Precision Metaliks SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- Listing date
- 01 Feb 2022
- Face value
- ₹10 per share
- Issue price
- ₹51 per share
- Lot size
- 2,000 shares
- Total issue size
- ₹21.93 Cr
- Market cap at offer price
- ₹82.92 Cr
- Promoter holding
- 79.70% → 58.62% pre-issue → post-issue
- ISIN
- INE0HKW01018
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- First Overseas Capital Ltd.
- Registered office
- 6-3-855/10/A, Flat No.4A, Sampathji Apartments, Saadat Manzil,, Ameerpet, Telangana
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 | 2,16,000 | — | — |
Application size
Minimum 2,000 shares per lot, in multiples, at ₹51
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 2,000 | ₹1,02,000 |
| S-HNI (min) | 2 | 4,000 | ₹2,04,000 |
| S-HNI (max) | 9 | 18,000 | ₹9,18,000 |
| B-HNI (min) | 10 | 20,000 | ₹10,20,000 |
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 (₹) | 14.42 | — |
| P/E (×) | 3.54 | — |
| Market cap | — | ₹82.92 Cr |
Key performance indicators
- Return on net worth
- 9.72%
- PAT margin
- 3.03%
- NAV per share
- ₹121.73
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Precision Metaliks SME
Precision Metaliks Limited, incorporated in 2012, was initially engaged in trading of metals before commencing manufacturing operations in FY 2019-20. The company operates a manufacturing unit in Visakhapatnam Special Economic Zone (SEZ) in Andhra Pradesh, India, where it provides value-added services on semi-finished wheels including cleaning, washing, buffing, polishing, testing, and packing. The company also engages in automated cleaning of aluminium chips with briquetting into ingots, robotic polishing of alloy wheels, and other engineering services. Operating in the highly competitive automotive components market, the company serves primarily domestic customers with a focus on cost-effective, precise, and automated solutions. The company is debt-free and has demonstrated revenue growth from ₹5.28 lakhs in FY 2019 to ₹4,924.13 lakhs in FY 2021.
Company Analysis
from RHPPrecision Metaliks Limited manufactures and provides value-added services on alloy wheels and aluminium castings for the automotive ancillary industry.
Precision Metaliks Limited, incorporated in 2012, was initially engaged in trading of metals before commencing manufacturing operations in FY 2019-20. The company operates a manufacturing unit in Visakhapatnam Special Economic Zone (SEZ) in Andhra Pradesh, India, where it provides value-added services on semi-finished wheels including cleaning, washing, buffing, polishing, testing, and packing. The company also engages in automated cleaning of aluminium chips with briquetting into ingots, robotic polishing of alloy wheels, and other engineering services. Operating in the highly competitive automotive components market, the company serves primarily domestic customers with a focus on cost-effective, precise, and automated solutions. The company is debt-free and has demonstrated revenue growth from ₹5.28 lakhs in FY 2019 to ₹4,924.13 lakhs in FY 2021.
Objects of the Issue
- Meeting Additional Working Capital Requirements ₹1600.00 lakhs p.57
- General Corporate Purpose ₹443.00 lakhs p.57
- To meet Issue Expenses ₹150.00 lakhs p.19
- Funding capex for expansion of manufacturing capacity p.89
- General corporate purposes p.160
Issue Structure
- Total Issue
- ₹2193.00 lakhs
- Fresh Issue
- 43,00,000 Equity Shares of face value ₹10.00 each at ₹51 per share aggregating to ₹2193.00 lakhs
- Price Band
- Fixed price of ₹51 per Equity Share
- Face Value
- ₹10.00 per Equity Share
Business Model
The company earns revenue by providing value-added manufacturing and service solutions on alloy wheels and automotive components. Revenue is primarily generated from rendering manufacturing services on semi-finished wheels received from customers, including cleaning, washing, buffing, polishing, testing and packing. The company also generates revenue from automated processing of aluminium chips into ingots and robotic polishing services. Almost 100% of the company's sales price is linked to LME (London Metal Exchange) price of Aluminium, the main raw material.
