Containe Technologies SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 20 Sep 2022 – 22 Sep 2022
- Listing date
- 30 Sep 2022
- Face value
- ₹10 per share
- Issue price
- ₹15 per share
- Lot size
- 8,000 shares
- Total issue size
- ₹2.62 Cr
- Market cap at offer price
- ₹9.37 Cr
- Promoter holding
- 99.99% → 72.07% pre-issue → post-issue
- ISIN
- INE0M8901010
- Registrar
- Cameo Corporate Services Ltd.
- Lead managers
- Finshore Management Services Ltd.
- Registered office
- H.No.3-13-142/ 341P, 342, Gokul Nagar, Marriguda, Mallapur, Secunderabad, Telangana
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 | 88,000 | — | — |
Application size
Minimum 8,000 shares per lot, in multiples, at ₹15
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 8,000 | ₹1,20,000 |
| S-HNI (min) | 2 | 16,000 | ₹2,40,000 |
| S-HNI (max) | 8 | 64,000 | ₹9,60,000 |
| B-HNI (min) | 9 | 72,000 | ₹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 |
|---|---|---|
| EPS (₹) | 0.31 | — |
| P/E (×) | 48.39 | — |
| Market cap | — | ₹9.37 Cr |
Key performance indicators
- Return on net worth
- 0.92%
- ROCE
- 4.00%
- Debt / equity
- 0.41
- PAT margin
- 2.10%
- EBITDA margin
- 17.84%
- NAV per share
- ₹11.15
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Containe Technologies SME
Containe Technologies Limited was founded in 2008 and is engaged in the design, development, manufacturing, supply, and service of electronic speed limiting devices (SLD) and GSM/GPRS/GPS/IRNSS-based vehicle location tracking devices (VLTD) for commercial vehicles and buses. The company manufactures products under the brands 'MOTOREYE & LIMITS' (Electronic Fuel Regulator & Pedal Interface) and 'TRANOPRO' (Vehicle Location Tracking Devices). Products are tested and approved by ARAI (Automotive Research Association of India) and ICAT (International Centre for Automotive Technology). The company also markets and sells IoT devices and lithium-ion battery-operated 2-wheeler and 3-wheeler auto-rickshaws. It has one manufacturing facility at Marriguda, Secunderabad, Hyderabad, and distributes products through a network of distributors and dealers across pan-India. The company employs stringent quality control at each manufacturing stage to comply with Central Motor Vehicle Rules.
Company Analysis
from RHPContaine Technologies Limited designs, manufactures, and supplies electronic speed limiting devices, vehicle location tracking devices, and IoT-based solutions for the automobile sector.
Containe Technologies Limited was founded in 2008 and is engaged in the design, development, manufacturing, supply, and service of electronic speed limiting devices (SLD) and GSM/GPRS/GPS/IRNSS-based vehicle location tracking devices (VLTD) for commercial vehicles and buses. The company manufactures products under the brands 'MOTOREYE & LIMITS' (Electronic Fuel Regulator & Pedal Interface) and 'TRANOPRO' (Vehicle Location Tracking Devices). Products are tested and approved by ARAI (Automotive Research Association of India) and ICAT (International Centre for Automotive Technology). The company also markets and sells IoT devices and lithium-ion battery-operated 2-wheeler and 3-wheeler auto-rickshaws. It has one manufacturing facility at Marriguda, Secunderabad, Hyderabad, and distributes products through a network of distributors and dealers across pan-India. The company employs stringent quality control at each manufacturing stage to comply with Central Motor Vehicle Rules.
Objects of the Issue
- To meet the working capital requirements ₹206.60 Lakhs p.19
- General corporate purposes ₹31.65 Lakhs p.19
- Issue related expenses ₹23.35 Lakhs p.19
- To meet the working capital requirements ₹206.60 lakh p.59
- General corporate purposes ₹31.65 lakh p.59
- Issue related expenses ₹23.35 lakh p.59
- General corporate purposes p.171
Issue Structure
- Total Issue
- ₹261.60 Lakhs
- Fresh Issue
- ₹261.60 Lakhs
- Offer for Sale
- Nil
- Price Band
- ₹15/- per equity share (Fixed Price)
- Lot Size
- 8,000 Equity Shares (minimum lot size)
- Face Value
- ₹10/- per equity share
Business Model
The company generates revenue primarily through the sale of electronic speed limiting devices, vehicle location tracking devices, and related IoT products. Products are sold through distributors appointed in various states, who in turn appoint dealers. The company supplies products to distributors, who supply to dealers. Revenue is generated from the automotive component aftermarket and OEM channels.
