Marshall Machines IPO
(i) Company’s Overview
The Company was originally formed on May 23, 1994, in the name of V. B Spinning Mills. The Company’s name was changed to ” Marshall Machines Private Limited” on Jan 02, 2002. Thereafter, the control and management of the company were taken by Gaurav and Prashant Sarup, along with their father Late Shri Gautam Sarup.
(ii) Business of the Company
The Company is into the business of Developing, Manufacturing, and Marketing of Machine tool equipment. The business was originally founded by Mr. Gautam Sarup, who set up the business in the name and style of ” Marshall Industries” more than 54 years ago to initially manufacture hosiery machines. In coming years business moved to the design & manufacturing of High Precision Bench Lathes, Heavey Duty Lathes, & Capstan Lathes. The firm became a known brand in the manufacture of lathes. It was amongst the first Indian CNC Machines manufacturers and launched CNC machines way back in 1998.
(ii) Story of Marshall Industries
a) In 1997, Marshall Industries entered into a technical tie-up with an American Company (M/s Path Wizard Inc) to export the mechanical and basic electrical elements of CNC lathes to the USA.
b) In 1998, Marshall Industries launched CNC lathes with Siemens/ Fanuc- CNC Controls in India during ” IMTEX- 98″ exhibition held at New Delhi and has been manufacturing CNC Lathes since then. Later, Mr. Gautam Sarup was joined in the business by his sons Gaurav and Prashant Sarup( promoters) after completing their engineering education. As a team, they grew the product range to include All Geared Lathes , Multi Spindel Drilling/Taping Machines and Special Purpose Machines.
(iv) Acquisition of Marshall Industries
In April 2006, the “Marshall Machines“ took over the running business of M/s Marshall Industries on as an where basis by allotting 3,40,000 Equity Shares in the company. Following Acquisition of M/s Marshall Industries by the company, all business of Marshall Industries shifted to the company.
(v) Awards and Recognition
Marshall has won several national awards for its products and technology and has come to be known as an innovative machine tool manufacturer in India and pioneer of ” Intelligent Automation“.
(vi) Current Product Portfolio
a) Patented Double and Four Spindle CNC Machines
b) Automated Robotic Solutions
c) Patent pending IOTQ suite for Intelligent equipment.
This innovative product line has brought high productivity, cost-effectiveness, and near zero defect production to its marquee customer base.
Objects of the Marshall Machines IPO:
Marshall Machines IPO Details:
| Open Date: | Aug 28 2018 |
| Close Date: | Aug 30 2018 |
| Total Shares: | 4,053,000 |
| Face Value: | ₹ 10 Per Equity Share |
| Issue Type: | Fixed Price IPO |
| Issue Size: | 17.02 Cr. |
| Lot Size: | 3000 Shares |
| Issue Price: | ₹ 42 Per Equity Share |
| Listing At: | NSE Emerge |
| Listing Date: | Sep 07 2018 |
Promoters And Management:
Capital Structure:
| (i) Authorized Share Capital (1,50,00,000 Equity shares at FV=10) | 15 Cr |
| (ii) Issued, Subscribed,& Paid-up Share Capital Before Issue (106,80,000 Equity Shares at FV=10) | 10.68 Cr |
| (iii) Present Issue ( 38,70,000 Equity Shares at FV=10) | 3.87 Cr |
| (iv) Reservation for Market Maker (1,98,000 Shares at FV=10) | 19.8 Lacs |
| (v) Reservation for QIB & HNI (18,36,000 Equity Shares at FV=10) | 50% |
| (vi) Reservation for Retail (18,36,000 Equity Shares at FV=10) | 50% |
| (vii) Paid Up Share Capital after the issue | 14.55 Cr |
| Sr.no | Name of the Promoter | No. of shares | Average cost of acquisition |
| 1 | Gaurav Sarup | 4776950 | 1.79 |
