Sharp Chucks and Machines
Fixed Price issueSME₹16.84 Cr issue
+13.79%
Listing gain over issue price
Issue size
₹16.84 Cr
1 lot at cut-off
₹1,16,000
Lot size
2,000shares
Open
29 Sep 2023
Close
05 Oct 2023
Allotment
09 Oct 2023
Listing
12 Oct 2023
Listing performance
Issue price
₹58
Listed at
₹66
Listing-day close
₹65.05
Latest price
₹87
Close on 23 Oct 2026
Listing gain
+13.79%
Return since issue
+50.00%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 29 Sep 2023 – 05 Oct 2023
- Listing date
- 12 Oct 2023
- Face value
- ₹10 per share
- Issue price
- ₹58 per share
- Lot size
- 2,000 shares
- Issue type
- Fixed Price issue
- Total issue size
- ₹16.84 Cr
- Market cap at offer price
- ₹62.41 Cr
- Promoter holding
- 80.28% → 73.01% pre-issue → post-issue
- ISIN
- INE460Q01014
- Registrar
- Skyline Financial Services Pvt.Ltd.
- Lead managers
- Fedex Securities Pvt.Ltd.
- Registered office
- A-12, Industrial Development Colony, Punjab
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 | 0 | — | — |
| Market maker | 1,48,000 | — | — |
Application size
Minimum 2,000 shares per lot, in multiples, at ₹58
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 2,000 | ₹1,16,000 |
| S-HNI (min) | 2 | 4,000 | ₹2,32,000 |
| S-HNI (max) | 8 | 16,000 | ₹9,28,000 |
| B-HNI (min) | 9 | 18,000 | ₹10,44,000 |
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.
Shares allocated
0
Anchor portion
₹0 Cr
at ₹58 per share
Valuation and performance
Valuation at offer price
₹58 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 5.18 | — |
| P/E (×) | 11.20 | — |
| Market cap | — | ₹62.41 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 9.68%
- ROCE
- 11.00%
- Debt / equity
- 1.73
- PAT margin
- 2.87%
- NAV per share
- ₹53.50
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Sharp Chucks and Machines
Sharp Chucks and Machines Limited, incorporated in 1994 and converted to a public company, is an integrated manufacturer of forging products, casting products, and machined components. The company manufactures these products from carbon steel, alloy steel, and stainless-steel pipes, coils, plates, structures and forgings conforming to international standards. Its manufacturing facilities are located in Jalandhar, Punjab, India, and employ advanced technologies to develop products meeting stringent quality control requirements of customers across diverse industries including tractors, automobiles, material handling & earth moving equipment, valves & pumps, sugar plants, steel mills, cement plants, railways & defence, machine tools, and DIY industry.
Company Analysis
from RHPSharp Chucks and Machines Limited manufactures precision forging, casting, and machined components for automotive, tractor, material handling, railways, defence, and industrial sectors.
Sharp Chucks and Machines Limited, incorporated in 1994 and converted to a public company, is an integrated manufacturer of forging products, casting products, and machined components. The company manufactures these products from carbon steel, alloy steel, and stainless-steel pipes, coils, plates, structures and forgings conforming to international standards. Its manufacturing facilities are located in Jalandhar, Punjab, India, and employ advanced technologies to develop products meeting stringent quality control requirements of customers across diverse industries including tractors, automobiles, material handling & earth moving equipment, valves & pumps, sugar plants, steel mills, cement plants, railways & defence, machine tools, and DIY industry.
Automotive componentsTractor industryMaterial handling & earth moving equipmentValves & pumpsSugar plantsSteel millsCement plantsRailways & defenceMachine toolsDIY industry
Objects of the Issue
- Funding our Working Capital requirements ₹267.00 Lakhs p.20
- General corporate purposes ₹38.78 Lakhs p.20
- Funding our working capital requirements ₹ 267.00 Lakhs p.97
- General corporate purposes ₹ 38.78 Lakhs p.97
- The specific objects of the offer are not detailed in this part of the document
- Fresh issue of equity shares for general corporate purposes and as per the business plan ₹565.78 Lakhs p.257
Issue Structure
- Total Issue
- ₹1,684.32 Lakhs
- Fresh Issue
- ₹565.78 Lakhs (9,75,484 Equity Shares)
- Offer for Sale
- ₹1,118.54 Lakhs (19,28,516 Equity Shares)
- Price Band
- ₹58 per equity share (including premium of ₹48 per equity share)
- Lot Size
- 2,000 Equity Shares and in multiples thereof
- Face Value
- ₹10 per equity share
Business Model
The company manufactures and supplies high-quality precision machine tools, forging and casting products primarily to the automotive sector, particularly tractors and commercial vehicles. It operates on a purchase order basis with customers without formal long-term contracts. Revenue is generated from sale of these engineered components to OEMs and end-users in automotive, tractor, and industrial sectors.
