BEW Engineering Limited IPO

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i. Company was incorporated in the year 2011, Second manufacturing facility was set up in 1993 under group company Sterling Fabricating Engineers Private Limited. The Company was established in 2011 to consolidate the operations of BEW group under one roof. In January 2018, Lade family took 100% management control of the group by buying out Khokrale family‘s stake in the Company.

ii. Company is engaged in design and manufacture of Pharmaceutical & Chemical plants and process equipment. It design and manufacture special range of filtration, mixing and drying equipments specifically used in Pharmaceuticals, Sterile Applications, Intermediate Compounds, Fine Chemicals, Chemicals, Agro Chemicals, Pesticides, Insecticides, Dyes and Food Products. These equipments are manufactured from material such as Stainless Steel, Alloy Steel, Hastelloy etc. with various linings as per International Codes : a) IS b) BS c) ASME d) TEMA e) DIN f) CE Marks etc.

Competitive Strengths
i. Strong Brand value and repeat Customer orders
ii. Cost effective and Quality Manufacturing
iii. Efficient after sales Support Teams

Objects of the BEW Engineering Limited IPO:

The objects of the Net Proceeds (as defined below) of the Issue are: 1. Meeting additional Working Capital Requirements, 2. General Corporate Purpose
DRHP of BEW Engineering Limited IPO

BEW Engineering Limited IPO Details:

Open Date: Sep 02 2021
Close Date: Sep 07 2021
Total Shares: 684,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price
Issue Size: 3.97 Cr.
Lot Size: 2000 Shares
Issue Price: ₹ 58 Per Equity Share
Listing At: NSE Emerge
Listing Date: Sep 16 2021

Promoters And Management:

i. Prakash Bhalchandra Lade, aged 71 years, is a Promoter and Chairman of the Company. He has been associated with the Company since Inception and has been designated as Chairman w.e.f. March 31, 2021. He has completed his Diploma in Mechanical Engineering in June 1970 from Board of Technical Examinations, Maharashtra. He has experience of over 5 decades in engineering Design, Production and services. He has worked for few years in Industry before starting own venture M/s. Bifriends Engineering Works, a Partnership Firm and Sterling Fabricating Engineers Private Limited, a corporate entity in 1974. Initially these entities were engaged in manufacturing tanks etc. They started manufacturing filters and dryers in 1988. Later on he set up the Company BEW Engineering Limited to consolidate the group manufacturing activity under one roof and one brand. He is the brain behind the designing of filters and dryers and is the guiding force behind the designing of growth plans and implementation of the strategies of the Company. He guides the Board of Directors of the Company in all the decisions related to the business. ii. Rohan Prakash Lade, aged 35 years, is a Promoter and Managing Director of the Company. He has been associated with the Company since Inception and has been designated as Managing Director w.e.f. March 31, 2021. He has completed his Diploma in Mechanical Engineering in June 2005 from Maharashtra State Board of Technical Education. He has experience of over 15 years in Production and services related to the business. He started his career as Production Engineer with the Group Company M/s. Bifriends Engineering Works, a Partnership Firm and has been Director on the board of Sterling Fabricating Engineers Private Limited since 2004. Later on in 2010 he joined as Partner of M/s. Bifriends Engineering Works. He is also one of the founder members of the Company BEW Engineering Limited and director on the board of the Company since 2011.

Financials of BEW Engineering Limited IPO:

 
Particulars (in Lakhs) Mar 21 Mar 20 Mar 19
Revenue 5936 5935 5073
Material Consumed 5953 5666 5415
Changes in Inventory -1400 -785 -1297
Selling & Distribution Expenses 134 188 163
Manufacturing & Other Admn. Expenses 200 235 202
Employee Benefit Expenses 233 191 123
Operating Profit 816 540 467
OPM % 13.73% 9.20% 7.86%
Other Income 13 49 13
Depreciation & Amortisations 92 94 93
Financial Cost 344 305 300
Profit Before Tax 395 89 86
Profit After Tax 286 65 70
NPM% 4.81% 1.0% 1.37%
 

Comparison With Peers:

Companies Face Value PE Ratio NAV Total Revenue (cr) RoNW
GMM Pfaudler Limited 2 75.1 261.40 591.1 23.5
HLE Glascoat 10 64.4 84.3 426.5 70.5

Recommendation on BEW Engineering Limited IPO:

Review and Recommendation of BEW Engineering Limited IPO by InvestorZone is 3/10. 1. Strong Brand value and repeat Customer orders. 2. The company has shown extraordinary PAT growth in the FY21 on almost par revenue growth in FY21. Because of which EPS has gone up. The financial of FY21 looks fishy. Inspite of tremendous growth in PAT in FY20-21, the Cash-Flow from operations is negative. 3. Post Issue P/E would be 5.21 based on FY21 earnings. But these earnings are doubtful and price band of 58 looks highly priced. In-fact the company has done right issue at Rs. 30 in the month of March 2021.

Lead Manager of BEW Engineering Limited IPO:

  1. First Overseas Capital Limited

Registrar of BEW Engineering Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

BEW Engineering Limited FE-10 MIDC Phase No. II Manpada Road, Dombivali (East) Maharashtra 421 204 Phone: +91 251 287 3338 Email: cs@bewltd.com Website: http://www.bewltd.com/

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