Sealmatic India SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 17 Feb 2023 – 21 Feb 2023
- Listing date
- 01 Mar 2023
- Face value
- ₹10 per share
- Issue price
- ₹225 per share
- Lot size
- 600 shares
- Total issue size
- ₹56.24 Cr
- Market cap at offer price
- ₹204 Cr
- Promoter holding
- 100.00% → 72.38% pre-issue → post-issue
- ISIN
- INE0O4601016
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- ISK Advisors Pvt.Ltd.
- Registered office
- 4th Floor, Techniplex-I, Techniplex Complex, Off Veer Savarkar Flyover, Goregaon (West), 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 | 5,69,400 | — | — |
| Market maker | 1,26,000 | — | — |
Application size
Minimum 600 shares per lot, in multiples, at ₹225
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 600 | ₹1,35,000 |
| S-HNI (min) | 2 | 1,200 | ₹2,70,000 |
| S-HNI (max) | 7 | 4,200 | ₹9,45,000 |
| B-HNI (min) | 8 | 4,800 | ₹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.
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 (₹) | 11.69 | — |
| P/E (×) | 19.25 | — |
| Market cap | — | ₹204 Cr |
Key performance indicators
- Return on net worth
- 27.90%
- ROCE
- 37.00%
- Debt / equity
- 0.03
- PAT margin
- 19.67%
- EBITDA margin
- 28.83%
- NAV per share
- ₹1,507.94
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Sealmatic India SME
Sealmatic India Limited was originally incorporated as Seal Matic India Private Limited on December 02, 2009 in Mumbai, Maharashtra. The company underwent name changes in 2021 and 2022, becoming a public limited company. Sealmatic designs and manufactures mechanical seals and associated products, sealing support systems mainly for the oil & gas, refinery, petrochemical, chemical, pharmaceutical, fertilizer, power, mining, pulp & paper, aerospace, marine and many more industrial applications. With a wide range of products and services, Sealmatic offers solutions for every sealing requirement such as Pusher Seals, Standard Cartridge Seals, Elastomer Bellows Seals, Metal Bellows Seals, Engineered Seals, Split Seals, Gas-Lubricated Seals and many more. The company imports raw materials including seal faces (carbon and silicon carbide) from USA & Germany and elastomers from Germany. Sealmatic products are globally recognized as a trusted brand in the process industry.
Company Analysis
from RHPSealmatic designs and manufactures mechanical seals and associated products for oil & gas, refinery, petrochemical, chemical, pharmaceutical, fertilizer, power, mining, pulp & paper, aerospace, marine and industrial applications.
Sealmatic India Limited was originally incorporated as Seal Matic India Private Limited on December 02, 2009 in Mumbai, Maharashtra. The company underwent name changes in 2021 and 2022, becoming a public limited company. Sealmatic designs and manufactures mechanical seals and associated products, sealing support systems mainly for the oil & gas, refinery, petrochemical, chemical, pharmaceutical, fertilizer, power, mining, pulp & paper, aerospace, marine and many more industrial applications. With a wide range of products and services, Sealmatic offers solutions for every sealing requirement such as Pusher Seals, Standard Cartridge Seals, Elastomer Bellows Seals, Metal Bellows Seals, Engineered Seals, Split Seals, Gas-Lubricated Seals and many more. The company imports raw materials including seal faces (carbon and silicon carbide) from USA & Germany and elastomers from Germany. Sealmatic products are globally recognized as a trusted brand in the process industry.
