Associated Coaters
Fixed Price issueSME₹5.11 Cr issue
+17.36%
Listing gain over issue price
Issue size
₹5.11 Cr
1 lot at cut-off
₹1,21,000
Lot size
1,000shares
Open
30 May 2024
Close
03 Jun 2024
Allotment
04 Jun 2024
Listing
06 Jun 2024
Listing performance
Issue price
₹121
Listed at
₹142
Listing-day close
₹134.90
Latest price
₹96.50
Close on 16 Oct 2026
Listing gain
+17.36%
Return since issue
-20.25%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 30 May 2024 – 03 Jun 2024
- Listing date
- 06 Jun 2024
- Face value
- ₹10 per share
- Issue price
- ₹121 per share
- Lot size
- 1,000 shares
- Issue type
- Fixed Price issue
- Total issue size
- ₹5.11 Cr
- Market cap at offer price
- ₹16.36 Cr
- Promoter holding
- 100.00% → 68.79% pre-issue → post-issue
- ISIN
- INE0RIQ01013
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Gretex Corporate Services Ltd.
- Registered office
- Ashuti Khanberia Maheshtala LP, 20/83/46, Vivekanandapur, South 24 Parganas, , Thakurpukur Mahestola, West Bengal
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 | 66,000 | — | — |
Application size
Minimum 1,000 shares per lot, in multiples, at ₹121
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,000 | ₹1,21,000 |
| S-HNI (min) | 2 | 2,000 | ₹2,42,000 |
| S-HNI (max) | 8 | 8,000 | ₹9,68,000 |
| B-HNI (min) | 9 | 9,000 | ₹10,89,000 |
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
₹121 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 5.84 | 3.20 |
| P/E (×) | 20.72 | 37.81 |
| Price to book (×) | 7.98 | — |
| Market cap | — | ₹16.36 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 53.69%
- ROCE
- 68.30%
- Debt / equity
- 0.07
- PAT margin
- 19.08%
- NAV per share
- ₹15.17
- Price to book
- 7.98
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Associated Coaters
Associated Coaters Limited, incorporated on December 22, 2017, and converted to a public limited company on December 19, 2023, is engaged in providing pre-treatment and powder coating services for aluminium extrusions. The company's process begins with comprehensive cleaning of aluminium extrusions to remove dirt, grease, and contaminants, followed by application of chemical solutions to enhance adhesion of powder coating, including acidic solutions for surface etching or specialized pretreatment agents to optimize surface wettability. The company is headquartered in Kolkata, West Bengal, and operates from multiple facilities. Its promoters are Mr. Jagjit Singh Dhillon and Mrs. Navneet Kaur.
Company Analysis
from RHPAssociated Coaters Limited provides pre-treatment and powder coating services for aluminium extrusions in the architect and real estate industry.
Associated Coaters Limited, incorporated on December 22, 2017, and converted to a public limited company on December 19, 2023, is engaged in providing pre-treatment and powder coating services for aluminium extrusions. The company's process begins with comprehensive cleaning of aluminium extrusions to remove dirt, grease, and contaminants, followed by application of chemical solutions to enhance adhesion of powder coating, including acidic solutions for surface etching or specialized pretreatment agents to optimize surface wettability. The company is headquartered in Kolkata, West Bengal, and operates from multiple facilities. Its promoters are Mr. Jagjit Singh Dhillon and Mrs. Navneet Kaur.
specialty coatingsmetal treatment servicesreal estate and architecture materials
Objects of the Issue
- Funding Capital Expenditure towards installation of Plant & Machinery in existing premises ₹145.16 Lakhs p.22
- Working Capital Requirements ₹200.00 Lakhs p.22
- General Corporate Purpose ₹48.86 Lakhs p.22
- Funding capital expenditure towards installation of plant & machinery in our existing premises ₹145.16 lakhs p.69
- Working Capital Requirements ₹200.00 lakhs p.69
- General Corporate Purposes ₹48.86 lakhs p.69
- General corporate purposes
Issue Structure
- Total Issue
- ₹510.62 Lakhs
- Fresh Issue
- 4,22,000 Equity Shares of ₹10.00 each at ₹121.00 per share aggregating ₹510.62 Lakhs
- Offer for Sale
- Nil
- Price Band
- ₹121.00 per Equity Share
- Lot Size
- 1,000 equity shares and in multiples of 1,000 thereafter
- Face Value
- ₹10.00 per Equity Share
Business Model
The company earns revenue from providing pre-treatment and powder coating services for aluminium extrusions used in the architect and real estate industry, operating on a purchase order basis with customers.
