Presstonic Engineering Limited IPO

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1. Formation and Evolution:

  • Presston Engineering Corporation was initially established as a partnership firm in 1996 by Mr. Herga Poornachandra Kedilaya and Mr. Yermal Giridhar Rao.
  • It evolved into a private limited company named “Presstonic Engineering Private Limited” in 2021 and later converted to a public limited company, “Presstonic Engineering Limited,” in 2023.

2. Manufacturing and Facilities:

  • The company operates in the manufacturing sector, focusing on Metro Rail Rolling Stock Products, Metro Rail Signaling Products, and Infrastructure Products.
  • The manufacturing facility, situated in Bangalore, Karnataka, spans approximately 28,317.50 sq.ft. and is equipped with advanced machinery and instruments capable of producing a diverse range of railway and metro products.

3. Product Range:

  • Metro Rail Rolling Stock Products:
    • Interior Products: Saloon Bucket/Plain Type Seat, Custom Colored Engineered Handles, Grab Pole System, Hand Rail System, Emergency Evacuation Ramp, Honeycomb Partition Panels, etc.
    • Non-Interior Products: Aluminum Cable Management Systems, Cab Handrail, Under Carriage Frame Module, Air Handling Unit, Battery Box, Equipment Mounting Frames, Gangway Frame, Driver Foot Rest Assembly, Enclosure Box, Driver Simulator Cabin, etc.
  • Metro Rail Signaling Products:
    • IP Rated Enclosures, Beacon Mounting Brackets, Ballast less Support Bracket, DCS Mast, Ladder Assembly with DCS Mast Platform, etc.
  • Infrastructure Products:
    • Steel Structure and Aluminum Murals, Support Structure for Solar Panels, Wire Form, and Cable Trays, etc.

4. Company Growth and Leadership:

  • The company commenced its manufacturing operations in the Metro Rail Segment in 2011, steadily expanding its presence and services.
  • Founded and promoted by Mr. Herga Poornachandra Kedilaya and Mr. Yermal Giridhar Rao, the company’s leaders possess a combined experience of over 50 years in the industry.

5. Focus on Customization and Innovation:

  • The company emphasizes providing cost-effective and customized solutions meeting standardized quality requirements in railway and infrastructure sectors.
  • The Research and Development (R&D) division, located in-house, plays a crucial role in developing innovative, solution-oriented products and ensuring compliance with customer quality requirements and regulatory standards.

6. Quality Assurance:

  • A dedicated quality control team conducts tests at various stages of the manufacturing process, ensuring adherence to domestic and international standards.
  • The company has received certifications, including ISO 9001:2015 for the quality management system and EN 15085-2 Certification level CL2 for welding of railway vehicles and components.

7. Vision and Certifications:

  • The company’s vision is to manufacture and supply superior quality products, leading to business expansion and certifications from reputable bodies.
  • Certification from MTIC Intercert India Private Limited attests to the company’s compliance with ISO 9001:2015, and EN 15085-2 Certification level CL2 validates its welding capabilities for railway vehicles and components.

Objects of the Presstonic Engineering Limited IPO:

The Objects of the Issue are: i. Funding Capital Expenditure towards the purchase of additional plant and machinery ii. Prepayment in full of certain borrowings availed by the Company iii. To meet the Working Capital Requirements iv. To meet the Issue Expenses v. General Corporate Purposes.

Presstonic Engineering Limited IPO Details:

Open Date: Dec 11 2023
Close Date: Dec 13 2023
Total Shares: 3,236,800
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price Issue IPO
Issue Size: 23.30 Cr.
Lot Size: 1600 Shares
Issue Price: ₹ 72 Per Equity Share
Listing At: NSE Emerge
Listing Date: Dec 18 2023