Objects of the Issue
- Purchase of new plant & machinery for expansion p.44
- Establishing marketing & after sales center abroad p.44
- Working Capital Requirement p.44
- General corporate purposes p.21
- Purchase of Plant and Machinery ₹1,200.00 lakhs p.95
- Product Development ₹300.00 lakhs p.95
- Marketing and after Sales Support ₹1,100.00 lakhs p.95
- General Corporate Purpose [●] lakhs (not to exceed 25% of Gross Proceeds) p.95
- Provisions and Contingency ₹400.00 lakhs p.95
- Working Capital Requirement ₹716.00 lakhs p.95
Issue Structure
- Total Issue
- Upto 24,99,600 Equity Shares aggregating upto ₹ [●] Lakhs
- Fresh Issue
- Upto 18,50,000 Equity Shares aggregating upto ₹ [●] Lakhs
- Offer for Sale
- Upto 6,49,600 Equity Shares aggregating upto ₹ [●] Lakhs
- Price Band
- ₹ 220.00 To ₹ 225.00 per equity share of face value of ₹ 10/- each
- Lot Size
- 600 equity shares and in multiples of 600 equity shares thereafter
- Face Value
- ₹ 10 each
Business Model
Sealmatic manufactures and sells mechanical seals and associated sealing support systems to customers in India and overseas. The company generates revenue from sales of products directly to customers and dealers in various industrial sectors. Raw materials are sourced from approved international suppliers, with seal faces imported from USA and Germany and elastomers from Germany.
Business Segments
SWOT Analysis
- • Established brand in mechanical seals with global recognition(p.20)
- • Diverse product portfolio addressing multiple sealing applications(p.20)
- • Experienced promoter team with 20+ years in the industry(p.44)
- • Registered intellectual property including trademarks and copyrights(p.41)
- • API Q1 Certification - only mechanical seal company in the world with this distinction(p.119)
- • Approved and registered vendor with major national and international customers including EIL and PDIL(p.119)
- • Experienced management team with 30+ years in mechanical seals industry(p.120)
- • Consistent financial performance with 30% growth in Profit After Tax(p.120)
- • 100% customer retention rate with satisfied base of over 1000 customers globally(p.120)
- • High export proportion - 77% of total sales from exports, 23% from domestic(p.118)
- • Multiple international certifications including ISO 9001:2015, ISO 14001:2015, ISO 45001:2018(p.119)
- • A Star Export House status from Ministry of Commerce and Industry(p.119)
- • Extensive industry experience and technical expertise in sealing technology(p.143)
- • Established global sales network across 45 countries(p.143)
- • Strong track record of profitability and growth(p.212)
- • Digital marketing success expanding brand reach internationally(p.143)
- • No defaults or rescheduling of borrowings with financial institutions(p.139)
- • Conversion to public company and listing readiness(p.138)
- • No injunctions or restraining orders against the company(p.139)
- • Board constituted with independent directors(p.140)
- • Dependence on third-party suppliers for critical raw materials(p.40)
- • High concentration of revenue from limited customer base(p.41)
- • Working capital intensive business with significant trade receivables and inventory(p.42)
- • Promoter group litigation involving property dispute(p.37)
- • No independent monitoring agency appointed for fund utilization(p.45)
- • Dependence on few major customers from Fortune 500 companies(p.121)
- • High export concentration risk with 77% of sales from exports(p.118)
- • Reliance on imported raw materials from USA, Germany, UK(p.122)
- • High concentration of shareholding among promoters(p.155)
- • Significant dependence on a few key customers and export markets(p.186)
- • Limited diversification in product lines and customer base(p.210)
- • Reliance on two founding directors for business operations(p.210)
- • Capital expenditure requirements for business expansion(p.178)
- • Loss-making status of group hospitality entities(p.167)
- • Customer concentration risk(p.218)
- • Supplier concentration risk(p.219)
- • Promoter litigation(p.225)
- • Low operating cash flow relative to profitability(p.217)
- • Growing demand in Indian industrial sectors for mechanical seals(p.20)
- • Expansion of manufacturing capacity and new plant establishment(p.44)
- • Establishment of international marketing and after-sales centers(p.44)
