Mandeep Auto Industries
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 13 May 2024 – 15 May 2024
- Listing date
- 21 May 2024
- Face value
- ₹10 per share
- Issue price
- ₹67 per share
- Lot size
- 2,000 shares
- Issue type
- Fixed Price issue
- Total issue size
- ₹25.25 Cr
- Market cap at offer price
- ₹69.26 Cr
- Promoter holding
- 99.97% → 63.53% pre-issue → post-issue
- ISIN
- INE0R3T01013
- Registrar
- Cameo Corporate Services Ltd.
- Lead managers
- Jawa Capital Services Pvt.Ltd.
- Registered office
- Plot No 26, Nangla, Haryana
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 | 1,90,000 | — | — |
Application size
Minimum 2,000 shares per lot, in multiples, at ₹67
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 2,000 | ₹1,34,000 |
| S-HNI (min) | 2 | 4,000 | ₹2,68,000 |
| S-HNI (max) | 7 | 14,000 | ₹9,38,000 |
| B-HNI (min) | 8 | 16,000 | ₹10,72,000 |
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 (₹) | 6.60 | 2.77 |
| P/E (×) | 10.15 | 24.19 |
| Price to book (×) | 5.36 | — |
| Market cap | — | ₹69.26 Cr |
Key performance indicators
- Return on net worth
- 25.97%
- ROCE
- 27.94%
- Debt / equity
- 1.00
- PAT margin
- 12.97%
- NAV per share
- ₹12.49
- Price to book
- 5.36
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Mandeep Auto Industries
Mandeep Auto Industries Limited (MAIL) was incorporated on April 19, 2023 under the Companies Act, 2013 to give corporate form to a business founded in 2000 by promoter Mr. Gurpal Singh Bedi as the sole proprietorship 'M/s Mandeep Industries'; the company acquired that entire business as a going concern through a Business Transfer Agreement dated June 30, 2023 for a total consideration of Rs. 6,56,22,647/-. Over the years the proprietorship added a Line with Gear Hobbing and CNC systems (2010-15), a complete in-house inspection facility (2012) and an in-house Tooling/Machine Shop with Lathe, Milling and Radial drill machines (2018). Today MAIL manufactures and supplies sheet metal components, auto parts, all types of sprocket gears and machined components - such as ring sprockets, self gears, clutch parts, gear-kick assemblies, joints, plate-L bearings and cover plates - that find application in tractors, automobiles, material handling & earth moving equipment, railways, defence, machine tools and the DIY industry, and holds ISO 9001:2015 and ISO 14001:2015 certifications. It earns revenue by selling these manufactured components, largely on a purchase-order basis to repeat customers concentrated in North India (Haryana, Uttar Pradesh, Uttarakhand, Punjab and Delhi); its top five clients accounted for approximately 85.77% of revenue from operations for July-August 2023, including J.L Auto Parts Private Limited, Tube Investments of India Limited, Rockman Industries Limited, Manvi Automobiles and Jain Industrial Products Private Limited. For FY2023 the company reported revenue from operations of Rs. 29,08,91,415 and profit after tax of Rs. 1,04,91,003, operating from its registered-office-cum-manufacturing unit at Plot No. 26, Nangla, Faridabad, Haryana with 54 employees.
Company Analysis
from DRHPMandeep Auto Industries Limited is a Faridabad-based manufacturer and supplier of precision sheet metal components, auto parts, sprocket gears and machined components serving the tractor, automobile, material handling & earthmoving equipment, railway, defence, machine tool and DIY industries.
Mandeep Auto Industries Limited (MAIL) was incorporated on April 19, 2023 under the Companies Act, 2013 to give corporate form to a business founded in 2000 by promoter Mr. Gurpal Singh Bedi as the sole proprietorship 'M/s Mandeep Industries'; the company acquired that entire business as a going concern through a Business Transfer Agreement dated June 30, 2023 for a total consideration of Rs. 6,56,22,647/-. Over the years the proprietorship added a Line with Gear Hobbing and CNC systems (2010-15), a complete in-house inspection facility (2012) and an in-house Tooling/Machine Shop with Lathe, Milling and Radial drill machines (2018). Today MAIL manufactures and supplies sheet metal components, auto parts, all types of sprocket gears and machined components - such as ring sprockets, self gears, clutch parts, gear-kick assemblies, joints, plate-L bearings and cover plates - that find application in tractors, automobiles, material handling & earth moving equipment, railways, defence, machine tools and the DIY industry, and holds ISO 9001:2015 and ISO 14001:2015 certifications. It earns revenue by selling these manufactured components, largely on a purchase-order basis to repeat customers concentrated in North India (Haryana, Uttar Pradesh, Uttarakhand, Punjab and Delhi); its top five clients accounted for approximately 85.77% of revenue from operations for July-August 2023, including J.L Auto Parts Private Limited, Tube Investments of India Limited, Rockman Industries Limited, Manvi Automobiles and Jain Industrial Products Private Limited. For FY2023 the company reported revenue from operations of Rs. 29,08,91,415 and profit after tax of Rs. 1,04,91,003, operating from its registered-office-cum-manufacturing unit at Plot No. 26, Nangla, Faridabad, Haryana with 54 employees.
