Electro Force (India)
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 19 Dec 2023 – 21 Dec 2023
- Listing date
- 27 Dec 2023
- Face value
- ₹10 per share
- Issue price
- ₹93 per share
- Lot size
- 1,200 shares
- Issue type
- Fixed Price issue
- Total issue size
- ₹80.68 Cr
- Market cap at offer price
- ₹218 Cr
- Promoter holding
- 100.00% → 62.93% pre-issue → post-issue
- ISIN
- INE0Q1W01012
- Registrar
- Skyline Financial Services Pvt.Ltd.
- Lead managers
- First Overseas Capital Ltd.
- Registered office
- 39/5, Village-Waliv, Taluka-, Vasai 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 |
|---|---|---|---|
| Anchor investor · within QIB | 0 | — | — |
| Market maker | 4,35,600 | — | — |
Application size
Minimum 1,200 shares per lot, in multiples, at ₹93
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,200 | ₹1,11,600 |
| S-HNI (min) | 2 | 2,400 | ₹2,23,200 |
| S-HNI (max) | 8 | 9,600 | ₹8,92,800 |
| B-HNI (min) | 9 | 10,800 | ₹10,04,400 |
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 (₹) | 4.60 | — |
| P/E (×) | 20.22 | — |
| Market cap | — | ₹218 Cr |
Key performance indicators
- Return on net worth
- 43.57%
- ROCE
- 58.23%
- PAT margin
- 26.43%
- NAV per share
- ₹10.55
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Electro Force (India)
Electro Force (India) Limited was originally incorporated as a private limited company on June 14, 2010 and converted to public limited company on May 11, 2023. The company is an ISO 9001:2015-certified manufacturer of high-grade precision metal electrical contact parts and components, connectors and assemblies supplied to industry players through a B2B model. Since inception, the company has been a supplier of precision metal electrical contact parts and components for applications in electronics, lighting, switchgear and allied industries. The manufacturing unit is located at Vasai in Maharashtra. The company offers end-to-end product solutions including designing, manufacturing, quality testing and packaging to logistics. It specializes in designing and manufacturing precision sheet metal components, high speed metal stamping components, plastic injection mouldings, insert and over moulding, sub-assemblies and value added services for diverse industries.
Company Analysis
from RHPElectro Force (India) Limited designs and manufactures precision metal electrical contact parts, components, connectors and assemblies for the electronics, lighting, switchgear and allied industries in India via a B2B model.
Electro Force (India) Limited was originally incorporated as a private limited company on June 14, 2010 and converted to public limited company on May 11, 2023. The company is an ISO 9001:2015-certified manufacturer of high-grade precision metal electrical contact parts and components, connectors and assemblies supplied to industry players through a B2B model. Since inception, the company has been a supplier of precision metal electrical contact parts and components for applications in electronics, lighting, switchgear and allied industries. The manufacturing unit is located at Vasai in Maharashtra. The company offers end-to-end product solutions including designing, manufacturing, quality testing and packaging to logistics. It specializes in designing and manufacturing precision sheet metal components, high speed metal stamping components, plastic injection mouldings, insert and over moulding, sub-assemblies and value added services for diverse industries.
Objects of the Issue
- Funding of additional working capital requirement ₹2,500.00 lakhs p.19
- Pursuing Inorganic Growth ₹550.00 lakhs p.19
- General Corporate Purpose ₹1,390.00 lakhs p.19
- Fresh Issue Related Expense ₹1,140.00 lakhs p.19
- Funding additional working capital requirements of our Company ₹2,500.00 lakhs p.69
- Pursuing Inorganic Growth ₹550.00 lakhs p.71
- General corporate purposes ₹1,390.00 lakhs p.71
Issue Structure
- Total Issue
- 86,74,800 Equity Shares at the Issue Price of ₹93/- each aggregating to ₹8,067.56 Lakhs
- Fresh Issue
- 60,00,000 Equity Shares aggregating to ₹5,580 Lakhs
- Offer for Sale
- 26,74,800 Equity Shares aggregating to ₹2,487.56 Lakhs
- Price Band
- ₹93/- per Equity Share (including a share premium of ₹83/- per Equity Share)
- Lot Size
- 1,200 Equity Shares and in multiples of 1,200 thereafter; subject to a minimum allotment of 1,200 Equity Shares to the successful applicants
- Face Value
- ₹10/- each
Business Model
The company operates on a B2B model providing end-to-end product solutions to customers ranging from designing, manufacturing, quality testing and packaging to logistics. The company supplies electrical components and precision metal parts to prominent industry players who are manufacturers of electrical components and related products.