Business Segments
Application of dry powder onto a charged surface for robust coating; includes thermoplastic and thermoset powder coatings applied using electrostatic spray guns to aluminum extrusions for architectural applications
Polyvinylidene Fluoride (PVDF) coatings representing factory-applied, resin-based system with embedded color pigment particles; used for aluminum wall cladding, curtain walls, and roofing sheets; installed in 2023
Specialized coating services serving as base coat for sublimation decoration techniques involving physical reaction between specialized inks and polyurethane powder coating to create photographic finishes
Industrial fabrication services for select customers and clients on a need basis
Electrostatic spray gun application of powder coating to aluminium extrusions with curing and quality inspection
Polyvinylidene fluoride coating application for aluminium extrusions
Coating services for wood materials
Provides pre-treatment, powder coating, PVDF coating, wood film coating, and industrial fabrication services on metals, primarily aluminium extrusions
SWOT Analysis
Strengths
- • Service provision in growing aluminum fabrication sector(p.21)
- • Strong financial performance with growing profitability(p.22)
- • Established relationships with major customers generating significant revenue(p.26)
- • Established approved applicator status with major paint brands(p.99)
- • ISO 9001:2015 certification demonstrating quality management(p.99)
- • Diversified coating technology portfolio(p.99)
- • Modern manufacturing infrastructure with multiple production lines(p.99)
- • Experienced management team with decade-plus industry expertise(p.100)
- • Significant revenue growth trajectory(p.102)
- • Established project execution capabilities with proven track record(p.106)
- • In-house integrated capabilities with state-of-the-art machinery and skilled workforce(p.106)
- • Strong and loyal customer base with repeat business potential(p.106)
- • ISO 9001:2015 certification demonstrating quality commitment(p.107)
- • Sole approved applicator status for major paint brands in Eastern India(p.107)
- • Experienced management team with over a decade of industry experience(p.107)
- • Diversified coating capabilities including automatic powder coating, wood finish, and PVDF coating(p.109)
- • High customer retention with 85% recurring customers(p.111)
- • ISO 9001:2015 certified for Quality Management System(p.174)
- • Specialized expertise in pre-treatment and powder coating of aluminium extrusions(p.174)
- • Established long-standing customer base with renowned private entities(p.174)
- • Strong profitability metrics with EBITDA margin of 28.67% in 9M FY2024(p.175)
- • High Return on Equity of 71.66% in period ended December 31, 2023(p.175)
Weaknesses
- • Rented premises not owned by company(p.26)
- • Factory premises not owned by company(p.26)
- • Heavy dependence on single promoter for key decisions and operations(p.30)
- • High trade receivables and payables indicating working capital challenges(p.27)
- • Significant related party transactions from single supplier(p.30)
- • Factory registration under Factories Act not yet granted(p.28)
- • Negative cash flows from investing and financing activities(p.29)
- • No long-term supply agreements with vendors(p.30)
- • High promoter concentration with single founder dominance(p.63)
- • Small company size relative to market scale(p.99)
- • Limited geographic reach to eastern India region only(p.99)
- • Negligible industrial fabrication contribution to revenue(p.101)
- • Heavy reliance on single customer segment(p.100)
- • Limited geographic presence concentrated in Eastern India(p.108)
- • Heavy dependence on specific customer base(p.113)
- • Significant revenue concentration with top customer representing 39.59% of sales(p.113)
- • Reliance on specific suppliers for raw materials(p.108)
- • Low capacity utilization historically with recent improvements(p.111)
- • Small employee base with limited organizational depth(p.111)
- • Recent resignations of independent directors due to pre-occupation(p.130)
- • Dependence on concentrated customer base in eastern India(p.174)
