Saakshi Medtech and Panels IPO - Review, Valuation & GMP Today

Saakshi Medtech and Panels Limited - Complete Overview

Established in the year 2001, Saakshi Medtech and Panels Private Limited specializes in the design, programming, and assembly of Electrical Control Panels and Cabinets. These panels encompass microcontrollers, programmable logic controllers, and SCADA systems. 

The company's manufacturing portfolio includes:
i) Electrical Control Panels and Cabinets used in various applications such as elevators, air compressors, the renewable energy industry, oil & gas exploration, and electric vehicle charging stations.
ii) Medical X-ray Systems tailored for the healthcare sector.
iii) Fabrication services catering to locomotives.
iv) A wire harness division primarily serving the in-house requirements for electrical control panels of the company and also supplying the air compressor industry.

Notable clients of the company in different categories include Atlas Copco (India) Ltd, GE India Industrial Pvt Ltd, OTIS Elevator Company (India) Ltd, GE Oil & Gas India Pvt Ltd, Kirloskar Oil Engines Ltd, Kirloskar Pneumatic Co. Ltd. Additionally, the company has a long-term supply agreement with OTIS Elevator Company (India) Ltd for the provision of electrical control panels for lift control, valid until June 30, 2024. Other valued clients encompass Wipro GE Healthcare Pvt. Ltd, Philips India Limited, BPL Medical Technologies Private Limited, and the Wabtec group of companies.

The company has garnered the following awards and recognitions:

• Zero Defect Zero Effect recognition certification from MSME India.
• Best Delivery Performance Award in 2010 from Atlas Copco Ltd, Pune.
• Best EHS Award in 2013 from Atlas Copco Ltd, Pune.
• NPI Development Partner Award from Philips in 2015 by HIC (Healthcare Innovation Centre).
• Recognized as a Productivity Partner in the MMF Strategic Business Partnership Conclave 2021 by the GE Group.

Saakshi Medtech and Panels Private Limited operate from three manufacturing facilities located in Pune, with a combined built-up area of approximately 9600 square meters. In the fiscal year 2023, the company achieved a revenue of INR 12,205.82 lakhs.

 

 

What does the company do?

Saakshi Medtech and Panels Private Limited are involved in the design, programming, and assembly of Electrical Control Panels and Cabinets, which incorporate microcontrollers, programmable logic controllers, and SCADA systems.

 

Company Products

i) Electrical Control Panels and Cabinets employed in applications such as elevators, air compressors, the renewable energy sector, the oil & gas exploration industry, and electric vehicle charging stations, etc.
ii) Medical X-ray Systems tailored for the healthcare sector.
iii) Fabrication services geared towards locomotives.
iv) A wire harness division that caters for the internal needs of the company for electrical control panels and also supplies the air compressor industry.

 

IPO Overview

The Saakshi Medtech and Panels Limited IPO date is slated to commence on September 25, 2023, to September 27, 2023. This SME IPO is anticipated to be listed on the NSE SME platform on October 6, 2023. 

The company aims to raise Rs. 45.16 Crores through this upcoming SME IPO to fulfil various objectives. The Saakshi Medtech and Panels Limited IPO price has been fixed between the range of Rs. 92 to Rs. 97 per share. Keep reading for a comprehensive IPO review.

 

Saakshi Medtech and Panels Limited IPO timetable (Tentative)

Events	Date
IPO Opening Date	25 September 2023
IPO Closing Date	27 September 2023
IPO Allotment Date	3 October 2023
Refund initiation	4 October 2023
IPO Listing Date	6 October 2023

 

Saakshi Medtech and Panels Limited IPO Details 

IPO Opening & Closing Date	25 September to 27 September 2023
Face value	Rs.10 per Share
Issue Price	Rs.92 to Rs.97 per Share
Lot Size	1200 Shares
Price of 1 lot	Rs.116,400
Issue Size	4,656,000 Shares (aggregating up to Rs. 45.16 Cr)
Offer for sale	NA
Fresh issue	4,656,000 Shares (aggregating up to Rs. 45.16 Cr)
Listing at	NSE SME
Issue Type	Book Built Issue IPO
Registrar	Bigshare Services Pvt Ltd

