Megatherm Induction Limited IPO

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Megatherm Induction Limited, specializes in the manufacturing of induction heating and melting products, primarily serving the steel, foundry, forging, and metalworking sectors. Established in 2010 and operational since 2018 from its manufacturing facility in Kharagpur, West Bengal, the company has shown significant growth in its niche.

The core products include induction melting furnaces and heating equipment, along with a range of plant and machinery related to steel melt shops. This includes transformers, ladle refining furnaces, continuous casting machines, and fume extraction systems. Additionally, the company manufactures electric arc furnaces for alloy and special steel industries.

Megatherm’s service offerings encompass turnkey solutions for steel plants, involving design, engineering, supply, erection, commissioning, and after-sales services, including maintenance contracts and spare parts.

Key market areas for your products are:
  1. Secondary Steel Producers: Focused on scrap recycling.
  2. Primary Steel Producers: Engaged in converting iron ore to sponge iron, then to steel via induction melting.
  3. Auto Ancillaries.
  4. Ordnance Factories & Railways.
  5. DI Pipe Producers and various engineering industries requiring casting, forging, and metalworking.

The company’s journey began under the aegis of Megatherm Electronics Private Limited in 1989, with an initial focus on induction melting and heating equipment. Over the years, it expanded to include transformers, metallurgical equipment, and other auxiliary equipment, along with installation and setup services for steel melt shops.

As of July 2023, Megatherm boasts an impressive order book of approximately Rs. 29000 Lakhs. Their global customer base includes markets in South America, Africa, the Gulf region, Europe, SAARC countries, and Southeast Asia. The export figures for 2021-2023 reflect a significant portion of their revenue, indicating robust international demand.

Quality and efficiency are key focuses, as evidenced by ISO 9001:2015 certification and ongoing R&D to enhance energy efficiency and meet customer specifications.

Leadership under Mr. Shesadri Bhusan Chanda and Satadri Chanda has been crucial in guiding the company’s strategic direction. Their combined expertise in electrical and induction engineering, along with management skills, have been pivotal in the company’s growth.

The manufacturing facility is well-equipped with machinery, a testing laboratory, and handling equipment to ensure efficient production and high-quality products. Emphasis is placed on energy efficiency and adherence to quality standards, starting from raw material testing to final product delivery.

Overall, Megatherm Induction Limited stands out as a specialized, growth-oriented company with a strong foothold in the induction heating and melting industry, bolstered by a diverse product range, global reach, and commitment to quality and efficiency.

Objects of the Megatherm Induction Limited IPO:

The company intends to utilize the proceeds of the Issue to meet the following objects: i. Funding capital expenditure towards the construction of factory shed and installation of additional plant and machinery. ii. To meet Working Capital requirements. iii. General Corporate Purpose.
DRHP of Megatherm Induction Limited IPO
RHP of Megatherm Induction Limited IPO

Megatherm Induction Limited IPO Details:

Open Date: Jan 29 2024
Close Date: Jan 31 2024
Total Shares: 4,992,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 53.91 Cr.
Lot Size: 1200 Shares
Issue Price: ₹ 100 - 108 Per Equity Share
Listing At: NSE Emerge
Listing Date: Feb 05 2024

Promoters And Management:

Mr. Shesadri Bhusan Chanda is the Chairman & Managing Director of the company since its inception. He graduated from Jadavpur University in 1978 with a Bachelor's in Electrical Engineering. Mr. Chanda has been recognized for his academic excellence with several awards, including the Barindra Memorial Medal, Ashoke Memorial Medal, Benoy Sarkar Memorial Gold Medal, and M.A. Chakraborty Memorial Medal. With approximately 45 years of experience in the induction, electrical, and metallurgical industries, he oversees the company's overall operations, including strategy, operations, finance, and business development policy formulation. Mr. Satadri Chanda serves as the Promoter, Whole Time Director, and Chief Financial Officer of the company. He holds a Bachelor's degree in Electronics & Communication Engineering from West Bengal University of Technology (2012) and a Master of Science in Industrial and Systems Engineering from Virginia Tech, USA (2014). With over 9 years of professional experience, including 2 years in KPMG’s Management Consulting and over 7 years in the induction, electrical, and metallurgical equipment industry, Mr. Chanda is key in strategy formulation, business development, diversification, sales, administration, and finance within the company. Mrs. Christina Paulchowdhury is the Non-Executive Director of the Company. She has completed her Master of Business Administration specialization in Marketing in the year 2015 from Christ University, Bangalore, India. She has a degree of Master of Science in Business from Virginia Commonwealth University, USA with focus on marketing. She has over 7 years of experience in marketing & business promotion. She looks after marketing & digital presence of the company.

Financials of Megatherm Induction Limited IPO:

Particulars ( In Crore )
2021
2022
2023
6M-FY24
Revenue from Operations 109 188 266 147
Other Income 0.3 0.6 0.6 0.4
Total Revenue 109 188 266 147
Cost of materials consumed 76 148 203 118
Changes in inventories -0.4 3 -2 -6
Employees Benefit Expenses 7 10 13 8
Other Expenses 13 19 24 14
EBITDA 13 9 28 14
Depreciation & Amortisation 2 2 2 2
Finance cost 7 5 6 3
EBIT 11 7 26 13
OPM (%) 12.29% 4.55% 10.55% 9.64%
PBT 4 2 20 10
Tax 1 0.4 6 2
PAT 3 1 14 8
NPM (%) 2.83% 0.58% 5.26% 5.15%
No.of Shares 1.88 1.88 1.88 1.88
EPS 1.64 0.58 7.43 4.03

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Megatherm Induction Limited 266 14 7.43 14.5 108 203
Electrotherm (India) Ltd 3,074 -12 -9.28 2.2 329 419
* All the data is as per FY23.

Lead Manager of Megatherm Induction Limited IPO:

  1. Hem Securities Limited

Registrar of Megatherm Induction Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Megatherm Induction Limited Plot - L1 Block GP, Sector V, Electronics Complex, Saltlake City Kolkata - 700091 Phone: +91 33 4088 6200 Email: cs@megatherm.com Website: http://www.megatherm.com/

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