Alphalogic Industries
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 03 Jul 2023 – 06 Jul 2023
- Listing date
- 14 Jul 2023
- Face value
- ₹10 per share
- Issue price
- ₹96 per share
- Lot size
- 1,200 shares
- Issue type
- Fixed Price issue
- Total issue size
- ₹12.88 Cr
- Market cap at offer price
- ₹48.91 Cr
- Promoter holding
- 100.00% → 73.67% pre-issue → post-issue
- ISIN
- INE0NZF01019
- Registrar
- Cameo Corporate Services Ltd.
- Lead managers
- Finshore Management Services Ltd.
- Registered office
- 405, Pride Icon, Near Columbia Asia Hospital, Kharadi Bypass Road, 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 | 67,200 | — | — |
Application size
Minimum 1,200 shares per lot, in multiples, at ₹96
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,200 | ₹1,15,200 |
| S-HNI (min) | 2 | 2,400 | ₹2,30,400 |
| S-HNI (max) | 8 | 9,600 | ₹9,21,600 |
| B-HNI (min) | 9 | 10,800 | ₹10,36,800 |
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 |
|---|---|---|
| EPS (₹) | 111.53 | — |
| P/E (×) | 0.86 | — |
| Market cap | — | ₹48.91 Cr |
Key performance indicators
- Return on net worth
- 50.60%
- ROCE
- 75.00%
- Debt / equity
- 0.86
- PAT margin
- 12.00%
- EBITDA margin
- 18.29%
- NAV per share
- ₹11.55
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Alphalogic Industries
Alphalogic Industries Limited, incorporated on September 22, 2020 and renamed from Alphalogic Trademart Limited on January 28, 2022, is engaged in the design, manufacturing, supply, and installation of industrial and institutional storage systems. The company operates a state-of-the-art manufacturing facility in Pune, Maharashtra, and has served over 150 clients across diverse industries including automobile, e-commerce, food, logistics, engineering, pharmaceutical, educational, and IT sectors in fiscal year 2023. The company is ISO 9001:2015, 14001:2015, 45001:2018 and BIFMA certified. Revenue grew from ₹322.33 lakhs in FY2021 to ₹1,823.14 lakhs in FY2023, with profit after tax rising from ₹8.29 lakhs to ₹219.41 lakhs in the same period.
Company Analysis
from RHPAlphalogic Industries Limited designs, manufactures, and supplies customized industrial and institutional storage systems including compactor storage systems, heavy-duty racks, and related products for various industries.
Alphalogic Industries Limited, incorporated on September 22, 2020 and renamed from Alphalogic Trademart Limited on January 28, 2022, is engaged in the design, manufacturing, supply, and installation of industrial and institutional storage systems. The company operates a state-of-the-art manufacturing facility in Pune, Maharashtra, and has served over 150 clients across diverse industries including automobile, e-commerce, food, logistics, engineering, pharmaceutical, educational, and IT sectors in fiscal year 2023. The company is ISO 9001:2015, 14001:2015, 45001:2018 and BIFMA certified. Revenue grew from ₹322.33 lakhs in FY2021 to ₹1,823.14 lakhs in FY2023, with profit after tax rising from ₹8.29 lakhs to ₹219.41 lakhs in the same period.
Objects of the Issue
- Working Capital Requirement ₹995.40 lakhs p.19
- Issue Related Expenses ₹44.04 lakhs p.19
- General Corporate Expenses ₹248.50 lakhs p.19
- Working Capital Requirements ₹995.40 Lakhs p.69
- Issue Related Expenses ₹44.04 Lakhs p.69
- General Corporate Purposes ₹248.50 Lakhs p.69
- General corporate purposes p.192
Issue Structure
- Total Issue
- ₹1,287.94 lakhs (13,41,600 equity shares)
- Fresh Issue
- ₹1,287.94 lakhs (13,41,600 equity shares)
- Offer for Sale
- Nil
- Price Band
- ₹96 per equity share
- Lot Size
- 1,200 equity shares
- Face Value
- ₹10 per equity share
Business Model
The company earns revenue through the design, manufacturing, supply, and installation of customized industrial and institutional storage systems. Products include compactor storage systems, heavy-duty storage racks, cantilever racks, lockers, mezzanine floors, metal pallets and crates, library stacks, bookcases, book trolleys, periodical display racks, and school lockers. The company procures raw materials (primarily mild steel, galvanized steel, and HR/CR sheets) from suppliers and its group entity Neo Mega Steel LLP, and employs third-party services for processes such as perforation, powder coating, and installation.