Business Segments
SWOT Analysis
- • Cost-effective automated manufacturing solutions(p.17)
- • Established repeat customer relationships(p.17)
- • Experienced professional management team(p.17)
- • SEZ location provides tax and duty benefits(p.22)
- • Debt-free capital structure(p.59)
- • Cost-effective, precise automated manufacturing solutions(p.88)
- • Repeat customer orders from established players(p.88)
- • Strong promoter with two decades of finance experience(p.88)
- • Integrated manufacturing and engineering capabilities(p.89)
- • SEZ unit status with substantial tax benefits(p.66)
- • Established manufacturing capabilities with automated solutions(p.143)
- • Strong customer relationships with repeat orders(p.143)
- • Professional management team(p.143)
- • Zero financial debt with no outstanding borrowings(p.152)
- • Positive profitability with PAT margin of 4.46% in H1 FY2022(p.145)
- • No long-term customer contracts(p.22)
- • Extreme customer concentration risk(p.22)
- • High supplier concentration(p.22)
- • Persistent negative operating cash flows(p.24)
- • Limited operational history in automotive sector(p.24)
- • Unregistered trademarks expose to infringement risk(p.27)
- • RBI compliance delays on foreign investor shareholding(p.23)
- • Outstanding tax proceedings against company and promoters(p.21)
- • Heavy dependence on single customer(p.88)
- • Low capacity utilization historically(p.93)
- • Minimal established intellectual property(p.95)
- • Mandatory 100% export obligation limiting domestic sales(p.94)
- • Limited operating history in manufacturing(p.86)
- • Extreme customer concentration with single customer dependency(p.151)
- • Heavy supplier concentration with limited sourcing diversity(p.151)
- • Tax proceedings pending against promoters(p.154)
- • Limited operational history with only recent manufacturing commencement(p.143)
- • High power and electricity costs as proportion of operating expenses(p.140)
- • Expand manufacturing capabilities and customer base(p.17)
- • Leverage global customer network for growth(p.17)
- • Develop innovative integrated manufacturing solutions(p.17)
- • Expand geographic footprint beyond Southern India(p.22)
- • Indian economy positioned for strong future growth(p.18)
- • Growing global auto components export market(p.83)
- • India positioned as third largest auto-components manufacturer by 2025(p.83)
- • Expanding alloy wheel demand in premium vehicle segment(p.89)
- • Government Production Linked Incentive scheme support(p.85)
- • Growth in electric vehicle components market(p.83)
- • Expansion of customer relationships to capture larger market share(p.143)
- • Leverage global customer network for international sales(p.143)
- • Growth driven by expansion in Indian economy(p.144)
- • Revenue growth momentum with 122% year-over-year increase(p.147)
- • Integrated manufacturing and engineering capabilities for innovation(p.143)
- • Dependency on volatile aluminum commodity prices(p.25)
- • Intense competition with low barriers to entry(p.23)
- • Regional geographic concentration risk(p.22)
- • Macroeconomic downturn could reduce demand(p.28)
- • SEZ benefit loss if compliance requirements not met(p.22)
- • Natural disasters and pandemics impact operations(p.29)
- • Regulatory changes could adversely affect business(p.29)
- • Global economic uncertainty impacts Indian markets(p.30)
- • Intense competition from domestic and international players(p.93)
- • Automobile industry cyclicality and COVID-19 impact(p.80)
- • Dependence on imported raw materials with forex risk(p.93)
- • Global supply chain disruption risks(p.83)
- • Regulatory compliance and SEZ renewal risks(p.94)
- • Significant competition from established market players(p.144)
- • Vulnerability to regulatory changes and government policies(p.144)
- • Demand fluctuations from external market factors(p.144)
- • COVID-19 pandemic impact on operations(p.144)
- • Technological obsolescence risk if unable to adapt(p.144)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Abhishek Business Private Limited | Promoter | 66.09% | 48.61% |
| Jayanthi Roja Ramani | Promoter | 13.61% | 10.01% |
| Jayanthi Roja Ramani | Individual Promoter | 13.61% | — |
| Abhishek Business Private Limited | Corporate Promoter | — | — |
| Abhishek Business Pvt. Ltd. | Promoter | 66.08% | — |
| Jayanthi Roja Ramani | Promoter | 13.61% | — |
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.