De Neers Tools
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 28 Apr 2023 – 03 May 2023
- Listing date
- 11 May 2023
- Face value
- ₹10 per share
- Issue price
- ₹101 per share
- Lot size
- 1,200 shares
- Issue type
- Book Building issue
- Total issue size
- ₹22.99 Cr
- Market cap at offer price
- ₹86.92 Cr
- Promoter holding
- 91.14% → 67.03% pre-issue → post-issue
- ISIN
- INE0JWV01011
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Khambatta Securities Ltd.
- Registered office
- P.No.468, Ground Floor, Industrial Area, Patparganj, New Delhi
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 | 1,15,200 | — | — |
Application size
Minimum 1,200 shares per lot, in multiples, at ₹101
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,200 | ₹1,21,200 |
| S-HNI (min) | 2 | 2,400 | ₹2,42,400 |
| S-HNI (max) | 8 | 9,600 | ₹9,69,600 |
| B-HNI (min) | 9 | 10,800 | ₹10,90,800 |
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 (₹) | 7.97 | — |
| P/E (×) | 12.67 | — |
| Market cap | — | ₹86.92 Cr |
Key performance indicators
- Return on net worth
- 21.17%
- PAT margin
- 6.30%
- NAV per share
- ₹37.63
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About De Neers Tools
De Neers Tools Limited, incorporated as a public limited company on July 26, 2021, is the successor to De Neers Tools LLP (formed March 20, 2018), which took over the business of M/s Deewan Chand Madanlal & Sons on a going concern basis on June 17, 2021. The company is ISO 9001:2015, ISO 14001:2015, and 45001:2018 accredited and represents the fourth generation serving the hand tools industry since 1952—over seven decades. De Neers manufactures and distributes an extensive range of hand tools including spanners, wrenches, pliers, cutters, allen keys, hammers, socketry, screwdrivers, tool kits, tool cabinets, and trolleys. The company is also specialized in safety tools such as non-sparking tools, insulated steel tools, non-sparking insulated tools, stainless steel & magnetic tools, and titanium tools. The company generates revenue through the sale of these products to dealers, distributors, and hardware suppliers throughout India, with geographic concentration in Delhi NCR, Gujarat, Telangana, Bihar, and Uttar Pradesh.
Company Analysis
from RHPDe Neers Tools Limited is a fourth-generation hand tools manufacturer and supplier serving the Indian hand tools industry with over 3,200 SKUs across spanners, wrenches, pliers, cutters, safety tools, and specialized products.
De Neers Tools Limited, incorporated as a public limited company on July 26, 2021, is the successor to De Neers Tools LLP (formed March 20, 2018), which took over the business of M/s Deewan Chand Madanlal & Sons on a going concern basis on June 17, 2021. The company is ISO 9001:2015, ISO 14001:2015, and 45001:2018 accredited and represents the fourth generation serving the hand tools industry since 1952—over seven decades. De Neers manufactures and distributes an extensive range of hand tools including spanners, wrenches, pliers, cutters, allen keys, hammers, socketry, screwdrivers, tool kits, tool cabinets, and trolleys. The company is also specialized in safety tools such as non-sparking tools, insulated steel tools, non-sparking insulated tools, stainless steel & magnetic tools, and titanium tools. The company generates revenue through the sale of these products to dealers, distributors, and hardware suppliers throughout India, with geographic concentration in Delhi NCR, Gujarat, Telangana, Bihar, and Uttar Pradesh.
Objects of the Issue
- Funding Working Capital Requirements ₹1,800.00 Lakhs p.21
- General Corporate Purposes ₹449.16 Lakhs p.21
- Issue Expenses ₹50.00 Lakhs p.21
- To meet the working capital requirements of the Company ₹1,800.00 Lakhs p.66
- General Corporate Purpose ₹449.16 Lakhs p.66
- To meet the Issue Expenses ₹50.00 Lakhs p.66
- Repayment of borrowings
- General corporate purposes
Issue Structure
- Total Issue
- ₹2,299.16 Lakhs
- Fresh Issue
- 22,76,400 Equity Shares of face value of ₹10 each aggregating to ₹2,299.16 Lakhs
- Offer for Sale
- Not Applicable
- Price Band
- ₹95.00 to ₹101.00 per Equity Share (Issue Price: ₹101 per Equity Share)
- Lot Size
- 1,200 Equity Shares (minimum bid lot)
- Face Value
- ₹10 per Equity Share
Business Model
De Neers generates revenue from the manufacture and distribution of hand tools through its dealer and distributor network across India. The company sells a broad range of hand tools and specialized products to dealers, distributors, and hardware suppliers. Revenue is derived from sales made predominantly in the states of Delhi NCR, Gujarat, Telangana, Bihar, and Uttar Pradesh.
