Aartech Solonics Limited IPO

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(i)  Aartech Solonics Limited is a system solution oriented R&D enterprise in the field of specialized and selected energy appliances. The company is involved in the manufacturing of electricity distribution & control apparatus [electrical apparatus for switching or protecting electrical circuits (e.g. switches, fuses, voltage limiters, surge suppressors, junction boxes etc.) for a voltage exceeding 1000 volts; similar apparatus (including relays, sockets etc.) for a voltage not exceeding 1000 volts; boards, panels, consoles, cabinets and other bases equipped with two or more of the above apparatus for electricity control or distribution of electricity including power capacitors.

(ii) The history of being in the Energy sector goes back to 1982, and as a Limited company, it was registered in the year 1992. Since then, they have been providing technical expertise to all the customers in expanding energy market across the globe. The company is known for its rich credentials in the highly specialized field of fast bus transfer systems for medium voltage installations in power plant & process industries.

(iii) Aartech BTS – 2000 Micro processor based fast bus transfer system, sets the highest international benchmarks for providing critical process continuity solutions to the industry.

(iv) They aim to be a multi-product, multi-technologist company which provides a platform for technologists to step on and contribute effectively to technology development without having to inordinately deal with business setup issues. Also, to be an efficiently structured, IT enabled, delegated and organized outfit.

POPULAR PRODUCTS AND SERVICES:

1) BTS – 2000.
2)
Kranking Ultra Capacitors.
3) 
Control Rely Panels.
4)
Load Checkers.
5)
They also provide solutions and services for the following products. These products are trademarks of other companies.

Aartech Solonics Limited IPO Stock Quote & Charts

35.50

+1.43%

  • Open: 35.50
  • High - Low: 35.50 - 35.50
  • Previous Close: 35.00
  • Total Traded Volume: 4000
  • Updated On: 25-Jun-2019

Objects of the Aartech Solonics Limited IPO:

The Objective of the IPO is to raise 7.2 Cr by issuing 2,120,000 no. of shares at Rs. 37 a piece for the following requirement. 1. Investment in a wholly owned subsidiary company - “ M/s AIC - Aartech Solonics Private Limited”= 2 Cr. 2. Investment in a wholly owned subsidiary company - “M/s Faradigm Ultracapacitors Private Limited”= 2.5 Cr. 3. For General Corporate Expenses =1.2080 Cr. 4. Working Capital Requirement = 1 Cr 5. Meeting Public Issue Expenses = 50 Lakh

Aartech Solonics Limited IPO Details:

Open Date: Mar 12 2019
Close Date: Mar 18 2019
Total Shares: 2120000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price Issue IPO
Issue Size: 7.2 Cr.
Lot Size: 4000 Shares
Issue Price: ₹ 34 Per Equity Share
Listing At: BSE SME
Listing Date: Mar 27 2019

Financials of Aartech Solonics Limited IPO:

Year Revenue EBITDA OPM % PAT NPM% Equity EPS
2014 953.79 -20 -2% -70.41 -7% 49.401 -1.42
2015 994.35 182 18% 112.62 11% 49.401 2.27
2016 1025.84 78 8% 22.81 2% 49.401 0.46
2017 1342.05 72 5% 30.09 2% 49.401 0.60
2018 1208.5 176 15% 117.58 10% 49.401 2.38
6MFY18 416.69 79 19% 60.09 14% 49.401 1.21
Post Issue 70.06 *0.80
* The EPS is calculated by taking an Average of last 3 years(2016, 2017 and 2018)  PAT and divided by a total number of shares outstanding after the issue. So accordingly the P/E comes out to be 42.5. IZ Review 1. The Revenue CAGR Growth in the last 5 years is mere 6.11%. 2. The EBITDA Margins and PAT Margins are not stable. 3. The asking P/E is 42.5 based on last 3 years Average PAT.

Comparison With Peers:

In the DRHP company has shown Star Delta Transformers Limited and Transformers and Rectifiers (India) Limited as their peers. The Peers are trading at P/E of 11.92 and 1.89 and Aartech Solonics Limited IPO is asking a P/E of 42.

Recommendation on Aartech Solonics Limited IPO:

Review and Recommendation of Aartech Solonics Limited IPO from IZ team are= 2/10.

Lead Manager of Aartech Solonics Limited IPO:

  1. Swastika Investmart Limited

Registrar of Aartech Solonics Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Registered office: E-2/57, Ashirvad Arera Colony, Bhopal MP- 462016 Tel No.:- +91 – 755 –2463593; Website: http://www.aartechsolonics.com/; E-Mail: compliance@aartechsolonics.com

Bid Details of Aartech Solonics Limited IPO as on
18 Mar 2019 | 11:58:04 PM

Category No.of shares offered No. of shares bid
1,006,000 2,364,000
1,006,000 1,648,000
108,000 108,000
2,120,000 4,120,000
QIBs No
QIBs+HNIs Subscription 2.35X
Retail Subscription 1.64X
Total Subscription 1.99X

Discussion on Aartech Solonics Limited IPO:

    Due to some internal issue between promoters and existing shareholders of the company, the issue is postponed.