SM Auto Stamping SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 03 Mar 2020 – 05 Mar 2020
- Listing date
- 16 Mar 2020
- Face value
- ₹10 per share
- Issue price
- ₹18 per share
- Lot size
- 8,000 shares
- Total issue size
- ₹6.91 Cr
- Market cap at offer price
- ₹25.72 Cr
- Promoter holding
- 99.99% → 73.11% pre-issue → post-issue
- ISIN
- INE0C4I01011
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Hem Securities Ltd.
- Registered office
- J-41,, MIDC,, Ambad,, 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 |
|---|---|---|---|
| Market maker | 2,00,000 | — | — |
Application size
Minimum 8,000 shares per lot, in multiples, at ₹18
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 8,000 | ₹1,44,000 |
| S-HNI (min) | 2 | 16,000 | ₹2,88,000 |
| S-HNI (max) | 6 | 48,000 | ₹8,64,000 |
| B-HNI (min) | 7 | 56,000 | ₹10,08,000 |
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 |
|---|---|---|
| Market cap | — | ₹25.72 Cr |
About SM Auto Stamping SME
SM Auto Stamping Limited, incorporated in 2006, manufactures and supplies automotive sheet metal components and sub-assemblies for the automobile parts industry. The company produces a range of sheet metal pressed components including clutch, brake, engine mounting, chassis, shaft drive, body trim, and bearing components used in passenger vehicles, commercial vehicles, and tractors. The company also manufactures deep drawn components and control panel components for application in electrical equipment industry. The company operates three manufacturing facilities located in Nashik, Maharashtra. The company generates revenue from the supply of these components to various automobile manufacturers and component suppliers.
Company Analysis
from DRHPSM Auto Stamping Limited is an automotive component manufacturer specializing in sheet metal pressed components for passenger cars, commercial vehicles, and tractors, operating in the automotive and electrical equipment industries.
SM Auto Stamping Limited, incorporated in 2006, manufactures and supplies automotive sheet metal components and sub-assemblies for the automobile parts industry. The company produces a range of sheet metal pressed components including clutch, brake, engine mounting, chassis, shaft drive, body trim, and bearing components used in passenger vehicles, commercial vehicles, and tractors. The company also manufactures deep drawn components and control panel components for application in electrical equipment industry. The company operates three manufacturing facilities located in Nashik, Maharashtra. The company generates revenue from the supply of these components to various automobile manufacturers and component suppliers.
Objects of the Issue
- Working Capital requirement p.16
- General Corporate Purpose p.16
- To meet Issue Expenses p.16
- To meet Working Capital requirements p.77
- General Corporate Purpose p.77
- To meet issue expenses p.77
- Not explicitly stated in this document section
Issue Structure
- Total Issue
- 38,40,000 Equity Shares aggregating up to Rs. [●] lakhs
- Fresh Issue
- 38,40,000 Equity Shares of face value of Rs. 10 each
- Price Band
- Rs. [●] per Equity Share
- Lot Size
- [●]
- Face Value
- Rs. 10 per Equity Share
Business Model
The company manufactures and supplies sheet metal pressed automotive components on technical specifications as per customer requirements. Revenue is generated from the sale of these components to customers in the automotive and electrical equipment industries.
Business Segments
SWOT Analysis
- • Established auto-component manufacturer with specialized capabilities in sheet metal components(p.16)
- • Diversified product portfolio serving multiple vehicle segments and industries(p.16)
- • In-house die making and machining capabilities enabling cost control and quality(p.99)
- • Extensive promoter experience in auto-components stamping(p.99)
- • Established relationships with reputed customers(p.95)
- • Wide customizable product range across automotive and electrical sectors(p.99)
- • IATF 16949:2016 certification across all three manufacturing units(p.95)
- • Established manufacturing presence with IATF 16949:2016 certification across three units(p.191)
- • Long operational history since 1995 with experienced promoters(p.191)
- • Diversified customer base across automotive and non-automotive sectors(p.191)
- • Revenue growth trajectory with improving profitability(p.139)
- • Long operating history in automotive component manufacturing(p.219)
- • Revenue growth trajectory with profitability recovery(p.201)
- • Turnaround to profitability from losses(p.201)
- • IATF 16949 quality certification across all manufacturing units(p.212)
- • Positive net worth and cash generation from operations(p.219)
- • Heavy dependence on a single customer for approximately 50% of revenue(p.25)
- • Lack of long-term contractual commitments with customers(p.25)
- • Geographic concentration of manufacturing operations in single location(p.30)
