Presstonic Engineering
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 11 Dec 2023 – 13 Dec 2023
- Listing date
- 18 Dec 2023
- Face value
- ₹10 per share
- Issue price
- ₹72 per share
- Lot size
- 1,600 shares
- Issue type
- Fixed Price issue
- Total issue size
- ₹23.30 Cr
- Market cap at offer price
- ₹55.49 Cr
- Promoter holding
- 100.00% → 58.00% pre-issue → post-issue
- ISIN
- INE0R1601012
- Registrar
- Cameo Corporate Services Ltd.
- Lead managers
- Finshore Management Services Ltd.
- Registered office
- Sy.No.2, Khatha No.145, Hoysala Main Road, Pillappa Industrial Layout, Srigandhadakavalu, Sunkadakatte, Viswaneedam, Karnataka
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 | 1,63,200 | — | — |
Application size
Minimum 1,600 shares per lot, in multiples, at ₹72
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,600 | ₹1,15,200 |
| S-HNI (min) | 2 | 3,200 | ₹2,30,400 |
| S-HNI (max) | 8 | 12,800 | ₹9,21,600 |
| B-HNI (min) | 9 | 14,400 | ₹10,36,800 |
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 (₹) | 5.73 | — |
| P/E (×) | 12.57 | — |
| Market cap | — | ₹55.49 Cr |
Key performance indicators
- Return on net worth
- 51.92%
- ROCE
- 87.00%
- Debt / equity
- 0.98
- PAT margin
- 12.18%
- NAV per share
- ₹22.07
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Presstonic Engineering
Presstonic Engineering Limited, based in Bangalore, Karnataka, manufactures Metro Rail Rolling Stock Products (interior items such as stainless steel saloon bucket/plain/flip-up seats, grab pole systems, handrail systems and emergency evacuation ramps, and non-interior items such as aluminium cable management systems, cab handrails and valve boxes), Metro Rail Signalling Products (IP-rated enclosures, beacon mounting brackets, DCS masts and ladder assemblies) and Infrastructure Products (steel structures, aluminium murals, solar panel support structures, wire forms and cable trays). The business originated as the partnership firm 'Presston Engineering Corporation' formed pursuant to a Deed of Partnership dated June 3, 1996, was converted into 'Presstonic Engineering Private Limited' on March 23, 2021, and into the public limited 'Presstonic Engineering Limited' on July 31, 2023; it started manufacturing operations in the metro rail segment in 2011 and operates a single leased manufacturing facility of approx. 28,317.50 sq.ft. in Bangalore, certified ISO 9001:2015 and EN 15085-2 (CL2) for welding of railway vehicles and components. The company earns revenue by manufacturing customized products on a purchase-order basis for global and domestic OEMs engaged in rail and metro rail rolling stock and signalling equipment manufacturing and servicing, including government entities and PSUs, with small export sales to Australia, France and South Korea. As of March 31, 2023 it had an unexecuted order book of ₹6,389.57 lakhs, with additional orders of ₹456.87 lakhs awarded from April 1, 2023 onwards; revenue from operations grew from ₹761.36 lakhs in FY2021 to ₹2,103.06 lakhs in FY2023, with PAT of ₹256.14 lakhs in FY2023.
Company Analysis
from RHPPresstonic Engineering Limited manufactures Metro Rail Rolling Stock Products, Metro Rail Signalling Products and Infrastructure Products, supplying renowned global and domestic OEMs engaged in rail and metro rail rolling stock and signalling equipment manufacturing and servicing.
Presstonic Engineering Limited, based in Bangalore, Karnataka, manufactures Metro Rail Rolling Stock Products (interior items such as stainless steel saloon bucket/plain/flip-up seats, grab pole systems, handrail systems and emergency evacuation ramps, and non-interior items such as aluminium cable management systems, cab handrails and valve boxes), Metro Rail Signalling Products (IP-rated enclosures, beacon mounting brackets, DCS masts and ladder assemblies) and Infrastructure Products (steel structures, aluminium murals, solar panel support structures, wire forms and cable trays). The business originated as the partnership firm 'Presston Engineering Corporation' formed pursuant to a Deed of Partnership dated June 3, 1996, was converted into 'Presstonic Engineering Private Limited' on March 23, 2021, and into the public limited 'Presstonic Engineering Limited' on July 31, 2023; it started manufacturing operations in the metro rail segment in 2011 and operates a single leased manufacturing facility of approx. 28,317.50 sq.ft. in Bangalore, certified ISO 9001:2015 and EN 15085-2 (CL2) for welding of railway vehicles and components. The company earns revenue by manufacturing customized products on a purchase-order basis for global and domestic OEMs engaged in rail and metro rail rolling stock and signalling equipment manufacturing and servicing, including government entities and PSUs, with small export sales to Australia, France and South Korea. As of March 31, 2023 it had an unexecuted order book of ₹6,389.57 lakhs, with additional orders of ₹456.87 lakhs awarded from April 1, 2023 onwards; revenue from operations grew from ₹761.36 lakhs in FY2021 to ₹2,103.06 lakhs in FY2023, with PAT of ₹256.14 lakhs in FY2023.
