Auro Impex & Chemicals Limited IPO
i. Auro Impex & Chemicals specializes in the manufacturing of Collecting Electrode, Discharge Electrode Plate steel structures and other internal components of an Electrostatic Precipitator (ESPs) – a filtration device used to remove smoke and fine dust particles from flowing gas used in various heavy industries such as Steel Plants, Sponge Iron industry, Cement Plants, Thermal Energy Plants and any other plant where the coal is burnt, as a measure to control Air Pollution.
ii. The Company has set up a Manufacturing facility for manufacturing of Electrostatic precipitator internals for both American and European designs in the state of West Bengal, spread across an area of 2.44 acres of land with all the requisite machines and equipment, with the goal of becoming one of the top producers of ESP Internals (Collecting Electrode, Discharge Electrode, Electro- magnetic rapper, Tank Fabrication and Duct Fabrication and ESP Internal spare parts etc).
iii. The Company is specifically engaged into manufacturing of
(i) Collecting Electrodes of all profiles,
(ii) Discharge Electrodes,
(iii) Electro- magnetic rapper,
(iv) Tank Fabrication and Duct Fabrication, and
(v) other ESP Internal spare parts, for some Original Equipment manufacturers (OEMs) and service providers ranging from sourcing of components, designing, manufacturing, quality testing as per the specifications provided by OEMs and service providers.
iv. The Company has been selling its products through renowned OEMs and Service Providers such as – Thermax Limited, Larsen & Toubro Limited, KC Cottrell India Private Limited, Isgec Heavy Engineering Limited, Hariaksh Industries Private Limited, Par Techno-Heat Pvt Ltd, Filter Flow Engineering Private Limited, Imeco Overseas Private Limited and other Brand owners.
v. Auro Impex currently, operate through one manufacturing facility located at Dhaniakhali, West Bengal, India, which is spread across an area of 2.44 acres. Their Manufacturing Facility is strategically located on Durgapur Expressway providing them with strategic and operational benefits. This facilitates timely deliveries and improved efficiency.
vi. The company has ventured into a new project to assemble, test, inspect and sell High Frequency Transformer Rectifier (HFTR) units in the Indian ESP market on behalf an International brand,with the internal parts and engineering details for assembly and testing supplied by the brand itself. Construction of a new civil building and the procurement of new plant and machinery will take place on the vacant ground of 6,000 Sq.Ft. within the previously established manufacturing facility. For the implementation of this project, the organisation already has a sufficient power supply. This forthcoming initiative is a low-risk enterprise because the processing technology and customer market for the HFTR are easily available.
Competitive Strengths
i. Consistent focus on quality and safety
ii. Established manufacturing facilities with over decades of operations in the heavy electrical and engineering industry.
iii. Established distribution network and long term relationship with our customers
Objects of the Auro Impex & Chemicals Limited IPO:
Auro Impex & Chemicals Limited IPO Details:
| Open Date: | May 11 2023 |
| Close Date: | May 15 2023 |
| Total Shares: | 25.56 lakh |
| Face Value: | ₹ 10 Per Equity Share |
| Issue Type: | Book Built Issue IPO |
| Issue Size: | 20 Cr. |
| Lot Size: | 1600 Shares |
| Issue Price: | ₹ 74-78 Per Equity Share |
| Listing At: | NSE Emerge |
| Listing Date: | May 17 2023 |
Promoters And Management:
Financials of Auro Impex & Chemicals Limited IPO:
| Particulars (In Lakh) | 2021 | 2022 | 2023 |
| Equity Share Capital | ₹77.34 | ₹77.34 | ₹928.08 |
| Reserves | ₹413.00 | ₹1,078.00 | ₹827.00 |
| Borrowings | ₹1,020.00 | ₹3,990.00 | ₹4,876.00 |
| Trade Payables | ₹1,020.00 | ₹570.00 | ₹327.00 |
| Other Liability | ₹262.00 | ₹505.00 | ₹1,271.00 |
| Total Liability | ₹77.34 | ₹6,220.34 | ₹8,229.08 |
| Fixed Assets Block | ₹633.00 | ₹864.00 | ₹910.00 |
