Maks Energy Solutions India SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 16 Sep 2022 – 20 Sep 2022
- Listing date
- 28 Sep 2022
- Face value
- ₹10 per share
- Issue price
- ₹20 per share
- Lot size
- 6,000 shares
- Total issue size
- ₹4 Cr
- Market cap at offer price
- ₹13.87 Cr
- Promoter holding
- 100.00% → 71.19% pre-issue → post-issue
- ISIN
- INE0CDK01019
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Sun Capital Advisory Services Pvt.Ltd.
- Registered office
- Showroom-1, 599/600 Rasta Peth, Shubham Society, Near-Parsi Agyari, 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 |
|---|---|---|---|
| Market maker | 1,02,000 | — | — |
Application size
Minimum 6,000 shares per lot, in multiples, at ₹20
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 6,000 | ₹1,20,000 |
| S-HNI (min) | 2 | 12,000 | ₹2,40,000 |
| S-HNI (max) | 8 | 48,000 | ₹9,60,000 |
| B-HNI (min) | 9 | 54,000 | ₹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 (₹) | −2.17 | — |
| Market cap | — | ₹13.87 Cr |
No price-to-earnings multiple is shown: the company reported a loss, and an earnings multiple struck on negative earnings would read as a cheap valuation while meaning the opposite.
Key performance indicators
- Return on net worth
- −9.34%
- ROCE
- 29.07%
- Debt / equity
- 2.13
- PAT margin
- −4.19%
- NAV per share
- ₹23.22
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Maks Energy Solutions India SME
Maks Energy Solutions India Limited, incorporated on July 27, 2010, is a company engaged in purchasing diesel engines, alternators and other parts from suppliers, assembling diesel generating sets (DG sets), and selling these products and spare parts in domestic and international markets. The company is also engaged in the distribution of auto spare parts in Maharashtra, India. India is the third-largest electricity producer and consumer in the world, and DG sets serve as backup power supply for manufacturing and commercial sectors. The company's business model involves sourcing key raw materials and components from external suppliers, assembling them into finished DG sets, and distributing them across multiple geographical markets including the Middle East, South East Asia, and Africa. The company has also invested in a joint venture in Nigeria to expand its presence in the African continent, though this investment has faced challenges due to civil unrest and the COVID-19 pandemic.
Company Analysis
from RHPMaks Energy Solutions India Limited assembles and sells diesel generating sets and spare parts to domestic and international markets, also distributing auto spare parts in Maharashtra.
Maks Energy Solutions India Limited, incorporated on July 27, 2010, is a company engaged in purchasing diesel engines, alternators and other parts from suppliers, assembling diesel generating sets (DG sets), and selling these products and spare parts in domestic and international markets. The company is also engaged in the distribution of auto spare parts in Maharashtra, India. India is the third-largest electricity producer and consumer in the world, and DG sets serve as backup power supply for manufacturing and commercial sectors. The company's business model involves sourcing key raw materials and components from external suppliers, assembling them into finished DG sets, and distributing them across multiple geographical markets including the Middle East, South East Asia, and Africa. The company has also invested in a joint venture in Nigeria to expand its presence in the African continent, though this investment has faced challenges due to civil unrest and the COVID-19 pandemic.
Objects of the Issue
- Repayment/Prepayment of Loan ₹300.00 lakhs p.22
- General Corporate Purpose ₹51.70 lakhs p.22
- Issue Expenses ₹47.90 lakhs p.22
- Repayment/ pre-payment, in full or part, of certain borrowings availed by our Company ₹300.00 Lakh p.75
- General Corporate Purpose ₹51.70 Lakh p.76
Issue Structure
- Total Issue
- ₹399.60 lakhs
- Fresh Issue
- ₹399.60 lakhs (19,98,000 equity shares)
- Price Band
- ₹20.00 per equity share
- Face Value
- ₹10.00 per equity share
Business Model
The company purchases diesel engines, alternators and other parts from suppliers, assembles diesel generating sets (DG sets), and sells these products along with spare parts into domestic and international markets. Additionally, the company distributes auto spare parts in the state of Maharashtra, India.