Business Segments
SWOT Analysis
- • Established brand with multi-generational heritage in hand tools(p.20)
- • Extensive product range and SKU depth(p.20)
- • Strong quality certifications and standards compliance(p.20)
- • Wide geographic distribution network across India(p.20)
- • Specialized product capabilities including safety tools(p.20)
- • Experienced management with deep industry expertise(p.100)
- • Established distribution network with 250+ dealers across India(p.100)
- • Comprehensive product portfolio with 3200+ SKUs(p.95)
- • Quality certifications and focus on safety products(p.95)
- • Strong supply chain with quality-equipped manufacturing units(p.100)
- • Repeat customer orders reflecting customer satisfaction(p.100)
- • Established brand with 70+ years of industry heritage(p.173)
- • Experienced and qualified management with deep industry expertise(p.129)
- • Diversified product portfolio with specialized tool offerings(p.173)
- • Strong customer base including leading OEMs and major corporates(p.173)
- • Improved profitability and margins through product mix optimization(p.177)
- • Diversified customer base not dependent on few clients(p.179)
- • Early-stage brand recognition requiring significant advertising investment(p.26)
- • Material outstanding debtors aged beyond 3 years(p.27)
- • Negative operating cash flows in multiple periods(p.27)
- • High dependence on unsecured promoter loans payable on demand(p.27)
- • Geographic concentration in limited states(p.28)
- • High dependence on key promoter personnel(p.28)
- • Registered office on leased premises not owned by company(p.29)
- • History of RoC compliance delays(p.29)
- • Working capital intensive business model(p.67)
- • High inventory levels required due to business model(p.68)
- • Dependence on suppliers for product quality(p.101)
- • Limited resource capabilities as mid-sized company(p.101)
- • Geographic revenue concentration in specific states(p.95)
- • High financial leverage with significant debt burden(p.142)
- • Significant borrowings from promoters creating related party dependency(p.154)
- • Negative operating cash flows indicating working capital stress(p.178)
- • Low cash reserves relative to operational needs(p.142)
- • Declining revenue base with FY2021 showing contraction(p.177)
- • Expanding market driven by industrialization and Make in India(p.20)
- • Strong industry tailwinds from government infrastructure initiatives(p.20)
- • Funding to support working capital expansion(p.21)
- • Expansion through organized dealer/distributor network(p.101)
- • Brand building and marketing investment(p.101)
- • Growth in hand tools industry to reach $1.5 billion by FY25(p.93)
- • Rising DIY culture increasing household hand tools demand(p.94)
- • Government infrastructure and construction spending boost demand(p.93)
- • PLI scheme and Make in India initiatives supporting growth(p.88)
- • Fragmented market with 80% unorganized sector presents consolidation opportunity(p.83)
- • Expansion through increased dealership network and customer reach(p.173)
- • Growth in hand tools industry with emerging market demand(p.173)
- • Strategic positioning to increase market share in organized sector(p.173)
- • Capital deployment for business growth and operational expansion(p.187)
- • Enhancement of inventory and working capital to support growth(p.176)
- • Vulnerability to counterfeiting and brand imitation(p.27)
- • Intense competition from established brands and unorganized sector(p.28)
- • Dependence on third-party distributors and dealers(p.27)
- • Reliance on third-party transportation providers(p.31)
- • Vulnerability to economic slowdown and reduced industrial spending(p.34)
- • Exposure to natural disasters and calamities(p.33)
- • Uncertain impact of COVID-19 on future operations(p.33)
- • Regulatory and tax policy changes(p.34)
- • Political instability and policy uncertainty(p.34)
- • Raw material price volatility and steel price fluctuations(p.86)
- • Rising preference for power tools over hand tools(p.89)
- • Intense competition from organized and unorganized players(p.102)
- • Low profit margins due to competitive market dynamics(p.89)
- • Geopolitical tensions impacting supply chains and trade(p.94)
- • Fluctuating foreign exchange and market prices(p.101)
- • Increased competition in hand tools industry(p.173)
- • Economic cyclicality and recession impacts on demand(p.174)
- • Supply chain disruptions affecting operations(p.174)
- • Regulatory and compliance risks including GST liabilities(p.176)
- • Adverse impact from interest rate policies and borrowing costs(p.174)
- • Pandemic and lockdown impacts on sales and operations(p.177)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Neeraj Kumar Aggarwal | Promoter | 27.34% | 20.11% |
| Mrs. Shilpy Aggarwal | Promoter | 27.34% | 20.11% |
| Mr. Kanav Gupta | Promoter | 24.30% | 17.87% |
| Neeraj Kumar Aggarwal | Promoter / Managing Director | 27.34% | 20.11% |
| Kanav Gupta | Promoter / Whole Time Director and CFO | 24.30% | 17.87% |
| Shilpy Aggarwal | Promoter / Whole Time Director | 27.34% | 20.11% |
| Mr. Neeraj Kumar Aggarwal | Promoter | 30.00% | — |
| Mrs. Shilpy Aggarwal | Promoter | 30.00% | — |
| Mr. Kanav Gupta | Promoter | 26.68% | — |
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.