Ameya Precision Engineers Ltd IPO

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i. Ameya Precision Engineers Limited is engaged in manufacturing of high-end precision components (shafts, and other trim components) for the general engineering industry, but in particular valve and pump manufacturing. The company also offer specialised processes like hard-facing and overlay of wear and corrosion-resistant alloys in line with ASME procedures. AMeya Precision offer an end-to-end solution from procurement of raw material to final despatch of hard-facing and overlay components.

ii. Their major customers are valve and pump manufacturers. Though currently, the customer base in these sectors, the set-up of machinery is flexible to can cater to any engineering industry, that needs high precision components.

iii. Ameya Precision has purchased the said business vide Slump Sale agreement dated April 01, 2013. The seller, M/s Ameya Engineers, has been carrying on the business of manufacturing of engineering, valve components and shafts and thereby exporting the same. Whereas, the Company has purchased the entire running business as going concern, it was essentially a partnership with the same ownership being converted to a private limited company.

iv. Their manufacturing facility is well equipped with the required facilities including machinery, other handling equipment’s to facilitate smooth manufacturing process and easy logistics. Ameya endeavour to maintain safety in the premises by adhering to key safety norms, established through our internal health and safety manual, accompanied by regular safety meetings.

How they do business?

The manufacturing process begins with first receiving the enquiry from the customer. The enquiry consists of the drawing of the component, material in which the component and any other specific quality requirements. The Company reviews the enquiry for technical feasibility, and if the same is approved by it, they then proceed to quote the customer the final supply price and delivery lead time. If the quote is approved, they they received a Purchase Order which is then accepted by sending order acceptance (OA) to customer.

Competitive Strengths

i. Presence in international markets
ii. Quality assuran
iii. Leveraging the experience of our promoters
iv. Repeat orders

Objects of the Ameya Precision Engineers Ltd IPO:

The Company proposes to utilize the Net Proceeds from the Fresh Issue towards funding the following objects: 1. To Meet the Capital Expenditure Requirements 2. Funding working capital requirements; and 3. General corporate purposes.
DRHP of Ameya Precision Engineers Ltd IPO
RHP of Ameya Precision Engineers Ltd IPO

Ameya Precision Engineers Ltd IPO Details:

Open Date: Aug 25 2022
Close Date: Aug 30 2022
Total Shares: 2,100,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price Issue
Issue Size: 7.14 Cr.
Lot Size: 4000 Shares
Issue Price: ₹ 34 Per Equity Share
Listing At: NSE Emerge
Listing Date: Sep 08 2022

Promoters And Management:

i. Shirish Madhukar Pande, aged around 64 years is the Executive Director, Chairman and Chief Financial Officer (CFO) of the Company. He has been on the Board of Directors of the Company since incorporation. He has been appointed as CFO of the Company on February 12, 2022. He holds degree in Bachelor of Commerce from University of Poona, Maharashtra, India and has completed Master in Commerce from University of Poona, Maharashtra, India. He has been associated with the Company since incorporation and one of the Founder member of the Company. He has an experience of more than 10 years in shaft industry. He looks after overall Financials, Administration and Human Resource department of the Company. ii. Nikhil Shirish Pande, aged around 41 years is the Executive Director of the Company. He has been on the Board of Directors of the Company since incorporation. He holds degree of Master in Science in College of Humanities and Social Science in International Business and Emerging Markets, University of Edinburgh. He has been associated with the Company since incorporation. He has an experience of more than 10 years in shaft industry. He looks after overall Business Development in Domestic and International, Sales and Marketing. iii. Bipin Shirish Pande, aged 39 years is the Managing Director of the Company. He has been on the Board of Directors of the Company since incorporation. He holds degree in Bachelor of Engineering in Mechanical Branch from University of Poona and MS Program in Advanced Information Technology from International Institute of Information Technology, Pune, Maharashtra, India. He has been associated with the Company since incorporation. He has an experience of more than 10 years in shaft industry. and looks after the Company System processing, Engineering and Quality assurance.

Financials of Ameya Precision Engineers Ltd IPO:

Particulars (in Cr) March 22 March 21 March 20
Revenue from operations 23 24 23
Cost of Material Consumed 9.80 8.41 10.80
Gross Margins 57.39% 64.96% 53.04%
Changes in inventories -0.18 0.8 -1.72
Employee Benefit Expense 4.86 3.98 3.68
Other Expense 6.3 6.5 6.7
Operating Profit 2.2 4.3 3.6
OPM% 9.65% 17.96% 15.61%
Finance Cost 0.25 0.5 0.59
Depreciation 0.80 0.98 1
Profit (Loss) for the period 1.51 2.72 1.80
EPS 2.01 3.63 2.40

Recommendation on Ameya Precision Engineers Ltd IPO:

Review and Recommendation of Ameya Precision Limited IPO by IZ team is 5/10

1. APEPL was first established in 1987 as a partnership firm, and in 2012 it was reformed as a private limited company. Mr. Shirish Madhukar Pande, Mr. Nikhil Pande, and Mr. Bipin Pande are the three men who are responsible for the company's promotion. At its factory in Pune, Maharashtra, it produces pump and valve components such as shafts, flanges, hardfacing and overlays, as well as parts for sub-assemblies of pumps and valves. 2. They provide a complete solution, beginning with the acquisition of raw materials and ending with the final shipment of hard-facing and overlay components. The performance, on the other hand, is intricately connected to the investment climate in the pumps and valves industry (a significant end user), which is cyclical and also dependent on the price of crude oil. 3. Company's major customers are valve and pump manufacturers. 4. The Company has a manufacturing facility in Pune and current capacity is 71% in Fy22. The unit exports to the United States of America, United Kingdom, Germany, Singapore, Slovenija, Austria, and Brazil. Over 95% of the turnover is from exports. 5.  There is no growth in the business in the last 3 years. 6.  Asking P/E is 17x, looks fairly priced. 

Lead Manager of Ameya Precision Engineers Ltd IPO:

  1. SHRENI SHARES PRIVATE LIMITED

Registrar of Ameya Precision Engineers Ltd IPO:

  1. Skyline Financial Services Private Ltd

Company Address:

Ameya Precision Engineers Ltd Gat No.345, Village-Kasurdi, Tal. Bhor, Pune - 412 205 Phone: 9552589861 Email: investor@ameyaengineers.com Website: https://www.ameyaengineers.com/

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