Cospower Engineering Ltd IPO

Apply 0
Avoid 0

(i) Formed in 2010, the Company is currently engaged in the business of manufacturing of electrical panels, harmonic filters and substation and equipment mounting structure. The plant is equipped with machinery to produce quality products with an emphasis on quality and performance.

The Company has also been providing turnkey services that involve supply, installation, commissioning, testing and comprehensive maintenance of electric  products. There are few products which the Company does not manufacture but has to provide turnkey services by buying from other manufacturers.

The Company has extended its product range to other power-related products that are needed to complete the electrical system. The company is offering ‘under one roof’ a complete package of electrical system and solutions.

(ii) The manufacturing unit is located at Vasai in Maharashtra. The manufacturing facility is equipped with requisite infrastructure including machinery, other handling equipment to facilitate smooth manufacturing process.

Objects of the Cospower Engineering Ltd IPO:

1. To meet Working Capital requirements 2. General Corporate Purpose 3. To meet issue expenses

Cospower Engineering Ltd IPO Details:

Open Date: Mar 17 2020
Close Date: Mar 19 2020
Total Shares: 400,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 2.04 Cr.
Lot Size: 2000 Shares
Issue Price: ₹ 51 Per Equity Share
Listing At: BSE SME
Listing Date: Mar 27 2020

Promoters And Management:

Promoters, Mr. Oswald D’Souza and Mr. Felix Kadam have an experience of about more than 2 decades each in electrical and engineering industry.

Financials of Cospower Engineering Ltd IPO:

( Fig. in Lakhs )
Year Revenue EBITDA OPM PAT NPM Shares F.V. EPS
2017 957.09 87.78 9% 27.58 3% 11.00 10 2.51
2018 860.75 64.07 7% 19.24 2% 11.00 10 1.75
2019 1,303.26 103.59 8% 51.73 4% 11.00 10 4.70
Year Long-Term Debt Short-Term Debt Total Debt NW Debt/NW RONW
2017 3.58 409.37 412.95 87.45 4.72 32%
2018 0 439.52 439.52 106.69 4.12 18%
2019 0 251.54 251.54 158.42 1.59 33%

Comparison With Peers:

There are no listed companies in India that are solely engaged in the same type of business as Cospower limited. Hence, a strict comparison is not possible.

Recommendation on Cospower Engineering Ltd IPO:

Review and Recommendation of InvestorZone is:2/10 [The market condition is very poor due to corona effect. All good mainline IPOs are withdrawn such as Anthony Waste, & Burger Kings, and no good IPOs to be seen for the next 1-2 months, till the threat of Corona subdued. So, it is better to look in mainline companies which are available at discount.]

Lead Manager of Cospower Engineering Ltd IPO:

  1. SHRENI SHARES PRIVATE LIMITED

Registrar of Cospower Engineering Ltd IPO:

  1. Bigshare Services Private Limited

Discussion on Cospower Engineering Ltd IPO:

    Keep away from SME IPOs, very good opportunities available in broader market.

    Total shares outstanding after IPO are 15 lakhs

    Average PAT of last 3 years = 64 Lakh

    Average EPS = 4.26

    IPO Price = 51

    P/E= 11.91