Holmarc Opto-Mechatronics Limited IPO

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i. Holmarc Opto-Mechatronics Limited is incorporated in the year 1993 by Mr. Jolly Cyriac and Mr. Ishach Sainuddin. The Company manufactures variety of scientific and engineering instruments for research, industry and education i.e. Imaging Instruments, Measuring Instruments, Spectroscopy, Analytical Instruments, Lab Instruments, Physics Lab Instruments, Breadboard/Table Tops, Opto-mechanics, Optics, Linear & Rotation Stages, Motorized Linear & Rotation Stages, Industrial Automation etc.

ii. Their manufacturing facility spread over approx. 29,984 sq.ft. situated at Kerala is equipped with latest machineries, equipment and instruments which is capable to manufacture diverse products. With state-of-the-art machines, equipment and instruments, Holmarc’s technicians and engineers bring out quality products, each distinct and best in its kind. All their departments, be it optics design, optics manufacturing, mechanics design, electronics R&D or software development are all manned by experienced professionals in the respective disciplines. Holmarc is unique in its approach to providing after sales service.

iii. Holmarc Opto-Mechatronics Limited is an ISO 9001:2015 certified company for designing, developing and manufacturing scientific instruments and devices for Industries, Research and Educational Institutes. They have successfully implemented quality management system as per industry standard. The goal of the company is to design, manufacture and service quality products that consistently meet our customer’s requirement and needs.

iv. The Company is engaged in manufacturing of following products:

  • Imaging Instruments
  • Breadboard/Table Tops
  • Measuring Instruments
  • Opto-mechanics
  • Spectroscopy
  • Optics
  • Analytical Instruments
  • Linear and Rotation Stages
  • Lab Instruments
  • Motorized Linear and Rotation Stages
  • Physics Lab Instruments

Competitive Strengths

i. Organizational stability along with management expertise
ii. Smooth flow of operations
iii. Well-defined organizational structure

Objects of the Holmarc Opto-Mechatronics Limited IPO:

The company intends to utilize the net proceeds from the issue towards the funding of the following objects: i. Funding Capital Expenditure towards Purchase of Additional Plant & Machinery. ii. To meet the Working Capital Requirements. iii. To meet the Issue Expenses. iv. General Corporate Purposes.

Holmarc Opto-Mechatronics Limited IPO Details:

Open Date: Sep 15 2023
Close Date: Sep 20 2023
Total Shares: 2,850,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price Issue IPO
Issue Size: 11.40 Cr.
Lot Size: 3000 Shares
Issue Price: ₹ 40 Per Equity Share
Listing At: NSE Emerge
Listing Date: Sep 28 2023

Financials of Holmarc Opto-Mechatronics Limited IPO:

A. balance Sheet
Particular (In Lakhs) Mar-21 Mar-22 Mar-23
Equity Share Capital 20 20 720
Reserves 669 804 440
Borrowings 166 206 134
Trade Payables 37 28 40
Other Liabilities 355 409 325
Total Liabilities 559 644 499
Net Block 409 543 485
Other Assets 0.4 0.4 0.2
Total NC Assets 409 543 485
Receivables 508 459 613
Inventory 100 160 211
Cash & Bank 81 159 228
Other Assets 25 30 24
Face value 10 10 10
B. Profit & Loss Statement
Particular (In Lakhs) Mar-21 Mar-22 Mar-23
Sales 1,553 2,102 2,904
Raw Material Cost 365 502 793
Change in Inventory -49 12 -75
Employee Cost 838 991 1,223
Other Expenses 253 312 461
Other Income 20 16 15
EBITDA 166 301 517
EBITDA Margin 10.69% 14.33% 17.79%
Depreciation 54 64 85
Interest 12 16 24
Profit before tax 97 221 481
Tax 29 66 125
Net profit 69 155 356
NPM (%) 4.37% 7.33% 12.20%
C. Cash Flow Statement
Particular (In Lakhs) Mar-21 Mar-22 Mar-23
Cash From Operating Activity
Profit From Operation 225 311 464
Receivable -97 49 -153
Inventory -24 -60 -51
Payable -4 -9 12
Loans And Advances 1.5 2.8 2.6
Other WC Items -14 34 39
Working Capital Changes -138 17 -150
Direct Taxes -46 -69 -107
Net Cash Inflow from Operating Activity 41 258 206
Cash from Investing Activity
Fixed assets purchased -45 -198 -27
Investments purchased -17 -4.7 0
Other investing items 8 18 6
Net cash inflow from investing activities -54 -184 -21
Cash from Financing Activity
Proceeds from borrowings 61 90 0
Repayment of borrowings 0 -50 -73
Intrest paid fin -12 -16 -24
Dividends paid 0 -20 -20
Net Cash Flow 35.38 78.30 68.62

