Readymix Construction Machinery
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 06 Feb 2025 – 10 Feb 2025
- Listing date
- 13 Feb 2025
- Face value
- ₹10 per share
- Issue price
- ₹123 per share
- Lot size
- 1,000 shares
- Listing at
- NSE
- Total issue size
- ₹37.66 Cr
- Market cap at offer price
- ₹135 Cr
- Promoter holding
- 100.00% → 72.06% pre-issue → post-issue
- ISIN
- INE10QL01011
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Hem Securities Ltd.
- Registered office
- Office No.401, 3rd and 4th Floor, Plot No.209, Survey No.96/2B, Paud Road, Right Bhusari Colony, Kothrud, 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 | 8,71,000 | — | — |
| Market maker | 1,54,000 | — | — |
Application size
Minimum 1,000 shares per lot, in multiples, at ₹123
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,000 | ₹1,23,000 |
| S-HNI (min) | 2 | 2,000 | ₹2,46,000 |
| S-HNI (max) | 8 | 8,000 | ₹9,84,000 |
| B-HNI (min) | 9 | 9,000 | ₹11,07,000 |
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.
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 (₹) | 11.76 | 1.27 |
| P/E (×) | 10.46 | 96.85 |
| Price to book (×) | 5.18 | — |
| Market cap | — | ₹135 Cr |
Key performance indicators
- Return on net worth
- 49.51%
- ROCE
- 48.96%
- Debt / equity
- 0.42
- PAT margin
- 13.30%
- NAV per share
- ₹23.75
- Price to book
- 5.18
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Readymix Construction Machinery
Readymix Construction Machinery Limited (RCML) is an engineering-focused enterprise that designs and develops specialized plant & machinery solutions tailored to customer requirements. Incorporated in 2012, the company took over the business of partnership firm M/s Readymix Construction Machinery on July 31, 2012, and was converted to a public limited company in August 2024. The company provides end-to-end turnkey solutions spanning conceptualization, development, fabrication, assembly, testing, logistics support, erection, and installation, along with after-sales repair and maintenance services. Its customer base spans cement, concrete, crushing, construction, and building materials industries across India and exports. The company operates a fabrication unit in Pune, Maharashtra, and generated total income of ₹3,550.02 lakhs for the nine months ended December 31, 2024. Revenue composition includes Dry Mix Mortar Plants (higher-margin products that grew from ₹1,347.15 lakhs in FY22-23 to ₹1,988.16 lakhs in FY23-24) and support equipment for readymix concrete plants (declining from ₹2,675.18 lakhs to ₹1,797.93 lakhs over the same period).
Company Analysis
from RHPReadymix Construction Machinery Limited is an engineering-led company offering design, development, fabrication, and installation of plant & machinery (Dry Mix Mortar Plants, Readymix Concrete support equipment, crushers, silos, wall putty plants) for industries including cement, concrete, construction, and building materials.
Readymix Construction Machinery Limited (RCML) is an engineering-focused enterprise that designs and develops specialized plant & machinery solutions tailored to customer requirements. Incorporated in 2012, the company took over the business of partnership firm M/s Readymix Construction Machinery on July 31, 2012, and was converted to a public limited company in August 2024. The company provides end-to-end turnkey solutions spanning conceptualization, development, fabrication, assembly, testing, logistics support, erection, and installation, along with after-sales repair and maintenance services. Its customer base spans cement, concrete, crushing, construction, and building materials industries across India and exports. The company operates a fabrication unit in Pune, Maharashtra, and generated total income of ₹3,550.02 lakhs for the nine months ended December 31, 2024. Revenue composition includes Dry Mix Mortar Plants (higher-margin products that grew from ₹1,347.15 lakhs in FY22-23 to ₹1,988.16 lakhs in FY23-24) and support equipment for readymix concrete plants (declining from ₹2,675.18 lakhs to ₹1,797.93 lakhs over the same period).
