Marine Electricals (India) Limited IPO

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 Overview of the Marine Electrical (India)

(i) 
Established in 1978, Marine Electricals is an integrated technical services provider in the fields of Electrical, Automation, and Information and Communication technology solutions in diversified areas like Ship Building and Ship repair for Navy and Commercial Vessels/ Industries and Buildings / Renewables EPC.

(ii) Marine Electricals offers integrated and multidisciplinary total solutions that lead to better business processes and more efficiency for customers. Marine Electricals also offers solutions that contribute towards a sustainable society.

(iii) They provide a solution in Low Voltage, Medium Voltage and Industrial Automation backed by In-house Product Design & Development, Manufacturing, Installations and after sale service. The Company has business relationships with global electrical players like Schneider Electric, Siemens, GE. Such strategic tie-ups give us the competitive edge over our competitors. Further, they have entered into an agreement with NLC India Limited to provide Solar Power Evacuation system, thus venturing into the renewable energy segment.

(iv) With over 39 years’ expertise, they are one of the largest suppliers of Electrical & Automation Equipment for Marine Applications in India and Middle East Markets, and also the fastest growing supplier of Low and Medium Voltage Electrical Equipment for Industrial applications in India.

Corporate Video of Marine Electrical

Marine Electricals (India) Limited IPO Stock Quote & Charts

78.95

-2.53%

  • Open: 77.20
  • High - Low: 79.00 - 77.20
  • Previous Close: 81.00
  • Total Traded Volume: 102000
  • Updated On: 14-Dec-2018

Objects of the Marine Electricals (India) Limited IPO:

Objective of Marine Electricals (India) Limited IPO are: (1) Working Capital Requirements (2) General Corporate Purposes

Marine Electricals (India) Limited IPO Details:

Open Date: Sep 28 2018
Close Date: Oct 03 2018
Total Shares: 6,496,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Book Built Issue IPO
Issue Size: 42.87 Cr.
Lot Size: 2000 Shares
Issue Price: ₹ 64-66 Per Equity Share
Listing At: NSE Emerge
Listing Date: Oct 11 2018

Promoters And Management:

Promoters of Marine Electricals (India) Limited Company are: 1. Mr. Vinay Uchil (Individual Promoter) 2. Mr. Venkatesh Uchil (Individual Promoter) 3. KDU Enterprises Private Limited (Corporate Promoter)

Financials of Marine Electricals (India) Limited IPO:

Particulars For the year/period ended (in Rs Lacs)
31-Mar-2018 31-Mar-17 31-Mar-16 31-Mar-15 31-Mar-14
Total Assets 35,462.81 22,701.42 14,909.88 14,329.18 12,083.67
Total Revenue 38,345.64 27,365.03 25,169.27 23,839.14 21,485.60
Profit After Tax 1,625.95 1,079.92 935.10 850.34 1,421.17

Recommendation on Marine Electricals (India) Limited IPO:

Review and Recommendation of Marine Electricals (India) Limited IPO from our IZ team is: 3/10 [ The Valuation in term of P/E, EV/EBITDA, and Mcap/Sales is quite reasonable. However, flat EBITDA margins and PAT margins in the last 5 years does not speak volumes about the growth of the company. The sudden rise of Receivables in FY18 is also questionable.]

Lead Manager of Marine Electricals (India) Limited IPO:

  1. Aryaman Financial Services Limited

Registrar of Marine Electricals (India) Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Marine Electricals (India) Limited B/1, Udyog Sadan No.3, MIDC, Andheri (E), Mumbai - 400 093 Phone No. +91 22 4033 4300 / 2834 9132 Fax No. +91 22 2836 4045 Email: info@marineelectricals.com Website: www.marineelectricals.com

Bid Details of Marine Electricals (India) Limited IPO as on
03-Oct-2018 17:00:00 IST

Category No.of shares offered No. of shares bid
3,080,000 6,268,000
3,080,000 1,310,000
336,000 336,000
6,496,000 7,914,000
QIBs No
QIBs+HNIs Subscription 2.04X
Retail Subscription 0.43X
Total Subscription 1.23X

Discussion on Marine Electricals (India) Limited IPO:

    It’s a large issue. One should avoid apply in any new issues. Especially large issue like ahlada repl Marshall which have good business too are available at discount. One should stop apply in any new issue and better to take a call post listing

      Completely Agree with Tarun Jii. Many sound fundamental companies are available at discount are:

      Sofftech Engg.
      Ahlada
      Rajshree Polypack
      Innovator Facade

      So in nutshell it is concluded that do not apply in any IPO due to bad market condition. Even, if you want to invest then atleast wait for share to list and then buy as chances of discount listing is very high.

    Pl don’t apply open in any sme only seeing grey subject to rates.only.people think some time ki subject to deals chal rahe hain to ye to upper hi list hoga.

    Latest lootne wale open investors
    Lagnam
    Rppl
    Ahlada

    The rise of 30% in Inventory, 67% of Trade Receivables, and 139% in Advances in FY18 as compared to FY17 is a sign of worry just before the IPO.

    The issue size is big. Sentiment in the market is poor else sure shot listing gain was there in this company based on pricing of this IPO. The issue is fairly priced seeing market mood but will it attract investor interest is quite interesting to see tomorrow.

    (i) M.Cap= 161 Cr
    (ii) Sales= 383 Cr
    (iii)M.cap/Sales=0.42
    (iv) EV= 171 Cr
    (v) EBITDA= 34 Cr
    (vi) EV/EBITDA=5.03

    Conclusion: The Valuation in terms of EV/EBITDA and Mcap/Sales looks quite reasonable.

    EPS story (Pre-Issue) based on FY18 Financials
    (i) PAT= 16.25 Cr
    (ii) Outstanding Shares= 1.8037050 Cr
    (iii) EPS= 9
    (iv) P/E= 7.33

    EPS story (Post-Issue) based on FY18 Financials
    (i) PAT= 16.25 Cr
    (ii) Outstanding Shares=2.45 Cr
    (iii) EPS= 6.63
    (iv) P/E= 9.95

    Conclusion: The valuation is fairly priced.

    (i) The company has shown a decent Revenue growth of 15.66% in the last 5 years. The Revenue has gone up from 214 Cr to 383 Cr in the same period.

    (ii) The company has shown a timid PAT growth of 3.41% in the last 5 years. The PAT has gone up from 14 Cr to 16 Cr in the same period.

    (iii) The EBITDA Margins over the years have gone down from 10% in FY14 to 8% in FY18 in the last 5 years.

    (iv) The Receivables days have also gone up from 60 days in FY14 to 175 Days in FY18.

    Marine Electricals (India) Limited IPO
    Bid/Offer Opens On Sep 28, 2018
    Bid/Offer Closes On Oct 3, 2018
    Finalisation of Basis of Allotment Oct 8, 2018
    Initiation of Refunds Oct 9, 2018
    Credit of Shares to Demat Acct: Oct 10, 2018
    IPO Shares Listing Date: Oct 11, 2018