Aztec Fluids & Machinery Ltd IPO: Review, Valuation,Date & GMP

Aztec Fluids & Machinery Limited IPO - Complete Overview

Aztec Fluids and Machinery Ltd was founded in 2010 to manufacture printers, printer consumables, printer spares, etc. The company serves a wide range of industries such as personal care, food & beverages, pharmaceuticals, construction materials, metals, automotive, electronics, and chemicals. The company's product line includes continuous inkjet printers, thermal transfer printers, drop on demand printers, NIJ printers, and laser printers. Aztec Fluids and Machinery Ltd also offers cleaning solvents as part of its product portfolio, in addition to regular printing consumables. The company is based out of Gujarat and has a warehouse for storing imported printers near Ahmedabad in Kheda District. The company exports principally to Sri Lanka, Nepal, Bhutan, Bangladesh, Kenya, and Nigeria.

Company Address- Aztec Fluids & Machinery Limited

Part H Plinth,4th Floor, Takshashila Square, Near Krishnabag Four Rd, Maninagar, Ahmedabad, Gujarat380028

Phone: +91-7048333211

Email: cs@aztecfluids.com

Website: www.aztecindia.org

 

Aztec Fluids & Machinery Limited IPO Overview

An IPO of Aztec Fluids & Machinery has been priced for Rs 24.12 crores. There are 36 lakh shares in the issue, which is a fresh issue.

The Aztec Fluids & Machinery IPO will open for subscription on May 10, 2024, and close on May 14, 2024. Allotments for the Aztec Fluids & Machinery IPO should be completed by Wednesday, May 15, 2024. A tentative listing date of Friday, May 17, 2024, has been set for Aztec Fluids & Machinery IPO on BSE SME.

The IPO price band for Aztec Fluids & Machinery is set atRs.63 toRs.67 per share. Application lots must be at least 2000 shares. Retail investors must invest at least Rs134,000. There is a minimum investment requirement of 2 lots (4,000 shares) for HNIs, which is equivalent to Rs 268,000.

The book running lead manager of Aztec Fluids & Machinery IPO is Hem Securities Limited, and Bigshare Services Pvt Ltd is the registrar. Hem Finlease is the market maker for Aztec Fluids & Machinery IPO.

Aztec Fluids & Machinery Limited Financial Information (Restated)

Between March 31, 2023 and March 31, 2022, Aztec Fluids & Machinery Limited's revenue increased by 17.46% and profit after tax (PAT) increased by 5.18%.

Period Ended	31 Dec 2023	31 Mar 2023	31 Mar 2022
Assets	4,287.00	3,090.06	2,707.75
Revenue	5,182.38	5,452.97	4,642.56
Profit After Tax	450.74	327.38	311.25
Net Worth	1,986.34	1,535.60	1,238.56
Reserves and Surplus	986.34	1,335.60	1,237.56
Total Borrowing	565.95	562.31	552.40

 

Key Performance Indicators

(Rs. In lakhs except percentages and ratios)

Key Financial Performance	Apr 23 - Sept 23	FY 2022-23	FY 2021-22
Revenue from operations(1)	3,572.68	5,426.11	4,571.55
EBITDA(2)	510.46	465.84	406.14
EBITDA Margin(3)	14.29%	8.59%	8.88%
PAT(4)	333.27	327.38	311.25
PAT Margin(5)	9.33%	6.03%	6.81%
RoE(%)(6)	19.58%	23.60%	28.33%
RoCE (%)(7)	22.28%	22.07%	24.86%

 

The Objective of the Issue

Aztec Fluids & Machinery Limited plans to acquire equity shares in Jet Inks Private Limited and repay some of its existing debt. 

1. Investing in Jet Inks Private Limited: As a means of supporting inorganic growth, Aztec Fluids & Machinery Limited plans to acquire Jet Inks Private Limited in order to leverage their manufacturing capabilities and Southern India presence. The initial stake was acquired for INR 3 crores, and the complete acquisition would cost INR 14 crores. 

2. Taking steps to repay a portion of certain borrowings taken on by the company: In order to reduce indebtedness and enhance future growth prospects, the company intends to repay the cash credit limit of INR 3.40 crores and the working capital term loan of INR 32 lakhs. 

3. General Corporate Purpose: As part of its general corporate goals, the company will balance funds, including meeting operating expenses and initial development costs for projects outside the identified projects, as well as strengthening business development and marketing capabilities to meet market demands. 
   
   

Peers of Aztec Fluids & Machinery Limited IPO

Its financial indicators were stable with a moderate diluted EPS, a healthy return on equity, and a steady NAV per equity share. A substantial asset base and revenue growth were demonstrated by Control Print Limited.

