Powerful Technologies Limited IPO

Apply 0
Avoid 1

Closing in

Days
Hours
Mins
Secs

Don't Miss It! Mark Your Calender Now:


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:

Objective of

Powerful Technologies Limited IPO

are: 1. To meet the working capital requirements of the Company 2. Issue Expenses

Powerful 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:

Promoters of Powerful Technologies Limited Company are: (i) Mr. Aditya Gupta, aged 35 Years, is one of the Promoter and Managing Director of the Company. He, after graduation from commerce stream, did his training with a Chartered Accountancy firm and gained experience of various types of Financial transactions, Accounting, and Audits. He started his career in the year 2003 with a company named “Crux Computronix P Ltd”, an IT and Electronics based company.  After gaining insight into electronic products, he co-promoted M/s Pioneer Computronix P Ltd, which ventured into IT and telecommunication products and reached a turnover of over Rs 100 cr in FY 2016-17. He is a passionate entrepreneur and eyes to expand manufacturing base in India. (ii) Mrs. Karuna Chhabra, aged 37 Years, is one of the Promoters and Non-Executive Director of our Company. She started her career in the year 2000 with a company named “Advantage Computers India P Ltd”, an IT and Electronics based company, handled HR and administration of the company. Later, she started her own venture M/s NK Professional services, an HR consultancy company and later on added Event Management activities in the firm’s profile. (iii) Mr. Nitin Chhabra, aged 40 years, is one of the Promoters and Executive Director of our Company. A Chartered Accountant and DISA qualified, joined our company as a promoter on February 07, 2018. He has been the driving force behind the growth of the business of the group and advised our other Promoters to have a focused approach towards manufacturing of consumer electronics items He started his career in the year 1999 after completing CA, as Head (Finance) with M/s Advantage Computers India Private Ltd., an IT and Electronics based company.

Financials of Powerful Technologies Limited IPO as per DRHP:

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
Key Notes: a) The Revenue is growing at CAGR of 58.36% from FY16 to FY18. [ Excellent Growth] b) The PAT is growing at CAGR of 393% from FY16 to FY18.[ Excellent Growth]. c) The Annualized EPS[Post Issue] is 4.49 d) P/E(post issue)= 11.35[ Reasonable] e) P/B(post issue)= 1.96[Reasonable] f) The Inventory in FY16, FY17, and FY18 stands at 2.15 Cr, 8.35 Cr and 17.35 Cr respectively. The inventories are pilling up continuously in the last 3 years, if management can shed some light on this in the investor meet then it would be good for all of us.[Red Flag] g) The Cash-flows from operations in the last 3 years is negative[Red Flag]

Comparison With Peers:

No peers to compare with the company.

Recommendation on Powerful Technologies Limited IPO:

Powerful Technologies Limited IPO Rating by InvestorZone team = 4/10 1-5: Fair 5-7: Good 7-10: Excellent

Lead Manager of Powerful Technologies Limited IPO:

  1. Finshore Management Services Limited

Registrar of Powerful Technologies Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Powerful Technologies Limited A-181, Sector – 63, Gautam Buddha Nagar, Noida 201301 Uttar Pradesh Phone No: +91 11 40071894 E-mail: Nitin@pcpl.in Website: www.powerfultech.in

Bid Details of Powerful Technologies Limited IPO as on
16-Aug-2018 17:00:00 IST

Category No.of shares offered No. of shares bid
1,311,200 1,578,000
1,311,200 1,220,000
33,600 33,600
2,656,000 2,831,600
QIBs No
QIBs+HNIs Subscription 1.20X
Retail Subscription 0.93X
Total Subscription 1.05X

Discussion on Powerful Technologies Limited IPO:

    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.

    One can take a risk if the subscription numbers are good.
    valuation wise looks ok.