Craftsman Automation
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 15 Mar 2021 – 17 Mar 2021
- Listing date
- 25 Mar 2021
- Face value
- ₹5 per share
- Issue price
- ₹1,490 per share
- Lot size
- 10 shares
- Total issue size
- ₹824 Cr
- Market cap at offer price
- ₹3,148 Cr
- Promoter holding
- 63.40% → 59.76% pre-issue → post-issue
- ISIN
- INE00LO01017
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- Axis Capital Ltd.
- Registered office
- Senthel Towers, 4 th Floor, 1078, Avanashi Road, Tamil Nadu
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 | 16,58,447 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 10 shares per lot, in multiples, at ₹1,490
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 10 | ₹14,900 |
| Retail (max) | 13 | 130 | ₹1,93,700 |
| S-HNI (min) | 14 | 140 | ₹2,08,600 |
| S-HNI (max) | 67 | 670 | ₹9,98,300 |
| B-HNI (min) | 68 | 680 | ₹10,13,200 |
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 |
|---|---|---|
| Market cap | — | ₹3,148 Cr |
About Craftsman Automation
Craftsman Automation Limited was incorporated on July 18, 1986, as a private limited company and converted to a public company in 2018. The company operates through three business segments: (1) Powertrain and Other Products for the automotive segment, (2) Aluminium Products for the automotive segment, and (3) Industrial and Engineering Products. The company is the largest player involved in machining of cylinder blocks and cylinder heads for intermediate, medium and heavy commercial vehicles, and construction equipment in India. The company is among the top 3-4 component players for machining of cylinder blocks in the tractor segment. The company generates revenue from OEM customers (primarily automotive manufacturers), replacement/aftermarket demand, and export sales across over 20 countries.
Company Analysis
from RHPCraftsman Automation is a diversified engineering company with vertically integrated manufacturing capabilities engaged in machining of powertrain and automotive-aluminium products, and industrial and engineering products for automotive OEMs, construction equipment and tractor segments.
Craftsman Automation Limited was incorporated on July 18, 1986, as a private limited company and converted to a public company in 2018. The company operates through three business segments: (1) Powertrain and Other Products for the automotive segment, (2) Aluminium Products for the automotive segment, and (3) Industrial and Engineering Products. The company is the largest player involved in machining of cylinder blocks and cylinder heads for intermediate, medium and heavy commercial vehicles, and construction equipment in India. The company is among the top 3-4 component players for machining of cylinder blocks in the tractor segment. The company generates revenue from OEM customers (primarily automotive manufacturers), replacement/aftermarket demand, and export sales across over 20 countries.
Objects of the Issue
- Repayment/pre-payment, in full or part, of certain borrowings availed of by our Company ₹ 1,200.00 million p.80
- General corporate purposes ₹ 208.41 million p.80
Issue Structure
- Total Issue
- ₹ 8,236.96 million (5,528,161 Equity Shares aggregating to ₹ 8,236.96 million, subject to finalization of the Basis of Allotment)
- Fresh Issue
- ₹ 1,500.00 million (1,006,711 Equity Shares)
- Offer for Sale
- ₹ 6,736.96 million (4,521,450 Equity Shares by Selling Shareholders)
- Price Band
- ₹ 1,488 to ₹ 1,490 per Equity Share
- Lot Size
- 10 Equity Shares
- Face Value
- ₹ 5 per Equity Share
Business Model
The company earns revenue primarily through manufacturing and supply of machined components and assemblies to original equipment manufacturers (OEMs) in the automotive, construction equipment and tractor segments. Revenue comes from three segments: Powertrain and Other Products (cylinder blocks, cylinder heads, transmission housings), Automotive-Aluminium Products (aluminium castings and machined components), and Industrial and Engineering Products (material handling systems, storage solutions). The company operates on a make-to-order basis with long-term supply agreements with marquee OEM customers supplemented by specific purchase orders.
Business Segments
SWOT Analysis
- • Largest player in cylinder block and head machining for construction equipment and IMHCV segment(p.130)
- • Top 3-4 cylinder block machining player in tractor industry(p.130)
- • Diversified engineering company with comprehensive solutions across segments(p.87)
- • Strong in-house design and capacity interchange capabilities(p.87)
- • Long-term relationships with marquee OEMs(p.87)
- • Strategically located manufacturing footprint(p.87)
- • High debt burden with total secured borrowings of ₹8,901.12 million(p.24)
- • Customer concentration risk with top 4 customers representing 43.14% of revenue(p.26)
- • Group company losses in MC Craftsman Machinery Private Limited and Carl Stahl Craftsman(p.25)
- • Significant reliance on spot market raw material purchases without long-term contracts(p.27)
- • High exposure to floating interest rates at 71.54% of indebtedness(p.30)
- • Covenant breaches requiring waivers from lenders(p.25)
- • Domestic auto components domestic consumption forecast to grow at 5-7% CAGR FY20-24 to ₹4,225 billion(p.17)
- • OEM demand in auto components expected to grow at 7-9% CAGR FY20-24(p.17)
- • Powertrain market expected to grow at 12-14% CAGR through FY24(p.128)
- • MHCV segment to grow 8-10% CAGR FY20-24 after recovery from low base(p.118)
- • Construction equipment demand expected to rebound with 14-16% growth in FY22(p.122)
- • Aluminium die-casting market growth at 3-5% CAGR to reach 0.45-0.55 million MT by FY24(p.126)
- • Significant decline in automobile sales pre-COVID with uncertain recovery(p.23)
- • Cyclical and seasonal nature of automotive industry affecting revenue(p.53)
- • Competitive environment with pricing pressures from existing and new players(p.26)
- • Raw material price volatility, particularly for aluminium and steel(p.33)
- • Dependence on 5 suppliers for 24.32% of raw material costs(p.33)
- • COVID-19 pandemic ongoing disruption risks to operations(p.23)
- • Potential shift to electric vehicles requiring substantial capital investment(p.38)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Srinivasan Ravi | Promoter | 52.83% | 49.70% |
| S. Murali | Promoter Group Member | 10.57% | 10.06% |
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.