Artemis Electricals Limited IPO

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(i) The Company is into the business of manufacturing and trading of Light Emitting Diode “LED” Lights and LED lighting accessories.

(ii) They are dependent on the third party for the manufacturing of LED bulbs.

(iii) The Company manufactures and trades indoor and outdoor LED luminaries such as Street lights, Solar Powered Home LED lighting Systems and LED-based Street Lights, Downlights, Garden lights, pavement/walkthrough indication lights, etc.

(iv) In the past 5 years:

a) The Revenue of the company has gone up from Rs. 6.63 Cr in F.Y. 2013–14 to Rs. 89 Cr in F.Y. 2017–18, reflecting a CAGR of 91.67%.

b) The PAT of the company has gone up from Rs. 15.57 lakh in F.Y. 2013–14 to Rs. 9.56  Cr in F.Y. 2017–18, reflecting a CAGR of 179.94%.

Objects of the Artemis Electricals Limited IPO:

The objective of raising 42 Cr from the issue is : a) Long term working capital requirements b) Purchase of machinery/equipment c) General corporate purposes

Artemis Electricals Limited IPO Details:

Open Date: Apr 24 2019
Close Date: May 06 2019
Total Shares: 7000000
Face Value: ₹ 10 Per Equity Share
Issue Type: Book Building
Issue Size: 42 Cr.
Lot Size: 2000 Shares
Issue Price: ₹ 54-60 Per Equity Share
Listing At: BSE SME
Listing Date: May 14 2019

Promoters And Management:

(i) Pravin Kumar Agarwal, aged 48 years, is the Promoter, Chairman and Executive Director of our Company. He started his journey in the field of Hospitality and Aviation related Industry. Then he ventured in the manufacturing of LED products namely Emitters, Luminaires and Drivers. He is Director of the Company since incorporation and is designated as Chairman and Executive Director of the Company from May 05, 2018. He is actively involved in the decision making and management of the Company. (ii) Shivkumar Singh, aged 50 years, is the Whole Time Director and Chief Financial Officer w. e. f. April 16, 2018 of the Company. He has completed Intermediate examination from The institute of Chartered Accountants of India. Prior to joining our Company, he was working at Nanubhai & Co. He looks after financial matters of our Company. (iii) Ramniranjan Bhutra, aged 36 years, is appointed as Non-Executive Director of our Company w.e.f. January 25, 2018. He is Chartered Accountant from the Institute of Chartered Accountant of India. He provides opinion and guidance to our Company for operational issues and is involved in the planning of new business development abroad.

Financials of Artemis Electricals Limited IPO:

Year Revenue(lakh) PAT(lakh) EBITDA(lakh) EBITDA Margins Profit Margins Shares(lakh) EPS
FY16 4,533.87 154.76 247 5.4% 3.41% 44.37 3.49
FY17 4,723.87 177.04 312 6.6% 3.75% 44.37 3.99
FY18 8,951.31 952.9 1504 16.8% 10.65% 44.37 21.48
7MFY19 5,241.51 592.75 1003 19.1% 11.31% 133.11 4.45
Post Issue 8985.44 1014 247.0396 4.10

Comparison With Peers:

There is no listed peer group comparable companies in India which are purely engaged in the business of manufacturing and trading of Light Emitting Diode “LED” Lights and LED lighting accessories.

Recommendation on Artemis Electricals Limited IPO:

Review and Recommendation of Artemis Electricals Limited IPO from IZ Team is : 3/10 [ Sudden Jump in EBITDA margins from 6.6% in FY17 to 16.58% in FY18 is beyond imagination. The company nowhere has mentioned in DRHP regarding this phenomenal performance. It is always better to take a three-year average in such situation to calculate EPS. As per that, the EPS stands at 1.72. The issue is priced at P/E of 34( based on 3 years average EPS). The asking price looks far stretched. The business of the company is also highly competitive.]

Lead Manager of Artemis Electricals Limited IPO:

  1. Fedex Securities Limited

Registrar of Artemis Electricals Limited IPO:

  1. Cameo Corporate Services Limited

Company Address:

Registered Office: Artemis Complex, Gala No.105 & 108, National Express Highway, Vasai (East), Thane- 401208, Maharashtra, India. Tel No: +91-7875315577

Bid Details of Artemis Electricals Limited IPO as on
06 May 2019 | 11:58:03 PM

Category No.of shares offered No. of shares bid
3,322,000 5,556,000
3,322,000 1,502,000
356,000 356,000
7,000,000 7,414,000
QIBs Yes
QIBs+HNIs Subscription 1.67X
Retail Subscription 0.45X
Total Subscription 1.06X

Discussion on Artemis Electricals Limited IPO:

    Total debts on books( as on 31 Oct 2018):

    Long-Term Debt= 9.37 Cr
    Short-Term Debt = 2 Cr

    Net-Worth = 23.9 Cr
    Debt/Net-Worth = .47

    The company is having a reasonable D/E.

    (i) Annualized PAT of FY19 = 10 Cr( Projetced)
    (ii) Average Profit for 3 years ( FY16, 17 and 18)= 4.27 Cr

    EPS based on (i) is 4.04
    EPS based on (ii) is 1.72

    P/E based on (i) is 14.85
    P/E based on (ii) is 34.38