Business Segments
SWOT Analysis
- • Established assembly capacity for diesel generator sets across diverse customer base(p.99)
- • Proven track record in diesel generator business with experienced management(p.99)
- • Strong technical and execution capabilities with qualified workforce(p.99)
- • Experienced and proven management team with deep industry expertise(p.100)
- • Outstanding legal proceedings against Company, Promoter, Directors and Group Companies(p.27)
- • Negative cash flows from operating and investing activities in past years(p.28)
- • High working capital requirement and dependency on lenders(p.29)
- • Substantial losses in overseas Joint Venture investment(p.29)
- • High debt to equity ratio(p.30)
- • Dependent on few external suppliers for key raw materials(p.34)
- • Non-compliance and regulatory lapses in past corporate filings(p.35)
- • Dependency on key management personnel(p.36)
- • Assembling unit on lease basis from third party(p.31)
- • No ownership of MAKS GROUP trademark; dependent on Promoter license(p.35)
- • Ventures into new business lines without prior experience(p.31)
- • High concentration of revenue from top 10 customers creating dependency risk(p.99)
- • High concentration of purchases from top 10 suppliers creating supply chain vulnerability(p.99)
- • Significant loss in investment value in Nigeria joint venture due to civil unrest and pandemic(p.113)
- • Declining profitability with significant losses in recent fiscal years(p.93)
- • Joint venture in Nigeria non-viable, investment written off(p.146)
- • High debt-to-equity ratio with substantial working capital borrowings(p.158)
- • Heavy reliance on few major customers for revenue(p.209)
- • Material deterioration in profitability year-over-year(p.206)
- • Significant inventory management issues and audit qualification(p.154)
- • India as third-largest electricity producer and power backup sector growth(p.22)
- • Global power deficit creating increased demand for backup power(p.22)
- • Growing demand for backup power solutions due to persistent power deficits in India(p.100)
- • Expansion of industrial and infrastructure projects increasing DG set demand(p.100)
- • Significant export potential to Africa and Asia with favorable market conditions(p.100)
- • Opportunity to expand client relationships and increase market penetration(p.100)
- • Post-COVID recovery in industrial demand(p.204)
- • Expansion of MOA into healthcare, agriculture, and real estate sectors(p.219)
- • Emerging SME IPO platform visibility and growth potential(p.227)
- • COVID-19 pandemic impact on operations and revenue(p.27)
- • High dependency on export sales to specific regions(p.31)
- • Foreign currency exchange rate fluctuations and export-related risks(p.32)
- • Restrictive covenants in financing agreements(p.30)
- • Interest rate fluctuations affecting borrowing costs(p.31)
- • Stringent emission standards and environmental compliance requirements(p.34)
- • Demand dependency on power outages and seasonality(p.37)
- • Regulatory changes in GST and taxation policies(p.41)
- • Competitive risk from Group Companies and Promoter Group members(p.33)
- • Political instability and changes in government policy affecting economy(p.42)
- • Macroeconomic factors affecting Indian economy and business(p.42)
- • Non-compliance with material licenses and approvals(p.30)
- • Government power infrastructure investments and grid stabilization reducing backup power need(p.89)
- • Rising crude oil prices making diesel-based power generation increasingly expensive(p.90)
- • High competitive intensity in organized DG market with multiple established players(p.89)
- • Technology transition to renewable and hybrid power systems potentially reducing DG demand(p.90)
- • High dependence on few suppliers creating supply chain risk(p.209)
- • Severe COVID-19 pandemic impact on revenue and operations(p.206)
- • Rising interest and finance costs reducing margins(p.204)
- • Competitive pressures from regional established players(p.200)
- • Material indirect tax liabilities and TDS defaults(p.217)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Sourabh Mahendra Shaw | Promoter | 52.95% | — |
| Mr. Mahendra Madhairam Shaw | Promoter Group | 37.92% | — |
| Mrs. Swati Sourabh Shaw | Promoter Group | 9.13% | — |
| Mr. Sourabh Mahendra Shaw | Promoter | 52.95% | 37.69% |
| Mr. Mahendra Madhairam Shaw | Promoter Group | 37.92% | 27.00% |
| Mrs. Swati Sourabh Shaw | Promoter Group | 9.13% | 6.50% |
| Mahendra Madhairam Shaw | Promoter | 18,72,120 shares (37.89%) | — |
| Sourabh Mahendra Shaw | Promoter | 26,13,998 shares (52.91%) | — |
| Swati Sourabh Shaw | Promoter Group | 4,50,668 shares (9.13%) | — |
| Mahendra Madhairam Shaw | Promoter/First Director | — | — |
| Saurabh Mahendra Shaw | Promoter/First Director | — | — |
| Swati Shaw | Promoter/First Director | — | — |
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.