Business Segments
SWOT Analysis
- • ISO and BIFMA certified manufacturing with quality focus(p.18)
- • Diversified customer base across multiple industries(p.18)
- • Cost advantage from group entity raw material sourcing(p.25)
- • Strong revenue growth trajectory(p.19)
- • State-of-the-art manufacturing facility with customization capability(p.18)
- • Established track record with 8+ years group experience(p.100)
- • Strong customer relationships and repeat business base(p.100)
- • ISO and BIFMA certifications demonstrating quality standards(p.93)
- • Cost advantage through group entity raw material sourcing(p.100)
- • Modern manufacturing facility with latest machinery(p.101)
- • Diversified product portfolio across industrial and institutional segments(p.101)
- • Rapid revenue growth demonstrating market traction(p.69)
- • Registered trademarks with broad class coverage(p.106)
- • Adequate power and water infrastructure at all facilities(p.105)
- • Award recognition for innovation in industrial storage systems(p.119)
- • Experienced leadership with diverse backgrounds(p.122)
- • Growing revenue trajectory(p.151)
- • ISO certifications and quality standards across manufacturing(p.176)
- • Diversified customer base across multiple industries(p.176)
- • Strong revenue growth trajectory(p.179)
- • Improving profitability and margins(p.179)
- • Support from listed promoter with SME platform experience(p.176)
- • Extreme customer concentration with top 5 customers at 71.37% of revenue(p.24)
- • Heavy supplier concentration with top 5 suppliers at 82.44% of purchases(p.24)
- • Single manufacturing facility with no geographic diversification(p.27)
- • Significant trade receivables and payment delays exposure(p.27)
- • Negative operating cash flow in FY2023(p.29)
- • High debt with unsecured loans subject to recall(p.29)
- • Limited operating history since January 2022 commencement(p.28)
- • Revenue highly concentrated in Maharashtra at 75.59% in FY2023(p.29)
- • Significant dependence on top 5 customers representing 71.37% of revenue(p.102)
- • High dependence on top 5 suppliers at 82.44% of purchases(p.102)
- • Significant working capital requirement growth placing operational strain(p.69)
- • High short-term borrowings indicating leverage dependence(p.47)
- • Limited geographic presence with concentration in Maharashtra(p.103)
- • No long-term supply agreements increasing sourcing vulnerability(p.102)
- • Concentrated ownership structure creates governance risk(p.120)
- • High debt dependency with leveraged balance sheet(p.150)
- • Reliance on unsecured related-party borrowings(p.158)
- • Low cash reserves relative to borrowings(p.150)
- • No long-term debt financing arrangement(p.158)
- • High dependence on limited number of customers(p.177)
- • Significant financial charges relative to profit(p.178)
- • Concentration of manufacturing operations at single location(p.176)
- • Pending director income tax recovery proceedings(p.183)
- • India's steel sector expansion with production up 75% since 2008(p.18)
- • Projected steel production to exceed 300 million tonnes by 2030-31(p.18)
- • Geographic expansion beyond Maharashtra into new states(p.29)
- • Growing demand for organized storage solutions in e-commerce and logistics(p.18)
- • Government support for manufacturing through Make in India and PLI schemes(p.82)
- • Rising infrastructure investment and industrial capacity expansion(p.81)
- • Growing steel sector supporting demand for industrial storage systems(p.91)
- • Expansion into new geographic markets beyond Maharashtra(p.102)
- • Opportunity to launch additional products leveraging existing resources(p.101)
- • Growing e-commerce and logistics sectors driving warehouse storage demand(p.93)
- • Expansion into industrial storage systems business(p.117)
- • Automation and CNC machinery manufacturing capability(p.117)
- • Export and international market penetration(p.116)
- • Digital and online sales channels(p.116)
- • Holding company's IT services synergy(p.138)
- • Expansion to new geographic markets across India(p.179)
- • Growing demand for storage systems across industries(p.176)
- • Expansion through development of new products(p.177)
- • Leveraging listed parent company platform for growth(p.176)
- • High competitive intensity with low entry barriers(p.27)
- • Raw material price volatility and supply disruptions(p.26)
- • Economic slowdown risk impacting customer demand(p.42)
- • COVID-19 pandemic impact on operations and demand(p.42)
- • Regulatory changes and compliance uncertainties(p.42)
- • Seasonal business fluctuations and weather disruptions(p.27)
- • Political instability and civil unrest risk(p.44)
- • Inflation impacting cost structure without proportional revenue increase(p.43)
- • Intense competition from organized and unorganized players(p.103)
- • No entry barriers enabling new competitors to enter the market(p.103)
- • Dependence on mild steel prices subject to commodity market volatility(p.102)
- • Vulnerability to economic cycles and construction sector slowdowns(p.69)
- • Single facility concentration risk for manufacturing operations(p.101)
- • Exposure to customer concentration risk with top customer base highly concentrated(p.102)
- • High regulatory compliance burden in manufacturing(p.108)
- • Complex environmental and pollution control regulations(p.108)
- • Labour law compliance complexity(p.111)
- • Multiple tax compliance requirements(p.107)
- • Dependence on holding company creates control risk(p.138)
- • Economic cyclicality and general economic downturn(p.177)
- • Ongoing COVID-19 pandemic impact(p.177)
- • Rapid technological change and inability to keep pace(p.177)
- • Increased competition in storage systems sector(p.177)
- • Changes in laws and regulatory framework(p.177)
- • Political instability and policy changes(p.177)
- • Natural and man-made disasters impact(p.177)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Alphalogic Techsys Limited | Promoter | 69.28% | — |
| Alphalogic Techsys Limited | Promoter | 69.28% | 51.04% |
| Montubhai Gandhi | Promoter Group | 25.58% | 18.84% |
| Krina Gandhi | Promoter Group | 5.14% | 3.79% |
| Alphalogic Techsys Limited | Promoter | 69.28% | — |
| Alphalogic Techsys Ltd. | Holding Company/Promoter | — | — |
Leadership
Auto-extracted from the company's RHP 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 RHP before relying on it.