Concord Control Systems SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 27 Sep 2022 – 29 Sep 2022
- Listing date
- 10 Oct 2022
- Face value
- ₹10 per share
- Issue price
- ₹55 per share
- Lot size
- 2,000 shares
- Total issue size
- ₹8.32 Cr
- Market cap at offer price
- ₹31.42 Cr
- Promoter holding
- 100.00% → 73.53% pre-issue → post-issue
- ISIN
- INE0N0J01014
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Hem Securities Ltd.
- Registered office
- G-36 U.P.S.I.D.C, Industrial Area, Deva Road,, Chinhat, Uttar Pradesh
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 | 4,28,000 | — | — |
| Market maker | 78,000 | — | — |
Application size
Minimum 2,000 shares per lot, in multiples, at ₹55
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 2,000 | ₹1,10,000 |
| S-HNI (min) | 2 | 4,000 | ₹2,20,000 |
| S-HNI (max) | 9 | 18,000 | ₹9,90,000 |
| B-HNI (min) | 10 | 20,000 | ₹11,00,000 |
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 (₹) | 6.17 | — |
| P/E (×) | 8.91 | — |
| Market cap | — | ₹31.42 Cr |
Key performance indicators
- Return on net worth
- 34.35%
- ROCE
- 43.74%
- Debt / equity
- 0.42
- PAT margin
- 8.17%
- NAV per share
- ₹17.95
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Concord Control Systems SME
Concord Control Systems Limited, incorporated on January 19, 2011 and converted to a Public Limited Company on August 26, 2022, is engaged in manufacturing and supplying coach-related and electrification products for Indian Railways and railway contractors. The company manufactures products required in railway coaches such as Inter-Vehicular Coupler, Emergency Lighting System, Brushless DC carriage fan, Exhaust fans, Cable Jackets, and Bellows, as well as products for electrification of coaches and the Broad Gauge network of Indian Railways such as Battery Charger 200 AH, Battery Charger 40 AH, and Tensile Testing Machine. The company is an approved vendor by Research Design and Standards Organisation (RDSO) to manufacture and supply these products for Indian Railways. For FY 2021-22, the company reported total revenue from operations of ₹3,169.55 lakhs with profit after tax of ₹258.97 lakhs.
Company Analysis
from RHPConcord Control Systems manufactures and supplies coach-related and railway electrification products for Indian Railways and railway contractors.
Concord Control Systems Limited, incorporated on January 19, 2011 and converted to a Public Limited Company on August 26, 2022, is engaged in manufacturing and supplying coach-related and electrification products for Indian Railways and railway contractors. The company manufactures products required in railway coaches such as Inter-Vehicular Coupler, Emergency Lighting System, Brushless DC carriage fan, Exhaust fans, Cable Jackets, and Bellows, as well as products for electrification of coaches and the Broad Gauge network of Indian Railways such as Battery Charger 200 AH, Battery Charger 40 AH, and Tensile Testing Machine. The company is an approved vendor by Research Design and Standards Organisation (RDSO) to manufacture and supply these products for Indian Railways. For FY 2021-22, the company reported total revenue from operations of ₹3,169.55 lakhs with profit after tax of ₹258.97 lakhs.
Objects of the Issue
- To meet the Working Capital requirements ₹700.00 Lakhs p.23
- General Corporate Purpose ₹49.17 Lakhs p.23
- To meet Issue Expenses ₹82.43 Lakhs p.23
- To meet working capital requirements ₹700.00 lakhs p.70
- General Corporate Purpose ₹49.17 lakhs p.70
- To meet issue expenses ₹82.43 lakhs p.70
- The Objects of the Offer section is not provided in this part of the document (pages 172-221). This section would typically be found in an earlier portion of the DRHP/RHP.
Issue Structure
- Total Issue
- ₹831.60 Lakhs
- Fresh Issue
- ₹831.60 Lakhs
- Offer for Sale
- Nil
- Price Band
- ₹53 to ₹55 per equity share (Floor Price ₹53, Cap Price ₹55)
- Lot Size
- 2,000 equity shares and in multiples of 2,000 equity shares thereafter
- Face Value
- ₹10 per equity share
Business Model
The company earns revenue through manufacturing and supply of coach-related and electrification products to Indian Railways and other railway contractors. For FY 2021-22, revenue from sales to Indian Railways was ₹2,321.65 lakhs (73.83% of revenue) and revenue from sales to other railway contractors was ₹823.04 lakhs (26.17% of revenue). The company operates through a competitive bidding process for securing purchase orders from Indian Railways.
