Jay Bee Laminations Limited IPO

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Jay Bee Laminations Limited specializes in manufacturing and supplying electrical laminations, slit coils, and assembled cores made from Cold Rolled Grain Oriented (CRGO) Silicon Steel and Cold-Rolled Non-Grain-Oriented (CRNGO) Steel. These products are essential components for transformers, UPS, and inverters used in the power industry.

Their manufacturing facilities, covering 10,878 square meters, are fully equipped with in-house capabilities for slitting, cutting, assembling, and testing CRGO and CRNGO electrical steel cores. They also have an in-house laboratory for testing raw materials and finished goods, as well as a tooling division for blade sharpening. Their production processes focus on meeting the stringent quality standards required for power and distribution transformers, capable of serving transformer manufacturers up to the 220 kV class. As of March 31, 2024, they utilized 83% of their installed capacity.

Their company primarily supplies CRGO electrical steel cores to transformer manufacturers, a material that requires specialized expertise in manufacturing and handling due to its sensitivity to physical stresses. To ensure the safety and quality of transformers, all transformer core materials must adhere to the Bureau of Indian Standards (BIS) regulations.

Their clientele includes manufacturers of transformers ranging from 11 kV to 220 kV classes, focusing on power and distribution transformers. The CRGO steel core is a critical component, accounting for 25-30% of a transformer’s total cost and playing a vital role in reducing transmission and distribution losses in the electricity supply infrastructure, underscoring its importance in power distribution.

Objects of the Jay Bee Laminations Limited IPO:

The Company intends to utilize the Net Fresh Issue Proceeds for the following Objects: i. Funding their working capital requirements; and ii. General Corporate Expenses. Total number of share issue :- i. Fresh issue is 4,570,000 shares, ii. Offer for sale is 1,523,000 shares.

Jay Bee Laminations Limited IPO Details:

Open Date: Aug 27 2024
Close Date: Aug 29 2024
Total Shares: 6,093,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 88.96 Cr.
Lot Size: 1000 Shares
Issue Price: ₹ 138 - 146 Per Equity Share
Listing At: NSE Emerge
Listing Date: Sep 03 2024

Promoters And Management:

Mr. Munish Kumar Aggarwal, 62, is the Promoter, Chairman, and Whole-Time Director of the company. With 35 years of experience in the company and extensive roles in Jaybee Industries and HMTD Engineering, he brings a wealth of knowledge in the transformer industry. He oversees the company’s strategic growth, expansion, and finance, and holds strong goodwill among reputed customers. Mr. Mudit Aggarwal, 35, is the Promoter and Managing Director of the company. He holds a Master's in Engineering Management Systems from Columbia University and completed a Business Management program at Cornell University. With 11 years of experience in the company and a brief stint at HMTD Engineering, he also serves as a trustee at Parkshala NGO. Technically proficient in engineering and management, he oversees business operations, product quality, operational efficiency, and strategy execution, including purchase, production, logistics, and sales. Ms. Sunita Aggarwal, 59, is the Promoter and Executive Director of the company. She holds a Post-Graduate Diploma in Dress Designing from Punjab University. With over 26 years of experience in Human Resources and Administration, she has been associated with the company as a Director since 1993, with a brief hiatus between 2019 and 2023. She continues to play a key role in the company's HR and administrative functions.

Financials of Jay Bee Laminations Limited IPO:

Particulars ( In Lakhs )
2022
2023
2024
Revenue from Operations 14,125 24,666 30,291
Other Income 42 82 59
Total Revenue 14,167 24,749 30,350
Cost of materials consumed 11,306 20,578 25,641
Changes in inventories -5 145 -642
Employees Benefit Expenses 610 789 1,013
Other Expenses 972 809 1,007
EBITDA 1,285 2,428 3,330
OPM (%) 9.07% 9.81% 10.97%
Depreciation & Amortisation 106 95 127
EBIT 1,179 2,333 3,203
Finance Cost 420 501 595
PBT 745 1,820 2,605
Tax 150 460 670
PAT 595 1360 1935
NPM (%) 4.20% 5.50% 6.38%
No.of Shares 225.67 225.67 225.67
EPS 2.63 6.02 8.57

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Jay Bee Laminations Limited 303 19 8.57 17.0 146 329
Vilas Transcore Limited 310 23 12.82 50.2 472 1,155
* All the data is as per FY24.

Recommendation on Jay Bee Laminations Limited IPO:

Review and Recommendation of Jay Bee Laminations by team IZ is 4/10. 1. Jay Bee Laminations Limited is a key player in the manufacturing and supply of high-quality electrical laminations, slit coils, and assembled cores. The company primarily uses Cold Rolled Grain Oriented (CRGO) Silicon steel and Cold-Rolled Non-Grain-Oriented (CRNGO) Steel in its production processes. These products are essential components in transformers, Uninterruptible Power Supplies (UPS), and inverters, serving the broader power industry. 2. Product Focus The company’s core focus is on supplying CRGO electrical steel cores to transformer manufacturers. These materials are critical due to their sensitivity to physical stresses, making expertise in handling and processing paramount. The quality and safety of transformers heavily depend on these materials, which must comply with the Bureau of Indian Standards (BIS) regulations. 3. Competitive Landscape The CRGO and CRNGO steel market in India is regulated by the BIS through the Ministry of Steel's Quality Control Orders (QCO). Before the 2012 implementation of QCO, the market was highly fragmented with many unorganized players. However, the introduction of QCO led to market consolidation, with a few dominant players emerging. 4. The Revenue has Increased from Rs.141 Crores in FY22 to Rs.303 Crores in FY24. 5. The EBITDA has Increased from 13 Crores in FY22 to 33 Crores in FY24. 6. The PAT has Increased from 6 Crores in FY22 to 19 Crores in FY24. 7. As per FY24, CFO/EBITDA is 0.99, and EPS is 8.57, 8. Market Capitalization is 329 Crores and P/E is 17.0x based on FY24.

Lead Manager of Jay Bee Laminations Limited IPO:

  1. Swaraj Shares and Securities Private Limited

Registrar of Jay Bee Laminations Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Jay Bee Laminations Limited 26/36, Upper Ground Floor, East Patel Nagar New Delhi Patel Nagar East, Central Delhi, New Delhi -110008 Phone: +91-9870403729 Email: investor@jaybeelaminations.co.in Website: http://www.jaybeelaminations.co.in/

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