Techera Engineering India
Book Building issueSMENSE₹35.90 Cr issue
+52.44%
Listing gain over issue price
Issue size
₹35.90 Cr
1 lot at cut-off
₹1,31,200
Lot size
1,600shares
Open
25 Sep 2024
Close
27 Sep 2024
Allotment
30 Sep 2024
Listing
03 Oct 2024
Listing performance
Issue price
₹82
Listed at
₹125
Listing-day close
₹131.25
Latest price
₹137
Close on 23 Oct 2026
Listing gain
+52.44%
Return since issue
+67.07%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 25 Sep 2024 – 27 Sep 2024
- Listing date
- 03 Oct 2024
- Face value
- ₹10 per share
- Issue price
- ₹82 per share
- Lot size
- 1,600 shares
- Issue type
- Book Building issue
- Listing at
- NSE
- Total issue size
- ₹35.90 Cr
- Market cap at offer price
- ₹135 Cr
- Promoter holding
- 57.48% → 42.25% pre-issue → post-issue
- ISIN
- INE0JQS01019
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- SKI Capital Services Ltd.
- Registered office
- Gat No.565, Behind Namo Marble & Timbers At Post Velu, Tal.Bhor, 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 | 12,46,400 | — | — |
| Market maker | 2,19,200 | — | — |
Application size
Minimum 1,600 shares per lot, in multiples, at ₹82
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,600 | ₹1,31,200 |
| S-HNI (min) | 2 | 3,200 | ₹2,62,400 |
| S-HNI (max) | 7 | 11,200 | ₹9,18,400 |
| B-HNI (min) | 8 | 12,800 | ₹10,49,600 |
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
12,46,400
Anchor portion
₹10.22 Cr
at ₹82 per share
Valuation and performance
Valuation at offer price
₹82 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 3.97 | 2.92 |
| P/E (×) | 20.65 | 28.08 |
| Price to book (×) | 6.26 | — |
| Market cap | — | ₹135 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 30.33%
- Debt / equity
- 0.90
- PAT margin
- 12.45%
- NAV per share
- ₹13.09
- Price to book
- 6.26
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Techera Engineering India
TechEra Engineering (India) Limited, formerly TechEra Engineering (India) Private Limited, was incorporated on October 3, 2018 under the Companies Act, 2013, and converted to a public limited company on May 29, 2023. The company is registered in Pune, Maharashtra. It operates in the aerospace and defence sector, providing MRO services for aircraft engines essential for maintaining operational safety and efficiency in the aerospace industry. Additionally, the company has capabilities in automation of manufacturing lines, including design and optimization of welding lines, packaging lines, assembly lines, and conveyor systems. These automation processes aim to improve manufacturing efficiency in applications within the aerospace and defence sectors. The company derives revenue from both aerospace MRO services (58.66% in FY2024) and automation services (41.12% in FY2024).
Company Analysis
from RHPTechEra Engineering India Limited provides Maintenance, Repair, and Overhaul (MRO) services for aircraft engines and capabilities in automation of manufacturing lines for the aerospace and defence sectors.
TechEra Engineering (India) Limited, formerly TechEra Engineering (India) Private Limited, was incorporated on October 3, 2018 under the Companies Act, 2013, and converted to a public limited company on May 29, 2023. The company is registered in Pune, Maharashtra. It operates in the aerospace and defence sector, providing MRO services for aircraft engines essential for maintaining operational safety and efficiency in the aerospace industry. Additionally, the company has capabilities in automation of manufacturing lines, including design and optimization of welding lines, packaging lines, assembly lines, and conveyor systems. These automation processes aim to improve manufacturing efficiency in applications within the aerospace and defence sectors. The company derives revenue from both aerospace MRO services (58.66% in FY2024) and automation services (41.12% in FY2024).
AerospaceDefenceManufacturing
Objects of the Issue
- Funding capital expenditure for the purchase of new machinery 2000.00 lakhs p.16
- Funding working capital requirements of the Company 600.00 lakhs p.16
- Prepayment or repayment of a portion of certain outstanding borrowings availed by our Company 500.00 lakhs p.16
- General corporate purposes p.16
- Funding capital expenditure for the purchase of new machinery ₹2,000.00 Lakh p.68
- Funding working capital requirements of the Company ₹600.00 Lakh p.68
- Prepayment or repayment of a portion of certain outstanding borrowings availed by our Company ₹500.00 Lakh p.68
- General corporate purposes p.68
- To meet the Issue expenses p.68
- Not explicitly stated in the document
Issue Structure
- Total Issue
- Up to ₹[●] Lakhs
- Fresh Issue
- Up to 43,77,600 Equity Shares aggregating up to ₹[●] Lakhs
- Offer for Sale
- NA
- Price Band
- [●]
- Lot Size
- [●]
- Face Value
- ₹10 per Equity Share
Business Model
The company generates revenue through providing Maintenance, Repair, and Overhaul (MRO) services for aircraft engines and through design and optimization of manufacturing automation lines. Revenue is derived from customers in the aerospace and defence sectors, with customers issuing technical drawings and specifications for products manufactured by the company.
