Incorporated in 2010, Megatherm Induction Limited manufactures induction heating and melting products through electric induction like induction melting furnaces and induction heating equipment. Along with induction melting and heating equipment, the company produces various up-stream and down-stream plants and machinery associated with steel melt shops, such as ladle refining furnaces, transformers, continuous casting machines, etc. The company is also involved in the manufacturing of electric arc furnaces for alloys and special steel-making industries.
The company caters to key industries, such as secondary steel producers, primary steel producers, auto ancillaries, ordnance factories, railways and more. The company owns and operates from its manufacturing unit located in Kharagpur, West Bengal. The products are exported to South America, Africa, the Gulf, Europe, SAARC and South East Asia.
The National Steel Policy of 2017 aims for a production capacity of 300 million tonnes by 2030-31, with the Indian government striving to increase per capita steel consumption to 158 kg by the same year. In FY 2020-21, the secondary steel sector contributed 38.5 million tonnes, constituting 37% of the total production. Government initiatives like Make in India, Atmanirbhar Bharat, Vocal for Local, and schemes such as the speciality steel Production-Linked Incentive (PLI) scheme and Pradhan Mantri Awas Yojna, along with infrastructure development projects, present promising opportunities for the steel sector. This can be a positive opportunity for Megatherm Induction Limited.
Megatherm Induction Limited IPO Details
Megatherm Induction Limited IPO Date
Megatherm Induction Limited’s IPO will open on January 25, 2024, and close on January 30, 2024. The IPO will be listed on the NSE SME on February 2, 2024.
Megatherm Induction Limited IPO Price Band
Megatherm Induction Limited is a fresh IPO of 4,992,000 shares. The price range of the IPO is ₹100 to ₹108 per share.
Megatherm Induction Limited IPO Lot Size
Megatherm Induction Limited’s IPO lot size is to be announced.
Megatherm Induction Limited IPO Lot Size
The objectives of Megatherm Induction Limited's IPO are listed below:
- To fund the capital expenditure towards the construction of a factory shed and installation of additional plant and machinery.
- To meet working capital requirements.
- For general corporate purposes.
Peer Details
As per DRHP, Electrotherm (India) Ltd is the listed peer whose business portfolio is comparable to the company.
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Contact Details of Megatherm Induction Limited IPO
- Registered office: Plot- L1 Block GP, Sector V, Electronics Complex, Salt Lake City Kolkata-700091, West Bengal, India.
- Phone: + 91 33 4088 6200
- E-mail: cs@megatherm.com
IPO Financials
| Particulars | Year ending on March 31, 2023 (₹ lakh) | Year ending on March 31, 2022 (₹ lakh) | Year ending on March 31, 2021 (₹ lakh) |
|---|---|---|---|
| Revenue from Operations | 26,588.15 | 18,783.13 | 10,900.92 |
| Profit After Tax (PAT) | 1,400.41 | 110.10 | 309.12 |
| Net Worth | 5,062.64 | 3,662.23 | 3,512.13 |
| Total Borrowings | 4,282.04 | 4,038.80 | 4,327.04 |
| EPS (in ₹) | 10.11 | 0.80 | 2.25 |
Know before investing
Strengths
2The company’s manufacturing units are equipped with the required machinery, equipment, and infrastructure and are capable of carrying out end-to-end manufacturing activities.
The company has a well-diversified customer base all over India and different parts of the globe, wherein they provide the products and services as per the requirements of their customers.
Risks
2The company is dependent on a few raw material suppliers for manufacturing induction heating and melting products and transformers. Volatility in the supply and pricing of the raw materials may adversely impact the business.
Under-utilisation of their manufacturing capacities and an inability to effectively utilise their existing manufacturing capacities could have an adverse effect on their business, future prospects and future financial performance.
