Maini Precision Products Ltd has filed for an IPO with SEBI of Rs.900 crore comprising a fresh issue and an offer for the sale of shares.
Maini Precision Products Ltd is an end-to-end solutions provider that provides services like design, engineering, manufacturing, testing, and supply of a variety of precision products and assemblies. The brand has expertise in diverse and critical manufacturing processes that includes machined castings, die castings, machined forgings, bar route machining, plate machining, surface treatment, heat treatment, critical assembly, as well as ancillary activities such as end-of-line testing, export packing and warehousing, which helps us provide end-to-end solutions for our customer requirements.
The brand holds a diverse portfolio of over 126 product families as of June 30, 2021. The products are classified into two businesses (a) aerospace (which comprised products manufactured for aerospace and defense) and (b) automotive & industrial (which comprised products manufactured for clean internal combustion engines, fuel injections and transmissions).
Maini Precision Products Ltd IPO Objectives:
- A part of the fund will be utilised to clear up the debts taken for different business purposes
- The fund will also be utilised purchase of inventory, long-term or short-term working capital requirements
Why should you invest in the Maini Precision Products Ltd:
- Maini Precision Product revenue from operations for FY19, FY20, FY21 was ₹5,603.05 million, ₹5,708.01 million, ₹4,273.63 million,
IPO Financials
| Particulars | 2020 | 2021 |
|---|---|---|
| Restated profit / (loss) for the period/year (A) | 468.81 | 226.47 |
| Add: | ||
| Total tax expense (B) | 28.31 | 8.62 |
| Finance costs (C) | 211.79 | 237.30 |
| Depreciation and amortisation expense (D) | 415.73 | 393.16 |
| EBITDA (E) = (A)+(B)+(C)+(D) | 130.40 | 395.37 |
| Loss on fair valuation of CCPS (F) | 287.60 | 431.74 |
| Adjusted EBITDA (G) = (E)+(F) | 418.00 | 827.11 |
| Total income (H) | 4368.04 | 5841.20 |
| EBITDA Margin (I) = (E)/(H) (%) | 2.99% | 6.77% |
| Adjusted EBITDA Margin (J) = (G)/(H) (%) | 9.57% | 14.16% |
Know before investing
Strengths
3The company has a diversified customer base with long-term relationships. They have over 50 customers as of June 30, 2021
According to CRISIL, this company is the leading precision components exporter from India.
They have a highly experienced team with expert knowledge across segments like automotive, aerospace, industrial and mechanical engineering.
Risks
3Any similar pandemic like Covid 19 can adversely affect the business, financial condition and operations.
The business is dependent on exports. Any adverse change in the conditions affecting the global market can directly affect the business
Any failure in implementing the growth strategies can affect the business.
