoming NSE SME IPO will be listed on December 18, 2023.

The total issue size of this IPO amounts to Rs. 23.30 CR. Within this total issue, 50% is issued to retail investors, and 50% is issued to other investors.

 

 

Presstonic Engineering Limited IPO timetable (Tentative)

Events	Date
IPO Opening Date	11 December 2023
IPO Closing Date	13 December 2023
IPO Allotment Date	14 December 2023
Refund initiation	15 December 2023
IPO Listing Date	18 December 2023

 

Presstonic Engineering Limited IPO Details

IPO opening & closing date	11 December to 13 December 2023
Face value	Rs. 10 per share
Issue Price	Rs. 72 per share
Lot Size	1600 Shares
Price of 1 lot	Rs. 1,15,200
Total Issue Size	3,236,800 shares (aggregating up to ₹23.30 Cr)
Offer for sale	shares (aggregating up to Rs. Cr)
Fresh issue	3,236,800 shares (aggregating up to ₹23.30 Cr)
Listing at	NSE SME
Issue Type	Fixed Price Issue IPO
Registrar	Cameo Corporate Services Limited

 

 

Presstonic Engineering Limited IPO Lot Details

Application	Lots	Shares
Minimum Lot Investment (Retail)	1 lot	1600
Maximum Lot Investment (Retail)	1 lot	1600
Minimum Lot Investment (HNI)	2 lot	3200

 

Presstonic Engineering Limited IPO Reservation

Retail Shares Offered	50%
Other Shares Offered	50%

 

Company Financial

As of September 30, FY23, the company reports total assets of Rs.2,850.69L, revenue at Rs.1,431.67L, and a PAT of Rs.152.21L. The net worth is Rs.645.57L, with total borrowings amounting to Rs.1,536.97L.

(Amount in Lakhs)

Period	Sep 30  FY 23	FY 23	FY 22
Total Assets	2,850.69	2,737.68	2,496.71
Total Revenue	1,431.67	1,431.67	1,272.21
PAT	152.21	256.14	14.06
Net worth	645.57	493.36	237.22
Reserve & Surplus	198.50	269.83	13.69
Total Borrowings	1,536.97	1,645.27	1,797.08

REVENUE-DISTRIBUTION PRODUCT WISE     

For September 30, FY23, revenue distribution by product includes Metro Rail Rolling Stock - Rs. 1,420.99L, Interior Products - Rs. 920.99L, Non-Interior Products - Rs. 500.00L, Infrastructure - Rs.4.22L, and Total revenue for the period is Rs.1,425.21L.

( amount in Lakhs)

Particulars	Sep 30 F.Y. 23	F.Y. 23	F.Y. 22	F.Y. 21
Metro Rail Rolling Stock Products	1,420.99	1,895.37	1,166.28	635.05
Interior Products	920.99	1,339.40	638.83	252.31
Non-Interior Products	500.00	555.97	527.46	382.75
Railway Signalling Products	-	137.95	59.02	39.28
Infrastructure Products	4.22	2.82	3.49	0.61
Metro Rolling Stock Services	-	66.92	34.01	86.41
Total	1,425.21	1,425.21	1,262.80	761.36

REVENUE DISTRIBUTION STATE WISE 

For September 30, FY23, revenue distribution by state includes Domestic revenue at Rs. 1,395.43L and Export revenue at Rs.29.78L. The total revenue for the period is Rs. 1,425.21L.

( Amount in lakhs) 

Particulars	Sep 30 F.Y. 23	F.Y 23	F.Y 22
Domestic	1,395.43	2,020.46	1,262.23
Export	29.78	82.60	0.57
Total	1,425.21	2,103.06	1,262.80

Revenue By operations

For September 30, FY23, revenue from operations is Rs. 1,425.21L, with other operating income at Rs. 6.46L. The total revenue from operations is Rs. 1,431.67L.

(amount in Lakhs)

Particulars	30sep FY 23	FY 23	FY 22
Revenue from operations	1,425.21	2,103.06	1,262.80
Other Operating Income	6.46	10.20	9.41
Total Revenue from operations	1,431.67	2,113.27	1,272.21

 

 

The Objective of the Issue

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

• Allocating capital for the following purposes:

• Meeting Working Capital Requirements

• Purchasing additional plant and machinery through Funding Capital Expenditure

• Fully prepaying certain Company borrowings

• Covering Issue Expenses

• Addressing General Corporate Purposes.

 

Promoters and Management of Presstonic Engineering Limited IPO

1. Mr. Herga Poornachandra Kedilaya.

2. Mr. Yermal Giridhar Rao.

 

Pre-issue Promoter Shareholding	99.97%
Post-issue Promoter Shareholding	57.99%

Presstonic Engineering Limited IPO Lead Managers

•  Finshore Management Services Limited

 

Key Performance of Presstonic Engineering Limited IPO

KPI	Values
P/E (x)	6.28
EPS (Rs)	5.73
ROE	115%
ROCE	87%
RoNW	51.92%

IPO's Valuations

To evaluate the IPO's valuation, we can utilize the information presented in the company's DRHP and RHP. Presstonic Engineering Limited IPO is fixed at Rs. 72 per share, with an EPS of Rs. 5.73. The company's P/E ratio is calculated at 12.56 based on the issue price.

 

Dividend Policy

The company does not have a formal dividend policy. Its capacity to declare dividends in the future hinges on its earnings and financial health.

 

 

IPO's Strengths

• Established manufacturing facility designed for various product needs

• Organizational stability and practical management expertise

• Well-defined organizational structure

• Efficient and seamless task execution

• Existing and reliable supplier relationships
  
  

IPO's Weaknesses

• The company has reported losses in the past.

• Negative cash flow was reported in the past.

• The business is subject to seasonal and other fluctuations.

• There is significant competition in the industry.

• The company may face risks associated with business transactions with Government Entities.

• High working capital requirements.

• The company only has one manufacturing facility.
  
  

IPO GMP Today 

The Latest Grey Market Premium (GMP) of Presstonic Engineering SME IPO is Rs. 50.

Conclusion

In conclusion, the Presstonic Engineering Limited IPO offers an opportunity in the specialized manufacturing sector, focusing on Metro Rail products. The company's strengths include an established facility and diverse product range, but past losses and high working capital requirements pose challenges. The IPO's valuation is in line with industry standards. Investors should carefully consider the risks and the Grey Market Premium of Rs. 32 as of December 11, 2023.

 

 

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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