Shri Balaji Valve Components
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 27 Dec 2023 – 29 Dec 2023
- Listing date
- 03 Jan 2024
- Face value
- ₹10 per share
- Issue price
- ₹100 per share
- Lot size
- 1,200 shares
- Total issue size
- ₹21.60 Cr
- Market cap at offer price
- ₹81.60 Cr
- Promoter holding
- 100.00% → 73.53% pre-issue → post-issue
- ISIN
- INE0RNZ01014
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Hem Securities Ltd.
- Registered office
- Plot No-PAP B 31, Chakan MIDC, PH, 2 Khed, Bhamboli, 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 |
|---|---|---|---|
| Anchor investor · within QIB | 6,13,200 | — | — |
| Market maker | 1,14,000 | — | — |
Application size
Minimum 1,200 shares per lot, in multiples, at ₹100
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,200 | ₹1,20,000 |
| S-HNI (min) | 2 | 2,400 | ₹2,40,000 |
| S-HNI (max) | 8 | 9,600 | ₹9,60,000 |
| B-HNI (min) | 9 | 10,800 | ₹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.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 10.72 | — |
| P/E (×) | 9.33 | — |
| Market cap | — | ₹81.60 Cr |
Key performance indicators
- Return on net worth
- 81.50%
- ROCE
- 26.47%
- Debt / equity
- 3.63
- PAT margin
- 10.33%
- NAV per share
- ₹13.15
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Shri Balaji Valve Components
Shri Balaji Valve Components Limited, incorporated on November 17, 2011, is an ISO 9001-2015 certified company engaged in the manufacturing and supply of ready-to-assemble valve components. The company manufactures various types of valve components including forging products used in the manufacturing of ball valves, butterfly valves, and other valve types. The manufacturing system is certified for PED (Pressure Equipment Directive) and products comply with NORSOK standards. The company commenced full-fledged business operations from FY 2020-21 onwards following the acquisition of assets and liabilities from proprietorship concerns of the promoters. The company exports valve components internationally to countries including Dubai, Germany, Singapore, Taiwan, Italy, South Africa, USA, United Kingdom, Qatar, and Pennsylvania.
Company Analysis
from RHPShri Balaji Valve Components Limited manufactures ready-to-assemble valve components for ball valves, butterfly valves, and other industrial valve types, serving multiple industrial sectors.
Shri Balaji Valve Components Limited, incorporated on November 17, 2011, is an ISO 9001-2015 certified company engaged in the manufacturing and supply of ready-to-assemble valve components. The company manufactures various types of valve components including forging products used in the manufacturing of ball valves, butterfly valves, and other valve types. The manufacturing system is certified for PED (Pressure Equipment Directive) and products comply with NORSOK standards. The company commenced full-fledged business operations from FY 2020-21 onwards following the acquisition of assets and liabilities from proprietorship concerns of the promoters. The company exports valve components internationally to countries including Dubai, Germany, Singapore, Taiwan, Italy, South Africa, USA, United Kingdom, Qatar, and Pennsylvania.
Objects of the Issue
- Funding Capital Expenditure towards installation of additional plant and machinery ₹805.01 lakhs p.19
- To meet working capital requirements ₹750.00 lakhs p.19
- General Corporate Purpose p.19
- Funding Capital Expenditure towards installation of additional plant and machinery ₹805.01 lakhs p.65
- To meet working capital requirements ₹750.00 lakhs p.65
- General Corporate Purpose p.65
- The specific objects of the issue are not detailed in Part 4 of this document. Objects of the Offer section would typically be found in the prospectus cover pages or main business chapters.
Issue Structure
- Total Issue
- ₹[●] Lakhs (upto 21,60,000 Equity Shares)
- Fresh Issue
- ISSUE OF UPTO 21,60,000 EQUITY SHARES UPTO ₹ [●] LAKHS
- Offer for Sale
- Nil
- Price Band
- ₹[●] Floor Price to ₹[●] Cap Price
- Lot Size
- [●] equity shares and in multiples of [●] equity shares thereafter
- Face Value
- ₹10 each
Business Model
The company manufactures valve components based on customer specifications and material requirements. Revenue is generated through B2B sales to valve manufacturers who use the components in their valve production. The company operates manufacturing facilities using CNC machines and other machining equipment. Cost of materials consumed represented 58.46% of revenue for the period June 30, 2023. The company serves customers in multiple industrial sectors including oil and gas, power generation, petrochemical, construction equipment manufacturing, pharmaceuticals, and food and beverage industries.
Business Segments
SWOT Analysis
- • ISO 9001-2015 certification with PED and NORSOK compliance(p.18)
- • Strong financial growth trajectory with 3-year revenue expansion(p.29)
- • Experienced promoter management with significant industry tenure(p.33)
- • ISO 9001-2015 certified with PED and NORSOK compliance(p.85)
- • Integrated manufacturing capabilities with both forging and machining facilities(p.85)
- • Strong revenue growth trajectory from Rs. 1607.11 lakhs to Rs. 6232.33 lakhs(p.85)
- • Experienced management team with 30+ years combined industry experience(p.89)
- • Diversified product portfolio across multiple valve types and sizes (½ inch to 60 inches)(p.89)
- • Long-standing customer and supplier relationships developed over decades(p.90)
- • International export presence across 10+ countries(p.85)
- • Established manufacturing facility with integrated production capabilities(p.135)
- • Promoter experience of 30 years in valve components industry(p.111)
- • Awards and recognition for business management and practices(p.111)
- • Owned manufacturing facilities with 95-year lease(p.101)
- • Diverse geographic revenue base across multiple continents(p.139)
- • ISO 9001:2015 certification and quality management system credentials(p.174)
- • Established manufacturing infrastructure with forging and machining capabilities(p.174)
- • Strong revenue growth trajectory(p.175)
- • Experienced promoter leadership with 30+ years in valve components industry(p.174)
- • Export market presence in multiple countries(p.175)
- • PED and NORSOK certifications for product quality(p.174)
- • Heavy customer concentration with top 5 customers representing 42-53% of revenues(p.24)
- • High raw material cost dependency at 58-62% of revenue from operations(p.24)
- • Significant supplier concentration with top 5 suppliers at 46-65% of purchases(p.25)
- • Limited operating history as a company post-asset takeover(p.24)
- • High trade receivables at 32.65% of total assets as of June 30, 2023(p.27)
- • Unregistered trademarks with reliance on NOC from promoter(p.27)
- • High leverage with total borrowings of Rs. 2879.49 lakhs and unsecured director loans of Rs. 1058.60 lakhs(p.27)
- • Regulatory non-compliances and missing statutory filings(p.26)
- • Litigation involving promoters and directors with unascertainable amounts(p.29)
- • Heavy dependence on a few key customers representing 43% of revenue(p.90)
- • Significant reliance on few suppliers for raw materials(p.90)
- • Geographic concentration in Maharashtra with limited presence in other regions(p.91)
- • High finance costs indicating significant debt burden(p.45)
- • Majority shareholding with promoters holding 100% pre-IPO reducing public float(p.57)
- • Heavy dependence on unsecured loans from promoters(p.150)
- • Significant concentration of shareholding among promoters(p.124)
- • Rented manufacturing facility with 5-year lease expiring in 2025(p.101)
- • Recent appointment of key managerial personnel with limited tenure(p.120)
- • High proportion of long-term debt to equity(p.132)
- • High dependence on few customers(p.182)
- • Significant debt burden with high debt-to-equity ratio(p.165)
- • High interest expense and finance costs(p.179)
- • Concentration of promoter ownership and related party borrowings(p.160)
- • Unpaid tax liabilities involving promoters(p.186)
- • Expansion of manufacturing capacity through new plant at Chakan Industrial Area(p.25)
- • Growing global industrial valves market projected to reach USD 85.7 billion by 2025(p.18)
- • Diversified end-use sectors including oil & gas, power, petrochemicals, pharma and food & beverage(p.37)
- • Export market presence across multiple geographies including Dubai, Germany, Singapore, Taiwan, Italy, South Africa, USA, UK, and Qatar(p.27)
- • Expansion of manufacturing capacity at new Chakan facility for improved efficiency(p.90)
- • Growing global industrial valves market projected to reach USD 85.7 billion by 2025(p.83)
- • Strategy to deepen and expand geographical presence across India(p.91)
- • Plan to expand customer base through enhanced geographical and market reach(p.91)
- • Focus on operational efficiency improvements to enhance returns(p.91)
- • Expansion through acquisition of additional owned properties for manufacturing(p.101)
- • Growing export market demand across multiple geographies(p.139)
- • Capacity expansion through capital work-in-progress projects(p.151)
- • Export market expansion(p.179)
- • Product portfolio growth across valve component types(p.179)
- • Capacity expansion and modernization of manufacturing facilities(p.174)
- • Raw material price volatility and supply disruptions beyond company control(p.24)
- • Intense competition from large, mid-sized and local competitors(p.28)
- • Dependence on valve industry and downstream industries' growth(p.37)
- • Foreign exchange risk from unhedged export receivables(p.27)
- • Regulatory and compliance risks including licenses, permits and statutory obligations(p.25)
- • Slowdown in Indian economic growth affecting demand(p.37)
- • Global economic and political uncertainties including pandemic and geopolitical risks(p.37)
- • Power and electricity supply disruptions(p.31)
- • Transportation disruptions and freight cost volatility(p.30)
- • Labour availability and wage inflation risks(p.30)
- • Highly fragmented and competitive valve component industry with larger competitors(p.96)
- • Global economic slowdown projections affecting industrial demand(p.82)
- • Raw material price volatility and supply chain risks(p.96)
- • Customer pre-approval requirements creating barriers to market entry(p.96)
- • Dependence on energy supply and utilities at manufacturing locations(p.97)
- • Exposure to inventory and receivables risks in capital-intensive business(p.68)
- • Regulatory compliance burden across multiple labour codes(p.105)
- • Environmental and pollution control regulatory requirements(p.107)
- • Quality standards and compulsory certification requirements for steel products(p.102)
- • Hazardous waste management and disposal regulations(p.107)
- • General economic and business condition risks(p.175)
- • Changes in government policies and tax liabilities(p.175)
- • Technology obsolescence and rapid innovation requirements(p.176)
- • Competition in valve components industry(p.182)
- • Changes in consumer demand and market conditions(p.175)
- • Global economic distress and external shocks(p.176)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Laxmikant Sadashiv Kole | Promoter | 50.00% | 36.76% |
| Madhuri Laxmikant Kole | Promoter | 49.99% | 36.76% |
| Shrinivas Laxmikant Kole | Promoter | negligible | negligible |
| Laxmikant Sadashiv Kole | Promoter | 50.00% | 36.76% |
| Madhuri Laxmikant Kole | Promoter | 49.99% | 36.76% |
| Shrinivas Laxmikant Kole | Promoter | negligible | negligible |
| Laxmikant Sadashiv Kole | Promoter | 50.00% | — |
| Madhuri Laxmikant Kole | Promoter | 49.99% | — |
| Shrinivas Laxmikant Kole | Promoter | 0.00% | — |
| Laxmikant Sadashiv Kole | Promoter | — | — |
| Madhuri Laxmikant Kole | Promoter | — | — |
| Shrinivas Laxmikant Kole | Promoter (Director's Son, appointed as Director w.e.f. 15th May, 2023) | — | — |
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.