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.

Benara Bearings & Pistons Limited IPO Stock Quote & Charts

59.70

+2.93%

  • Open: 60.50
  • High - Low: 60.50 - 58.05
  • Previous Close: 58.00
  • Total Traded Volume: 44000
  • Updated On: 21-May-2018

Objects of the Issue:

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

Listing Date: Apr 03 2018

Issue 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

Company Financials:

 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)
2. Profit n Loss Snippet (i) Revenue of last 4 years is growing at CAGR of 20.28 [Excellent] (ii) PAT of last 4 years is growing at CAGR of 111%[Excellent] (iii)Margins(PBT/Reveune): The margins of the company has improved significantly in last 4 years from .6% to 6%. (iv) EPS(post issue)= 2.91 (v) P/E(post issue)=21(reasonably priced) at the cutoff price of 63 3. Cash Flow Statement The company is not generating positive cash flow continuously in the preceding years which may affect company's growth in future.

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:

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.

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

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