Objects of the Issue
- Expansion of the existing Manufacturing Facility located at Plot No 26, Nangla, Faridabad Haryana -121001 by construction of the building on the land adjacent to our existing manufacturing unit, purchase of equipment/machineries, etc. Rs. 897.31 Lakhs (balance remaining to be deployed from Net Proceeds; total estimated cost Rs. 908.31 Lakhs) p.81
- Repayment/prepayment of certain borrowings availed by our Company Rs. 684.16 Lakhs p.85
- Funding working capital requirements Rs. 608.82 Lakhs p.86
- General Corporate Purpose Rs. 234.27 Lakhs p.88
- To meet expenses related to the Issue Rs. 100.00 Lakhs p.21
Issue Structure
- Total Issue
- Upto 37,68,000 Equity Shares aggregating upto Rs. 2,524.56 Lakhs
- Fresh Issue
- Upto 37,68,000 Equity Shares aggregating upto Rs. 2,524.56 Lakhs
- Offer for Sale
- Nil
- Price Band
- Not applicable - 100% Fixed Price Issue at Rs. 67 per Equity Share (including share premium of Rs. 57 per Equity Share)
- Lot Size
- 2,000 Equity Shares (minimum lot)
- Face Value
- Rs. 10 each
Business Model
MAIL earns revenue from the manufacture and sale of precision sheet metal components, auto parts, sprocket gears and machined components. Work typically starts on receipt of customer drawings/enquiries, and orders are executed on a purchase-order basis - the company generally does not enter into long-term contracts with customers - with sales concentrated among repeat OEM/component customers in India. Fluctuations in raw-material (steel/iron/alloy) costs are generally passed through to customers.
Business Segments
SWOT Analysis
- • Experienced Promoters and Management Team driving growth(p.133)
- • Wide range of precision sheet metal, auto parts and sprocket gear products serving a large domestic customer base(p.133)
- • Long-standing relationships with clients and suppliers(p.133)
- • ISO-certified quality and environmental standards(p.134)
- • Strong and experienced in-house R&D team for customised/new parts(p.134)
- • Consistent revenue growth track record (~36% compounded growth FY21–FY23)(p.103)
- • Marquee OEM customer base including Murugappa Group and Hero-group linked entities(p.131)
- • Very limited operating history as a corporate entity (incorporated April 19, 2023)(p.28)
- • High customer concentration – top five clients account for 85.77% of revenue(p.32)
- • No long-term agreements with most customers; relationships are non-exclusive(p.29)
- • Leveraged balance sheet with unsecured promoter loans repayable on demand(p.37)
- • Existing manufacturing unit and proposed expansion land are classified as Agricultural Land, with change-of-use/construction permissions not yet sought(p.28)
- • Registered office-cum-manufacturing unit and expansion land are leased from Promoters (11-month rent agreement; expansion lease deed unregistered)(p.39)
- • Trademark/name and logo not yet owned; registration application pending(p.39)
- • Insurance policies still in the name of erstwhile proprietorship M/s Mandeep Industries, not assigned to the Company(p.42)
- • Increase geographical presence beyond Faridabad to grow client base and revenues(p.134)
- • Diversify product portfolio using advanced electronic integration technology(p.134)
- • IPO-funded expansion of existing manufacturing facility (building construction and new plant & machinery)(p.81)
- • Better working capital management through IPO liquidity(p.134)
- • Well-evolved Indian auto component manufacturing ecosystem servicing a dynamic automobile industry(p.110)
- • Export scope in tractors – Indian tractor industry is the largest globally with the lowest costs(p.111)
- • Growing EV investments creating new demand avenues(p.111)
- • Competition from organized and unorganized players pressuring pricing and margins(p.41)
- • Fluctuations in raw material (sheet metal/steel) prices and availability(p.35)
- • Dependence on the performance of the Indian automotive sector(p.39)
- • Changes in government regulations or their implementation could disrupt operations(p.46)
- • Increase in taxes and levies imposed by Central or State Governments(p.47)
- • Rising interest rates on variable-rate financing arrangements(p.37)
- • Natural calamities adversely impacting the Indian economy and the business(p.49)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Gurpal Singh Bedi | Promoter (Chairman and Managing Director) | 99.94% | 63.51% |
| Nidhi Bedi | Promoter (Non-Executive Director) | 0.01% | 0.01% |
| Rajveer Singh Bedi | Promoter (Executive Director) | 0.01% | 0.01% |
| Manjeet Kaur | Promoter Group | 0.01% | 0.01% |
Leadership
Auto-extracted from the company's DRHP 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 DRHP before relying on it.