Ameya Precision Engineers Ltd IPO
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.
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:
Ameya Precision Engineers Ltd IPO Details:
|Open Date:||Aug 25 2022|
|Close Date:||Aug 30 2022|
|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:
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|
|Changes in inventories||-0.18||0.8||-1.72|
|Employee Benefit Expense||4.86||3.98||3.68|
|Profit (Loss) for the period||1.51||2.72||1.80|
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.