Containe Technologies Ltd IPO

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(i) The Company is founded and promoted by Mr. Anand Kumar Seethala in the year 2008 and is engaged in the business of Automobile Safety and GPS solutions in Automobile Sector.

(ii) They manufacture wide range of technology-intensive electronic and mechanical automotive products. These have applications across vehicle segments, including for four-wheeler passenger vehicles, light commercial vehicles, heavy commercial vehicles.

(iii) The Company is manufacturing electronic Speed Limiting Device (SLD), “MOTOREYE & LIMITS” Brand Electronic Fuel Regulator & Pedal Interface, suitable for the latest Vehicle of BS-IV Standards to the Oldest Vehicles. The Speed Limiting Devices are Tested and Approved by Automotive Research Association of India (ARAI), Pune. It is suitable for all types of commercial transport category of vehicles and educational institutions Buses. Our Company is also manufacturing Vehicle Location Tracking Devices (VLTD), “TRANOPRO” Brand, suitable for all types of vehicles. The Vehicle Location Tracking Devices are Tested and Approved by International Centre for Automotive Technology (ICAT).

(iv) They have one manufacturing unit at Marriguda, Secunderabad, Hyderabad.

(v) The products are mainly sold through distributors and dealers. The Company appoints Distributors in various states and the distributors appoint dealers under them. The Company supplies the products to the distributors and in turn distributors supplies the products to the dealers.

(vi) They have built strong and long-standing relationships with the distributors by aligning our offerings with their business needs. The devices are successfully tested and approved on various models of Maruti Suzuki, Mahindra & Mahindra Ashok Leyland, TATA Motors, Eicher, Swaraj Mazda, Force Motors, Toyota, Hyundai and General Motors. They have installed company devices widespread across PAN India. We have also exported to countries like United Kingdom and United Arab Emirates.

Objects of the Containe Technologies Ltd IPO:

The Objects of the Issue are: A. To meet the working capital requirements B. To meet the Issue Expenses C. General Corporate Purposes
DRHP of Containe Technologies Ltd IPO

Containe Technologies Ltd IPO Details:

Open Date: Sep 20 2022
Close Date: Sep 22 2022
Total Shares: 1,744,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price Issue
Issue Size: 2.62 Cr.
Lot Size: 8000 Shares
Issue Price: ₹ 15 Per Equity Share
Listing At: BSE SME
Listing Date: Sep 30 2022

Promoters And Management:

(i) Mr. Anand Kumar Seethala, aged 48 years, is the Managing Director of our Company. He has been on the Board of Directors of our Company since its inception. He holds a Bachelors degree of Arts in Sociology from Dr. BR Ambedkar University Distance Education Centre Railway Degree College, Hyderabad. He has more than 28 years of experience in the field of Software development. He is an embedded hardware visionary, investor and promoter and founder of CTPL. (ii) Mrs. Botcha Bhavani, aged 48 years, is the Whole Time Director of our Company. She has been on the Board of Directors of our Company since its inception. She holds a Master’s degree in Arts in Telugu from Andhra University and Telugu Pandit from Institute of Advanced Study. She has worked as a School Assistant for 5 years in Govt High School, Education Department of Government of Andhra Pradesh. Later she joined as Co-Founder of Containe Technologies Private Limited in 2008 and have 14 years of experience as the head of the marketing department of Containe Technologies Limited.

Financials of Containe Technologies Ltd IPO:

Particulars (in Cr) March 22 March 21 March-20
Revenue from operations 2 1 2.92
Cost of Material Consumed 0.23 1.54 1.84
Change in inventory 0.41 -2.09 -0.33
Employee Benefit Expense 0.67 0.57 0.71
Other Expense 0.37 0.32 0.45
Operating Profit 0.32 0.26 0.25
OPM% 16.00% 43.33% 8.56%
Finance Cost 0.2 0.09 0.09
Depreciation 0.1 0.08 0.07
No. of Shares 0.63 0.63 0.63
Profit (Loss) for the period 0.04 0.01 0.05
EPS 0.063 0.010 0.079

Comparison With Peers:

Company believes that none of the listed companies in India offer products or services across the various business segments in which company operate. Hence a strict comparison is not possible.

Recommendation on Containe Technologies Ltd IPO:

Review and Recommendation of Containe Technology by IZ team is 2/10

1. The company manufacture electronic Speed Limiting Device (SLD), “MOTOREYE & LIMITS” Brand Electronic Fuel Regulator & Pedal Interface, suitable for the latest Vehicle of BS-IV Standards to the Oldest Vehicles. 73% revenue comes from Safety device and 27% comes from Vehicle location tracking device. 2. The Speed Limiting Devices are Tested and Approved by Automotive Research Association of India (ARAI), Pune. It is suitable for all types of commercial transport category of vehicles and educational institutions Buses. The company is also manufacturing Vehicle Location Tracking Devices (VLTD), “TRANOPRO” Brand, suitable for all types of vehicles. 3. They have one manufacturing unit at Marriguda, Secunderabad, Hyderabad. 4. The company sells products via distributors and dealers in the market. 5. Company devices are successfully tested and approved on various models of Maruti Suzuki, Mahindra & Mahindra Ashok Leyland, TATA Motors, Eicher, Swaraj Mazda, Force Motors, Toyota, Hyundai and General Motors. They also supply products to government of Telegana. 83% revenue comes from Private customers and 17% comes from government orders. 6. Company also exported to countries like UK and UAE. 7. They have revenue of ~2 Crores in FY22 which is same as in FY20. So, no growth in the business. 8. PAT is also same at 4 lac in FY22 which was same in FY20. So, no growth in the business. 9. Profit Margins are very thin at 2%. ROE is at less than 1%. 10. The company has negative cash flows from operation of 5 Crores in Fy22. 11. EPS of FY22 is just 0.064, so P/E is 234x.  Mcap is 9.60 Crores. 

Lead Manager of Containe Technologies Ltd IPO:

  1. Finshore Management Services Limited

Registrar of Containe Technologies Ltd IPO:

  1. Cameo Corporate Services Limited

Company Address:

Containe Technologies Ltd H. No. 3-13-142/ 341P, 342, Gokul Nagar, Marriguda Mallapur, Secunderabad, Hyderabad – 500076 Phone: cs@containe.in Email: +91 81432 24767 Website: http://www.containe.in/

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