| 2 | Prashant Sarup | 4933325 | 4.64 |
Financials of Marshall Machines IPO:
| 1. Assets and Liabilities Key Parameters | |||||||
| Year | Asset(lacs) | Liabilities(lacs) | Net Worth(lacs) | Book Value | D/E (<2) | RONW | Receiveable days |
| FY14 | 5270.74 | 4461.88 | 808.86 | 44.69 | 5.52 | 7% | 37 |
| FY15 | 5955.71 | 5121.89 | 833.82 | 46.06 | 6.14 | 3% | 43 |
| FY16 | 5935.76 | 5060.41 | 875.35 | 48.36 | 5.78 | 5% | 39 |
| FY17 | 6503.73 | 5517.87 | 985.86 | 54.46 | 5.60 | 11% | 59 |
| FY18 | 7964.13 | 6177.07 | 1787.06 | 83.66 | 3.46 | 28% | 70 |
| Post Issue | 3487.06 | 23.97 | 1.77 | 14% | |||
| 2. Profit n Loss Key Parameters | ||||||
| Year | Revenue(lacs) | PAT(lacs) | EBITDA Margins | Profit Margins | Outstanding Shares(lacs) | EPS |
| FY14 | 3928.43 | 58.76 | 13.1% | 1.5% | 18.101 | 3.25 |
| FY15 | 4257.46 | 24.96 | 14.5% | 0.6% | 18.101 | 1.38 |
| FY16 | 4390.66 | 41.53 | 12.7% | 0.9% | 18.101 | 2.29 |
| FY17 | 5054.42 | 110.49 | 12.9% | 2.2% | 18.101 | 6.10 |
| FY18 | 5,942.43 | 500.3 | 21.7% | 8.4% | 21.360 | 23.42 |
| Post Issue | 145.5 | 3.44 | ||||
| 3. Cash Flow Statement(all figures in lacs) | |||||
| Particulars | FY18 | FY17 | FY16 | FY15 | FY14 |
| (i) Net Cash Generated from Operation | 415.31 | 1087.16 | 708.22 | -84.56 | 143.08 |
| (ii) Net Cash Generated from Investment | -892.48 | -509.18 | -104.9 | -30.87 | -240.59 |
| (iii) Net Cash Generated from Financing Activity | 505.71 | -517.32 | -540.19 | 107.52 | -94.72 |
| (iv) Total[ (i)+(ii)+(iii) ] | 28.54 | 60.66 | 63.13 | -7.91 | -192.23 |
| (v) Cash and Cash Equivalents at the Beginning of the Year | 193.37 | 132.71 | 69.57 | 77.48 | 269.72 |
| (vi) Cash and Cash Equivalents at the end of the Year | 221.91 | 193.37 | 132.70 | 69.57 | 77.49 |
Comparison With Peers:
| Company | FV | Mcap(cr) | EPS | P/E | RONW | Mcap/sales |
| Marshal Machines | 10 | 61 | 3.43 | 12.24 | 14.33% | 1.03 |
| CNC Machines | 10 | 204 | 7.12 | 29.27 | 13.00% | 1.9 |
| Lokesh Machine Limited | 10 | 98 | 2.73 | 21 | 3.41% | 0.56 |
Recommendation on Marshall Machines IPO:
Lead Manager of Marshall Machines IPO:
Registrar of Marshall Machines IPO:
Company Address:
Bid Details of Marshall Machines IPO as on
30-Aug-2018 17:30:00 IST
| Category | No.of shares offered | No. of shares bid |
|---|---|---|
| 1,927,500 | 6,072,000 | |
| 1,927,500 | 2,202,000 | |
| 198,000 | 198,000 | |
| 4,053,000 | 8,472,000 |
| QIBs | Yes |
| QIBs+HNIs Subscription | 3.15X |
| Retail Subscription | 1.14X |
| Total Subscription | 2.15X |
Discussion on Marshall Machines IPO:
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*SME deals* –
11-Sep-2018 MARSHALL Marshall Machines Ltd *KACHOLIA ASHISH* BUY 6,99,000 41.88 –
11-Sep-2018 MARSHALL Marshall Machines Ltd TRUST FINSTOCK PVT LTD BUY 1,71,000 41.59 –
The discount listing may be so that these investors can buy more. So the coming days would be quite interesting.
EW Clover AIF Fund managed by Edelwesis has bought 2,70,000 Shares and our well-known market personality Sh. Ashish Kacholia has bought 4,65,000 Shares in Marshall. So its give confidence and the company is also good fundamentally.
Now what to do, hold or sell?
don’t sell. I even bought at 37 Levels.
Some big players in the market have taken a position in the company. So listing would be very interesting. Stay tuned for more updates.
When listing will be done.plz anyone tell
Please see IPO detail above.
Marshall looking Good for long term
listing gain possible?
Let us see what happens on listibg day! Wont list on discount though.
thanks for d reply
Due to street fights going on in the market among different companies it is wise to let go of this issue.