Promoters And Management:

i. Mr. Herga Poornachandra Kedilaya, aged about 52 years, is the Promoter and Managing Director of the Company. He has been on the Board of Directors since 2021. He holds Bachelor’s Degree in Engineering from Bangalore University, Karnataka. As a young graduate employee itself, he had won many accolades in his brief stint as a Design Engineer. He started his career in the field of petrochemical industry as a design engineer for a couple of years, which was directly followed by an entrepreneurship spanning more than 26 years. He also has an in-depth knowledge of product pricing, Life Cycle Costing (L.C.C), RAMS (Reliability, Availability, Maintainability and Safety), Channel and Retail distribution networking pan India and all the facets of commercial banking like handling bank guarantees, Letter of credits, export financing, taxation and other statutory requirements. He is a visionary and provides valuable strategies and guidance to his teams. He has a unique techno-commercial knowledge of handling both B2B and B2C models and is very well versed in product pricing and in establishing product channel partnership networks for accelerating scalability. ii. Mr. Yermal Giridhar Rao, aged about 53 years, is the Promoter and Wholetime Director of our Company who has been designated as the Joint Managing Director of the Company. He has been on the Board of Directors since 2021. He holds a Master of Technology from Mangalore University in the year 1994. He is an accomplished Director with a distinguished educational background. He started his career at M/s. Alfred Herbert India Ltd. as Executive – Industrial Engineering from September’ 1993 to April’ 1994 and then at M/s. Shetron Ltd. in Bangalore as Jr. Executive – Maintenance from May’ 1994 to August’ 1996 before co-founding Presston Engineering Corporation in 1996. As the Director of Presstonic Engineering Ltd, he has led cross functional teams like design, product development and manufacturing. He has played a pivotal role in strategic planning, business development and fostering a culture of innovation, leading the company to sustained growth. iii. Ms. Kodipadi Yerkadithaya Supriya Murthy, aged about 57 years, is the Non-Executive Director of Ms. Kodipadi Yerkadithaya Supriya Murthy, aged about 57 years, is the Non-Executive Director of our Company since July 03, 2023. She has done her graduation in Commerce from Bangalore University (1987), Post Graduate Diploma in Interior Decoration & Designing from India International Trade Center. She also holds a Degree Course in Bharatanatyam from Keshava Nithyashala, School of Bharathanatya, Bangalore. Ms. Kodipadi Yerkadithaya Supriya Murthy is an efficient and competent individual who has more than 20 years of working experience as an entrepreneur in various field such as architecture, interior design, organic farming, Desi cow advocate and yogic healing. She has been Bharatanatyam dancer for over 20 years and was a cultural ambassador at Festival of India in Russia. Company since July 03, 2023. She has done her graduation in Commerce from Bangalore University (1987), Post Graduate Diploma in Interior Decoration & Designing from India International Trade Center. She also holds a Degree Course in Bharatanatyam from Keshava Nithyashala, School of Bharathanatya, Bangalore. Ms. Kodipadi Yerkadithaya Supriya Murthy is an efficient and competent individual who has more than 20 years of working experience as an entrepreneur in various field such as architecture, interior design, organic farming, Desi cow advocate and yogic healing. She has been Bharatanatyam dancer for over 20 years and was a cultural ambassador at Festival of India in Russia.

Financials of Presstonic Engineering Limited IPO:

Particulars ( In Lakhs )
2021
2022
2023
6M-FY24
Revenue from Operations 761 1,263 2,103 1,425
Other Income 8 9 10 6
Total Revenue 769 1,272 2,113 1,432
Cost of materials consumed 237 391 798 652
Changes in inventories -174 108 78 -44
Employee benefits expenses 130 98 115 95
Other Expenses 275 365 415 346
EBITDA 301 310 706 382
Depreciation & Amortisation 78 71 88 35
Finance Cost 244 218 263 144
EBIT 222 239 618 347
OPM (%) 39.09% 24.40% 33.42% 26.70%
PBT -22 21 356 204
Tax -5 7 99 51
PAT -17 14 256 152
NPM (%) -2.20% 1.11% 12.12% 10.63%
No.of Shares 77.07 77.07 77.07 77.07
EPS -0.21 0.18 3.32 1.97

Comparison With Peers:

Notes: - There is no listed companies related to this company.

Lead Manager of Presstonic Engineering Limited IPO:

  1. Finshore Management Services Limited

Registrar of Presstonic Engineering Limited IPO:

  1. Cameo Corporate Services Limited

Company Address:

Presstonic Engineering Limited Sy. No. 2, Khatha No. 145, Hoysala Main Road, Pillappa Industrial Layout, Srigandhadakavalu, Sunkadakatte, Viswaneedam, Bangalore, 560091 Phone: +91 80 23480001 Email: cs@presstonengg.com Websitehttps://presstonic.com/

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