Associated Coaters Limited IPO

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The company specializes in providing pre-treatment and powder coating services for aluminium extrusions, specifically targeting the architecture and real estate industries. Their comprehensive process ensures the highest quality finish, durability, and aesthetics, meeting the stringent requirements of their clients.

Detailed Process

1. Surface Cleaning:
Initial Cleaning: The aluminium extrusions undergo a thorough cleaning to remove any dirt, grease, or contaminants that could affect the coating process.
Chemical Pre-treatment: An acidic solution or specialized pre-treatment agent is applied to the aluminium surface to enhance the adhesion of the powder coating. This step optimizes the surface for better wettability.

2. Powder Coating Application
Electrostatic Spraying: The powder coating is applied using an electrostatic spray gun, where the powder particles are given a negative charge and are attracted to the positively charged aluminium surface. This ensures a uniform and strong adhesion.
Fusion and Melting: The coated aluminium is then subjected to a controlled heating process, causing the powder to melt and fuse into a smooth, even coating.

3. Curing Process:
The coated aluminium is heated to specific temperatures, depending on the powder used, to enhance the coating’s durability and finish. This curing process ensures a long-lasting, durable coating.

4. Quality Inspection and Finishing:
Post-curing, each piece undergoes a meticulous inspection to ensure uniform application and adherence to specified thickness standards. Any defects or imperfections are addressed at this stage to ensure a flawless finish.

After passing stringent quality checks, the coated items are packaged and prepared for shipment.

Technological Advancements

Their continuous investment in state-of-the-art equipment has kept them at the forefront of technological advancements in the industry. They operate two manual powder coating plants and a fully automatic powder coating plant established in July 2017. Further innovations include:

  • Decoral Wood Finish Line: Installed in September 2017, this line allows us to offer unique wood finish coatings on aluminium extrusions.
  • PVDF Coating Line: Introduced in 2023, this line provides high-performance coatings with excellent durability and aesthetic appeal.

Conclusion

Their dedication to precision, innovation, and quality underscores every step of their process, from initial cleaning to final inspection and delivery. With a robust infrastructure, strategic location, and a commitment to excellence, they continue to set benchmarks in the powder coating industry, ensuring their customers receive nothing short of excellence in every coated aluminium extrusion.

Objects of the Associated Coaters Limited IPO:

The Company intends to utilize the Net Fresh Issue Proceeds for the following Objects: i. Funding capital expenditure towards installation of plant & machinery in the existing premises ii. Working Capital Requirements iii. General Corporate Purposes.
DRHP of Associated Coaters Limited IPO
RHP of Associated Coaters Limited IPO

Associated Coaters Limited IPO Details:

Open Date: May 30 2024
Close Date: Jun 03 2024
Total Shares: 422,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 5.11 Cr.
Lot Size: 1000 Shares
Issue Price: ₹ 121 Per Equity Share
Listing At: BSE SME
Listing Date: Jun 06 2024

Promoters And Management:

Mr. Jagjit Singh Dhillon, aged 43 years. He has a degree in Bachelor of Commerce from The Bhawanipur Education Society College, Kolkata. He is the Founder and one of the First Directors of the Company, later he was designated as the Managing Director of the Company with effect from 9th December 2023 till 8th December 2028 for a period 5 years. He has experience of more than 16 years in powder Coating Industry. He has proven ability to quickly analyse key business drivers and develop strategies. He is an energetic leader known for his ability to create successful outcomes in complex situations. Mr. Harbhajan Singhthethi aged 56 years. He is actively involved in providing various training sessions to workers to increase efficiency. He possesses excellent time management skills, top customer relations abilities and strong communication skills. He has assisted in establishing projects, monitoring the progress of the projects and completing the projects within deadlines. He was appointed as Whole Time Director and Chairman of the Company w.e.f. December 9, 2023. Mrs. Navneet Kaur, aged 46 years. She has a Degree in Bachelor of Science from Punjab University. She also holds a degree in Master of Education from Punjab University and Master of Arts in Punjabi from Punjab University. She was appointed as Non-Executive Director of the Company with effect from December 22, 2017, She is associated with the Company since its Incorporation.

Financials of Associated Coaters Limited IPO:

Particulars ( In Lakhs )
2021
2022
2023
9M-FY24
Revenue from Operations 0 139 359 397
Other Income 0 0 0 0
Total Revenue 0 139 359 397
Cost of materials consumed 0 104 237 259
Employees Benefit Expenses 0 10 22 9
Other Expenses 0.14 3 19 15
EBITDA -0.14 22 81 114
OPM (%) 0.00% 16.07% 22.70% 28.67%
Depreciation & Amortisation 0 4 8 11
EBIT -0.14 18 74 103
Finance Cost 0 0.01 0.54 0.04
PBT -0.14 18 73 103
Tax 0 5 19 27
PAT -0.14 14 54 76
NPM (%) 0.00% 9.81% 15.13% 19.09%
No.of Shares 13.52 13.52 13.52 13.52
EPS -0.01 1.01 4.01 5.60

Comparison With Peers:

Note :- There are no listed companies in India that engage in a business similar to this Company.

Recommendation on Associated Coaters Limited IPO:

Review and Recommendation of Associated Coaters by team IZ is 4/10. 1. Associated Coaters Limited specializes in the pre-treatment and powder coating of aluminum extrusions, primarily serving the architectural and real estate industries. The company’s process involves several meticulous steps to ensure a high-quality finish: i. Comprehensive Cleaning                          ii. Chemical Pretreatment iii. Powder Coating Application                  iv. Curing Process v. Quality Inspection                                     vi. Packaging and Shipment 2. Market Position and Strategic Growth Over six years, Associated Coaters Limited has become an Approved Applicator for major brands like AkzoNobel, Jotun, and Asian Paints in architectural coatings. The company's strategic location in Kolkata and its focus on quality have cemented its reputation as a leading player in the region. 3. SWOT Analysis Strengths i. Specialized Services                   ii. Strategic Location               iii. Certifications iv. Approved Applicator                 v. Diverse Coating Lines Weaknesses i. Limited Geographic Presence                 ii. Dependence on Specific Suppliers Opportunities i. Market Expansion                      ii. Diversification of Services iii. Growing Industry Threats i. Intense Competition                   ii. Raw Material Price Fluctuations iii. Economic Downturns              iv. Environmental Regulations 4. Competitive Landscape The powder coating sector in India is predominantly unorganized, with competition varying by location, project nature, and size. More than 85% of Associated Coaters Limited’s customers are recurrent, highlighting the company's commitment to quality service and timely deliveries. Maintaining a competitive edge relies on the company's technical capabilities, industry experience, and robust quality assurance framework. 5. The Revenue has Increased from Rs.1 Crores in FY22 to Rs.3.5 Crores in FY23. 6. The EBITDA has Increased from 22 Lakhs in FY22 to 81 Lakhs in FY23. 7. The PAT has Increased from 14 Lakhs in FY22 to 54 Lakhs in FY23. 8. As per FY23, CFO/EBITDA is 1.01, As per FY24, EPS is 7.47, 9. Market Capitalization is 16 Crore & P/E is 16.19x based on FY24.

Lead Manager of Associated Coaters Limited IPO:

  1. Gretex Corporate Services Private Limited

Registrar of Associated Coaters Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Associated Coaters Limited Ashuti Khanberia Maheshtala LP 20/83/46, Kolkata, Vivekanandapur , South 24 Parganas, , Thakurpukur Mahestola Phone: +91 98304 37701 Email: info@associatedcoaters.in Website: https://associatedcoaters.in/

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