Arrowhead Seperation Engineering Limited IPO

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Core Business: The company is primarily engaged in the design and manufacture of various chemical process equipment, with a specialization in continuous drying and cooling system equipment.

Key Products: The primary products of the company include dehydration solutions, glycerine recovery systems, and calcium chloride recovery plants. These systems are designed to provide efficient and cost-effective solutions for specific industrial processes, such as recovering glycerine from the effluent stream and recovering calcium chloride through an indirect calcination system.

Vision: The company has a vision to develop equipment and provide solutions that match global standards. This indicates a commitment to quality and a focus on staying competitive in the global market.

Facilities: The company’s manufacturing facility, located in Nashik, Maharashtra, is equipped with all necessary manufacturing facilities. The factory has a workshop area of 24,000 sq. ft. and an attached office of 3,000 sq. ft. The company also has a corporate office in Navi Mumbai. The manufacturing facility is managed by experienced and skilled managerial and workshop staff.

Client Engagement: The company conducts pilot trials on client’s material to arrive at suitable drying solutions for their applications. This implies a customer-centric approach, where the company customizes its solutions based on the specific needs of each client.

Experience and Expertise: The company boasts more than two decades of experience in the dryer manufacturing business. The team, with its experience, plays a key role in driving growth and business strategies. The focus on continuous improvement, better designs, and a skilled team underscores a commitment to staying competitive and meeting client needs.

Client Base and Network: The company has established a network and a healthy client base due to the quality of its products and customization options. This indicates a positive reputation in the market.

Manufacturing Process: The manufacturing process involves welding, grinding, and machining, which are carried out when customer orders are received. The company also utilizes sub-contracting and employs contractual labor to fulfill orders.

Employee Strength: As of June 30, 2023, the company has an on-payroll employee strength of 54 persons. Additionally, industry professionals are employed on a project-specific basis as needed.

Operational Efficiency: The company emphasizes operational efficiency by minimizing operating costs in its solutions, such as achieving glycerine recovery at minimal operating costs and using exhaust gases for upstream drying operations.

Objects of the Arrowhead Seperation Engineering Limited IPO:

The Company proposes to utilize the Net Proceeds from Issue towards funding the following objects (collectively, referred to herein as the "Objects"): 1. Repayment of Loan from NBFC's; 2. Funding Working capital requirements; 3. General Corporate Purpose; Further, the Company expects to receive the benefits of listing the Equity Shares on the Stock Exchange including enhancing visibility and the brand image among the existing and potential customers and creating a public market for the Equity Shares in India.
DRHP of Arrowhead Seperation Engineering Limited IPO
RHP of Arrowhead Seperation Engineering Limited IPO

Arrowhead Seperation Engineering Limited IPO Details:

Open Date: Nov 16 2023
Close Date: Nov 20 2023
Total Shares: 558,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price Issue IPO
Issue Size: 13 Cr.
Lot Size: 600 Shares
Issue Price: ₹ 233 Per Equity Share
Listing At: BSE SME
Listing Date: Nov 29 2023

Promoters And Management:

Ajit Mundle, aged 74 years, is the one of the founding promoter of the Company. He has been a part of the Board since inception and is currently designated as Chairman & Managing Director of the company. He has completed his Bachelor’s degree in Bachelors of Science from Bombay University in the year 1969. He has over three decades of experience in Engineering Industry. He is currently responsible for the overall working of the Company and is instrumental in making strategic decisions. His strong leadership skill, comprehensive understanding of financial management principles, entrepreneurship with commercial acumen and excellent management skill allow the business to grow by way of developing the new clients whilst maintaining its existing customer base. Jyoti Mundle, aged 77 years, is the one of the founding promoter of the Company. She has been a part of the Board since inception and is currently designated as Whole Time Director of the company. She has obtained her degree in Bachelor of Arts from Bombay University in the year 1968. She has over three decades of experience in Engineering Industry. She has been integral part of the company and responsible for formulating various strategies and providing guidance for its implementation in the Company. She is instrumental in devising and implementing the overall strategy and growth of the Company and in maintaining cordial relations. As an Executive Director of the Company, she is responsible for providing his expertise for growth and expansion of the Company. Priyanka Moondra Rathi, aged 30 years is a Non-Executive Independent Director of the Company. She was appointed on the Board of the Company w.e.f. May 29, 2023. She has completed Bachelors of Commerce degree from Jai Narayan Vyas University in the year 2013 and is a member of Institute of Company secretaries of India since 2017. She has completed Diploma in MBA in Finance from International Business Management Institute, Berlin, Germany in the year 2020 and is currently pursuing Certified Public Accountants course. She has worked with Adani Power Limited, Rathi Eduserve & Corporate Consultancy Services Private Limited, Sigma Minerals Limited and currently she is working with Transmissions International India Private Limited Rajasthan as an Internal Controller & Company Secretary, Finance department She has an experience of more than 4 years including internship in the field of Secretarial, Compliances and Legal work.

Financials of Arrowhead Seperation Engineering Limited IPO:

Particulars ( In Lakhs )
2021
2022
2023
3M-FY24
Revenue from Operations 912 1,087 2,150 872
Other Income 4 5 21 9
Total Revenue 917 1,092 2,172 882
Cost of Materials Consumed 636 831 1,188 348
Change in Inventory -21 -272 135 215
Employee benefits expenses 250 318 314 76
Other Expenses 95 107 204 129
EBITDA -44 108 331 113
Depreciation & Amortisation 6 6 4 1
Finance Cost 73 89 143 27
EBIT -50 102 327 113
OPM (%) -4.79% 9.87% 15.22% 12.82%
PBT -123 13 184 86
Tax 56 4 15 22
PAT -179 9 169 64
NPM (%) -19.55% 0.84% 7.79% 7.30%
No.of Shares 18.71 18.71 18.71 18.71
EPS -9.57 0.49 9.04 3.43

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Arrowhead Seperation Engineering Limited 22 2 9.04 25.8 233 44
Kilburn Engineering Ltd 222 30 8.41 24.9 253 920
Praj Industries Ltd 3,528 240 13.05 38.5 569 10,449
*  All the data is as per FY23.

Lead Manager of Arrowhead Seperation Engineering Limited IPO:

  1. Aryaman Financial Services Limited

Registrar of Arrowhead Seperation Engineering Limited IPO:

  1. Cameo Corporate Services Limited

Company Address:

Arrowhead Seperation Engineering Limited Survey No 39, Village Mundhegaon, Tal Igatpuri, Nashik 422403 Phone: + 91 84228 2906 Email: info@arrowhead-dryers.co.in Website: https://www.arrowhead-dryers.com/

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