| CWIP | ₹53.00 | ₹64.00 | ₹275.00 |
| Investments | ₹0.00 | ₹0.00 | ₹0.00 |
| Other Assets | ₹0.00 | ₹3.00 | ₹57.00 |
| Total Non-Current Assets | ₹0.00 | ₹931.00 | ₹1,242.00 |
| Receivables | ₹1,317.00 | ₹1,660.00 | ₹1,495.00 |
| Inventory | ₹874.00 | ₹2,233.00 | ₹2,799.00 |
| Cash and Cash Balance | ₹105.00 | ₹746.00 | ₹1,277.00 |
| Other Assets | ₹376.00 | ₹649.00 | ₹1,415.00 |
| Total Current Assets | ₹0.00 | ₹5,288.00 | ₹6,986.00 |
| Total Assets | ₹77.34 | ₹6,220.34 | ₹8,229.08 |
| Particulars (In Lakh) | 2021 | 2022 | 2023 |
| Sales | 7,351 | 15,065 | 23,199 |
| Sales Growth | 0.00% | 104.94% | 53.99% |
| COGS | ₹6,791.00 | ₹13,893.00 | ₹21,194.00 |
| COGS % of Sales | 92.38% | 92.22% | 91.36% |
| Gross Profit | ₹560.00 | ₹1,172.00 | ₹2,005.00 |
| Gross Margins | 7.62% | 7.78% | 8.64% |
| Employee Benefit & Other Expenses | ₹295.00 | ₹633.00 | ₹830.00 |
| S&G Sales % | 4.01% | 4.20% | 3.58% |
| EBITDA | ₹265.00 | ₹539.00 | ₹1,175.00 |
| EBITDA Margins | 3.60% | 3.58% | 5.06% |
| Interest Cost | 149 | 294 | 396 |
| Interest %of Sales | 2.03% | 1.95% | 1.71% |
| Depreciation | 44 | 52 | 49 |
| Dep %of Sales | 0.60% | 0.35% | 0.21% |
| EBIT Margins | 3.01% | 3.23% | 4.85% |
| Other Income | 22 | 120 | 98 |
| Earnings Before Tax | ₹94.00 | ₹313.00 | ₹828.00 |
| EBT % Sales | 1.28% | 2.08% | 3.57% |
| Tax | 3 | 82 | 228 |
| Effective Tax Rate | 3.19% | 26.20% | 27.54% |
| PAT | ₹91.00 | ₹231.00 | ₹600.00 |
| NPM | 1.24% | 1.53% | 2.59% |
| No. of Equity Shares | 7.734 | 7.734 | 92.808 |
| Earning Per Share | ₹11.77 | ₹29.87 | ₹6.46 |
| EPS Growth % | 0.00% | 153.85% | -78.35% |
| Dividend Per Share | ₹0.00 | ₹0.00 | ₹0.00 |
| Dividend Payout Ratio | 0.00% | 0.00% | 0.00% |
| Retained Earnings | 100.00% | 100.00% | 100.00% |
| Particulars (In Lakh) | 2021 | 2022 | 2023 |
| Cash Flow from Operating Activities | ₹67.00 | -₹391.00 | ₹284.00 |
| Cash Flow from Investing Activities | ₹98.00 | -₹252.00 | -₹287.00 |
| Cash Flow From Financing Activities | ₹105.00 | ₹926.00 | ₹534.00 |
Comparison With Peers:
Lead Manager of Auro Impex & Chemicals Limited IPO:
Registrar of Auro Impex & Chemicals Limited IPO:
Company Address:
Discussion on Auro Impex & Chemicals Limited IPO:
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1. Sales Growth: The company has experienced significant sales growth over the years. Sales increased by 104.94% from 2021 to 2022 and further grew by 53.99% from 2022 to 2023. This indicates a strong upward trend in the company’s revenue.
2. Gross Margins: The gross margins have shown a slight increase over the years, from 7.62% in 2021 to 8.64% in 2023. This suggests that the company has been able to maintain or improve its profitability on each unit of sale after accounting for the cost of goods sold.
3. EBITDA Margins: The EBITDA margins have shown a gradual increase, reaching 5.06% in 2023. This indicates that the company has been able to improve its operating profitability, as EBITDA represents earnings before accounting for interest, taxes, depreciation, and amortization.
4. Interest Cost: The interest cost has increased over the years, which suggests that the company has taken on more debt or has higher interest rates on its borrowings. However, the interest cost as a percentage of sales has decreased, indicating some improvement in the company’s ability to generate sales relative to interest expenses.
5. Earnings Before Tax (EBT): EBT has shown a substantial increase, from ₹94 lakh in 2021 to ₹828 lakh in 2023. This indicates that the company has been able to improve its profitability before accounting for taxes.
6. Net Profit Margin (NPM): The net profit margin has shown improvement over the years, from 1.24% in 2021 to 2.59% in 2023. This indicates that the company has been able to generate higher profits as a percentage of its sales.
7. Earnings Per Share (EPS): The earnings per share have shown a significant decrease, from ₹11.77 in 2021 to ₹6.46 in 2023. This can be attributed to the increase in the number of equity shares, which has a dilutive effect on EPS.