Evans Electric Limited IPO

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(i) Incorporated in 1951, the Company is engaged in the business of repairing, re-winding and re-designing including in-house manufacturing of replacement components of small, medium and large electric motors, generators and transformers, which are used in Thermal, Hydro, Diesel, Gas & Nuclear Electric Power Generation, Petroleum Refineries, Chemicals & Fertilizers, Cement Plants, Steel Plants, Tyre Manufacturing, Sugar Mills, Oil & Gas Exploration, Shipping, Mining and Railway Traction.

(ii) They have a factory unit admeasuring to 30,000 sq. ft. located in Palghar, Maharashtra which is used for providing re-winding and repairing services as well as for manufacturing replacement components. They also provide on-site services for large Electric Motors, Generators and Transformers that are too large and cannot be transported to the Factory.

(iii) They started the business with repairing and rewinding of low voltage AC and DC electric motors and generators and then later in 1958, diversified into repairing and rewinding of high voltage power & distribution transformers and then in 1960 we started with manufacturing of allied products such as commutators for DC machines, specialized contacts for Switchgear and strip Heaters.

With time as capabilities grew they have started executing orders received from foreign countries such as Bangladesh, Malaysia & Sri Lanka which includes contract based services.

They also provide contract based services for repairing of various electric products which include low Voltage and High Voltage AC and DC Electric Motors, Generators and Transformers, Turbo Generator Stators, Turbo Rotors (including high-speed balancing), Hydro Generator Stators, Hydro Rotors, and Field poles, also included are Dynamic balancing, Vacuum Impregnation, High Voltage Coil Manufacturing, RLA studies, Vibration Reduction, Diagnostic Testing, Machining, Fabrication and allied services

Objects of the Evans Electric Limited IPO:

1.  To Meet Working Capital Requirement 2. General Corporate Expenses.

Evans Electric Limited IPO Details:

Open Date: Apr 30 2019
Close Date: May 03 2019
Total Shares: 372000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed price
Issue Size: 1.83 Cr.
Lot Size: 2000 Shares
Issue Price: ₹ 52 Per Equity Share
Listing At: BSE SME
Listing Date: May 13 2019

Financials of Evans Electric Limited IPO:

FINANCIALS (i) As per Restated Financial statements for the six (6) months period ended September 30, 2018, and fiscal 2018,2017 and 2016: Revenues stand at 380.16 lakhs, ₹586.91 lakhs, ₹1071.58 lakhs, and ₹511.65 lakhs, respectively. Profit after Tax for the similar period mentioned above was ₹ 69.95 lakhs, ₹ 46.30 lakhs, ₹236.69 lakhs, and ₹ 41.48 lakhs, respectively. (ii) A major portion of the Revenue is derived from the re-winding and repairing work done for the Power Generation sector. They also draw heavily on the repairing and re-winding of large High Voltage Motor which has been the core business for many years.

Comparison With Peers:

There is no listed peer to compare with.

Recommendation on Evans Electric Limited IPO:

Review and Recommendation of Evans Electric Limited IPO from IZ Team is : 3/10 [ The Company has inconsistency in performance. However, the issue is lucratively priced at P/E of 7.91.]

Lead Manager of Evans Electric Limited IPO:

  1. Hem Securities Limited

Registrar of Evans Electric Limited IPO:

  1. Bigshare Services Private Limited

Bid Details of Evans Electric Limited IPO as on
03 May 2019 | 11:35:00 PM

Category No.of shares offered No. of shares bid
176,000 462,000
176,000 98,000
20,000 20,000
372,000 580,000
QIBs No
QIBs+HNIs Subscription 2.62X
Retail Subscription 0.56X
Total Subscription 1.59X

Discussion on Evans Electric Limited IPO: