BEW Engineering SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 02 Sep 2021 – 07 Sep 2021
- Listing date
- 16 Sep 2021
- Face value
- ₹10 per share
- Issue price
- ₹58 per share
- Lot size
- 2,000 shares
- Total issue size
- ₹3.97 Cr
- Market cap at offer price
- ₹14.97 Cr
- Promoter holding
- 82.40% → 60.56% pre-issue → post-issue
- ISIN
- INE0HQI01014
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- First Overseas Capital Ltd.
- Registered office
- FE-10 MIDC, Phase No.II, Manpada Road, (East), 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 | 36,000 | — | — |
Application size
Minimum 2,000 shares per lot, in multiples, at ₹58
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 2,000 | ₹1,16,000 |
| S-HNI (min) | 2 | 4,000 | ₹2,32,000 |
| S-HNI (max) | 8 | 16,000 | ₹9,28,000 |
| B-HNI (min) | 9 | 18,000 | ₹10,44,000 |
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 |
|---|---|---|
| Market cap | — | ₹14.97 Cr |
About BEW Engineering SME
BEW Engineering Limited was incorporated in 2011 to consolidate operations of the BEW group. The company's promoter, Prakash Bhalchandra Lade, has been involved in the manufacturing business since 1974, initially through partnerships (Bifriends Engineering Works in 1974) and later through Sterling Fabricating Engineers Private Limited (established 1993). The company designs and manufactures a specialized range of filtration, mixing, and drying equipment for pharmaceuticals, sterile applications, intermediate compounds, fine chemicals, chemicals, agrochemicals, pesticides, insecticides, dyes, and food products. These equipments are manufactured from materials such as stainless steel, alloy steel, and Hastelloy with various linings, adhering to international codes including IS, BS, ASME, TEMA, DIN, and CE Marks. The company generates revenue through the design and manufacture of specialized process equipment for these industries.
Company Analysis
from RHPBEW Engineering Limited designs and manufactures pharmaceutical and chemical process equipment including filtration, mixing, and drying equipment for the pharmaceuticals, chemicals, agrochemicals, and specialty chemicals industries.
BEW Engineering Limited was incorporated in 2011 to consolidate operations of the BEW group. The company's promoter, Prakash Bhalchandra Lade, has been involved in the manufacturing business since 1974, initially through partnerships (Bifriends Engineering Works in 1974) and later through Sterling Fabricating Engineers Private Limited (established 1993). The company designs and manufactures a specialized range of filtration, mixing, and drying equipment for pharmaceuticals, sterile applications, intermediate compounds, fine chemicals, chemicals, agrochemicals, pesticides, insecticides, dyes, and food products. These equipments are manufactured from materials such as stainless steel, alloy steel, and Hastelloy with various linings, adhering to international codes including IS, BS, ASME, TEMA, DIN, and CE Marks. The company generates revenue through the design and manufacture of specialized process equipment for these industries.
Objects of the Issue
- Meeting Additional Working Capital Requirements ₹348.00 lakhs p.17
- General Corporate Purpose ₹18.72 lakhs p.17
- To meet Issue Expenses ₹30.00 lakhs p.17
Issue Structure
- Total Issue
- ₹396.72 lakhs
- Fresh Issue
- 6,84,000 Equity Shares of face value ₹10.00 each at ₹58 per share aggregating ₹396.72 lakhs
- Face Value
- ₹10.00
Business Model
The company earns revenue through the design and manufacture of specialized pharmaceutical and chemical process equipment. It operates on a business model with focused industry segments, competitive pricing, no or minimal credit periods, and minimal marketing expenses, relying on strong brand value and repeat customer orders with pan-India after-sales support.
Business Segments
SWOT Analysis
- • Strong promoter legacy in manufacturing filters and dryers since 1974(p.22)
- • Repeat customer orders and strong brand value(p.16)
- • Cost-effective manufacturing with quality focus(p.16)
- • Pan-India after-sales support infrastructure(p.16)
- • Specialized expertise in pharmaceutical and chemical equipment design and manufacturing(p.16)
- • Strong brand legacy and repeat customer relationships(p.74)
- • Cost-effective manufacturing with ASME certification(p.74)
- • Efficient after-sales support network(p.75)
- • Experienced promoter with 5 decades in business(p.74)
- • Strong brand value with repeat customer orders from established relationships(p.140)
- • Cost-effective and quality manufacturing capabilities(p.140)
- • Pan-India after-sales support infrastructure(p.140)
- • Strong leadership team with deep industry experience since 1974(p.140)
- • Significant EBITDA growth with 70% increase in FY2021(p.143)
- • Consolidated group operations under unified company since 2011 and 100% management control achieved in January 2018(p.140)
- • No long-term contracts with clients creating revenue uncertainty(p.20)
- • Geographic concentration with all manufacturing facilities in Thane region(p.20)
- • Heavy dependence on few customers for revenue(p.22)
- • Dependence on few suppliers for raw materials(p.22)
- • Negative operating cash flow in recent fiscal years(p.21)
- • High dependence on debt financing with inadequate interest coverage(p.21)
- • Significant contingent liabilities including disputed claims and bank guarantees(p.21)
- • Limited operational history compared to competitors in the segment(p.21)
- • Conflict of interest through promoter indirect interests in similar businesses(p.23)
- • Corporate logo not registered and owned by the company(p.25)
- • High financial leverage and debt dependence(p.120)
- • Concentration of revenue in few states/customers(p.74)
- • Single manufacturing facility location(p.84)
- • No formal intellectual property protection(p.85)
- • Dependence on promoter leadership(p.96)
- • High financial leverage with total debt of ₹2,853 lakhs against net worth of ₹971.90 lakhs (debt-to-equity of 2.94x)(p.139)
- • Significant dependence on few customers; top five customers account for 40.03% of revenues(p.147)
- • Significant dependence on few suppliers; top five suppliers contribute 31.38% of purchases(p.147)
- • Negative operating cash flow in FY2021 (₹-329.8 lakhs) due to inventory buildup(p.146)
- • Material litigation involving the company and promoters; 11 active legal cases pending before courts(p.149)
- • High financial charges consuming 4.69% of total income; interest payments increased 13.03% in FY2021(p.144)
- • Plant and machinery concentrated at single location (Plot FE-10 MIDC-Dombivali) creating concentration risk(p.132)
- • High growth projected in pharmaceutical API market in India(p.16)
- • Strong growth in agrochemicals market with 8% CAGR projected to 2024(p.16)
- • Specialty chemicals segment growth of 12% CAGR projected over 5 years(p.16)
- • Government initiatives to promote bulk drug manufacturing in India(p.16)
- • India emerging as fastest-growing major economy with strong GDP growth(p.16)
- • Focused industry segment strategy with competitive pricing advantage(p.16)
- • Growth in Pharma API manufacturing driven by PLI scheme(p.68)
- • Expanding agro-chemicals market with rising herbicide adoption(p.69)
- • Growing specialty chemicals sector with high margins(p.70)
- • Government-backed Bulk Drug Parks initiative reducing manufacturing costs(p.72)
- • Export opportunities and cost advantage from Chinese regulatory crackdown(p.70)
- • Focused industry strategy to capture high-value pharmaceutical segment(p.75)
- • Focused industry segment strategy targeting high-growth pharmaceutical and specialty chemical sectors(p.140)
- • No-credit or minimal-credit business model reducing working capital needs(p.140)
- • Competitive pricing strategy without high marketing spend; opportunity to expand market share(p.140)
- • Growth in Indian economy driving underlying demand for pharmaceutical and chemical process equipment(p.141)
- • Recovery and expansion post-COVID pandemic; gradual increase in business observed since May 2020(p.141)
- • Mandatory market-making for three years post-listing enhances liquidity and visibility(p.172)
- • Highly competitive and fragmented market with low barriers to entry(p.20)
- • Competitors with larger scale and greater financial resources(p.20)
- • COVID-19 pandemic impact on business operations and demand(p.20)
- • Macroeconomic downturn risks in India affecting demand(p.26)
- • Changing laws and regulations including adverse tax law application(p.26)
- • Natural disasters, epidemics and acts of war(p.26)
- • Wage pressures and skilled labor shortage in growing economy(p.23)
- • Outstanding legal proceedings against company and group entities(p.19)
- • Global economic conditions and financial market turmoil spillover effects(p.28)
- • Sector cyclicality and commodity price volatility(p.75)
- • Competition from larger, better-capitalized players(p.85)
- • Monsoon and agricultural dependency risks(p.70)
- • Regulatory compliance and quality standard requirements(p.71)
- • Foreign exchange and raw material price fluctuations(p.84)
- • Dependence on limited supplier base for specialized materials(p.84)
- • Significant competition from larger companies with greater resources and recognized brands(p.141)
- • Fluctuations in demand driven by external factors including economic conditions, regulations, and competitor actions(p.141)
- • Regulatory risks and compliance requirements from multiple authorities(p.141)
- • Technology changes in the pharmaceutical and chemical equipment manufacturing industry(p.141)
- • Regulatory approval required for main board migration after two years on EMERGE platform(p.172)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Prakash Bhalchandra Lade | Promoter | 58.70% | 43.15% |
| Rohan Prakash Lade | Promoter | 23.67% | 17.39% |
| Prakash Bhalchandra Lade | Promoter/Chairman | 58.70% | — |
| Rohan Prakash Lade | Promoter/Managing Director | 23.67% | — |
| Prakash Bhalchandra Lade | Promoter & Director | — | — |
| Rohan Prakash Lade | Promoter & Director | — | — |
| Prakash Bhalchandra Lade | Promoter/Chairman | — | — |
| Rohan Prakash Lade | Promoter/Managing Director | — | — |
| Sheela Prakash Lade | Promoter Director | — | — |
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.