Cosmic CRF Limited is a manufacturing company that was incorporated in 2021. The company is a qualified and RDSO-approved supplier of cold rolled stainless sections to renowned wagon manufacturers such as Titagarh Wagons Limited, Hindusthan Engineering & Industries Limited, Melbrow Engineering Works Private Limited, Jindal Rail Infrastructure Limited, Allied Construction Engineers & Fabricators, etc. In addition, Cosmic CRF also supplies cold rolled stainless sections to direct orders of the railways through tender procurement.
Cosmic CRF Limited IPO Details
Investors can bid for the Cosmic CRF Limited IPO which is a 100% fresh issue of up to 19,00,000 equity shares with face value of ₹10 each. The offer has its price band set between ₹314 to ₹330 per share and the lot size is 400. The IPO will list on the BSE on Monday, 26 June 2023.
Cosmic CRF Limited IPO Objective
The objectives of Cosmic CRF Limited's IPO are listed below:
- Funding the expansion of existing manufacturing units.
- Funding of working capital requirement.
- Prepayment or repayment of all or a portion of certain unsecured loans.
- General Corporate Purposes.
Should you invest in Cosmic CRF Limited?
Here are a few important factors to consider before investing in the IPO:
- Cosmic CRF Limited is a relatively young company, but it has already significantly impacted the cold-rolled stainless steel industry. The company's products are used by a wide range of sectors, including railways, infrastructure, and roadways. The company is well-positioned for continued growth in the future.
- The company’s revenues from operations for the fiscal 2023 was ₹12,148.90 lakhs, the EBITDA was ₹1,214.07 lakhs and the profit after tax was ₹641.20 lakhs.
Competitive Peers
There are no listed companies in India that are comparable in all aspects of business and services that Cosmic CRF provides.
Highlights of Cosmic CRF Ltd
- In accordance with the Business Transfer Agreement executed on January 19, 2022, the company successfully obtained the CRF unit of Cosmic Ferro Alloys Limited. The acquisition encompassed a manufacturing facility situated in West Bengal, covering approximately 3.82 acres, along with all associated plant, machinery, assets, and liabilities.
- As of March 31, 2023, the total order book value of the company is ₹53,640.82 lakhs, out of which orders amounting to ₹ 13,566.33 lakhs have been executed and orders amounting to ₹40,074.48 lakhs are ongoing. Further, as of March 31, 2023, the Company has completed 25 orders for the supply of cold rolled stainless sections and 23 orders are ongoing.
Company Financials
| Particulars | FY 2022-23 | FY 2021-22 |
|---|---|---|
| Revenue from Operations | 12,148.90 | NIL |
| Profit After Tax (PAT) | 641.20 | 11.80 |
| PAT Margin | 5.28% | NIL |
| EBITDA | 1,214.07 | 15.76 |
| EBITDA Margin | 9.99% | NIL |
| Debt-to-Equity Ratio | 1.92 | 0.72 |
| EPS | 13.50 | 2.52 |
Know before investing
Strengths
2Cosmic CRF Limited is primarily engaged in the business of manufacturing cold-rolled stainless sections. It has also entered into the field of manufacturing and marketing cold-rolled stainless sections which are built with a solution-oriented technique. Therefore they are in an advantageous position to capitalise on the continued potential growth in the manufacturing of cold-rolled stainless sections in India.
The company has developed and actively maintains sourcing arrangements and strong relationships with its key suppliers. Concerning the cold rolled section manufacturing business, its ability to proactively source mild steel, stainless steel, carbon steel and coil plates from RDSO-approved vendors domestically and internationally at competitive market prices, directly and on behalf of its customers, helps the company sustain its operations.
Risks
2If the company cannot maintain and enhance its brand and reputation, the sales of its products may suffer which would have a material adverse effect on Cosmic CRF’s business operations.
Cosmic CRF may face several risks associated with the proposed expansion of its manufacturing unit, which could hamper the company's growth, prospects, cash flows and business and financial condition.