Objects of the Issue
- Funding Capital Expenditure towards purchase of additional plant and machinery ₹232.12 lakhs p.72
- Prepayment in full of certain borrowings availed by our Company ₹500.00 lakhs p.72
- Working Capital Requirements ₹923.38 lakhs p.72
- Issue Related Expenses ₹325.00 lakhs p.72
- General Corporate Expenses ₹350.00 lakhs p.72
Issue Structure
- Total Issue
- ₹2,330.50 Lakhs (32,36,800 Equity Shares at ₹72/- per Equity Share)
- Fresh Issue
- ₹2,330.50 Lakhs (32,36,800 Equity Shares)
- Offer for Sale
- Nil
- Price Band
- Fixed Price Issue at ₹72/- per Equity Share (including share premium of ₹62/- per Equity Share); no price band
- Lot Size
- 1,600 Equity Shares (minimum lot size)
- Face Value
- ₹10/- each
Business Model
The Company earns revenue by manufacturing and supplying customized Metro Rail Rolling Stock Products, Metro Rail Signalling Products and Infrastructure Products to global and domestic OEMs in the rail and metro rail sector, working primarily on a purchase-order basis (it has no long-term contracts with customers), using stainless steel, aluminium and mild steel, with certain processes (laser cutting, CNC punching, anodising, electro polishing, machining, plating, powder coating) outsourced to job workers, and also earning service revenue from metro rolling stock services/after-sales service.
Business Segments
SWOT Analysis
- • Long operating track record (27+ years) led by experienced promoters(p.116)
- • Strong customer relationships generating repeat business(p.116)
- • Well-equipped manufacturing facility (~28,317.50 sq.ft) capable of diverse products(p.116)
- • Enduring supplier relationships ensuring timely raw-material supply(p.116)
- • Quality accreditations (ISO 9001:2015)(p.117)
- • Diversified product portfolio across metro rolling stock, signalling and infrastructure(p.117)
- • Strong unexecuted order book of ₹6,389.57 lakhs plus fresh awards(p.117)
- • Registered design patent (Retractable Ramp Assembly) creating competitive barrier(p.73)
- • Extreme customer concentration (Top 5 customers = 99.21% of revenue for period ended Sep 30, 2023)(p.22)
- • Single manufacturing facility – plant concentration risk(p.24)
- • Limited operating history as a company (converted from partnership firm in 2021)(p.24)
- • Loss incurred in FY2020-21; inconsistent profitability history(p.27)
- • High secured borrowings (₹2,110.82 lakhs) with heavy dependence on Canara Bank(p.38)
- • Registered office and manufacturing facility only on lease, not owned(p.35)
- • No long-term contracts with customers; purely purchase-order based(p.26)
- • Company logo not registered as a trademark(p.36)
- • Union Budget 2023-24 allocated ₹19,518 crore to metro projects(p.122)
- • 400 new-generation Vande Bharat trains to be manufactured over next three years(p.122)
- • 'Make in India' localization mandates favour domestic rolling stock/signalling suppliers(p.122)
- • Metro network expansion to ~3,942 km drives future demand(p.124)
- • Entry opportunity in Electric Vehicle (EV) aluminium components(p.124)
- • Post-COVID surge in demand for hygienic stainless-steel solutions(p.124)
- • Stated strategy to expand sales volume and geographic outreach(p.117)
- • IPO-funded capacity addition to execute more orders amid infrastructure growth(p.73)
- • Intense competition; no entry barriers in the industry(p.29)
- • Vulnerability to rising/fluctuating steel (key raw material) prices(p.23)
- • Pandemic / widespread public health emergency risk(p.45)
- • Slowdown in Indian economic growth(p.46)
- • Changing laws, regulations and tax uncertainties (incl. GST/GAAR)(p.47)
- • Inflationary pressure on costs and margins(p.47)
- • Interest-rate volatility raising cost of debt-funded working capital(p.41)
- • Political instability or change in Government(p.48)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Herga Poornachandra Kedilaya | Promoter | 49.99% | 28.99% |
| Yermal Giridhar Rao | Promoter | 49.99% | 28.99% |
| Herga Chandrasekhar Kedilaya | Promoter Group | 0.00% | 0.00% |
| Manjula Tadipatri | Promoter Group | 0.00% | 0.00% |
| Herga Sukanya Kedilaya | Promoter Group | 0.00% | 0.00% |
| Vidyalakshmi Rao | Promoter Group | 0.00% | 0.00% |
| Anirudh Rao Yermal | Promoter Group | 0.00% | 0.00% |
| Aditya Rao Yermal | Promoter Group | 0.00% | 0.00% |
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.