Craftsman Automation Ltd Rs 824- crore IPO (initial public supplying) will open for subscription on March 15, 2021. The corporation has fixed price tag band at Rs 1,488-1,490 per share of face worth of Rs 5 every. The public concern comprises a fresh concern of equity shares worth Rs 150 crore and provide-for-sale (OFS) of up to 45.21 lakh equity shares by promoters and current shareholders. Srinivasan Ravi, K Gomatheswaran, Marina III (Singapore) Pte Ltd and International Finance Corporation will sell shares in the OFS. The book operating lead managers to the concern are Axis Capital Ltd and IIFL Securities Ltd, when Link Intime India Private Ltd is the registrar to the public concern.
Also study: MTAR Tech IPO: Check share allotment status through BSE, registrar’s web-site grey market place premium, listing date
Who can invest how a great deal?
Investors can bid for a minimum of 10 equity shares and in multiples thereafter, implying a minimum investment quantity of Rs 14,900 per lot. Up to 50 per cent of the net concern will be reserved for the certified institutional purchasers (QIBs), 15 per cent for non-institutional investors and the remaining 35 per cent for the retail category. Upon listing, Craftsman Automation will join listed business peers such as Bharat Forge Ltd, Endurance Technologies Ltd, Jamna Auto Ltd, Mahindra CIE Automotive Ltd, Minda Industries Ltd, Sundram Fasteners Ltd and Ramkrishna Forgings Ltd. Ramkrishna Forgings Ltd has the highest P/E ratio of 181.89x and Mahindra CIE Automotive Ltd the lowest 17.40x.
The typical business P/E ratio stands at 72.76x. AR Ramachandran, Co-founder & Trainer, Tips2Trades, told TheSpuzz Online that Craftsman Automation, in spite of getting a extremely robust buyer base, the financials and ratios are not at all appealing adequate to justify existing valuations. “Traders can opt for listing gains only but investors are advised to buy only after a significant correction post IPO,” he mentioned.
What does Craftsman Automation do?
The net proceeds from the Craftsman Automation concern will be employed towards repayment/pre-payment, in complete or component, of specific borrowings availed of by the corporation and for common corporate purposes. Craftsman Automation Limited is a diversified engineering corporation with vertically integrated manufacturing capabilities, engaged in 3 organization segments, namely powertrain and other items for the automotive segment, aluminium items for the automotive segment and industrial and engineering items segment. The corporation is present across the complete worth chain in the Automotive-Aluminium Products segment, giving diverse items and options. Its robust in-home engineering and style capabilities assistance them to provide extensive options and items to our lengthy standing domestic and international prospects in every of the segments.
Should you subscribe to Craftsman Automation?
Manthan Mehta, Head Unlisted & Private Equity Rurash Financial Services Pvt Ltd, told TheSpuzz Online, that from the valuation viewpoint, corporation is commanding PE of 73x of FY20 EPS and 44x of FY21E EPS at the upper price tag band of Rs 1,490, which appears to be slightly overpriced. However, one can apply for IPO gains. Along with Craftsman Automation, the main organised players in the aluminium die casting business incorporate Rockman Industries, Sunbeam Auto Private, Alicon Castalloy, Sundaram Clayton, and Endurance Technologies. Craftsman Automation Limited is the biggest element manufacturer engaged in the machining of cylinder heads and cylinder blocks in the building gear business as nicely as in the IMHCV segment of the industrial automobile Industry. While in case of the tractor Industry Craftsman is amongst the major 3-4 element makers with respect to cylinder block machining.
(The suggestions in this story are by the respective analysis and brokerage firm. TheSpuzz Online does not bear any duty for their investment tips. Please seek the advice of your investment advisor prior to investing.)