- • Unfunded gratuity liability of Rs. 1.78 lakhs as of December 31, 2023(p.165)
- • Short operational history - incorporated in December 2017 with limited track record(p.176)
- • Related party transactions of Rs. 59.01 lakhs for purchases from Associated Fabricators(p.167)
Opportunities
- • Expansion of services in aluminum fabrication for real estate sector(p.21)
- • Capital expansion through IPO proceeds for plant and machinery(p.22)
- • Working capital augmentation to support growth(p.22)
- • Listing on stock exchange for enhanced visibility and access to capital(p.2)
- • Expansion into new anodizing services to capture adjacent markets(p.70)
- • Government infrastructure spending and real estate growth(p.95)
- • India's rapid GDP growth supporting industrial expansion(p.86)
- • Rising demand for quality coatings in architecture and construction(p.99)
- • Geographic expansion beyond current eastern India footprint(p.101)
- • Expansion into other Indian states and international markets(p.108)
- • Strategic geographic diversification to broaden customer base(p.108)
- • Mitigation of business concentration risks through new geographies(p.108)
- • Growing demand for powder coating and architectural coating services(p.109)
- • Expansion of operational controls and service delivery capabilities(p.108)
- • Further diversification into related coating industry segments(p.109)
- • Expansion into other Indian states for business growth(p.174)
- • International expansion possibilities(p.174)
- • Growth through diversification into PVDF coating, wood film coating and industrial fabrication(p.174)
- • Revenue growth trajectory - 157.47% increase in FY2023 and 110.43% growth to FY2024(p.182)
Threats
- • High customer concentration risk(p.26)
- • Intense competition from organized and unorganized players(p.32)
- • Lack of long-term customer contracts(p.32)
- • Stringent environmental and safety regulations(p.31)
- • Dependence on skilled labor in manpower-intensive operations(p.29)
- • General economic slowdown in India affecting business(p.34)
- • Machinery breakdown and manufacturing process disruptions(p.33)
- • Raw material price volatility and input cost inflation(p.71)
- • Intense competition from established players in coating industry(p.70)
- • Dependence on real estate and construction sector cyclicality(p.99)
- • Global economic slowdown affecting demand(p.84)
- • Technology disruption and vendor dependence risks(p.71)
- • Intense competition from organized and unorganized players(p.109)
- • Raw material price volatility impacting cost structure(p.109)
- • Economic downturn affecting construction and manufacturing sectors(p.109)
- • Stringent environmental regulations increasing operational costs(p.109)
- • Predominantly unorganized powder coating sector creating competitive pressure(p.111)
- • Dependence on monsoon and seasonal fluctuations in construction sector(p.108)
- • Exposure to inflation impacting raw material costs and wages(p.186)
- • Credit risk from customer payment defaults(p.186)
- • Interest rate risk affecting debt service obligations(p.186)
- • Intensifying competition from new entrants and existing competitors(p.188)
- • Exposure to potential slowdown in Indian economy affecting demand(p.187)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Jagjit Singh Dhillon | Promoter | 66.65% | — |
| Navneet Kaur | Promoter | 33.33% | — |
| Jagjit Singh Dhillon | Promoter | 66.65% | 45.84% |
| Navneet Kaur | Promoter | 33.33% | 22.94% |
| Mr. Jagjit Singh Dhillon | Promoter | 66.65% | — |
| Mrs. Navneet Kaur | Promoter | 33.33% | — |
| Jagjit Singh Dhillon | Promoter/Director | — | — |
Leadership
Jagjit Singh Dhillon · Managing Director
Navneet Kaur · Director
Heenal Hitesh Rathod · Company Secretary & Compliance Officer
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.
Associated Coaters IPO FAQs
What is the lot size of Associated Coaters IPO?
The minimum lot size of Associated Coaters IPO is 1,000 shares. One lot costs ₹1,21,000 at the cut-off price.
When does Associated Coaters IPO open and close?
Associated Coaters IPO opened for subscription on 30 May 2024 and closed on 03 Jun 2024.
What is the listing date of Associated Coaters IPO?
Associated Coaters IPO listed on 06 Jun 2024.