Business Segments
SWOT Analysis
- • ISO 9001:2015 certification and integrated service model(p.18)
- • Established customer relationships with well-known reputed companies(p.26)
- • In-house capabilities for electroplating and injection moulding(p.29)
- • Strong EBITDA margins with improving trend(p.20)
- • Experienced management team with operational and technical capabilities(p.90)
- • High product quality and customer retention through multi-technological capabilities(p.91)
- • In-house R&D and tool room for continuous product innovation(p.91)
- • ISO 9001:2015 certification demonstrating quality standards compliance(p.102)
- • Well-equipped manufacturing facility with diverse machinery and capabilities(p.92)
- • Strong customer relationships with established players like Schneider Electric and Artemis(p.91)
- • Established manufacturing presence with 50+ years collective management expertise(p.115)
- • Diversified product portfolio spanning electronics, engineering, and industrial components(p.111)
- • Growing profitability with net profit after tax of ₹711.08 lakhs in H1 FY2024(p.141)
- • Strong return on net worth of 27.92% as at September 30, 2023(p.164)
- • Recognized by L&T Electrical & Automation(p.112)
- • ISO 9001:2015 certification and quality management(p.174)
- • Integrated end-to-end manufacturing capabilities(p.174)
- • Quick customer response and reliability(p.174)
- • 13 years of accumulated manufacturing experience(p.174)
- • Established customer base of reputed companies(p.174)
- • Strong profitability and cash generation(p.179)
- • Zero debt capitalization(p.182)
- • High customer concentration risk with top 5 customers representing 94.07% of revenue as of September 30, 2023(p.25)
- • Dependence on leased premises with no ownership of manufacturing facilities(p.28)
- • Past instances of GST return filing delays(p.25)
- • Compliance failures in statutory filings and employee benefit payments(p.25)
- • Bonus share issuance based on interim financial statements without proper audit report filings(p.24)
- • Unregistered trademark/logo and inability to enforce intellectual property rights(p.28)
- • No patents for manufacturing processes(p.30)
- • Outstanding litigation involving promoters and group companies(p.21)
- • Heavy dependence on few customers with top two accounting for majority of sales(p.98)
- • Limited geographic presence confined to single manufacturing location in Vasai(p.92)
- • No registered trademarks or intellectual property protection(p.103)
- • Small workforce of 31 employees limiting operational scale(p.103)
- • No export presence or international operations(p.103)
- • High concentration of ownership with promoters holding 80.18% of share capital(p.126)
- • Significant working capital requirements with short-term loans and advances of ₹5,704.64 lakhs(p.150)
- • Limited formal management structure with high reliance on promoter-directors(p.113)
- • No dividend paid in the last three financial years(p.136)
- • Lack of formal dividend policy(p.136)
- • Dependence on management continuity(p.174)
- • Single manufacturing facility location(p.174)
- • Revenue decline and strategic shift impact(p.180)
- • Pending litigation involving promoters(p.184)
- • Growing ESDM sector with government backing and Make in India initiative(p.18)
- • Pursuing inorganic growth through acquisitions and joint ventures(p.24)
- • Expansion of working capital to support revenue growth(p.19)
- • ESDM market positioned for consumption growth with international manufacturer interest(p.18)
- • Government target of US$ 1 trillion digital economy value by 2025 creates sector tailwind(p.18)
- • India's ESDM sector projected to reach US$230 billion by FY25 with 16.1% CAGR(p.89)
- • Government support through Make in India, Digital India and Production-Linked Incentive schemes(p.87)
