Auro Impex & Chemicals IPO

The company is involved in manufacturing, exporting, and supplying discharge and collecting electrodes and Electrostatic Precipitator (ESP) internal parts and spares.

Auto Impex & Chemicals, an ISO 9001:2015 certified company, specialises in the manufacturing of collecting electrodes, discharge electrode plate steel structures, and electrostatic precipitator (EP) components. The company manufactures a filtration device, that matches American and European standards, used to remove fine dust particles from flowing gas. 

Thermax, Larsen & Toubro, KC Cottrell India Private Ltd., Isgec Heavy Engineering, Hariaksh Industries Private Ltd., etc. are some of the renowned OEM clients of Auto Impex & Chemicals.

Currently, the single manufacturing facility of Auro Impex & Chemicals is located in the Hooghly district of West Bengal.

Auro Impex & Chemicals Limited IPO Details

Auto Impex & Chemical IPO worth Rs. 27.07 crore will open on May 11, 2023. The offer is a combination of fresh issues (29.2 lakh) and an offer for sale of 5.50 lakh from the selling promoter shareholder. 

Auro Impex & Chemicals Limited IPO Objective:

Should you invest in Auro Impex & Chemicals Limited?

Here are a few significant reasons to consider before investing in the IPO:

• It has a manufacturing unit built according to international standards and equipped with modern machines. 
• The company sells its products through renowned OEMs and service providers and has developed long-running relationships with them.
• With rising awareness and government initiatives to reduce air pollution, the global electrostatic precipitator market is expected to grow at a 4% CAGR from 2022-2030. 

Competitive Peers 

There are no listed companies in India whose business is comparable with that of Auro Impex & Chemicals Ltd. and its scale of operations.

Noteworthy Highlights of Auro Impex & Chemicals Limited

• The company’s revenue from operations and profit have grown steadily in the last three fiscal years. 
• The manufacturing facility had a total installed capacity of 17,500 MT as of FY23.

Auro Impex & Chemicals Company Financials

Know before investing

Strengths

1. The company has built long standing relationships with its customers engaged in thermal power projects, development & construction projects, etc.

2. It’s managed by experienced promoters and a management team.

3. The company has many decades of experience in the same business line.

Risks

1. Investors must note that after two years of average performance, there was a sudden hike in the company’s profit in the last fiscal year. It might raise questions regarding sustainability going forward.

2. It depends on a few customers, and a loss of a customer will impact the company’s future profitability.

3. Investors should move with caution as the offer lacks transparency.