Objects of the Issue
- Repayment and/or pre-payment, in full or part, of borrowing availed by our Company ₹525.00 lakhs p.25
- To Meet Working Capital Requirement ₹2,405.00 lakhs p.25
- General Corporate Purpose p.25
- Repayment and/or pre-payment, in full or part, of borrowing availed by our Company ₹525.00 lakhs p.77
- To Meet Working Capital Requirement ₹2405.00 lakhs p.78
- General Corporate Purpose p.81
- Not stated in this document section
- Not stated in this section
Issue Structure
- Total Issue
- ₹[●] lakhs (up to 30,62,000 Equity Shares)
- Fresh Issue
- Up to 30,62,000 Equity Shares aggregating up to ₹[●] lakhs
- Offer for Sale
- Nil
- Price Band
- Floor Price: ₹[●]; Cap Price: ₹[●]
- Lot Size
- [●] equity shares and in multiples of [●] equity shares thereafter
- Face Value
- ₹10 per Equity Share
Business Model
RCML generates revenue through design, development, fabrication, and installation of customized plant & machinery solutions. The company accepts customer orders, conducts engineering estimates and design work, fabricates equipment at its Pune facility, manages assembly and testing, provides logistics and on-site installation, and offers after-sales services including repair and maintenance. Revenue is recognized upon project completion and delivery. The business model is project-based with focus on higher-margin products (Dry Mix Mortar Plants) over lower-margin support equipment. The company sources raw materials (primarily steel) from suppliers, employs internal engineering and fabrication teams, and outsources certain fabrication and assembly activities to pre-approved contractors.
Business Segments
SWOT Analysis
- • Engineering-led company with end-to-end turn-key solutions capability(p.21)
- • Experienced in-house design and engineering teams(p.31)
- • Strong after-sales service network to support customer relationships(p.38)
- • Revenue growth trajectory with increasing profitability(p.33)
- • Promoter control enables strategic decision-making(p.43)
- • Established banking relationships for financing(p.43)
- • No historical labor disputes affecting operations(p.43)
- • Insurance coverage for operational risks(p.44)
- • Diversified product portfolio across cement, concrete, crushing, and construction sectors(p.106)
- • Established customer relationships across 20+ Indian states and Nepal(p.104)
- • Dedicated after-sales support network of 25 employees(p.106)
- • In-house R&D capability with 35+ products developed to replace outsourced components(p.104)
- • Experienced promoter team with 28-30 years of industry expertise(p.107)
- • Design and development team capability with Siemens CAD software expertise(p.104)
- • Experienced promoter team with 30, 23, 19, and 15 years of industry experience respectively(p.151)
- • Strong in-house R&D capability with 35+ products developed internally(p.207)
- • Diversified revenue across multiple geographies and products with 200+ customers(p.208)
- • Engineering-led integrated solutions offering with comprehensive design-to-installation capabilities(p.207)
- • Strong design team with 13 designers and 14 R&D employees using advanced CAD software(p.208)
- • High-margin product portfolio including customized projects (35-40%), consultancy services (40-80%), and Dry Mix Mortar plants (30-33%)(p.213)
- • Clean legal and regulatory standing with no material violations(p.218)
- • All necessary regulatory approvals and licenses in place for operations(p.221)
- • Positive net-worth and operating profitability across periods(p.229)
- • No default history on financial obligations(p.239)
- • Over three years of operational track record(p.229)
- • Trademark applications filed for brand protection(p.224)
- • High dependency on small number of key suppliers concentrated in Maharashtra(p.30)
- • Heavy reliance on small number of key customers for revenue(p.31)
- • Rented premises without long-term security for operations(p.37)
