Powerful Technologies Limited IPO
Powerful Technologies Limited IPO
(i) Powerful Technologies Limited was incorporated in February 2015 by Mrs. Karuna Chhabra and Mr. Aditya Gupta as their initial subscribers and promoters. The company was formed to focus exclusively on consumer electronics products like LED TVs & Mobile Power Banks and IT hardware products like LED monitors.
(ii) The Powerful Technologies Limited is into manufacturing of LED TV, LED Monitors and Mobile Power Banks and has a manufacturing unit in Noida.
(iii) The journey of Powerful Technologies Limited
a) Initially, they started off by selling their Mobile Power Banks products under brand names “Powereye” and “Lappy Master” and also used to make power banks for other brands.
b) In 2016-17, they got approval from American brands Kodak and Polaroid to manufacturer LED TVs along with Mobile Power Banks.
c) The company is now an authorized licensee for selling and manufacturing Polaroid LED TVs and LED Monitors and Kodak Power banks in India.
(iv) The company’s products are consistently high in quality and durability for their intended use. They have an advanced manufacturing facility, which enables them to maintain the quality of the products, as they are abiding by the norms and guidelines of international quality. Owing to their earnest efforts, they have been able to garner a niche clientele across the domestic market.
Objects of the Powerful Technologies Limited IPO:
Powerful Technologies Limited IPO
are: 1. To meet the working capital requirements of the Company 2. Issue ExpensesPowerful Technologies Limited IPO Details:
Open Date: | Aug 09 2018 |
Close Date: | Aug 17 2018 |
Total Shares: | 2,656,000 |
Face Value: | ₹ 10 Per Equity Share |
Issue Type: | Fixed Price IPO |
Issue Size: | 13.5456 Cr. |
Lot Size: | 2000 Shares |
Issue Price: | ₹ 51 Per Equity Share |
Listing At: | NSE Emerge |
Listing Date: | Aug 28 2018 |
Promoters And Management:
Financials of Powerful Technologies Limited IPO:
1. Assets and Liabilities Key Parameters | |||||||
Year | Asset(lacs) | Liabilities(lacs) | Net Worth(lacs) | Book Value | D/E [<1] | RONW | Receiveable days |
FY16 | 999.07 | 884.70 | 114.37 | 57.19 | 7.7 | 16% | 82 |
FY17 | 2,481.81 | 2,321.79 | 160.02 | 76.20 | 14.5 | 25% | 145 |
FY18 | 3,101.84 | 1,841.57 | 1,260.27 | 68.44 | 1.5 | 36% | 70 |
Post Issue | 2,614.83 | 26 | 0.7 | 17% |
2. Profit n Loss Key Parameters | ||||||
Year | Revenue(lacs) | PAT(lacs) | EBITDA Margins | Profit Margins | Outstanding Shares(lacs | EPS |
FY16 | 2,497.25 | 18.48 | 2.67% | 0.7% | 2 | 9.24 |
FY17 | 3,561.26 | 40.65 | 4.03% | 1.1% | 2.1 | 19.36 |
FY18 | 6,262.12 | 450.25 | 11.00% | 7.2% | 18.41 | 24.45 |
Post Issue | 100.22 | 4.49 |
3. Cash Flow Statement(all figures in lacs) | |||
Particulars | FY18 | FY17 | FY16 |
(i) Net Cash Generated from Operation | -659.21 | -48.12 | -451.79 |
(ii) Net Cash Generated from Investment | -23.57 | -15.39 | -25.22 |
(iii) Net Cash Generated from Financing Activity | 684.29 | 63.62 | 476.76 |
(iv) Total[ (i)+(ii)+(iii) ] | 1.51 | 0.11 | -0.25 |
(v) Cash and Cash Equivalents at the Beginning of the Year | 0.92 | 0.81 | 1.05 |
(vi) Cash and Cash Equivalents at the end of the Year | 2.43 | 0.92 | 0.80 |
Comparison With Peers:
Recommendation on Powerful Technologies Limited IPO:
Lead Manager of Powerful Technologies Limited IPO:
Registrar of Powerful Technologies Limited IPO:
Company Address:
Bid Details of Powerful Technologies Limited IPO as on
17-Aug-2018 18:00:00 IST
Category | No.of shares offered | No. of shares bid |
---|---|---|
1,311,200 | 1,912,000 | |
1,311,200 | 1,372,000 | |
33,600 | 33,600 | |
2,656,000 | 3,317,600 |
QIBs | No |
QIBs+HNIs Subscription | 1.46X |
Retail Subscription | 1.05X |
Total Subscription | 1.25X |
Discussion on Powerful Technologies Limited IPO:
9 Comments
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According to market sources Powerful Technology (Aditya Gupta) managed the issue with some upfront cash discount and has issued undated cheques for allotment amount with an understanding of encashment if the price is below the offer price. It’s now over three months and and it’s CMP is pretty much below the offer price. Investors having such instruments in their hand are trying to encash the same with verbal go ahead from promoter, but he is not attending calls. Beware before investing and entering into such fishy deals.
Listing Update Powerful Technology
1. Issue Price- 51
2. Listing Price- 48( discount of 5.88%)
3. Currently Trading at Lower Circuit 45.60( discount of 10.68%)
4. Volume Traded- 4000( 2lots)
Powerful Tech SME IPO extended till 17.08.17
Subscription number too appears bad. Avoid. Just before IPO they shown increase in profit to justify valuation .Better not to risk your money where there you find irregularities
Hi All, people interested in applying for this IPO should also review the financial position of its Related Party company PIONEER COMPUTRONIX PRIVATE LIMITED.
It has significant amount of outstanding loans ~Rs.40crores and Powerful Tech has above 30% of purchase & sales transaction with this Related Party.
Public only wants good returns IPO not interested in minimum return.
One can take a risk if the subscription numbers are good.
valuation wise looks ok.
The numbers are hard to digest. Looks inflated just before IPO.
The Products of the company can be seen here .https://www.indiamart.com/powerful-techlimited/products.html#1000-mah-power-bank