TechEra Engineering IPO: Review, Valuation, Date & GMP

TechEra Engineering IPO-Complete Overview

TechEra Engineering IPO an SME IPO is a book-built issue of Rs.35.90 crore by TechEra Engineering Limited which was founded in 2018. The company designs, produces, and supplies precision tools and components to the aerospace and defense industries. Additionally, the business offers automation system solutions.

The company produces precision machined components, ground support equipment, maintenance and repair tools, fixtures, jigs, and assembly tools. To satisfy the demands of its target industries, it makes use of cutting-edge production technologies like 3-dimensional modeling and 5-axis machining.

The organization has demonstrated its commitment to quality management systems by earning certification for both ISO 14001:2018 and ISO 9001:2015.

This new SME IPO is to be launched on 25 September 2024, and its ‘initial public offering’ will end on 27 September 2024.

 

TechEra Engineering IPO Overview

The Rs.35.90 crore TechEra Engineering IPO is an entirely fresh issue of 43.78 lac Shares. 

This SME IPO date is from September 25-September 27, 2024. The expected IPO listing date is on Thursday, 03 October 2024, on NSE and SME. TechEra Engineering IPO price band is Rs.75 to Rs.82 for each Share.

To open a demat account and apply for the IPO, Click Here.

Company Financial

The company’s revenue was increased by 47% and PAT grew by 270% during FYs ending 31 March 2024 and 31 March 2023.

(Amount in Lac)

 

Revenue Bifurcation

The revenue bifurcation for various activities is shown below:

(Amount in lac)

 

Product-wise Export Revenue Breakdown During The Last Three Fiscals

(Amount in lac)

 

Export-wise Revenue Breakdown 

(Amount in lac)

 

The Objective of The Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• Financing capital expenses for the acquisition of new equipment

• Funding the company's needs for working cash

• Repayment in full or in part of some outstanding loans taken out by the business

• Submit costs

• General corporate purposes.

 

Peers of TechEra Engineering Ltd.

 

Evaluation

The IPO price is Rs.75 to Rs.82 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.4.14 from the last year, the resulting P/E ratio is 19.81x.

Considering the weighted EPS of Rs.-2.94 for the last three years, the P/E ratio is -27.90x.

Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is 84.98x.

In simple words, the P/E ratio of TechEra Engineering IPO (19.81x), compared with the industry’s average P/E of 84.98x, has an undervaluation (on a P/E Ratio basis only). Hence the price of the Share seems fairly (fully) priced for the investors when considered based on the average P/E ratio of the industry. 

 

 IPO's Strengths 

• Specialized expertise in aerospace and defense manufacturing

• Advanced technical capabilities including 5-axis machining and AR/VR for design

• Experienced leadership team with significant industry experience

• Quality certifications and recognitions from reputable organizations.

 

IPO’s Weaknesses

• Market reliance on the defense and aerospace industries

• The cost of updating and maintaining technology

• Complex regulations in the aerospace and defense industries

• Dependency on a single facility posing operational hazards.

 

TechEra Engineering IPO GMP Today

Its IPO GMP today is Rs.10 as of 21 September 2024. With a price band of Rs.82, the estimated IPO listing price is Rs.92 at the time of writing this information.

IPO Timetable (Tentative)

The TechEra Engineering IPO date is from September 25 to September 27, 2024, with allotment on September 30, refund initiation on October 01, and listing on October 03, 2024.

 

 

TechEra Engineering IPO Details 

The IPO with a Face Value of Rs.10 per Share is set to start on September 25, 2024, close on September 27, 2024, and offer a total issue size of 43,77,600 Shares (Rs.35.90 Cr).

TechEra Engineering IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (1600 Shares) amounting to Rs.1,31,200 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (3200 Shares) amounting to Rs.2,62,400.

 

TechEra Engineering IPO Reservation (% of Net Issue)

 

Promoters And Management of TechEra Engineering Ltd.

• Nimesh Rameshchandra Desai

• Meet Nimesh Desai

• Kalpana Nimesh Desai.
  
  

IPO Lead Managers

• SKI Capital Services Limited.
  
  

Dividend Policy

The company has paid a dividend of Rs.0.06 lac to its CCPS holders in the FY concluded on 31 March 2024.

 

Conclusion

The company supplies precise tooling and other essential components to the aerospace and defense industries. The business reported a deficit for FY22, but it recovered and had increases in both its top and bottom lines in the following years. It has faced negative cash flows from various activities in some of the previous fiscal years. The company is launching an IPO for the general public to achieve its goals. Hope this blog helped you with the information you were seeking.

 

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.

Disclaimer: 

The content is purely for educational and information purposes only. We do NOT encourage/advise/suggest our active readers to be involved in any kind of buying or selling securities activities. Always consult your eligible financial advisor for investment-related decisions. The author does NOT through this blog intend to involve readers in trading.  

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