- • Significant outstanding trade payables creating supplier relationship risk(p.31)
- • High working capital intensity with significant blocked inventory and receivables(p.34)
- • Negative operating cash flows in recent period(p.37)
- • Trademarks and patents still pending registration(p.39)
- • Significant indebtedness with secured and unsecured loans(p.42)
- • Excessive dependence on two lenders (IndusInd Bank and ICICI Bank)(p.43)
- • Personal guarantees of directors expose them to personal liability(p.43)
- • Restrictive covenants limit operational flexibility(p.44)
- • No independent appraisal of fund deployment plans(p.44)
- • No alternate source of funding identified for working capital(p.44)
- • Unmonitored fund deployment (no independent monitoring agency)(p.45)
- • High customer concentration with top 5 customers accounting for 36.72% of revenue (Dec 2024)(p.107)
- • Significant revenue decline from FY2024 to Dec 2024 period (49% drop in 9 months)(p.105)
- • EBITDA margin compressed to 8.26% (Dec 2024) from 19.57% in FY2024(p.105)
- • Both operational facilities are leased, not owned(p.120)
- • High concentration of ownership with promoters holding 87.97% of pre-IPO paid-up equity capital(p.150)
- • Significant short-term borrowings of Rs. 1,553.03 Lakhs requiring annual renewal(p.180)
- • High proportion of trade receivables aging beyond 6 months, indicating extended credit terms(p.188)
- • Significant dependence on unsecured loans from promoters totaling Rs. 177.25 Lakhs(p.179)
- • Declining profitability trend in stub period with PAT margin at 2.94% versus 13.30% in FY2024(p.208)
- • Low inventory turnover ratio of 1.32 times as at 31-Dec-24, indicating slower inventory conversion(p.201)
- • Tax liabilities and disputes pending(p.218)
- • Concentrated payables with four material creditors exceeding 5% of trade payables(p.220)
- • Intellectual property protection not yet secured(p.224)
- • Negative free cash flow to equity in recent period(p.230)
- • Material dues to small scale and other undertakings outstanding(p.220)
- • Large and growing construction equipment market with strong CAGR(p.24)
- • Strong growth in machine tools market segment(p.24)
- • India positioned as third largest construction equipment market with infrastructure development(p.24)
- • Pivot to higher-margin Dry Mix Mortar Plant products(p.32)
- • Plan to expand into new geographic markets including exports(p.33)
- • Debt reduction to improve financial stability and capacity(p.77)
- • Working capital expansion to support revenue growth(p.78)
- • Enhanced corporate visibility and brand recognition through listing(p.76)
- • Liquidity for existing shareholders via public market(p.76)
- • India's construction equipment market projected to grow at 15% CAGR over next 5 years(p.103)
- • Government's National Manufacturing Policy targets 25% of GDP from manufacturing by 2025(p.99)
- • Cement industry projected to grow 6-7% in FY25 with capacity additions planned(p.101)
- • Manufacturing sector shifting to automated, process-driven production improving efficiency(p.99)
- • Strategy to expand geographical footprint to untapped regions beyond current 20 states(p.108)
- • Eastern states identified as newer, untapped markets for cement and construction equipment(p.101)
- • Growth in customized high-margin projects with revenue increasing 601.91% from FY2023 to FY2024(p.212)
- • Expansion of consultancy and service offerings with 169.45% growth in FY2024(p.212)
- • Launch of new Sand Plant product line generating Rs. 736.00 Lakhs revenue in 9-month stub period(p.212)
- • Strong growth in high-capacity silos business with 41.50% increase in FY2024(p.212)
- • International expansion potential with exports to Nepal and unexploited export opportunities(p.208)
- • Opportunity to increase high-margin product mix with capacity for further product development and customization(p.152)
- • Eligibility for migration to NSE main board upon capital threshold(p.246)