Business Segments
MRO services for aircraft engines
Design and optimization of welding lines, packaging lines, assembly lines, and conveyor systems
Design and manufacture of precision engineering components for defence and aerospace applications
Design and manufacturing of tooling for aircraft assembly, MRO toolings, ground support equipment, and precision machined components for commercial and military aircraft
Design and manufacturing of automation system solutions including robotic systems, special purpose machines, conveyor systems, material handling equipment, and IoT/SCADA solutions for various industrial sectors
Other business activities
Aircraft assembly toolings, Assembly jigs, Tooling for Aircraft fuselage, Fancowls, Drilling fixtures, milling fixtures, MRO toolings, ground support equipment, and precision machined components for aerospace and defence industries
Automation system solutions including designing, assembly, installation, trial, commissioning on site and handover providing turnkey capabilities
SWOT Analysis
Strengths
- • MRO services for aircraft engines and manufacturing automation capabilities in aerospace and defence sectors(p.16)
- • Strong quality management certifications and compliance with aerospace standards(p.12)
- • Significant growth in revenue from operations over three fiscal years(p.17)
- • Return to profitability with PAT of ₹482.25 Lakhs in FY2024 after prior loss(p.17)
- • High insurance coverage representing 88.97% of total insured assets(p.22)
- • Sole BRLM with 100% underwriting commitment(p.53)
- • Established market making arrangement with two registered market makers(p.54)
- • Strong institutional support with ICICI Bank as bankers and HDFC Bank as principal banker(p.48)
- • Specialized expertise in aerospace and defence manufacturing with proven execution capability(p.107)
- • Advanced manufacturing capabilities including 5-axis machining and design visualization technologies(p.107)
- • ISO 9001:2015 and AS9100D:2018 certifications reflecting quality adherence(p.107)
- • Demonstrated track record executing complex aerospace projects including B737 vertical stabilizer tooling(p.107)
- • Experienced management team with deep aerospace and defence sector expertise(p.107)
- • Strong customer retention with 87.78% revenue from retained customers in FY2024(p.119)
- • ISO 9001:2015 and AS9100D:2018 certifications(p.213)
- • Participation in significant aerospace projects(p.213)
- • Advanced manufacturing technologies(p.213)
- • Positive profitability trend and improved margins(p.216)
- • Diversified revenue streams between aerospace and automation(p.217)
- • Strong recovery and growth post-COVID(p.216)
Weaknesses
- • High dependence on key customers with top 3 customers contributing 50.89% of FY2024 revenue(p.21)
- • Entire revenue from operations derived from a single manufacturing facility(p.21)
- • High dependence on third-party suppliers with top 3 suppliers contributing 53.07% of material expenditure(p.24)
- • Statutory non-compliance issues including non-filing of MGT-14 forms and inconsistent loan disclosures(p.23)
- • Independent Directors have not passed proficiency self-assessment test required under Companies Act(p.23)
- • Significant past financial loss of ₹628.70 Lakhs in FY2022(p.26)
- • Experienced negative cash flows from operating activities in FY2023(p.26)
- • Promoters hold significant shareholding with no non-compete agreement(p.25)
- • Statutory permits pending including Fire NOC application(p.31)
- • Dependence on high credit terms from customers with extended payment cycles(p.75)
- • Significant reliance on working capital financing from banks and lenders(p.73)
- • High outstanding borrowings across multiple lenders creating refinancing risk(p.79)
- • History of losses in earlier fiscal years affecting accumulated profitability(p.87)
- • Heavy reliance on few large customers with top 3 customers representing 50.89% of FY2024 revenue(p.119)
- • Significant financial leverage with total borrowings of ₹1,429.98 lakhs as of March 31, 2024(p.118)
- • Single manufacturing facility creating operational concentration risk(p.107)
- • High capital intensity of operations requiring continuous technology investment(p.107)
- • Dependence on third-party suppliers for raw materials and business inputs on purchase order basis(p.117)
- • Regulatory complexity in defence and aerospace sectors impacting operational flexibility and costs(p.107)
- • Significant dependence on few customers(p.221)
- • High debt burden requiring careful management(p.209)
- • Promoter loan concentration(p.191)
- • Default in foreign currency loan repayment(p.190)
- • Substantial work-in-progress inventory(p.198)
- • Historic losses and COVID-19 impact(p.216)
Opportunities
- • Rapidly expanding Indian aerospace and defence sector with policy reforms and focus on domestic production(p.16)
- • Planned capital expenditure for new machinery to enhance production capacity(p.16)
- • Growing automation capabilities contributing to revenue diversification from Aerospace focus(p.25)
- • Strategic focus on India's aspiration to become key player in international aerospace and defence industry(p.16)