Comparison With Peers:

Note: - There are no listed companies in India that are engaged in a business similar to this Company.

Recommendation on Holmarc Opto-Mechatronics Limited IPO:

Review and Recommendation of Holmarc Opto-Mechatronics SME IPO by IZ team is 5/10

Company Overview

Holmarc Opto-Mechatronics Limited is a specialized manufacturer of a wide range of scientific and engineering instruments. Their product portfolio includes Imaging Instruments, Spectroscopy, Opto-mechanics, and Lab Instruments among others. The company is ISO 9001:2015 certified and is situated in Kerala, India, with a 29,984 sq.ft manufacturing facility.


1. Diverse Product Line: Holmarc's diverse product offerings may make it resilient to market changes, as it isn't overly dependent on a single product segment. 2. Quality & Certification: Being ISO certified and having implemented quality management systems adds credibility to the company's operations. 3. Experienced Team: Skilled and experienced professionals in optics design, manufacturing, and R&D are a significant asset. 4. Organizational Stability: The firm appears to be stable with a well-defined organizational structure and smooth operations.


1. Growing Revenue: Sales have grown from ₹15 Cr in Mar-21 to ₹29 Cr in Mar-23. 2. Profitability: Net Profit Margin has improved from 4.37% in Mar-21 to 12.20% in Mar-23. 3. EBITDA Margin: Shows an improving trend from 10.69% to 17.79%. 4. Reduced Borrowings: Borrowings have decreased from ₹1.66 Cr in Mar-21 to ₹1.34 Cr in Mar-23, indicating better financial management.

Risks and Concerns

1. Working Capital: Negative working capital changes over the years suggest that the company might be facing issues in managing its short-term obligations. 2. Inventory: A rising inventory level, from ₹1 Cr to ₹2 Cr, may indicate either growing business or poor inventory turnover. 3. Issue Price: At ₹40 per equity share, the IPO is priced at 11x p/e which looks reasonable priced.

IPO Details

The IPO aims to raise ₹11.40 Cr with a lot size of 3000 shares. The company intends to use the funds for capital expenditure, working capital requirements, and general corporate purposes.


Holmarc Opto-Mechatronics Limited shows promise in terms of product diversity, quality, and financial growth. The improving profitability and reduced borrowings are positive signs. However, the company does have some areas of concern, such as working capital management for which they are raising funds. The valuation looks reasonable priced. Investors looking for a long-term investment in a specialized manufacturing company may consider this IPO. However, it would be advisable to dig deeper into the company's financials, assess the issue price carefully, and also look at market competitors before making an investment decision

Lead Manager of Holmarc Opto-Mechatronics Limited IPO:

  1. Finshore Management Services Limited

Registrar of Holmarc Opto-Mechatronics Limited IPO:

  1. Cameo Corporate Services Limited

Company Address:

Holmarc Opto-Mechatronics Limited Building No. 11/490, B-7, HMT Industrial Estate, Kalamassery, Kanayanoor Taluk, Ernakulam – 683503 Phone: +91 484 2953780 Email: cs@holmarc.com Website: https://www.holmarc.com/

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