 

Saakshi Medtech and Panels Limited IPO Lot Details

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

 

Saakshi Medtech and Panels Limited IPO Reservation

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

 

Company Financial

Amount in Lakhs

Period	FY - 21	FY - 22	FY - 23
Total Assets	5591.50	6521.91	9324.22
Total Revenue	6022.17	9169.35	12220.19
PAT	220.08	937.59	1238.30
Net Worth	1788.17	2725.77	3964.07
Reserve & Surplus	1788.17	2725.77	3964.07
Total Borrowings	2199.44	1635.78	2007.45

 

Revenue generated through the various product categories

(Amount in Lakhs)

Product Categories	FY 22-23	FY 21-22	FY 20-21
Medical X-Ray System	322.17	250.88	353.01
Electrical Control Panel and Cabinets	8,513.71	5,821.34	3,194.39
Fabrication Works	2,331.39	2,365.13	1,540.59
Wire Harness Division	191.16	156.38	121.50
Trading	758.96	489.28	712.75
Others	88.43	74.76	55.15
Total	12,205.82	9,157.78	5,977.39

 

Objective of the Issue 

The raised funds will be deployed for the following purposes:

• Repayment, either in full or partially, of specific outstanding borrowings.
• Allocation for addressing working capital needs.
• General corporate purposes.

 

Promoters and Management of Saakshi Medtech and Panels Limited

Aniket Vijay Latkar and Chitra Vijay Latkar are the promoters of the company.

Pre-issue Promoter Shareholding	100.00%
Post-issue Promoter Shareholding	73.63%

 

Peer Comparison

As per the Saakshi Medtech and Panels Limited IPO DRHP, there are no Indian companies listed that operate in a business comparable to that of the company.

 

IPO's Valuations

To evaluate the IPO valuation, we will examine the data provided by the company in its DRHP. Saakshi Medtech and Panels Limited IPO price has been set between the range of Rs. 92 to Rs. 97 per share, with an EPS of Rs. 9.53. Using the higher end of the price range, the company's PE ratio stands at 10.17.

 

Dividend Policy

The company has not declared any dividends on its Equity Shares in the past, and any future dividend payments will be based on the company's financial earnings.

 

IPO's Strengths

• Offer a varied selection of products.
• Possess engineering proficiency coupled with the ability to manufacture complex products.
• Maintain enduring and firmly established associations with OEM customers.
• Boast an adept and well-qualified management and employee team.
• Uphold quality assurance standards and maintain consistent financial stability.

 

IPO Weaknesses 

• The company's business heavily relies on selling products to specific key customers.
• Price pressures from the customers could negatively impact the company's gross margin, profitability, and ability to raise prices.
• The company's sales are significantly reliant on Electrical Control Panels and Cabinets.
• The company must adhere to stringent quality standards, undergo customer inspections, and be subject to audits.
• Certain inaccuracies or discrepancies have been identified in some corporate records related to forms filed with the Registrar of Companies and other provisions of the Companies Act.
• The company is required to secure various statutory and regulatory approvals.
• The company is currently engaged in legal proceedings and potential litigation.
• The company faces exposure to foreign currency exchange rate fluctuations.
• Lenders of the company hold liens on both its immovable and movable properties.
• The company operates within a competitive business environment.

 

 

IPO GMP Today

The Latest GMP of Saakshi Medtech and Panels SME IPO is Rs. 30.

 

Conclusion 

Saakshi Medtech and Panels Limited presents a diverse product portfolio and enjoys a strong customer base, resulting in revenue growth. Nonetheless, before considering an investment in this offering, it is advisable for investors to thoroughly assess all relevant factors for optimal outcomes.

 

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 RHP.

 

 

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