Misquita Engineering Limited IPO

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(i) The Company was incorporated in the year 1998 under the name Misquita Engineering Private Limited and is engaged in the manufacturing of the front-loading washers having a registered office and corporate office in Goa, India.

(ii) The Company is the major component supplier and job worker to a manufacturer of washing machines in the Indian market for Front Loading washers. The Company has consistently believed in supplying Zero Defect products and all manufacturing and operating systems in the company are geared up towards the goal and vision of Zero Defect=Zero Effect, Zero effect with respect to zero wastage of resources and utilization of all resources efficiently and effectively.

The Company is an ISO 9001:2008 certified company for the last seven years being certified every year by TUV SUD South Asia Private Limited, a premier certification agency. Our Company is now upgraded its systems to be ISO 9001:2015 compliant from May 2018.

(iii) The Company is now planning to expand its production and building capacities for the same. The Company has been qualified as a Strategic Supplier for supply of Machined parts to “Commscope USA.”

Objects of the Misquita Engineering Limited IPO:

The Issue includes a fresh Issue of 4,44,000 Equity Shares and an Offer for Sale of 2,72,000 Equity Shares by the Selling Shareholder of our Company at an Issue Price of ₹27/- per Equity Share.

Misquita Engineering Limited IPO Details:

Open Date: Sep 23 2019
Close Date: Sep 25 2019
Total Shares: 7,16,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Issue
Issue Size: ₹1.9332 Cr.
Lot Size: 4000 Shares
Issue Price: ₹ 27 Per Equity Share
Listing At: BSE SME
Listing Date: Oct 03 2019

Promoters And Management:

(i) Thomas Constance Avinash Misquita, aged 55 Years, is the Promoter and Managing Director of our Company. He has been the director of our company since incorporation and has been designated as Managing Director w.e.f. August 29, 2017. He has also been designated as Chairman of the company w.e.f July 17, 2019. He has completed his Bachelor of Engineering (Mechanical) from University of Bombay in 1988. He has experience of more than 20 years in this industry. (ii) Gail Lucia Misquita, aged 51 Years, was appointed as Director of our Company since incorporation. She is now designated as Whole Time Director and Chief Financial Officer w.e.f August 29, 2017. She has completed her Diploma in Instrumentation from Board of Technical Examinations, Maharashtra State in the year 1988

Financials of Misquita Engineering Limited IPO:

(Fig. in Lakhs)
Year Revenue Expense PAT PAT Margin EPS
2017 577.26 555.08 15.71 2.7% 0.58
2018 677.35 650.06 25.26 3.7% 0.94
2019 760.7 708.64 42.12 5.5% 1.56

Comparison With Peers:

The company has shown Whirlpool and Blue-Star as its peer. The company just supplies a component to a manufacturer of washing machines. So we at InvestorZone believes that the peer comparison with the manufacturer of Washing machine such as Whirlpool and Blue-Star is wrong.

Recommendation on Misquita Engineering Limited IPO:

Review and Recommendation of InvestorZone is:  2/10 [ The valuation at P/E multiple of 17x is very expensive. Promoters selling shares in the SME IPO is always negative points for us. Debt is continuously increasing. The company has negative cash flow which means the company is not generating free cash.]

Lead Manager of Misquita Engineering Limited IPO:

  1. Gretex Corporate Services Private Limited

Registrar of Misquita Engineering Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Registered Office: 182/1, Vaiginim Vaddo, Nachinol, Aldona, North Goa, Goa-403508, India Tel:+918308848233 E-mail: info@misquitaengg.com Website: www.misquitaengg.com

Bid Details of Misquita Engineering Limited IPO as on
25 Sep 2019 | 11:59:01 PM

Category No.of shares offered No. of shares bid
340,000 856,000
340,000 244,000
36,000 36,000
716,000 1,136,000
QIBs No
QIBs+HNIs Subscription 2.52X
Retail Subscription 0.72X
Total Subscription 1.62X

Discussion on Misquita Engineering Limited IPO:

    Misquita Engineering Limited is a major component supplier to M/s I.F.B. Industries Ltd, which is a major manufacturer of front loading washing machines, with over 50% market share in the Indian market for front-loading washers.