Business Segments
SWOT Analysis
- • ISO certified with approved products for major vehicle manufacturers(p.18)
- • ARAI and ICAT tested and approved devices across multiple vehicle segments(p.18)
- • Devices successfully installed across major OEM brands and PAN India presence(p.18)
- • Strong distributor-dealer network for product distribution(p.18)
- • Established 14-year track record in road transport domain with 2+ lakh installed vehicle base(p.94)
- • State-of-the-art manufacturing facility with 25,000 sq ft company-owned premises(p.94)
- • Proprietary eSIM manufacturing capability with M2M license and MOU with major telecom providers(p.94)
- • Products mandated by law for installation in all commercial vehicles(p.94)
- • Extensive dealer network across 15+ states covering 400+ distributors(p.94)
- • In-house R&D facility with products certified by ARAI and ICAT testing agencies(p.94)
- • Established R&D capability with dedicated facility for product innovation(p.159)
- • Multiple product certifications and approvals from regulatory bodies(p.159)
- • ISO 9001:2015 certified organization demonstrating quality standards(p.160)
- • Successful product installations across major OEM vehicle models(p.160)
- • Regulatory compliance and SME eligibility met across all criteria(p.172)
- • Positive cash accruals demonstrated over recent financial years(p.173)
- • Operational website and digital infrastructure in place(p.173)
- • Depository connectivity established with both NSDL and CDSL(p.173)
- • Stable promoter ownership with no recent changes(p.173)
- • Clean regulatory and judicial history(p.173)
- • High dependence on few top customers—top 5 customers account for 92.64% of revenue(p.27)
- • Dependence on external suppliers with no long-term contracts(p.26)
- • Significant debt burden relative to equity; high borrowings create financial risk(p.19)
- • Promoter was disqualified from directorship for five years (2016–2021)(p.28)
- • Branch offices not owned by company; occupied on short-term Leave on License basis(p.28)
- • Negative operating cash flow in FY 2021-22; working capital pressure(p.27)
- • Certain trademarks used by company not registered in company's name(p.28)
- • High reliance on manual production planning dependent on order volumes(p.95)
- • Long component lead times requiring significant advance working capital investment(p.95)
- • Significant concentration in top 5 customers representing 92.64% of revenue(p.90)
- • Requirement to maintain substantial inventory and finished goods for rapid state-level rollouts(p.95)
- • High annual compliance burden including ISO audits, Type Approval Certificate validation, and COP audits(p.95)
- • High dependence on unsecured loans from two promoter-directors creating financial vulnerability(p.156)
- • Limited cash position relative to operational needs(p.134)
- • Significant concentration of shareholding with two promoters owning 99.99% pre-issue(p.123)
- • Pending direct tax demands against the company(p.165)
- • High inventory relative to revenue generation(p.134)
- • 100% underwriting obligation with lead manager bearing 15% minimum(p.172)
- • Minimum allottee threshold creates refund/penalty exposure(p.172)
- • Growing auto-components industry expected to reach US$ 200 billion by FY26(p.18)
- • Expected double-digit growth in auto-components sector in FY22(p.18)
- • Growing export market for auto components with 76% growth in H1 FY22(p.18)
- • Strong vehicle safety regulations driving demand for speed limiting and tracking devices(p.18)
- • Large domestic market with 5 million direct and indirect employment in auto-components(p.18)
- • Mandatory government fitment requirements expanding addressable market for VLTD and AIS-140 devices(p.95)
- • High volume market potential of approximately 2.5 crore commercial passenger and goods carrier vehicles requiring device installation(p.94)
- • Devices are mandatory safety/compliance requirement as part of Nirbhaya and Women Safety initiatives(p.95)
- • Auto components industry expected to reach US$ 200 billion by FY26 with double-digit growth(p.72)
- • Export market opportunity with auto component exports projected to reach US$ 80 billion by 2026(p.72)
- • Expansion into next-generation vehicle telematics and intelligent transport management systems(p.160)
- • Growth from mandatory installation requirements by state governments(p.160)
- • International market expansion potential evidenced by existing exports(p.160)
- • Business diversification into emerging vehicle segments and technologies(p.160)
- • Potential for migration to main board upon meeting capital thresholds(p.186)
- • Access to capital markets through SME platform listing(p.178)
- • Market making support for enhanced liquidity over three-year period(p.172)
- • Broader investor base through multiple application channels(p.191)
- • Revenue volatility and decline year-on-year (FY22: ₹206.98L vs FY21: ₹60.43L vs FY20: ₹292.29L)(p.19)
- • Technology obsolescence risk in rapidly evolving automotive sector(p.23)
- • COVID-19 pandemic impact on supplies, operations, and customer demand uncertain(p.29)
- • Regulatory compliance and licensing risks; government interventions subject to change(p.24)
- • General economic slowdown in India could adversely affect business(p.34)
- • Increased competition from organized and unorganized sectors(p.30)
- • Natural calamities and terrorist attacks could disrupt business(p.36)
- • Implementation delays by state transport departments citing infrastructure and resource constraints(p.95)
- • Requirement to maintain performance bank guarantees blocking funds across all states(p.95)
- • Ongoing network charges for inactive devices during state implementation delays creating stranded costs(p.96)
- • Intense competition from organized and unorganized players with larger capital bases(p.96)
- • Transport union opposition and legal cases delaying regulatory implementation(p.96)
- • Business disruption from lockdowns affecting vehicle fitness validity periods and enforcement(p.96)
- • Regulatory dependency on automotive standards and government approvals for product certification(p.144)
- • COVID-19 pandemic impact on operations demonstrated by significant revenue decline in FY 2021(p.162)
- • Risk of technological obsolescence from emerging alternative products(p.160)
- • Dependence on limited customer base and distributor network for revenue generation(p.160)
- • Exposure to foreign exchange fluctuations from import-dependent raw materials(p.142)
- • No prior public issue experience exposes to market risk(p.179)
- • Regulatory and market conditions beyond company control(p.178)
- • Dependence on lead manager performance and compliance(p.176)
- • No investor complaint track record may indicate operational challenges(p.180)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Anand Kumar Seethala | Promoter | 37.77% | 27.23% |
| Botcha Bhavani | Promoter | 62.22% | 44.84% |
| Anand Kumar Seethala | Promoter | 37.77% | 27.23% |
| Botcha Bhavani | Promoter | 62.22% | 44.84% |
| Anand Kumar Seethala | Promoter/Managing Director | 36.47% | 27.23% |
| Botcha Bhavani | Promoter/Whole Time Director | 63.53% | 44.84% |
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.