AA Plus Tradelink
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 08 Jul 2021 – 13 Jul 2021
- Listing date
- 22 Jul 2021
- Face value
- ₹10 per share
- Issue price
- ₹18 per share
- Lot size
- 8,000 shares
- Total issue size
- ₹6.48 Cr
- Market cap at offer price
- ₹14.70 Cr
- Promoter holding
- 58.63% → 32.78% pre-issue → post-issue
- ISIN
- INE0C5901022
- Registrar
- Purva Sharegistry (India) Pvt.Ltd.
- Lead managers
- Inventure Merchant Banker Services Pvt.Ltd.
- Registered office
- B-702, Divine Jalpa, Gomati Bhuvan, Near Jain Temple, Jambli Gali, Borivali (West), Maharashtra
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Market maker | 1,92,000 | — | — |
Application size
Minimum 8,000 shares per lot, in multiples, at ₹18
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 8,000 | ₹1,44,000 |
| S-HNI (min) | 2 | 16,000 | ₹2,88,000 |
| S-HNI (max) | 6 | 48,000 | ₹8,64,000 |
| B-HNI (min) | 7 | 56,000 | ₹10,08,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| Market cap | — | ₹14.70 Cr |
About AA Plus Tradelink
AA Plus Tradelink Limited was incorporated as a public limited company on March 21, 2016 (CIN U74900MH2016PLC274726) and operates from a leased registered office in Borivali (West), Mumbai. It began trading iron & steel and aluminium products in 2016, introduced various alloys and speciality alloys in 2018, and in 2020 added construction-industry chemicals such as epoxy and PU floor coatings to its portfolio. The Company acts as an intermediary in the iron & steel and other metal and alloy industry: it ascertains client requirements, sources material from various manufacturers and traders (mainly the Mumbai local market), sends quotations and arranges dispatch, serving corporate clients from the fabrication, manufacturing and construction industries. Its traded catalogue spans sixteen product lines, including aluminium bars/rods/profiles, aluminium powder and scrap, ammonium molybdenum, GI pipes, graphite flakes/powder/rods/blocks/plates/scrap, MS pipes and sheets, matrix powder, nickel powder, tungsten and zirconium alloy. It owns no major plant and machinery and had nine employees as of August 31, 2020. In FY2020 it earned total income of ₹1,731.76 lakhs (revenue from operations ₹1,656.00 lakhs plus interest and other income of ₹75.76 lakhs) and PAT of ₹14.21 lakhs; its top five customers contributed about 91% of sales and top five suppliers about 100% of purchases. Through this fixed-price SME IPO on the BSE SME platform it is raising ₹648.00 lakhs, mainly to augment working capital.
Company Analysis
from DRHPAA Plus Tradelink Limited is a Mumbai-based multi-product trading company engaged in trading of iron & steel, aluminium, graphite and other alloy products and in supplying epoxy and PU floor-coating products to clients in the construction and manufacturing industries.
AA Plus Tradelink Limited was incorporated as a public limited company on March 21, 2016 (CIN U74900MH2016PLC274726) and operates from a leased registered office in Borivali (West), Mumbai. It began trading iron & steel and aluminium products in 2016, introduced various alloys and speciality alloys in 2018, and in 2020 added construction-industry chemicals such as epoxy and PU floor coatings to its portfolio. The Company acts as an intermediary in the iron & steel and other metal and alloy industry: it ascertains client requirements, sources material from various manufacturers and traders (mainly the Mumbai local market), sends quotations and arranges dispatch, serving corporate clients from the fabrication, manufacturing and construction industries. Its traded catalogue spans sixteen product lines, including aluminium bars/rods/profiles, aluminium powder and scrap, ammonium molybdenum, GI pipes, graphite flakes/powder/rods/blocks/plates/scrap, MS pipes and sheets, matrix powder, nickel powder, tungsten and zirconium alloy. It owns no major plant and machinery and had nine employees as of August 31, 2020. In FY2020 it earned total income of ₹1,731.76 lakhs (revenue from operations ₹1,656.00 lakhs plus interest and other income of ₹75.76 lakhs) and PAT of ₹14.21 lakhs; its top five customers contributed about 91% of sales and top five suppliers about 100% of purchases. Through this fixed-price SME IPO on the BSE SME platform it is raising ₹648.00 lakhs, mainly to augment working capital.