- • Pursuing inorganic growth through acquisitions and joint ventures(p.71)
- • Expansion into new industries beyond current electronics customer base(p.92)
- • Entry into new geographies through strategic office locations(p.92)
- • Maharashtra Electronics Policy 2016 provides subsidized land, power waiver for 15 years, and 100% VAT return(p.106)
- • Eligibility for 100% FDI in animal husbandry sector under automatic route(p.107)
- • Manufacturing and supply of trolleys as key business line with growth potential(p.111)
- • Expansion of manufacturing capabilities with Artemis Electricals group operating Lithium-ion battery plant(p.132)
- • Focus on high-margin products strategy(p.179)
- • Post-COVID industry demand normalization(p.180)
- • Expansion into diverse industrial applications(p.174)
- • Design-to-delivery capability for complete solutions(p.174)
- • Dependence on few customers exposes to order cancellation and pricing pressure risks(p.26)
- • Rapidly changing technology and industry standards creating product obsolescence risk(p.27)
- • No long-term agreements with customers creating demand uncertainty(p.33)
- • Power supply interruptions affecting manufacturing operations(p.28)
- • Manufacturing facility concentration with single location in Vasai(p.32)
- • Vulnerability to macroeconomic downturn and recession in India(p.38)
- • Political instability and terrorism risks in India affecting business environment(p.39)
- • Regulatory changes and compliance requirements affecting business operations(p.38)
- • Inflation increasing costs of raw materials, labour and rent(p.39)
- • Natural disasters threatening manufacturing facility and operations(p.40)
- • Global economic slowdown and reduced demand for electronic products(p.82)
- • Volatility in commodity and raw material prices affecting production costs(p.82)
- • Intense competition from larger established manufacturers in electronics sector(p.89)
- • Regulatory compliance requirements in environmental and industrial sectors(p.105)
- • Dependence on single manufacturing location exposes to localized risks(p.92)
- • Regulatory compliance burden through Hazardous Waste Rules requiring State PCB licenses for manufacturing(p.106)
- • Factory Act 1948 requirements including occupier approval and registration compliance(p.109)
- • Potential penalties for non-compliance with Factories Act up to ₹100,000 imprisonment and ₹1,000 per day for continuing contravention(p.109)
- • Complex labour compliance requirements under multiple codes including Occupational Safety Code 2020 and Industrial Relations Code 2020(p.108)
- • Potential IT Act liability for data security failures with criminal and civil consequences(p.108)
- • Intense competitive pressure and fragmented industry(p.181)
- • Global economic volatility and demand uncertainty(p.175)
- • Price-driven market competition(p.175)
- • Regulatory uncertainty(p.175)
- • Increased competition pressure on margins(p.175)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Ayesspea Holdings and Investments Private Limited | Promoter | 79.10% | 47.39% |
| Garuda Television Private Limited | Promoter | 19.80% | 14.72% |
| Pravin Kumar Brijendra Kumar Agarwal | Promoter | 1.08% | 0.80% |
| Ayesspea Holdings and Investments Private Limited | Promoter | 79.10% | 47.39% |
| Garuda Television Private Limited | Promoter | 19.80% | 14.72% |
| Pravin Kumar Brijendra Kumar Agarwal | Promoter | 1.08% | 0.80% |
| Ayesspea Holdings and Investments Private Limited | Promoter | 79.10% | — |
| Garuda Television Private Limited | Promoter | 19.80% | — |
| Pravin Kumar Brijendra Kumar Agarwal | Promoter | 1.08% | — |
| Ayesspea Holdings and Investments Private Limited | Selling Shareholder | 15.37% (26,74,800 Equity Shares) | — |
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.