Arrowhead Seperation Engineering SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- Listing date
- 28 Nov 2023
- Face value
- ₹10 per share
- Issue price
- ₹233 per share
- Lot size
- 600 shares
- Total issue size
- ₹13 Cr
- Market cap at offer price
- ₹43.60 Cr
- Promoter holding
- 50.00% → 35.09% pre-issue → post-issue
- ISIN
- INE0PP401015
- Registrar
- Cameo Corporate Services Ltd.
- Lead managers
- Aryaman Financial Services Ltd.
- Registered office
- Survey No 39, Village Mundhegaon, Tal, Igatpuri, 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 | 30,000 | — | — |
Application size
Minimum 600 shares per lot, in multiples, at ₹233
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 600 | ₹1,39,800 |
| S-HNI (min) | 2 | 1,200 | ₹2,79,600 |
| S-HNI (max) | 7 | 4,200 | ₹9,78,600 |
| B-HNI (min) | 8 | 4,800 | ₹11,18,400 |
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 (₹) | 12.88 | — |
| P/E (×) | 18.09 | — |
| Market cap | — | ₹43.60 Cr |
Key performance indicators
- Return on net worth
- 68.75%
- ROCE
- 30.94%
- Debt / equity
- 3.30
- PAT margin
- 8.00%
- NAV per share
- ₹18.74
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Arrowhead Seperation Engineering SME
Arrowhead Separation Engineering Limited, incorporated in 1991, is engaged in the design and manufacture of various chemical process equipments with specialization in continuous drying and cooling system equipment. The company has over two decades of experience and operates a manufacturing facility in Nashik, Maharashtra, with a corporate office in Navi Mumbai. The company manufactures drum dryers, rotary dryers, flaker systems, zero liquid discharge systems, and other customized chemical process equipment. It earns revenue through the sale of customized equipment to customers across sectors including agriculture, food, chemicals, engineering, and pharmaceuticals. The company has an on-payroll strength of 54 employees and employs additional contractual labor as needed. It utilizes a working capital-intensive business model where products are customized for individual clients and take 3-4 months to develop.
Company Analysis
from RHPArrowhead Separation Engineering Limited designs and manufactures chemical process equipment with specialization in continuous drying and cooling systems for industries including engineering, food, chemicals, and pharmaceuticals.
Arrowhead Separation Engineering Limited, incorporated in 1991, is engaged in the design and manufacture of various chemical process equipments with specialization in continuous drying and cooling system equipment. The company has over two decades of experience and operates a manufacturing facility in Nashik, Maharashtra, with a corporate office in Navi Mumbai. The company manufactures drum dryers, rotary dryers, flaker systems, zero liquid discharge systems, and other customized chemical process equipment. It earns revenue through the sale of customized equipment to customers across sectors including agriculture, food, chemicals, engineering, and pharmaceuticals. The company has an on-payroll strength of 54 employees and employs additional contractual labor as needed. It utilizes a working capital-intensive business model where products are customized for individual clients and take 3-4 months to develop.
Objects of the Issue
- Repayment of Loan from NBFC's ₹200.00 lakhs p.63
- Funding Working capital requirements ₹650.00 lakhs p.64
- General Corporate Purpose ₹320.14 lakhs p.66
Issue Structure
- Total Issue
- ₹1,300.14 lakhs
- Fresh Issue
- 5,58,000 Equity Shares of ₹10 each at ₹233 per share aggregating to ₹1,300.14 lakhs
- Offer for Sale
- NIL
- Price Band
- ₹233 per share (fixed price)
- Lot Size
- 600 shares (minimum allotment of 600 shares to successful applicants)
- Face Value
- ₹10 per equity share
Business Model
Arrowhead Separation Engineering operates on a design-to-order manufacturing model. Revenue is earned primarily from the sale of customized chemical process equipment including drum dryers, rotary dryers, flaker systems, and Zero Liquid Discharge (ZLD) systems. The company conducts pilot trials on client materials to develop suitable drying solutions. It follows an asset-light outsourcing model where certain manufacturing processes are outsourced to third-party job workers. Products are manufactured based on customer specifications with a gestation period of 3-4 months. Revenue from operations for FY2021-22, FY2022-23, and period ended June 30, 2023 were ₹912.29 lakhs, ₹2,150.10 lakhs, and ₹872.26 lakhs respectively.
Business Segments
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Ajit Mundle | Promoter | 14.33% | 10.06% |
| Jyoti Mundle | Promoter | 16.74% | 11.75% |
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.