- • Outstanding legal proceedings and regulatory non-compliances(p.27)
- • Auditor qualifications and emphasis of matters on financial statements(p.27)
- • Unregistered trademarks and intellectual property weaknesses(p.32)
- • Substantial debt obligations and unsecured loans(p.35)
- • Past financial losses and negative cash flows(p.34)
- • Pending regulatory licenses and approvals(p.25)
- • Dependence on personal guarantees from promoters and directors(p.36)
- • Significant customer concentration with top customer representing 50% of FY2018-19 revenue(p.102)
- • Capacity underutilization with average utilization of 74.42% across units(p.100)
- • Trademark registration opposed for primary brand name(p.104)
- • Heavy reliance on leasehold properties with unexecuted final lease deeds(p.105)
- • High dependence on a limited number of key customers(p.191)
- • Significant leverage with debt to equity ratio of 1.61(p.170)
- • Concentrated manufacturing operations in single location (Nashik)(p.191)
- • Reliance on leasehold rather than owned properties(p.191)
- • Heavy concentration on top two customers(p.201)
- • Thin profit margins despite revenue growth(p.200)
- • Conflict of interest with promoter group company in same business(p.217)
- • Significant debt burden with high leverage ratio(p.205)
- • Material litigation against promoter under Factory Act(p.207)
- • Group company with history of audit qualifications and unconfirmed balances(p.215)
- • Significant growth potential in Indian auto-components industry(p.16)
- • Expansion of customer base beyond current concentration(p.26)
- • Capacity expansion to capitalize on untapped installed capacity(p.100)
- • Indian auto-component industry growing at strong 14.5% CAGR(p.91)
- • Low vehicle penetration in India with expected increase from 120 to 300 vehicles per 1000 people(p.94)
- • Young demographic profile creating structural demand tailwinds for automobiles(p.94)
- • Automotive sector contribution expected to grow from 7% to 12% of GDP(p.93)
- • Strong export growth in auto-components with 17.1% growth in FY2018-19(p.92)
- • Growing automotive sector with sheet metal components demand(p.191)
- • Expansion into non-automotive sectors(p.191)
- • Service expansion through job work capabilities(p.191)
- • Expansion through higher sales volume to existing customers(p.203)
- • Potential migration to main board of BSE post capital raising(p.231)
- • Access to capital markets for future growth financing(p.203)
- • Intense competition in automotive stamping component business(p.32)
- • Dependence on automobile sector performance(p.26)
- • Customer consolidation and acquisition risks(p.33)
- • Dependence on third-party suppliers for raw materials(p.31)
- • Exposure to Indian economic and policy risks(p.39)
- • Regulatory and legal uncertainties(p.40)
- • Rapid technological changes requiring substantial investment(p.33)
- • Operating risks including machinery breakdowns and power disruptions(p.31)
- • Cyclical automotive industry subject to economic fluctuations(p.89)
- • Global economic slowdown with world growth projected at only 2.7%(p.87)
- • Fragmented, price-competitive industry with numerous large and small competitors(p.102)
- • Exposure to international trade tensions affecting component exports(p.87)
- • Exposure to automotive industry cyclicality and downturn risks(p.24)
- • Raw material price volatility impacting profitability(p.139)
- • Dependence on customer concentration with limited diversification(p.24)
- • Regulatory compliance and environmental norms for manufacturing operations(p.189)
- • Customer concentration risk with top customer representing 50% of revenue(p.201)
- • Inability to retain key management personnel and employees(p.199)
- • Exposure to rapid technology changes in manufacturing(p.199)
- • Failure to successfully upgrade product portfolio(p.199)
- • Exposure to economic and business cyclicality(p.199)
- • Regulatory compliance and licensing renewal risks(p.213)
- • Environmental and pollution control compliance requirements(p.213)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Mukund Narayan Kulkarni | Promoter | 0.00% | — |
| Mr. Suresh Gunwant Fegde | Promoter | 33.99% | — |
| Mrs. Alka Mukund Kulkarni | Promoter | 65.99% | — |
| Mr. Mukund Narayan Kulkarni | Promoter | 0.00% | 0.00% |
| Mr. Suresh Gunwant Fegde | Promoter | 33.99% | 24.86% |
| Mrs. Alka Mukund Kulkarni | Promoter | 65.99% | 48.26% |
| Mr. Mukund Narayan Kulkarni | Promoter/Chairman & Managing Director | 0.00% | — |
| Mr. Suresh Gunwant Fegde | Promoter/Whole Time Director | 34.00% | — |
| Mrs. Alka Mukund Kulkarni | Promoter/Non-Executive Director | 66.00% | — |
| Mukund Narayan Kulkarni | Promoter | — | — |
| Alka Mukund Kulkarni | Promoter | — | — |
| Suresh Gunwant Fegde | Promoter | — | — |
Leadership
Auto-extracted from the company's DRHP 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 DRHP before relying on it.