ATAM Valves SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 18 Sep 2020 – 25 Sep 2020
- Listing date
- 06 Oct 2020
- Face value
- ₹10 per share
- Issue price
- ₹40 per share
- Lot size
- 3,000 shares
- Total issue size
- ₹4.50 Cr
- Promoter holding
- 99.99% → 72.73% pre-issue → post-issue
- ISIN
- INE09KD01013
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Fedex Securities Pvt.Ltd.
- Registered office
- 1051,, Industrial Area,, Punjab
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 | 57,000 | — | — |
Application size
Minimum 3,000 shares per lot, in multiples, at ₹40
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 3,000 | ₹1,20,000 |
| S-HNI (min) | 2 | 6,000 | ₹2,40,000 |
| S-HNI (max) | 8 | 24,000 | ₹9,60,000 |
| B-HNI (min) | 9 | 27,000 | ₹10,80,000 |
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 |
|---|
About ATAM Valves SME
Atam Valves Limited, originally incorporated as a Partnership Firm in 1982, was converted to a private limited company in 1985 and subsequently to a public limited company in 2017. For almost 3.5 decades, the company has been manufacturing Flow Indicators, Auto Injectors, Industrial Valves, Globe Valves, Relief Valves, Horizontal Check Valves, and allied products. The company manufactures Gunmetal, Bronze and Brass Bushes, Industrial Valves and Cocks marketed under the brand names ATAM and FEBI. The company operates two manufacturing facilities in Jalandhar, Punjab, and generates revenue through the sale of these products to power, steel, oil & gas, and other industrial sectors, with a significant portion derived from export sales.
Company Analysis
from RHPAtam Valves Limited manufactures and sells industrial valves, cocks, boiler mountings, pipe fittings, and related products for the power, steel, oil & gas, and allied industries.
Atam Valves Limited, originally incorporated as a Partnership Firm in 1982, was converted to a private limited company in 1985 and subsequently to a public limited company in 2017. For almost 3.5 decades, the company has been manufacturing Flow Indicators, Auto Injectors, Industrial Valves, Globe Valves, Relief Valves, Horizontal Check Valves, and allied products. The company manufactures Gunmetal, Bronze and Brass Bushes, Industrial Valves and Cocks marketed under the brand names ATAM and FEBI. The company operates two manufacturing facilities in Jalandhar, Punjab, and generates revenue through the sale of these products to power, steel, oil & gas, and other industrial sectors, with a significant portion derived from export sales.
Objects of the Issue
- Repayment/Prepayment of certain secured borrowings availed by our Company ₹314.00 Lakhs p.18
- General corporate purposes ₹103.50 Lakhs p.18
- Repayment/ Prepayment of certain secured borrowings availed by our Company ₹314.00 Lakhs p.69
- General corporate purposes ₹103.50 Lakhs p.69
- Capital expenditure for setting up manufacturing facilities and equipment
Issue Structure
- Total Issue
- ₹450.00 Lakhs (11,25,000 Equity Shares)
- Fresh Issue
- 11,25,000 Equity Shares
- Price Band
- Fixed price of ₹40.00 per Equity Share
- Lot Size
- 3,000 Equity Shares (Application Lot)
- Face Value
- ₹10.00 per Equity Share
Business Model
The company manufactures valves and related products on specific customer orders and sells them to industrial customers, including power, steel, and oil & gas sectors. The company generates revenue from sales of products both domestically and internationally. Raw materials (iron, casting, and similar materials) comprise approximately 51.05% of total expenses as of March 31, 2020, and the company procures these primarily on a spot market basis from multiple suppliers rather than under long-term supply agreements.