Business Segments
Manufactures forging products, casting products and machined components from carbon steel, alloy steel and stainless-steel pipes, coils, plates, structures and forgings conforming to international standards for diverse industries.
Manufactures brake housing, piston, trumpet housing, wheel hub kit, rear cover, bell housing, front axel bracket, gear box, brake drum, front axel housing, lift arm, ram cylinder, planetary carrier, steering arm, gearbox components, cylinder blocks, and related casting products for tractor and automobile industries.
Manufactures forged products including gears, dog clutches, scaffolding, spanners, wrenches, axes, hammers, splitting mauls, hatchets, and other striking tools for hand tools and DIY industries.
Manufactures lathe chucks, independent chucks, power chucks, MTJ chucks, drill chucks, and machine tool accessories including jaws, wedges, handles, and back plates for lathe machines, drill machines, CNC/VMC machines.
Domestic sales of manufacturing products - lathe chucks, power chucks, drill chucks, machine tools accessories and customized castings/forgings
Export sales of manufacturing products - lathe chucks, power chucks, drill chucks, machine tools accessories and customized castings/forgings
Manufacturing and exporting of power chucks
Manufacturing and exporting of lathe chucks
Manufacturing and exporting of drill chucks
Manufacturing and exporting of machine tools accessories
Manufacturing and exporting of striking tools
Manufacturing and exporting of customized castings and forging components
SWOT Analysis
Strengths
- • Integrated manufacturing capability across forging, casting, and machining(p.19)
- • Advanced manufacturing facilities meeting international quality standards(p.19)
- • Diverse customer base across multiple end-use industries(p.19)
- • Listed company status enhances visibility and brand(p.96)
- • In-house manufacturing and machining capabilities(p.104)
- • Wide product range with customization capability(p.104)
- • Experienced promoter team(p.104)
- • Diversified customer base(p.104)
- • Strong quality management systems(p.104)
- • Integrated manufacturing capabilities across forging, casting, and machining(p.132)
- • In-house advanced manufacturing and machining facilities enabling quality control and cost efficiency(p.143)
- • Extensive promoter experience in the industry(p.143)
- • Diversified customer base reducing dependence on any single customer(p.143)
- • Multi-level quality control processes ensuring consistent product quality(p.143)
- • Wide product range and customized offerings serving diverse industries(p.143)
- • In-house manufacturing facilities and machining center capability(p.215)
- • Wide product range with customized offerings(p.215)
- • Experienced promoter team with long track record(p.215)
- • Diversified customer base across multiple industries(p.215)
- • Rigorous quality control processes(p.215)
- • Strong revenue growth trajectory over three years(p.219)
Weaknesses
- • Extreme customer concentration risk with top 5 customers representing 73.78% of sales(p.27)
- • Heavy dependence on top 10 suppliers representing 69.61% of purchases(p.28)
- • Significant unsecured borrowings repayable on demand totaling ₹819.91 Lakhs(p.29)
- • Negative cash flows from operating, investing and financing activities(p.29)
- • High financial leverage with total borrowings of ₹9,034.20 Lakhs as of March 31, 2023(p.31)
- • Promoter personal guarantees on financing arrangements that may not continue post-IPO(p.31)
- • Missing or untraceable corporate records and regulatory documentation(p.34)
- • Past inaccuracies in regulatory filings with the Registrar of Companies(p.34)
- • Registered office not owned by company and dependent on promoter's goodwill(p.36)
- • Trademark and logo application abandoned at the Trademarks Authority(p.37)
- • Pending tax liabilities and regulatory proceedings(p.26)
- • High debt and leverage requiring management attention(p.45)
- • Resource strain from compliance requirements post-listing(p.45)
- • Need to hire additional accounting and legal staff(p.45)
- • Potential reporting delays and compliance risks(p.45)
- • Management distraction from business operations(p.45)
- • Certain corporate records are not traceable or have discrepancies(p.64)
- • Significant unused installed capacity across manufacturing units(p.144)
- • High concentration of revenue from top customers despite diversification claims(p.143)
- • Significant raw material cost comprising majority of revenue(p.149)
- • Trademark applications abandoned with need for re-application or revival(p.152)
- • Low profitability margins relative to revenues(p.135)
- • High dependence on top five customers for majority of revenue(p.221)
- • Significant dependence on top 10 suppliers for purchases(p.221)
- • Substantial debt burden with Debt-Equity ratio of 1.73(p.207)
- • High finance costs representing significant portion of expenses(p.216)
- • Pending income tax litigation with demand of ₹47.82 Lakhs(p.229)
- • Significant working capital requirements with cash credit facility of ₹3,319.30 Lakhs(p.224)
- • Plant concentration with operations limited to two locations in Jalandhar(p.233)
