Transteel Seating Technologies Limited IPO

Apply 0
Avoid 0

1. Long-Term Experience: Transteel has a history of over two decades in the furniture industry. Their experience spans both corporate and B2B sectors, which has contributed to their expertise in crafting various types of furniture.

2. Digital Transformation: In 2019, Transteel adopted a digital-first approach, which means they have leveraged digital technologies to transform the way customers engage with their brand. This shift allows customers to conveniently browse and purchase furniture from their diverse range online.

3. Product Range: The company specializes in making chairs, office furniture, and other residential and commercial furniture. Their primary focus appears to be on crafting performance-oriented tables and chairs, which prioritize design, value, and ergonomics to ensure customer comfort and back health.

4. Design and Customization: Transteel has developed an in-house technical and design team that provides turnkey solutions and implements interior and workspace designs in various settings, including commercial, residential, and educational institutions. They emphasize understanding the specific requirements of potential customers and designing and delivering products according to the client’s needs.

5. Manufacturing Facilities: The company’s manufacturing facility is located in Yeshwanthpur, Bangalore, India. They appear to employ a combination of in-house manufacturing and outsourcing to vendors for the production of their furniture. This involves the sourcing of molds and the use of injection molding vendors to produce parts, which are then assembled in their factory.

6. Geographic Expansion: Transteel has expanded its presence to various cities in India, including Mumbai, Chennai, Delhi NCR, Pune, and Hyderabad. This expansion enables them to cater to a broader customer base across the country.

7. Sales and Distribution: The business likely relies on a network of sales and distribution channels to reach customers across India. The reference to sales across various locations indicates the reach of their products.

Competitive Strengths

i. Experienced Promoters
ii. Sales, marketing, and distribution capabilities
iii. Brand Positioning

Objects of the Transteel Seating Technologies Limited IPO:

The Company intends to utilize the Net Fresh Issue Proceeds for the following Objects ("Objects of the Issue"): a) Prepayment/Repayment of Certain Debt Facility availed by our Company b) Purchase of Equipments to Facilitate Manufacturing c) Working Capital Requirements d) General Corporate Purposes. Total number of shares are issues: - a) Fresh Issue is 6,784,000 shares. b) Offer for Sale is 356,000 shares.
DRHP of Transteel Seating Technologies Limited IPO
RHP of Transteel Seating Technologies Limited IPO

Transteel Seating Technologies Limited IPO Details:

Open Date: Oct 30 2023
Close Date: Nov 01 2023
Total Shares: 7,140,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Book Built Issue IPO
Issue Size: 49.98 Cr.
Lot Size: 2000 Shares
Issue Price: ₹ 67 - 70 Per Equity Share
Listing At: NSE Emerge
Listing Date: Nov 09 2023

Promoters And Management:

i. Mr. Shiraz Ibrahim, aged 54 years, is the Founder, Promoter and Managing Director of the Company. He is the Director of the Company since Incorporation of the Company. He was reappointed as Managing Director of the Company w.e.f. December 15, 2006 and later reappointed as Managing Director with effect from May 20, 2023 for a period of 5 years. He has a Bachelor in Mechanical Engineering from University of Mysore completed in the year 1991. He is a visionary entrepreneur and has played a pivotal role in setting up business of the Company. He primarily looks after the overall business operations of the Company. Under his guidance, the Company has witnessed continuous growth. As Managing Director of Transteel Seating Technologies Limited, he has been leading the company's vision, strategy, and growth for over 28 years. With a strong background in Mechanical Engineering and a passion for digital first approach to business, he is instrumental in expanding Transteel's market presence, customer base, and product portfolio. He fostered a culture of innovation, quality, and customer satisfaction within the organization. Some of the key achievements include securing multiple large contracts with reputed clients, launching new product lines, and establishing strategic partnerships with global suppliers and distributors. ii. Ms. Nasreen Shiraz, aged 48 years, is the Promoter and Executive Director of the Company. She was appointed as Appointed as Director w.e.f. June 27, 1996. She has been associated with company since its incorporation. She has more than 26 years of experience. She is an experienced entrepreneur and Director driving growth and innovation at Transteel Seating Technologies Limited. She is the core member of the board. Her advices and opinion are invaluable. She holds bachelor’s degree in commerce with a keen eye for design and love working together with the team in delivering amazing workspaces to Indian corporates and Small & Medium businesses. iii. Mr. Karan Atul Bora, aged 30 is the Non-Executive Director of the Company. He was Appointed as Non-Executive Director of the Company w.e.f. November 04, 2022. He has around 4 years of experience across sectors in Operations, Finance, Project Management and Business Development. He is an Innovative thinker with broad based expertise. He has proven ability to quickly analyse key business drivers and develop strategies to grow the bottom-line. He is a high integrity energetic leader known for ability to envision and create successful outcomes in complex situations.

Financials of Transteel Seating Technologies Limited IPO:

Particulars ( In Lakhs )
2021
2022
2023
6M-FY24
Revenue from Operations 2,281 2,799 5,948 3,126
Other Income 7 8 13 8
Total Revenue 2,288 2,807 5,961 3,133
Cost of Material Consumed 1,186 1,456 2,889 1,595
Change in inventories -103 -150 -361 -329
Employee benefits expenses 492 584 1,085 570
Other Expenses 567 521 782 468
EBITDA 146 396 1,567 829
Depreciation & Amortisation 61 61 70 60
Finance Cost 65 117 233 192
EBIT 86 335 1,497 769
OPM (%) 6.39% 14.11% 26.29% 26.45%
PBT 18 218 1254 563
Tax 19 59 344 145
PAT -0.6 159 909 418
NPM (%) -0.03% 5.67% 15.25% 13.33%
No.of Shares 201.78 201.78 201.78 201.78
EPS -0.002 0.78 4.50 2.06

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Transteel Seating Technologies Limited 59 9.09 4.50 15.5 70 141
Seasons Furnishing Limited 8 0.26 0.35 11.5 4.04 3
Shashwat Furnishing Solutions Limited 5 0.21 1.01 32.8 33 7
* All the data is as per FY23.

Recommendation on Transteel Seating Technologies Limited IPO:

Review and Recommendation of Transteel Seating SME IPO by IZ team is 5/10 Read Review Here

Lead Manager of Transteel Seating Technologies Limited IPO:

  1. Gretex Corporate Services Private Limited

Registrar of Transteel Seating Technologies Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Transteel Seating Technologies Limited No. 28, 4th Main, Industrial Suburb Yeshwanthpur Bangalore 560022, Phone: +91 80953 46346 Email: info@transteel.com Website: http://www.transteel.com/

Discussion on Transteel Seating Technologies Limited IPO:

Leave a Reply