Business Segments
SWOT Analysis
- • RDSO approved vendor for multiple railway products(p.22)
- • Established revenue growth from Indian Railways(p.28)
- • Diversified customer base across Indian Railways and contractors(p.28)
- • Strong financial performance with consistent profitability(p.23)
- • Improved net worth trajectory(p.23)
- • Diversified product portfolio for Indian Railways(p.100)
- • ISO 9001:2015 certification and quality management system(p.100)
- • RDSO approval as vendor for railway products(p.100)
- • Established customer relationships with Indian Railways(p.98)
- • Experienced management with over 15 years industry knowledge(p.98)
- • R&D capabilities for product development and testing(p.98)
- • Strong revenue growth trajectory(p.98)
- • Established manufacturing operations with dual factory locations(p.115)
- • Revenue growth trajectory over three years(p.115)
- • Vertical integration through subsidiary companies(p.115)
- • RDSO approval and established product portfolio(p.173)
- • Strong revenue growth trajectory(p.173)
- • Profitability growth and positive cash generation(p.173)
- • ISO 9001:2015 quality certification(p.173)
- • Diversified customer base across railway zones(p.173)
- • R&D capabilities for product development(p.173)
- • Heavy dependence on single product (Inter-vehicular Coupler)(p.30)
- • Significant working capital requirements and inventory management(p.33)
- • High trade receivables blocking working capital(p.33)
- • Dependence on key management personnel (promoters)(p.29)
- • Manufacturing facilities on leased premises creating renewal risk(p.31)
- • Trademark not owned by company(p.33)
- • Corporate compliance discrepancies and past violations(p.31)
- • Significant outstanding dues to creditors(p.32)
- • High dependence on Indian Railways as primary customer(p.98)
- • Manufacturing concentrated at single location (Lucknow)(p.98)
- • Declining capacity utilization for key products(p.103)
- • Limited scale compared to larger manufacturing competitors(p.104)
- • Rented facility for second manufacturing unit with short lease term(p.105)
- • High inventory concentration relative to current assets(p.140)
- • Significant reliance on short-term borrowings for working capital(p.155)
- • Concentrated customer base (trade receivables declined 60% YoY)(p.159)
- • Limited track record of profitability prior to consolidation(p.141)
- • High concentration in Indian Railways customer base(p.178)
- • Increasing employee benefit expenses(p.176)
- • Material costs growing faster than revenue(p.176)
- • Government initiatives for railway modernization and electrification(p.27)
- • Expanding Indian Railways budget allocation(p.40)
- • Expand product portfolio with new RDSO approvals(p.28)
- • Growing orders from Indian Railways demonstrating market traction(p.22)
- • Government's Mission 100% Electrification of Railway network(p.101)
- • Expansion of railway coach manufacturing and upgrades(p.101)
- • Government initiatives on innovative railway technologies (SMART Coaches, Kavach system)(p.101)
- • Government capital expenditure increase on railway infrastructure(p.88)
- • PPP model opportunities in Indian Railways(p.100)
- • Expansion potential for new railway electrification contractor customers(p.100)
- • Capacity expansion through new manufacturing facility(p.115)
- • Strategic expansion via subsidiary consolidation(p.115)
- • Access to capital markets through IPO(p.115)
- • Expansion of product portfolio in railway applications(p.173)
- • Development of new products like Control and Relay Panels(p.173)
- • Participation in railway electrification and modernization(p.173)
- • Supply to multiple railway contractors and organizations(p.173)
- • Heavy dependence on Indian Railways policy and budget allocation(p.27)
- • Vendor registration termination risk(p.28)
- • Tender bidding competition and order uncertainty(p.28)
- • Raw material price volatility and supply disruptions(p.32)
- • Intense competition from existing and new competitors(p.37)
- • Foreign currency exchange rate fluctuations on imports(p.36)
- • Economic slowdown in India affecting demand(p.40)
- • Labour law changes increasing compliance and wage costs(p.32)
- • COVID-19 pandemic impacts on operations and economy(p.40)
- • Competitive pressure from other railway product manufacturers(p.104)
- • Dependency on Indian Railways tender process and procurement decisions(p.103)
- • Raw material price volatility, especially imported materials(p.102)
- • Dependence on power supply from single source(p.103)
- • Railway sector cyclicality and budget allocation uncertainties(p.101)
- • Regulatory compliance burden across multiple environmental and labour laws(p.107)
- • Cyclical exposure to manufacturing and industrial demand(p.143)
- • Foreign exchange exposure on imports(p.150)
- • Contingent tax liabilities and regulatory demands(p.165)
- • Dependence on Indian Railways sector health(p.178)
- • Regulatory and policy changes affecting transportation(p.174)
- • General economic risks and inflation(p.174)
- • Changes in technology requirements(p.174)
- • Risk of regulatory non-compliance(p.174)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Nitin Jain | Promoter | 49.99% | 36.76% |
| Mr. Gaurav Lath | Promoter | 49.99% | 36.76% |
| Mr. Nitin Jain | Promoter | 49.99% | 36.76% |
| Mr. Gaurav Lath | Promoter | 49.99% | 36.76% |
| Mr. Govind Prasad Lath | Promoter Group | 0.00% | 0.00% |
| Mrs. Rekha Lath | Promoter Group | 0.00% | 0.00% |
| Mrs. Pankhuri Lath | Promoter Group | 0.00% | 0.00% |
| Mr. Ashok Jain | Promoter Group | 0.00% | 0.00% |
| Mrs. Mahima Jain | Promoter Group | 0.00% | 0.00% |
| Nitin Jain | Promoter/Joint Managing Director | 49.99% | — |
| Gaurav Lath | Promoter/Joint Managing Director | 49.99% | — |
| Nitin Jain | Promoter | — | — |
| Gaurav Lath | Promoter | — | — |
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.