Company	Face Value (₹)	P/E (₹)	EPS (Basic & Diluted) (₹)
Aztec Fluids & Machinery Limited	10	NA	3.27
Control Print Limited	10	29.13	32.36

 

Evaluation

Period Ended	31st March 2021	31st March 2022	31st March 2023
EPS	2.46	3.11	3.27
ROE (%)	29.4	28.33	23.6
ROCE (%)	26.51	24.86	22.07
D/E Ratio	0.54	0.45	0.37
Current Ratio	1.71	1.51	1.55
EBITDA MARGIN (%)	10.36	8.88	8.59

 

 

IPO's Strengths

The following promising industry conditions support the IPO:

• Capital Goods, valued at US$ 43.2 billion in FY22, contribute 12% to manufacturing output and 1.8% to GDP. In FY21, electrical equipment imports totalled 16.1 billion dollars, and by 2025, domestic markets are expected to grow by 72 billion dollars. 
  
  
• With demand expected to rise to US$400 billion by 2025, India's electronics manufacturing industry will be worth US$520 billion by then. The government supports the growth of the industry with initiatives like 'Digital India' and 'Make in India'. 
  
  
• With a CAGR of 9.3%, the Indian chemicals industry is projected to reach US$304 billion by 2025. As a result of domestic demand and exports, specialty chemicals are expected to grow substantially. 
  
  

IPO's Weaknesses

There are legal proceedings that could affect Aztec Fluids & Machinery Limited's profitability, focus, and net worth. Lead Tech's exclusive distributorship and Fluidtech's manufacturing agreement are crucial to the company's operations. 

• A company's net worth, profitability, and management focus are at risk from outstanding legal proceedings involving its directors and promoters. It is possible for adverse decisions to negatively impact financials, operations, and the overall prospects of the business. 

• The company has been the exclusive distributor of Lead Tech (Zhuhai) Electronic Co., Ltd. The agreement is valid until December 06, 2026, and it prohibits any product customizations without the approval of the company. 

• The company currently manufactures printer consumables but plans to discontinue this as Fluidtech now manufactures their inks and consumables exclusively for them. There would be a negative impact on operations if this agreement was terminated or modified.
  
  

IPO GMP Today

The Latest GMP for Aztec Fluids & Machinery SME IPO was Rs.54.

 

Aztec Fluids & Machinery Limited IPO Details

IPO Date	May 10, 2024 to May 14, 2024
Listing Date	[.]
Face Value	₹10 per share
Price Band	₹63 toRs.67 per share
Lot Size	2000 Shares
Total Issue Size	3,600,000 shares (aggregating up toRs.24.12 Cr)
Fresh Issue	3,600,000 shares (aggregating up toRs.24.12 Cr)
Issue Type	Book Built Issue IPO
Listing At	BSE SME
Share holding pre issue	10,000,000
Share holding post issue	13,600,000
Market Maker portion	182,000 shares

Aztec Fluids & Machinery IPO Reservation

Investor Category	Shares Offered
QIB Shares Offered	Not More than 50% of the Net Issue
Retail Shares Offered	Not Less than 35% of the Net Issue
NII (HNI) Shares Offered	Not Less than 15% of the Net Issue

 

Aztec Fluids & Machinery IPO Timeline (Tentative Schedule)

Aztec Fluids & Machinery IPO opens on May 10, 2024, and closes on May 14, 2024.

IPO Open Date	Friday, May 10, 2024
IPO Close Date	Tuesday, May 14, 2024
Basis of Allotment	Wednesday, May 15, 2024
Initiation of Refunds	Thursday, May 16, 2024
Credit of Shares to Demat	Thursday, May 16, 2024
Listing Date	Friday, May 17, 2024
Cut-off time for UPI mandate confirmation	5 PM on May 14, 2024

 

 

Aztec Fluids & Machinery IPO Lot Size

The minimum number of shares an investor can bid on is 2000, and multiples thereof are also allowed. As shown in the table below, retail investors and high net worth individuals can invest between a minimum and maximum amount in shares.

Application	Lots	Shares	Amount
Retail (Min)	1	2000	₹134,000
Retail (Max)	1	2000	₹134,000
HNI (Min)	2	4,000	₹268,000

Aztec Fluids & Machinery IPO Promoter Holding

The promoters of the company are Pulin Kumudchandra Vaidhya, Amisha Pulin Vaidhya and Kumudchandra Bhagwandas Vaidya.

Share Holding Pre Issue	100.00%
Share Holding Post Issue

Promoters and Management of Aztec Fluids & Machinery Limited IPO 

• Pulin Kumudchandra Vaidhya
• Amisha Pulin Vaidhya
• Kumudchandra Bhagwandas Vaidya
  
  

Aztec Fluids & Machinery Limited IPO Lead Managers

Bigshare Services Pvt Ltd -Registrar

Hem Securities Limited (Past IPO Performance) : Lead Manager

Dividend Policy

For FY22 and FY23, the company paid a dividend of 3000% and 150%, respectively. As a result of its financial performance and future prospects, it will adopt a prudent dividend policy. 

 

 

Conclusion

Printers, inks, and related services are highly competitive and fragmented segments. For the reported periods, its top and bottom lines grew steadily. The issue appears fully priced based on FY24 annualized super earnings. A well-informed investor may park moderate funds for medium-term gains.

Disclaimer: This Stock Analysis is only for informational purposes and should not be considered as investment advice. Always do your research and consult with a financial advisor.

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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