Benara Bearings & Pistons Limited IPO
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Benara Bearings & Pistons Ltd is an ISO 9001:2015 certified company engaged in the manufacturing of engine bearings, bushes, pistons, piston pin, piston rings, cylinder liners and sleeves and engine valves.
They are also in the business of marketing of products like ball bearings, spark plugs, rocker arms, timing chains, connecting rods, valve guides, valve seals & batteries (Motorcycle / Inverter / E Rickshaws) under their own brand which they source through third-party contract manufacturing. The company markets its product in OEM and Replacement market.
Company has two manufacturing facilities, which are situated at Sikandra, Agra (“Unit I”) where they manufactures piston pin, piston ring and engine bearing and bushes and another one is at Artoni, Agra-Mathura Road Agra (“Unit II”) where they manufactures piston, cylinder block/liner and engine valve. Company’s products are well known in Uttar Pradesh, Madhya Pradesh, Bihar, Rajasthan, Haryana, Gujarat, Delhi NCR and West Bengal.
Objects of the Benara Bearings & Pistons Limited IPO:
1.Expansion of the Company by way of opening retail stores for automobile parts across the country
2.Funding the working capital requirements of the Subsidiary Company-Benara Solar Private Limited (BSPL)
3.Funding the working capital requirements of the Company
4.General Corporate Purposes
Benara Bearings & Pistons Limited IPO Details:
| Open Date: | Mar 20 2018 |
| Close Date: | Mar 22 2018 |
| Total Shares: | 53,16,000 |
| Face Value: | ₹ 10 Per Equity Share |
| Issue Type: | Book Built Issue IPO |
| Issue Size: | 33.49 Cr. |
| Lot Size: | 2000 Shares |
| Issue Price: | ₹ 60-63 Per Equity Share |
| Listing At: | BSE SME |
| Listing Date: | Apr 03 2018 |
Promoters And Management:
(i) Mr. Panna Lal Jain aged 71 years, has been associated with our Company since incorporation and is one of the co-founder/Promoter and the Chairman of our Company. Mr. Panna Lal Jain is the driving force behind the brand name of the Company "BENARA". Mr. Panna Lal Jain holds a degree in Bachelors of Engineering from IIT Roorkee and has over 45 years of experience in bearing industry. His knowledge and understanding coupled with his vision and drive to promote the growth of our Company is the motivating factor for establishing our brand name "BENARA" in the bearing industry. With the support of Shri. P.L. Jain, our Company has been able to accomplish its presence in India as well as in the International market.
(ii) Mr. Vivek Benara, aged 44 years, has been associated with our Company since 1994 and has been appointed on the Board of our Company since December 24, 2015. He is one of the cofounder/Promoter and President. He holds a Bachelor’s degree in Mechanical Engineering from University of Pune. He has over 20 years of experience in the field of Auto Component Industry including production of Pistons, Piston Pins, Piston Rings, Cylinder Liners, Sleeves and Air Cooled Blocks, Real Estate/Retailing.
Capital Structure:
| Authorized Share Capital (2,00,00,000 shares at FV@10) | 20 cr |
| Issued, Subscribed,& Paid-up Share Capital Before Issue (1,23,91,288 Shares at FV@10) | 12.391 cr |
| Present Issue (53,16,000 Shares at FV@10) | 5.316 cr |
| Reservation for Employee 76,000 Shares at FV@10) | 7.6 lakh |
| Reservation for Market Maker 2,72,000 Shares at FV@10) | 27.2 lakh |
| Net Issue to Public 53,16,000-3,48,000= 49,68,000 Shares) | 4.968 cr |
| Retail Quota(<2 Lkah)[24,84,000 Shares] | 50% |
| HNI & QIB Quota(>2 Lakh)[24,84,000 Shares] | 50% |
| Paid Up Capital after the issue | 17.707 cr |
| Average cost of Acquisition of promoters | |||
| Sr.no | Name of the Promoter | No. of shares | Average cost of aquistion |
| 1 | PannaLal Jain | 2264852 | 8.74 |
| 2 | VivekBenara | 2179012 | 9.66 |
Financials of Benara Bearings & Pistons Limited IPO:
| 1. Balance Sheet Snippet[ Calculation for FY 16-17] | |
| (i) Shareholders’ Fund[Equity] Value | 2001.32 lakh |
| (ii) Asset | 6119.03 lakh |
| (iii) Liability | 4117.71 lakh |
| (iv) Debt/Equity | 2.05(high) |
| (v) Net Worth(Asset- Liability) | 2001.32 lakh |
| (vi) RONW(PAT/Net Worth) | 23% |
| (vii) P/B | 5.6(high) |
Comparison With Peers:
| Sr.No | Name of the Company | CMP | EPS | PE | RONW |
| 1 | Shriram Pistons & Rings Limited | 1872 | 52.78 | 35.48 | 14.87% |
| 2 | Federal-Mogul Goetze (India) Limite | 563 | 12.94 | 43 | 12.80% |
| 3 | SAMKRG PISTONS & RINGS Limited | 356.8 | 20.29 | 17.59 | 17.73% |
| 4 | Benara Bearings and Pistons Limited | 63 | 2.91 | 21 | 22% |
Recommendation on Benara Bearings & Pistons Limited IPO:
The valuation in terms of PE looks cheap as compared to listed peers but sudden rise of PAT from FY- 16 to FY-17 on flat topline raises concern. Apply with caution is the recommendation in this IPO.
Lead Manager of Benara Bearings & Pistons Limited IPO:
Registrar of Benara Bearings & Pistons Limited IPO:
Company Address:
Benara Bearings & Pistons Ltd
A-3 & 4 Site B,
Industrial Area, Sikandra,
Agra - 282007
Phone: +91-562-2970158
Fax: +91-562-2970158
Email: investorgrievance@benara-phb.com
Website: www.benara-phb.com
Discussion on Benara Bearings & Pistons Limited IPO:
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Benara allotment can now be checked on website *if anyone applied* 😉