- • Growing global mechanical seals market with strong CAGR(p.20)
- • Expansion of manufacturing capacity by 60% through second unit at Vasai(p.120)
- • Growing global mechanical seals market projected to reach USD 4.77 billion by 2026(p.114)
- • Strong growth in Asia-Pacific region expected to lead mechanical seals market(p.114)
- • Robust growth in Indian chemical industry with INR 8 lakh crore investment anticipated by 2025(p.115)
- • Indian industrial seals market projected to grow from USD 12.3 billion in 2020 to USD 16.5 billion by 2028(p.117)
- • Plan to establish marketing and after-sales service centres in India (Delhi, Chennai, Kolkata, Hyderabad) and USA & Europe(p.99)
- • Product development for dry gas seals for high-speed compressors targeting refinery, oil & gas, petrochemical sectors(p.99)
- • Expansion into emerging industrial sectors and geographies(p.210)
- • Growing global demand for mechanical seals in oil and gas sector(p.210)
- • Deepening digital marketing and e-commerce capabilities(p.143)
- • Development of customized and engineered sealing solutions(p.210)
- • Vertical integration and process improvements to increase margins(p.210)
- • Leveraging IPO proceeds for capacity expansion and R&D(p.198)
- • Revenue growth momentum(p.214)
- • Profit expansion(p.214)
- • Diversified industrial customer base(p.218)
- • IPO capital for growth and capacity expansion(p.235)
- • Intense competition from organized and unorganized sector players(p.43)
- • Rising transportation costs and infrastructure challenges(p.43)
- • Potential supply chain disruption from supplier concentration(p.40)
- • Regulatory changes and compliance requirements affecting operations(p.40)
- • Exposure to foreign exchange fluctuations(p.49)
- • COVID-19 and potential future pandemic impacts(p.53)
- • Rapid technological change requirements in the industry(p.42)
- • Global economic slowdown with IMF projecting growth to decline to 2.9% in 2023(p.110)
- • Geopolitical risks including war in Ukraine affecting trade and energy supplies(p.110)
- • Global inflation and tighter financial conditions impacting emerging markets(p.110)
- • Competition from large global players including SKF, John Crane, Flowserve Corporation(p.116)
- • Slowdown in China with IMF revisions due to COVID-19 lockdowns and real estate crisis(p.110)
- • Volatility in commodity prices and exchange rates affecting raw material costs(p.95)
- • Volatility in foreign exchange rates affecting export competitiveness(p.196)
- • Cyclicality in oil and gas industry affecting demand(p.210)
- • Intense competition from established global and domestic players(p.210)
- • Raw material price volatility and supply chain disruptions(p.187)
- • Regulatory changes affecting industrial standards and certifications(p.138)
- • COVID-19 and pandemic-related disruptions to operations and supply chains(p.198)
- • Regulatory and compliance risks(p.245)
- • Input cost inflation(p.214)
- • Staff cost inflation(p.214)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Mohamed Hanif Chaudhari | Promoter | 15.67% | 11.34% |
| Mr. Umar A. K. Balwa | Promoter | 5.67% | 4.51% |
| Mr. Rafiq H. Balwa | Promoter | 10.59% | 5.89% |
| Mr. Mohamed Hanif Chaudhari | Promoter | 15.67% | 11.34% |
| Mr. Umar A. K. Balwa | Promoter | 5.67% | 4.51% |
| Mr. Rafiq H. Balwa | Promoter | 10.59% | 5.89% |
| Mr. Hussein A. K. Balwa | Promoter Group | 8.67% | 6.89% |
| Mrs. Saleha I. Balwa | Promoter Group | 8.83% | 7.03% |
| Mr. Ismail A. K. Balwa | Promoter Group | 7.24% | 5.76% |
| Mrs. Waheeda U. Balwa | Promoter Group | 4.00% | 1.91% |
| Ms. Sania U. Balwa | Promoter Group | 4.00% | 3.18% |
| Ms. Neha U. Balwa | Promoter Group | 4.00% | 3.18% |
| Mr. Sadik S. Chaudhari | Promoter Group | 15.67% | 11.34% |
| Mr. Abid A. Chaudhari | Promoter Group | 15.67% | 11.34% |
| Mr. Umar A. K. Balwa | Promoter | 5.67% | — |
| Mr. Mohamed Hanif Chaudhari | Promoter | 15.67% | — |
| Mr. Rafiq H. Balwa | Promoter | 9.00% | — |
| Ismail A. Balwa | Promoter Group | — | — |
| Umar A. K. Balwa | Promoter | — | — |
| Mohamed Hanif Chaudhari | Promoter | — | — |
| Waheeda Umar Balwa | Promoter | — | — |
| Rafiq Hussein Balwa | Promoter | — | — |
| Sadik S. Chaudhari | Promoter | — | — |
| Abid Ali Chaudhari | Promoter | — | — |
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.