- • Expansion of defence and aerospace sectors with government 'Make in India' initiatives(p.95)
- • Growing demand for defence manufacturing with production target of US$ 25 billion by 2025(p.103)
- • Production Linked Incentive (PLI) scheme providing financial incentives to manufacturers(p.95)
- • Rapid growth in aviation and aerospace industries with infrastructure expansion plans(p.105)
- • Strong government capital expenditure outlay for infrastructure and manufacturing(p.101)
- • Planned acquisition of advanced machinery to increase manufacturing capacity and capabilities(p.69)
- • Expansion into commercial aerospace and adjacent high-tech manufacturing sectors(p.107)
- • Leveraging Industry 4.0, IoT and automation technologies for revenue and efficiency growth(p.107)
- • Strategic partnerships and collaborations for market access and innovation(p.108)
- • Increasing global defence spending and aerospace sector initiatives creating new contracts(p.108)
- • Growing MRO market driven by aging aircraft fleet and maintenance compliance needs(p.108)
- • Aatmanirbhar Bharat initiatives and indigenisation lists opening defence manufacturing to private sector(p.134)
- • Growth in automation segment(p.218)
- • Expansion of export markets(p.218)
- • Aerospace and defence sector growth(p.217)
- • Repeat customer relationships yielding margin improvements(p.216)
- • Outsourced manufacturing capacity expansion(p.218)
- • Turnkey capabilities in automation sector(p.216)
Threats
- • Highly competitive global manufacturing industry for high precision and mission critical components(p.23)
- • Risk of disruption in supply chain and shortages of raw materials from third-party suppliers(p.25)
- • Exposure to foreign exchange fluctuations with significant revenue from outside India(p.36)
- • Customer concentration risk with top 10 customers representing 91.75% of FY2024 revenue(p.21)
- • Regulatory and compliance risks including environmental, labour and safety laws(p.30)
- • Vulnerability to cyber threats and data security breaches affecting operations and customer information(p.31)
- • Risk of COVID-19 pandemic continuation and future infectious disease outbreaks(p.32)
- • Restrictive covenants in lending agreements requiring lender approval for certain corporate actions(p.32)
- • Risk of changes in Government of India's economic liberalization and deregulation policies(p.39)
- • Exposure to global economic and political volatility affecting demand and operations(p.38)
- • Possible cost overruns in machinery purchase and delays in capital expenditure execution(p.17)
- • Exchange rate fluctuations affecting imported machinery and raw material costs(p.73)
- • Competitive pressures in defence and aerospace sectors from established players(p.86)
- • Regulatory and policy changes in defence procurement and indigenization requirements(p.104)
- • Intense competition from established defence contractors and emerging aerospace firms(p.107)
- • Rapid technological obsolescence requiring continuous investment to remain competitive(p.108)
- • Geopolitical risks and shifts in international relations affecting defence spending and demand(p.108)
- • Global economic downturns reducing spending in aerospace and defence sectors(p.108)
- • Market cyclicality and high barriers to entry in defence and aerospace sectors(p.108)
- • Dependence on aerospace and defence sectors with downside risk if industries experience contraction(p.107)
- • Cyclical nature of aerospace and defence industries(p.213)
- • Regulatory compliance and licensing delays(p.213)
- • COVID-19 pandemic continuing effects(p.213)
- • Technological change and adaptation risks(p.213)
- • Infrastructure facility constraints(p.213)
- • Macroeconomic and geopolitical risks(p.213)
- • Natural disasters affecting operations(p.213)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Nimesh Rameshchandra Desai | Promoter | 38.09% | — |
| Meet Nimesh Desai | Promoter | 19.38% | — |
| Kalpana Nimesh Desai | Promoter | Negligible | — |
| Nimesh Rameshchandra Desai | Promoter | 38.09% | — |
| Meet Nimesh Desai | Promoter | 19.38% | — |
| Kalpana Nimesh Desai | Promoter | Negligible | — |
| Nimesh Rameshchandra Desai | Individual Promoter | 38.09% | — |
| Meet Nimesh Desai | Individual Promoter | 19.38% | — |
| Kalpana Nimesh Desai | Individual Promoter | Negligible | — |
| Nimesh Desai | Promoter | 38.09% | — |
| Meet Desai | Promoter | 19.38% | — |
| Sarang Kulkarni | Promoter | — | — |
| Maharashtra Defence and Aerospace Venture Fund | Promoter Group | 12.48% | — |
Leadership
Nimesh Rameshchandra Desai · Managing Director
Kalpana Nimesh Desai · Director
Pratiksha Kumbhare · Company Secretary and Compliance Officer
Sandip Dattatraya Shinde · Chief Financial 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.
Techera Engineering India IPO FAQs
What is the lot size of Techera Engineering India IPO?
The minimum lot size of Techera Engineering India IPO is 1,600 shares. One lot costs ₹1,31,200 at the cut-off price.
When does Techera Engineering India IPO open and close?
Techera Engineering India IPO opened for subscription on 25 Sep 2024 and closed on 27 Sep 2024.
What is the listing date of Techera Engineering India IPO?
Techera Engineering India IPO listed on 03 Oct 2024.