Sealmatic India Limited IPO

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i. Sealmatic India is engaged in the business of designing and manufacturing of mechanical seals and associated products. Mechanical seals are mainly used in Oil & Gas, refinery, petrochemical, chemical, pharmaceutical, fertiliser, power, mining, pulp & paper, aerospace, marine and other industrial. Company manufactures customised seals to meet the requirement of the client.

ii. Company has a complete range of engineered mechanical seals and sealing support systems to cater the needs of customers located all across the globe. Sealmatic products are globally recognized as a trusted brand in process industry in over 45 countries, to name a few: USA, UK, Germany, Netherlands, Italy, Sweden, Norway, Switzerland, Denmark, Australia, France, Japan and many more countries.

iii. The company has been in the business since more than 12 years and the management has more than two decades of experience in the industry. Over the years Sealmatic has been successful in establishing its name in the industry and company has a strong customer base of domestic as well as foreign clients. Company has about 77% of its total sales from export of its product and 23% from domestic sales.

iv. They supply their products to Industry leaders of oil and gas industry, Power sector, Pharma sector. Their customers include fortune 500 companies. The company’s customers are spread across all the continents and have a 100% retention rate. The company export its products to UK, Europe, America and other countries.

v. In order to meet the quality and maintain the efficiency of the seals, Sealmatic uses best of the best quality raw material. The Company imports raw materials from USA, Germany and UK which are approved vendors for various international sealing companies: Seal Faces such as Carbon & Silicon Carbide are imported from USA & Germany. Elastomers are imported from Germany. Springs and other Hardware are imported from Germany.

vi. Competitive Strengths

i. One of few Indian Company Approved/ Registered as vendor with National & International customers
ii. Experienced Board of Directors & Senior Management team supported by Skilled & Qualified Workforce.
iii. Consistent financial performance with about 30% growth in Profit After Tax.
iv. Optimum utilisation of existing installed capacity & firm plan for Expansion




Objects of the Sealmatic India Limited IPO:

The Objects of the Net Issue is to raise funds for: i. Purchase of Plant and Machinery ii. Product Development iii. Marketing and after Sales Support iv. General Corporate Purpose v. Provisions and Contingency vi. Working Capital Requirement  

Sealmatic India Limited IPO Details:

Open Date: Feb 17 2023
Close Date: Feb 21 2023
Total Shares: 2,499,600
Face Value: ₹ 10 Per Equity Share
Issue Type: Book Built Issue IPO
Issue Size: 56.24 Cr.
Lot Size: 600 Shares
Issue Price: ₹ 220-225 Per Equity Share
Listing At: BSE SME
Listing Date: Mar 01 2023

Promoters And Management:

i. Mr. Umar A. K. Balwa, 55 years old is one of the founding members of Sealmatic. He has a Bachelor's degree from the Mumbai University. He has extensive experience of over 33 years managing various key functions at Burgmann, Balwa Group and Sealmatic. He was the Executive Director Sales of Burgmann India (German conglomerate) from 1993 until 2001 and from 2001 until August 2007 as the Managing Director. During this period and under his leadership, Burgmann was second to none in the business of mechanical seals in India. The parent company Feodor Burgmann GmbH was a global leader in sealing technology. With a strong techno-commercial background he has handled diverse portfolios like rotary equipment assessment, acquisitions, product design, prototyping, comprehensive supply management, project execution and lifecycle management through operations and maintenance services. Umar Balwa brings to Sealmatic, his vast and comprehensive knowledge of sealing technology coupled with his drive for innovation and his strong business acumen. He has established an over encompassing sales network through 45 countries across the globe and has been instrumental in Sealmatic’ s rise as one of the leading sealing technology companies worldwide. ii. Mr. Mohamed Hanif Chaudhari, aged 56 years, is also a founding member of Sealmatic. He brings to Sealmatic an extensive experience of over 33 years in designing, manufacturing and servicing of mechanical seals. He has been trained in Germany and Japan covering various intricate aspects of sealing technology. He holds a unique blend of understanding the dynamics of sealing technology and provides robust solutions to the market place. Over the years he has played many roles including being the Asst Vice President at Burgmann India from 1993 until 2011. Throughout this time, he has not only believed in completely devoting himself to the vision of harnessing sealing technology but championed the cause of providing high performance sealing solutions. This has created greener, safer and more reliable rotary equipment processes in various industrial applications. He has been instrumental in setting up the global supply chain and product development activities for Sealmatic from Europe & USA to India. iii. Ms. Sania Umar Balwa, aged 30 years, has served as a Director at Balwa Group for over seven years. She holds a Master’s degree from the University of Warwick in marketing and strategy. She has a rich experience in international business, sales and marketing that involves conventional and digital media. During her diverse global experience, she has worked for the Family Group with renowned brands such as Radisson, Marriott etc. She has successfully unlocked growth for Sealmatic through the extensive digital marketing campaigns conducted over the past two years. These have resulted in the company’s deep reach across the continents and has made Sealmatic an international brand and preferred choice for customers in 45 countries.  

