Ranjeet Mechatronics Limited IPO

Apply 0
Avoid 0

(A) Company’s Background

(i) In the year 1949, Late Shree Vallabbhai B. Swadia, father of one of the Promoters Mr. Rakesh V. Swadia, established a firm called M/s. Ranjeet Electric and Engineering Corporation. The firm was basically authorized dealer of electric motor pumps and related spares. Mr. Rakesh Swadia joined the business of his father at an early age and started understanding the business gimmicks.

(ii) Later on, the firm tied up with Kirloskar Brothers Limited and became the authorized dealer of various electric products especially electric motors pump sets and spares and also tied up with Kirloskar Oil Engines Limited.

(iii) In the year 1993,  Late Vallabhbhai Swadia along with his wife, Late Mrs. Shantaben Vallabhbhai Swadia and Mr. Indukant V. Swadia incorporated the company – Ranjeet Electric Private Limited (“REPL”) at Ahmedabad. The company was incorporated with the main object to carry on the business of electrical and electrical mechanical engineers and sell supply, establish, fix and carry out and deal in industrial pumps, diesel engines, electrical motors, and equipment etc.

(B) Today Ranjeet Mechatronics Limited is a Fastest Growing System Integrator And Turnkey Project Contractor For Fire Protection And Detection Systems, Electronic Security & Automation Solution Provider Company With Pan India Presence.

(C) Products and Services of the Company

(i) High-Velocity Water Spray Systems (H. V. W. S. Systems).
(ii) Fire Hydrant System.
(iii) Fire Extinguishers System.
(iv) Fire Sprinkler System.
(v) Fire Detection System.
(vi) Gas Suppression System.
(vii) PA System & CCTV System.
(viii) Medium Velocity Water Spray Systems (M. V. W. S. Systems)

Ranjeet Mechatronics Limited IPO Stock Quote & Charts

39.20

-9.26%

  • Open: 41.90
  • High - Low: 41.90 - 38.00
  • Previous Close: 43.20
  • Total Traded Volume: 48000
  • Updated On: 17-Oct-2018

Objects of the Ranjeet Mechatronics Limited IPO:

Objective of Ranjeet Mechatronics Limited IPO are: 1. Net Incremental Working Capital Requirement 2. General corporate Purpose

Ranjeet Mechatronics Limited IPO Details:

Open Date: Sep 12 2018
Close Date: Sep 17 2018
Total Shares: 1,800,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price Issue IPO
Issue Size: 4.5 Cr.
Lot Size: 6000 Shares
Issue Price: ₹ 25 Per Equity Share
Listing At: BSE SME
Listing Date: Sep 26 2018

Promoters And Management:

Promoters of Ranjeet Mechatronics Limited Company are: (i) Mr. Rakesh Vallabhbhai Swadia, aged 58 years is a Director of the Company since April 04, 1994 and has been re-designated as Chairman Cum Managing Director w.e.f. May 28, 2018. He has a Professional Experience of more than 35 Years in the same Industry in which Company operates i.e. in Industry of Industrial Pumps, Electric Motors, and Diesel Generating Sets. Under his guidance Company was appointed as sole distributors of country’s leading manufacturer “Kirloskar Group”. He will continue guiding the Company through his valuable experience. (ii) Mr. Devarshi Rakesh Swadia, aged 34 years, holds Degree of Bachelor of Business Administration from Gujarat University. He has been handling and assisting his father in day to day Business Activities of the Company being a Director of the Company since December 01, 2003 and therefore has a Professional Experience of more than 13 Years in the Industry in which Company operates, i.e. Industry of Industrial Pumps, Electric Motors, and Diesel Generating Sets. He is re-designated as Whole-Time Director of the Company w.e.f. May 28, 2018, he will be handling the Marketing Division of Company, day to day Planning, Coordination and Execution of Ongoing Projects and Future Projects of Company

Recommendation on Ranjeet Mechatronics Limited IPO:

Review and Recommendation of Ranjeet Mechatronics Limited IPO from IZ team is: 2/10 [ The Business does not have any moat. They are more into pump distributorship kind of business. The Issue is aggressively priced. The Growth is muted in the last 5 years. The business is financed more on debt rather than equity. The D/E of 4.74 is very high. Lot of TDS demands raised from Income Tax Authorities.] 1-5: Fair 5-7: Good 7-10: Excellent

Lead Manager of Ranjeet Mechatronics Limited IPO:

  1. Beeline Broking Limited

Registrar of Ranjeet Mechatronics Limited IPO:

  1. Alankit Assignments Limited

Company Address:

Ranjeet Mechatronics Limited Block A, 407 - 4th Floor, Dev Aurum, Anand Nagar Cross Road, Prahladnagar Road, Ahmedabad – 380 015, Gujarat Phone No.+91 79 4000 9390 Website: www.ranjeet.co.in E-Mail: cs.compliance@ranjeet.co.in

25th Sep 2018 - 27th Sep 2018 => Aavas Financiers IPO

Bid Details of Ranjeet Mechatronics Limited IPO as on
17 Sep 2018 | 11:58:02 PM

Category No.of shares offered No. of shares bid
852,000 66,012,000
852,000 52,848,000
96,000 96,000
1,800,000 118,956,000
QIBs No
QIBs+HNIs Subscription 77.48X
Retail Subscription 62.03X
Total Subscription 69.75X

Discussion on Ranjeet Mechatronics Limited IPO:

      Sir SME me fundamentals work nahi karta
      It is a small issue and driven by some operator

      We do fundamental analysis and based on that ranking is define. However, being only 4 Cr issue the demand has been created in the market and subscription figures jump.

    SME IPO – Ranjeet Mechatronics
    More than 100 Cr coming from retailer’s only 😇

    Seems like a good bet (demand-wise)… It will be difficult to get allotment in RETAIL..

      Agree with you Santosh jii. The demand is quite huge for the share which has reflected in the subscription figure on first day itself.

    D/E and ROE Story based on FY18 Financials

    (i) Equity= 2.58 Cr
    (ii) Debt( Long-term and Short-term)= 12.15 Cr
    (iii) D/E= 4.79
    (iv) ROE= 35%

    Conclusion: The ROE looks sumptuous but not to forget that the company is financing its business more on debt rather equity. The D/E at 4.79 is huge. So be aware.

    Demands for Tax Deducted at Source are raised by Income Tax in the year 2010-11, 2011-12,2012-13, 2014-15, 2015-16, 2016-17 and 2017-18. In some years even after receiving the Notice from Income Tax the company has not submitted the TDS on time and thereby penalties were imposed on them under section 220(2). The interesting part is the TDS amount which was not submitted on time was very small in the range of 3000-8000. This shows the working of the company.

    Conclusion: The company not filing TDS on time is like a crime these days and that too not filling on a continuous basis is a serious issue.

    The Peer shown in the DRHP is a loss-making company so nothing can be concluded.

    EPS Story (Pre- Issue) Of the Company as on FY18 Financials

    (i) PAT= 91 Lacs
    (ii) Outstanding Shares = 47.9998 Lacs
    (iii) EPS = 1.89
    (iv) P/E= 13.22

    EPS Story (Post- Issue) Of the Company as on FY18 Financials

    (i) PAT= 91 Lacs
    (ii) Outstanding Shares = 65.9998 Lacs
    (iii) EPS = 1.37
    (iv) P/E= 18.24

    Conclusion: The Issue is aggressively priced.