- • Three-year market making commitment provides liquidity support(p.246)
- • Dependency on steel industry as major raw material supplier subject to industry cycles(p.33)
- • Geographic concentration of operations vulnerable to regional adverse developments(p.32)
- • Intense competition from organized and unorganized players affecting pricing and margins(p.40)
- • Significant exposure to business seasonality affecting revenue predictability(p.37)
- • Regulatory and compliance risks including environmental and labor laws(p.40)
- • Foreign currency exchange rate fluctuations affecting export operations(p.41)
- • Operational risks from fabrication unit disruptions including natural disasters(p.35)
- • Outstanding tax litigations and demands creating financial uncertainty(p.25)
- • Labor-intensive industry vulnerable to wage pressures and strikes(p.43)
- • Risk of employee unionization affecting labor flexibility(p.43)
- • Potential need for future capital raises causing equity dilution(p.43)
- • Slowdown in Indian economic growth affecting demand(p.47)
- • Exposure to metal price fluctuations and steel supply risks(p.48)
- • Vulnerability to natural disasters and pandemics(p.48)
- • Global economic instability and financial market volatility(p.49)
- • Regulatory and policy uncertainty in India(p.47)
- • Dependence on global economic conditions and customer base(p.48)
- • Global trade growth recovery subdued compared to pre-pandemic levels despite pickup(p.96)
- • Elevated geopolitical tensions could lead to volatile commodity prices and supply disruptions(p.96)
- • High raw material dependency with no long-term supply contracts disclosed(p.116)
- • Trade fragmentation and protectionism threaten merchandise trade growth outlook(p.98)
- • Core inflation remains sticky despite global disinflation, limiting interest rate cuts(p.96)
- • Private sector capital formation showing signs of caution due to cheaper imports(p.98)
- • Cyclicality in construction and cement industries affecting demand for plant and machinery(p.216)
- • Exposure to raw material price volatility, particularly steel which is major raw material(p.213)
- • Regulatory and compliance risks in safety, health, environmental and labour laws(p.209)
- • Government policy changes affecting construction industry and tax environment(p.209)
- • Contingent GST and Income Tax liabilities of Rs. 99.49 Lakhs with pending appeals(p.194)
- • Dependence on key management personnel with risk of inability to retain expertise(p.209)
- • Trademark and patent registrations remain pending and unprotected(p.225)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Anand Suresh Watve | Promoter | 27.63% | 19.91% |
| Atul Jagannath Kulkarni | Promoter | 26.87% | 19.37% |
| Prashant Balasaheb Kanikdale | Promoter | 33.33% | 24.02% |
| Shubhangi Rohit Deo | Promoter | 0.13% | 0.09% |
| Anuya Anand Watve | Promoter Group | 5.07% | 3.65% |
| Ashwini Anand Mate | Promoter Group | 0.63% | 0.46% |
| Hemangi Kulkarni | Promoter Group | 6.33% | 4.56% |
| Anand Suresh Watve | Promoter | 27.63% | 19.91% |
| Atul Jagannath Kulkarni | Promoter | 26.87% | 19.37% |
| Prashant Balasaheb Kanikdale | Promoter | 33.33% | 24.02% |
| Shubhangi Rohit Deo | Promoter | 0.13% | 0.09% |
| Anuya Anand Watve | Promoter Group | 5.07% | 3.65% |
| Ashwini Anand Mate | Promoter Group | 0.63% | 0.46% |
| Hemangi Kulkarni | Promoter Group | 6.33% | 4.56% |
| Anand Suresh Watve | Promoter | 27.63% | — |
| Atul Jagannath Kulkarni | Promoter | 26.87% | — |
| Prashant Balasaheb Kanikdale | Promoter | 33.33% | — |
| Shubhangi Rohit Deo | Promoter | — | — |
| Anand Suresh Watve | Promoter | 27.63% | — |
| Atul Jagannath Kulkarni | Promoter | 26.87% | — |
| Prashant Balasaheb Kanikdale | Promoter | 33.33% | — |
| Shubhangi Rohit Deo | Promoter | 0.13% | — |
| Not stated in this section | Not stated in this section | — | — |
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.