Financials of Sealmatic India Limited IPO:

Particulars ( In Crore ) 6MFY23 2022 2021 2020
Revenue from Operations 25 42 35 33
Other Income 0.19 0.22 0.15 0.49
Total Revenue 25 42 35 33
Cost of Materials Consumed 12 17 14 13
Purchase of Stock-in-Trade - 0.03 - -
Changes in inventories -4 -2 -0.58 0.32
Employee Benefits Expense 4 7 5 5
Other Expenses 4 7 6 6
EBITDA 8 12 10 8
Depreciation & Amortisation 0.48 0.85 1 1
Finance Cost 0.06 0.09 0.14 0.12
EBIT 7 11 8 6
OPM (%) 31.84% 28.68% 29.28% 24.30%
PBT 7 11 8 6
Taxes 2 2 2 1
PAT 5 8 6 4
NPM (%) 21.05% 19.67% 18.31% 14.71%
No.of Shares 0.96 0.96 0.96 0.96
EPS 5.60 8.67 6.69 5.09
P/E 40.15 25.93 33.58 44.16

Comparison With Peers:

There is no listed company with similar business model.

Recommendation on Sealmatic India Limited IPO:

Review and Recommendation of Sealmatic India Limited IPO is 4/10 (i) The company was founded on December 2, 2009, as Seal Matic India Private Limited. (ii) Sealmatic India Limited is engaged in the business of designing and manufacturing of mechanical seals and associated products.Mechanical seals are mostly utilised in oil & gas, refinery, petrochemical, chemical, pharmaceutical, fertiliser, power, mining, pulp & paper, aerospace, marine, and other industries. (iii) Custom seals are made for clients. The company offers a full line of engineered mechanical seals and sealing support systems for global customers. Sealmatic products are trusted in process industries in over 45 countries, including the USA, UK, Germany, Netherlands, Italy, Sweden, Norway, Switzerland, Denmark, Australia, France, Japan, and others. (iv) The company has been in business for almost 12 years and the management has over 20 years of experience. Sealmatic has built a strong domestic and international customer base over the years. 77% of the company's sales come from outside, while the remaining 23% come from within the country. (v) They supply oil and gas, power, and pharma leaders. Fortune 500 companies use them. They have over 1000 satisfied customers on various continents and are proud of their 100% retention rate. They export to UK, Europe, America, and others. (vi) They imports raw materials from US, Germany, and UK vendors for multinational sealing companies: USA and Germany supply seal faces like carbon and silicon carbide. Germany imports elastomers. Germany supplies springs and hardware. (vii) The Revenue has Increased from Rs 33 Crore in FY20 to Rs 42 Crore in FY22. (viii) The EBITDA has Increased from 8 Crore in FY20 to 12 Crore in FY22. (ix) The PAT has Increased from 4 Crore in FY20 to 8 Crore in FY22. (x) As per FY22, CFO/EBITDA is 0.31 and Debtors Days is 77. (xi) As per FY22, EPS is 8.67, Market Capitalization is 218 Crore & P/E is 25.93X.

Lead Manager of Sealmatic India Limited IPO:

  1. ISK Advisors Private Limited

Registrar of Sealmatic India Limited IPO:

  1. Kfin Technology Private Limited

Company Address:

Sealmatic India Limited 4th Floor, Techniplex -I, Techniplex Complex, Off Veer Savarkar Flyover, Goregaon (West), Mumbai - 400062 Phone: +91 9867058592 Email: Website

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