Innomet Advanced Materials Limited IPO

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The company specializes in the manufacture of “METAL POWDERS & TUNGSTEN HEAVY ALLOYS,” which falls under the field of “Powder Metallurgy.” Innomet has developed the necessary infrastructure to support the production of these materials and maintains a strong focus on technological advancements. To stay at the forefront of industry developments, Innomet collaborates with leading scientists globally and with renowned research organizations in India. These partnerships enable continuous development of various powder metallurgy products.

Innomet also conducts in-house research and experimentation to create products tailored to the specific needs of end-users. The company is ISO 9001:2015 certified, ensuring compliance with quality management standards in the manufacturing and supply of ferrous and non-ferrous metal/alloy powders and Tungsten Heavy Alloy components.

Innomet operates through two main divisions, each with its own brand identity:
i. Innomet Powders: Focused on the production of metal powders.
ii. Innotung: Specializing in Tungsten Heavy Alloys.

This diversified expertise and focus on innovation have positioned Innomet as a leader in the powder metallurgy industry.

Objects of the Innomet Advanced Materials Limited IPO:

The Company proposes to utilize the funds which are being raised through this Issue (“Net Proceeds”) towards the following object: i. Funding working capital requirements of the Company; ii. Funding of capital expenditure requirements of the company towards the purchase of machinery and equipment; iii. Repayment or prepayment, in whole or in part, of all or a portion of certain outstanding borrowings availed by the company, from banks and financial institutions; iv. General corporate purposes; and v. Issue Expenses

Innomet Advanced Materials Limited IPO Details:

Open Date: Sep 11 2024
Close Date: Sep 13 2024
Total Shares: 3,423,600
Face Value: ₹ 10 Per Equity Share
Issue Size: 34.24 Cr.
Lot Size: 1200 Shares
Issue Price: ₹ 100 Per Equity Share
Listing At: NSE Emerge
Listing Date: Sep 18 2024

Promoters And Management:

Mrs. Lakshmi Kanthamma Chilakapati, aged 75, is the founding Promoter and currently serves as a Director of the Company. She was appointed as the First Director on April 24, 2019, at the time of incorporation. Despite not having formal educational qualifications, she is supported by a professional team led by Mr. Vinay Choudary Chilakapati, who manages the company's day-to-day operations and various functions. Mrs. Saritha Devi Chilakapati, 49, is the Whole-Time Director, CFO, and Promoter of the company. With an MBA in Finance, she has over 20 years of experience in finance, HR, and business development. She founded Padmasree Enterprises, which became Innomet Advanced Materials Pvt. Ltd. Awarded by the MSME ministry in 2020, she also contributes to curriculum development at St. Ann’s College and supports women entrepreneurs through FICCI FLO. Mr. Vinay Choudary Chilakapati, aged 54, is the Managing Director and CEO of the company. With over 15 years of experience in the Powder Metal industry and a background in Mechanical Engineering, he founded Padmasree Enterprises in 1984, initially focusing on general engineering. He later expanded into diamond tool manufacturing and metal powders, eventually converting Padmasree Enterprises into Innomet Advanced Materials Pvt. Ltd. in 2019. He is deeply involved in R&D and regularly engages with experts in the field. Mr. Vinay oversees daily operations and strategic planning for the company.

Financials of Innomet Advanced Materials Limited IPO:

Particulars ( In Lakhs )
2021
2022
2023
2024
Revenue from Operations 1,244 2,238 2,713 2,899
Other Income 9 2 2 56
Total Revenue 1,252 2,240 2,715 2,955
Cost of material Consumed 794 1,633 1,486 1,582
Changes in Inventories 0 -67 -166 -129
Employees Benefit Expenses 104 148 121 177
Other Expenses 233 354 699 830
EBITDA 121 172 574 495
OPM (%) 9.68% 7.66% 21.16% 16.74%
Depreciation & Amortisation 30 32 44 39
EBIT 91 139 531 456
Finance Cost 71 84 95 130
PBT 20 55 436 326
Tax 0 0 114 74
PAT 20 55 322 252
NPM (%) 1.61% 2.46% 11.84% 8.52%
No.of Shares 129.40 129.40 129.40 129.40
EPS 0.15 0.42 2.48 1.94

Comparison With Peers:

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

Recommendation on Innomet Advanced Materials Limited IPO:

1. Innomet operates primarily in the field of powder metallurgy, focusing on the manufacture of metal powders and Tungsten Heavy Alloys. The company boasts comprehensive infrastructure and expertise in this niche sector, making it a prominent player in the industry. 2. Its offerings can be categorized under two main divisions: i. Innomet Powders ii. Innotung 3. Technological Collaboration To maintain its competitive edge, Innomet collaborates with leading scientists and renowned research organizations globally. This collaboration ensures that the company remains at the forefront of technological advancements in powder metallurgy. 4. Competitive Landscape Innomet operates in a competitive market with several established players, both domestically and internationally. In the metal powders segment, it competes with companies such as: i. Metal Powder Company Ltd. (MEPCO), Tamil Nadu, India ii. Sarda Industrial Enterprises, Rajasthan, India iii. SLM Metal Pvt Ltd, Orissa, India iv. Maharashtra Metal Powders Ltd, Mumbai, India v. Makin Metals, UK vi. ACU Powders, USA vii. Ecka Granules, Germany viii. Daido Steel, Japan In the Tungsten Heavy Alloys (THA) segment, Innomet faces competition from: i. Plansee, Austria ii. Kennametal, USA iii. HC Starck, Germany 5. The Revenue has Increased from Rs.12 Crores in FY21 to Rs.29 Crores in FY24. 6. The EBITDA has Increased from 1 Crore in FY21 to 5 Crores in FY24. 7. The PAT has Increased from 20 Lakhs in FY21 to 2.5 Crores in FY24. 8. As per FY24, CFO/EBITDA is 0.71, and EPS is 1.94, 9. Market Capitalization is 129 Crores and P/E is 51.4x based on FY24.

Lead Manager of Innomet Advanced Materials Limited IPO:

  1. Expert Global Consultants Private Limited

Registrar of Innomet Advanced Materials Limited IPO:

  1. Skyline Financial Services Private Ltd

Company Address:

Innomet Advanced Materials Limited B-31, BHEL Ancillary Industrial Estate, Ramachandrapuram Medak, Hyderabad-502032 Phone: +91 04023021726 Email: cs@innomet.net Website: https://www.innomet.net/

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