Alloted 1lot hope to get some listing gains
Timid Response from the Investors.
*ACTION BY MAJOR PLAYERS OF MACHINE TOOLS INDUSTRY AGAINST MALPRACTICE BY MARSHALL MACHINES LIMITED*
TODAY MAJOR PLAYERS OF MACHINE TOOLS INDUSTRY OF INDIA VIZ. ACE DESIGNERS, GALAXY MACHINERY, MACPOWER CNC, JYOTI CNC, J.V.EXPORTS ETC, WHOSE MARKET SHARE IN MACHINE TOOLS INDUSTRY IS AROUND 90% TO 95% IN THEIR SEGMENT, HAS DRAWN ATTENTION OF SEBI, ROC, NSE AND OTHER CONCERN AUTHORITY ON MISLEAD/PARTIAL INFORMATION PUBLISHED IN DRAFT PROSPECTUS AND PROSPECTUS FILED BY MARSHALL MACHINES LIMITED, WHICH AS PER THEM IS PUBLISHED JUST TO GAIN ATTENTION OF OTHERS AND TRY TO DEFAME THE IMAGE OF ALL COMPANIES IN THE MARKET. THEY HAVE HIGHLIGHTED ABOUT THE WRONG INFORMATION MENTIONED IN THEIR PROSPECTUS ABOUT INTERIM ORDER FROM COURT AGAINST THESE MANUFACTURERS TO STOP THE MANUFACTURING OF PARTICULAR MACHINE MODEL, WHICH IN ACTUAL HAS NOT HAPPENED. THEY HAVE ALSO HIGHLIGHTED THE FALSE AND NEGATIVE INFORMATION BEING CIRCULATED IN SOCIAL MEDIA PROBABLY BY MARSHALL, TO INVESTORS, TO GET THE IMPROPER ADVANTAGE IN THE IPO. ALL MANUFACTURERS ARE STRART INVOLVING THEIR LAWYERS AND THINKING TO TAKE LEGAL ACTION AGAINST THIS MALPRACTICE BY MARSHALL MACHINES LIMITED.
Sir how u gathered all this information..??
If this is true SEBI should cancel the issue.
I think if wrong information in prospectus would mean cancellation of issue
Adding Vedio is very much helpful to investors in decision making regarding company. Thanks….
**************Peer Comparison****************
a) Marshal Machines( FY18 Financials)
1. Revenue= 59.42 Cr
2. PAT= 5 Cr
3. Debt(long term + Short Term)= 23 Cr
4. EBITDA Margins= 21.66%
5. D/E=1.35
6. M.Cap= 61 Cr.
7 .P/E= 12.24
b) CNC Machines( As on FY18)[ SME Company]
1. Revenue= 107 Cr
2. PAT= 7 Cr
3. Debt(long term + Short Term)= 24 Lacs
4. EBITDA Margins= 11.49%
5. D/E=0.005( Debt free).
6. M.Cap= 204 Cr.
7.P/E= 29.27
c) Lokesh Machine Limited( As on FY18)[ Mainline Company]
1. Revenue= 175 Cr
2. PAT= 4 Cr
3. Debt(long term + Short Term)= 72.39 Cr
4. EBITDA Margins= 16%
5. D/E=0.52.
6. M.Cap= 98.45 Cr.
7.P/E= 21
Conclusion: The Marshall Machines looks attractively priced at P/E of 12.
(EPS Story before the Issue) As on FY18
1. PAT= 5 Cr
2. No. of Oustanding Shares= 1.068 Cr
3. EPS=4.68
(EPS Story after the Issue)
1. PAT= 5 Cr
2. No. of Oustanding Shares= 1.455Cr
3. EPS=3.43
Conclusion: The issue is priced at P/E of 12.24.
After the issue, promoters will hold 73.4% of shareholding in the company.
The Company is one of the biggest CNC machines manufacturing hub in North India having 97000 sq. feet of the manufacturing facility in Ludhiana and has a technology center in Gurgaon. The Company has a good brand name in North India. Out of the total 17 Cr raised from the proceeds of the IPO, 13.82 CR will be spent on the expansion of the existing facility by adding new imported machines and fabrication of mother machinery in-house.
The Component used in the manufacturing of CNC lathes constitute 67% of the ” cost of material consumed” to the “net revenue” from operations”in FY18.