Business Segments
SWOT Analysis
- • Established market presence in valve manufacturing for 3.5 decades(p.17)
- • Strong brand recognition with ATAM and FEBI brands(p.17)
- • Experienced and innovative product design capability(p.17)
- • Experienced founder-led management with deep industry knowledge(p.97)
- • ISO certifications for quality and environmental management(p.98)
- • Integrated and self-reliant manufacturing facility(p.102)
- • Long-standing customer relationships and customization capability(p.103)
- • Global export presence across 13+ regions(p.98)
- • Dual brand strategy with established market presence(p.98)
- • Original promoter with long operational history(p.184)
- • Diversified industrial customer base across sectors(p.184)
- • Established quality certifications and standards compliance(p.204)
- • Registered trademarks and intellectual property portfolio(p.205)
- • Positive profitability and improving net worth over three years(p.186)
- • Heavy dependence on limited supplier base for raw materials(p.28)
- • Significant revenue concentration among top customers(p.28)
- • Registered office and manufacturing units not owned but leased(p.25)
- • High exposure to raw material price fluctuations(p.26)
- • Both manufacturing facilities concentrated in single location(p.26)
- • Lack of long-term formal supply agreements with vendors(p.28)
- • High borrowing levels with restrictive covenants(p.27)
- • Compliance gaps in accounting standards and corporate records(p.25)
- • Significant financial leverage from secured borrowings(p.71)
- • Limited scale with capacity utilization at only 56% in recent years(p.110)
- • Primary operations concentrated in single location (Jalandhar) with single warehouse(p.98)
- • Dependent on leasehold properties for manufacturing facilities(p.110)
- • Small employee base of only 201 persons as of July 31, 2020(p.107)
- • High debt burden relative to equity(p.182)
- • Declining profitability trend year-on-year(p.187)
- • Revenue decline in last financial year(p.186)
- • Rising employee benefit expenses(p.187)
- • Multiple pending material litigations for recovery of dues(p.196)
- • Group companies with chronic losses(p.147)
- • Low liquidity position(p.182)
- • No dividend history despite three years of operations(p.149)
- • Growing global industrial valves market projected at 5% CAGR(p.17)
- • Increasing demand from power and chemical industries(p.17)
- • Growing oil and gas sector activities globally(p.17)
- • Rising demand for automatic valves in the market(p.17)
- • Growing global industrial valves market with 5%+ CAGR(p.86)
- • Asia-Pacific dominance in valves consumption with rising demand(p.86)
- • Increasing demand from power industry for valve applications(p.86)
- • Government infrastructure investment and energy capacity expansion plans(p.88)
- • Shift toward value-added products and technology upgrades in Indian engineering sector(p.93)
- • Strategic intent to invest in infrastructure and modernize technology(p.104)
- • Capacity expansion and technology upgradation strategy(p.153)
- • Growth through acquisition and consolidation(p.96)
- • Export market expansion with existing capabilities(p.178)
- • Access to capital markets through SME platform listing(p.201)
- • COVID-19 pandemic impact on business and operations uncertain(p.24)
- • Slowdown in global and local macroeconomic conditions(p.25)
- • Intense competition in highly fragmented valve industry(p.29)
- • Power supply shortages affecting manufacturing(p.29)
- • Changes in environmental, health and safety regulations(p.30)
- • Foreign exchange risk from export operations(p.31)
- • Dependence on third-party transportation for operations(p.30)
- • Regulatory risks from license and permit requirements(p.31)
- • Global and India economic slowdown due to COVID-19 pandemic(p.80)
- • Stagnant industrial growth in developed countries constraining market(p.86)
- • Intense competition from international players with FDI inflows(p.93)
- • Exposure to commodity price volatility and supply chain disruptions(p.81)
- • High dependence on single major customer concentration risk(p.69)
- • Significant customer concentration risk(p.189)
- • Significant supplier concentration risk(p.189)
- • COVID-19 pandemic impact on operations(p.189)
- • Dependence on key management personnel(p.184)
- • Industry cyclicality and competitive pressures(p.184)
- • Regulatory compliance risks(p.185)
- • Outstanding tax demands against directors(p.197)
- • Potential professional tax liability(p.203)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Vimal Parkash Jain | Promoter | 29.90% | 21.75% |
| Amit Jain | Promoter | 47.70% | 34.69% |
| Vimal Parkash Jain | Promoter / Chairman & Wholetime Director | 29.90% | 21.75% |
| Amit Jain | Promoter / Managing Director | 47.70% | 34.69% |
| Pamila Jain | Promoter Group / Wholetime Director | 22.00% | 16.00% |
| Vimal Parkash Jain | Promoter | 29.90% | — |
| Amit Jain | Promoter | 47.70% | — |
| Pamila Jain | Promoter Group | 22.00% | — |
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.