Transteel Seating Technologies LTD. IPO: Review, Valuation, GMP

Transteel Seating Technologies Limited - Complete Overview

Transteel Seating Technologies Limited, established in 1995, is a well-established furniture provider with over two decades of experience in the corporate and B2B sectors. 

Located in Yeshwanthpur, Bangalore, Karnataka, India, the company has honed its skills and expertise in crafting chairs, office furniture, and various residential and commercial furniture pieces.

Notably, the company has embarked on a significant transformation by embracing a digital-first approach, revolutionizing the way customers interact with their brand. This shift has made it incredibly convenient for customers to explore and purchase a wide range of furniture items online.

Transteel Seating Technologies Limited prides itself on offering furniture that strikes the right balance between practicality and affordability, all while maintaining a focus on aesthetics and durability. Their offerings can also be customized to meet unique individual needs.

 

What does the company do?

Transteel Seating Technologies Limited is a furniture provider.

 

Company Products

The company's product portfolio includes chairs, office furniture, and various types of residential and commercial furniture.

 

 

IPO Overview

The Transteel Seating Technologies IPO date is slated to be open for subscription from October 30 to November 1, 2023. This SME IPO is anticipated to be listed on November 9, 2023. 

The Transteel Seating Technologies IPO price falls between Rs. 67 to Rs. 70 per share. The company is aiming to raise Rs. 49.98 crore through this upcoming SME IPO.

Regarding the allocation of the total issue, 50% will be earmarked for institutional investors, 15% for non-institutional investors, and 35% for retail investors.

 

Transteel Seating Technologies Limited IPO timetable (Tentative)

Events	Date
IPO Opening Date	30 October 2023
IPO Closing Date	1 November 2023
IPO Allotment Date	6 November 2023
Refund initiation	7 November 2023
IPO Listing Date	9 November 2023

 

Transteel Seating Technologies Limited IPO Details 

IPO Opening & Closing Date	30 October to 1 November 2023
Face value	Rs.10 per Share
Issue Price	Rs. 67 to Rs. 70 per Share
Lot Size	2000 Shares
Price of 1 lot	Rs. 140,000
Issue Size	7,140,000 Shares (aggregating up to Rs. 49.98 Cr)
Offer for Sale	356,000 Shares of Rs. 10 (aggregating up to Rs. 2.49 Cr)
Fresh issue	6,784,000 Shares (aggregating up to Rs. 47.49 Cr)
Listing at	NSE SME
Issue Type	Book Built Issue IPO
Registrar	Bigshare Services Pvt. Ltd.

 

Transteel Seating Technologies Limited IPO Lot Details

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

 

Transteel Seating Technologies Limited IPO Reservation

Institutional Share Portion	50%
Non-Institutional Share Portion	15%
Retail Share Portion	35%

 

 

Company Financial

Amount in Lakhs

Period	31 Mar 2023	31 Mar 2022	31 Mar 2021
Total Assets	8,347.06	3,609.10	2,538.33
Total Revenue	5,961.43	2,806.74	2,287.74
PAT	909.36	159.08	-0.59
Net worth	2,444.11	629.71	470.63
Reserve & Surplus	2,385.87	605.91	446.82
Total Borrowings

 

Location Wise Breakup of the Revenue of the Company

Year	FY 2020-2021	FY 2021-2022	FY 2022-2023
Bangalore	37 %	30%	30%
Chennai	15 %	15%	15%
Hyderabad	18%	20%	20%
Delhi NCR	15%	20%	20%
Mumbai	5%	10%	10%
Pune	NA	0	3%
Others	10%	5%	2%

 

Objective of the Issue 

The company intends to employ the Net Fresh Issue Proceeds for the following purposes:

• Prepayment or repayment of specific debt facilities utilized by the company.
• Acquisition of equipment to enhance manufacturing capabilities.
• Fulfilling working capital needs.
• General corporate purposes.

 

Promoters and Management of Transteel Seating Technologies Limited

Mr. Shiraz Ibrahim and Ms. Nasreen Shiraz are the promoters of the company.

Pre-issue Promoter Shareholding	83.75%
Post-issue Promoter Shareholding	53.83%

 

Peer Comparison

Below are the listed peers of Transteel Seating Technologies Limited

Company Name	EPS	P/E Ratio	Revenue from Operations (Rs. in Lakh)
Transteel Seating Technologies Limited	6.80	-	5,947.95
Seasons Furnishing Limited	0.35	11.54	751.20
Shashwat Furnishing Solutions Limited	1.04	31.73	456.80

 

IPO's Valuations

With the Transteel Seating Technologies IPO price ranging from Rs. 67 to Rs. 70 per share and an EPS of Rs. 162.95, when considering the higher end of the issue price, the PE ratio is calculated at 0.42 for assessing the IPO valuation.

 

Dividend Policy

According to the Transteel Seating Technologies IPO DRHP, the company has not distributed any dividends in the past, and there is no assurance of any dividend payments in the future either.

 

IPO's Strengths

• Promoters with substantial experience.
• Strong sales, marketing, and distribution competencies.
• Established brand presence.
• Robust quality assurance and control measures.

 

IPO Weaknesses

• The Company, Promoters, and Directors are currently involved in ongoing legal proceedings.
• There have been certain delays in submitting returns to various Government Authorities.
• The company encounters competition from domestic rivals in its industry.
• In the regular course of its business, the company needs to secure multiple approvals, NOCs, licenses, registrations, and permits.
• The company faces competition from established players in its industry.
• The Company experiences negative cash flow in its operational activities.

   

 

 

IPO GMP Today

The Latest GMP of Transteel Seating Technologies SME IPO is Rs. 15.

 

Conclusion

The company operates in the furniture sector, serving B2B customers. The company's financial performance demonstrates significant and promising growth. The brand has established a robust positioning in the market. Investors are encouraged to consider applying for the issue after conducting a thorough evaluation of all relevant factors. 

 

 

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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