Objects of the Issue
- Augmenting additional working capital requirements ₹494.40 lakhs p.52
- General Corporate Purposes ₹123.60 lakhs p.52
- To meet Issue Expenses ₹30.00 lakhs p.52
Issue Structure
- Total Issue
- ₹648.00 lakhs (36,00,000 Equity Shares at ₹18.00 per Equity Share)
- Fresh Issue
- Entire Issue is a fresh issue of 36,00,000 Equity Shares aggregating ₹648.00 lakhs
- Price Band
- Fixed Price Issue at ₹18.00 per Equity Share (including a share premium of ₹8.00 per Equity Share)
- Lot Size
- 8,000 Equity Shares (minimum application and trading lot)
- Face Value
- ₹10.00 each
Business Model
The Company earns revenue primarily as a trader/intermediary: it procures metals, alloys and allied products from various manufacturers and traders (mainly the Mumbai local market) against client orders and supplies them to customers, recognising net sales plus commission income (FY2020 revenue from operations of ₹1,656.00 lakhs comprised net sales of ₹1,649.40 lakhs and commission of ₹6.60 lakhs). It also supplies epoxy and PU floor-coating products, and earns interest income (₹75.76 lakhs in FY2020) on short-term loans and advances extended to third parties (₹671.38 lakhs outstanding at March 31, 2020).
Business Segments
SWOT Analysis
- • Diverse multi-product metal & alloy portfolio sold 'under one roof', reducing concentration risk(p.66)
- • Dedicated adherence to quality standards prescribed by clients(p.67)
- • Located in Mumbai's metal hub, giving a procurement advantage(p.68)
- • Promoter Ashok A. Shah brings 40+ years of aluminium industry experience(p.85)
- • Top management enjoys the confidence of several corporate clients(p.69)
- • High customer concentration - top 5 clients contributed ~91% of FY2020 sales(p.20)
- • Extreme supplier concentration - top 5 suppliers accounted for 100% of FY2020 purchases(p.20)
- • No long-term contracts with clients; orders cancellable/reducible at will(p.17)
- • Geographic concentration of business in a single area, Mumbai(p.18)
- • Dependence on Promoters, Managing Director and key managerial personnel(p.18)
- • History of negative cash flows (FY2020 net cash from operations of Rs.(163.39) lakhs)(p.22)
- • Unsecured loans of Rs.95.33 lakhs outstanding that are recallable on demand(p.23)
- • Strategy to increase client relationships and cross-sell a whole suite of products(p.67)
- • Venturing into contracting business - end-to-end supply and fitting of aluminium windows for builders(p.67)
- • Planned expansion of product portfolio into construction chemicals(p.67)
- • Infrastructure projects continue to provide lucrative opportunities for steel, zinc and aluminium producers(p.60)
- • Ministry of Steel's capacity target of 300 MT by 2030-31 indicates new sector opportunities(p.60)
- • Indian real estate expected to reach US$1 trillion by 2030, supporting demand for traded metals(p.65)
- • Fluctuations in prevailing market prices of iron, steel, aluminium and alloys impact profits(p.20)
- • Intense/significant competition from other manufacturers and traders(p.20)
- • Monsoon season restricts construction-material supply and trading activities(p.20)
- • COVID-19 pandemic forced temporary shutdown of operations; future impact unpredictable(p.18)
- • Entire revenue derived from India exposes company to domestic macroeconomic downturn(p.24)
- • Changing laws, rules, regulations and tax-law uncertainties may adversely affect business(p.24)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Ashok A. Shah | Promoter | 26.55% | 14.84% |
| Rajkumar M. Singh | Promoter | 17.74% | 9.92% |
Leadership
Auto-extracted from the company's DRHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official DRHP before relying on it.