- • Mandatory 2-year listing requirement on NSE EMERGE before migration to Main Board(p.255)
Opportunities
- • Growing automotive sector expected to contribute 5-7% of GDP by 2026(p.19)
- • Employment growth in auto component sector with 3.2 million incremental jobs projected by 2026(p.19)
- • Opportunity to expand customer base beyond current major clients(p.38)
- • Potential for increased revenue from existing customers through better utilization(p.38)
- • Funding working capital to support future growth(p.97)
- • Expansion phase with organic and inorganic growth potential(p.94)
- • Strategic initiatives and growth opportunities(p.100)
- • Enhanced market access through public market listing(p.96)
- • Rapid growth in Indian auto components industry projected to reach $200 billion by 2026(p.121)
- • India's auto component sector becoming third largest globally with export opportunities(p.124)
- • Strong government support through PLI schemes and production incentives(p.124)
- • Massive growth potential in electric vehicle components with high CAGR(p.126)
- • Strategy to expand customer base and enter under-penetrated geographies(p.144)
- • Strategy to increase capacity utilization and improve operational efficiency(p.144)
- • Growing demand in automotive and related industries(p.203)
- • Expansion into new customer segments and components(p.219)
- • Capacity expansion through capital investments(p.199)
- • Export market opportunities with current exports of ₹739.98 Lakhs(p.219)
- • Government subsidies and support schemes including PMRY subsidy(p.201)
- • Potential for migration to NSE Main Board post-2-year EMERGE tenure(p.255)
Threats
- • Heavy dependence on tractor and automobile industry performance(p.27)
- • Risk of economic slowdown in automobile manufacturing and sales globally(p.27)
- • Geographic concentration with all manufacturing facilities in Jalandhar, Punjab(p.28)
- • Exposure to power supply disruptions and tariff increases from single supplier(p.31)
- • Exposure to foreign exchange fluctuations with no hedging contracts in place(p.39)
- • Inflation risk with inability to fully pass cost increases to customers(p.40)
- • Risk of natural disasters and epidemics including pandemics like COVID-19(p.41)
- • Exposure to regulatory and compliance risks in evolving legal environment(p.41)
- • Pricing pressure from customers affecting gross margins(p.32)
- • Competitive pressure from industry players(p.15)
- • Potential pre-emptive surveillance measures affecting stock trading(p.45)
- • Limited shareholder rights under Indian law(p.45)
- • Stock price volatility and market fluctuations(p.45)
- • Highly competitive and fragmented industry with both organized and unorganized players(p.150)
- • Competitors with greater financial and technical resources(p.150)
- • Global economic slowdown impacting demand and profitability(p.121)
- • Raw material price volatility and dependence on external supply(p.149)
- • Dependence on third-party logistics providers without long-term contracts(p.149)
- • Potential unspent corporate social responsibility obligations(p.187)
- • Significant exposure to raw material price volatility(p.215)
- • Intense competitive pressures in the manufacturing sector(p.215)
- • Customer payment delays and default risks(p.215)
- • Regulatory and legal uncertainties affecting operations(p.215)
- • Economic cyclicality impacting industrial demand(p.215)
- • Business disruption from natural disasters and unforeseen events(p.216)
- • Foreign exchange exposure from export operations(p.201)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Ajay Sikka | Promoter | 50.42% | — |
| Gopika Sikka | Promoter | 18.24% | — |
| SIDBI Trustee Company Limited A/c India Opportunities Fund | Selling Shareholder | 19.71% | — |
| Ajay Sikka | Promoter | 50.42% | 45.85% |
| Gopika Sikka | Promoter | 18.24% | 16.59% |
| Ajay Sikka HUF | Promoter Group | 2.59% | 2.35% |
| Late Ramesh Rani | Promoter Group | 3.22% | 2.93% |
| Suman Bala | Promoter Group | 5.81% | 5.29% |
| SIDBI Trustee Company Limited A/c India Opportunities Fund | Selling Shareholder | 19.71% | — |
| Ajay Sikka | Promoter | 50.42% | — |
| Gopika Sikka | Promoter | 18.24% | — |
| Ajay Sikka | Promoter/Managing Director | — | — |
| Gopika Sikka | Director | — | — |
| Ajay Sikka | Promoter | — | — |
| Gopika Sikka | Promoter | — | — |
| Sandeep Sikka | Promoter | — | — |
| Ajay Sikka | Promoter | — | — |
| SIDBI Trustee Company Limited A/c India Opportunities Fund | Selling Shareholder | — | — |
Leadership
Ajay Sikka · Managing Director/Promoter
Gopika Sikka · Chief Financial Officer/Whole Time Director/Promoter
Rajat Kathpalia · Company Secretary & Compliance Officer
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.
Sharp Chucks and Machines IPO FAQs
What is the lot size of Sharp Chucks and Machines IPO?
The minimum lot size of Sharp Chucks and Machines IPO is 2,000 shares. One lot costs ₹1,16,000 at the cut-off price.
When does Sharp Chucks and Machines IPO open and close?
Sharp Chucks and Machines IPO opened for subscription on 29 Sep 2023 and closed on 05 Oct 2023.
What is the listing date of Sharp Chucks and Machines IPO?
Sharp Chucks and Machines IPO listed on 12 Oct 2023.