Home/Blogs/Presstonic Engineering IPO Check Issue Size, Date, and Price Band

Presstonic Engineering IPO Check Issue Size, Date, and Price Band

13 Dec 2023

Introduction:

Small and medium-sized enterprises are the backbone of the Indian economy. They have been the pillars behind the country’s continuous economic growth over the last few years. However, like any other business, these ventures need financing occasionally to grow and expand. One of the most effective ways for these companies to raise finances is through Initial Public Offerings (IPOs).

One such SME company that has planned to float its IPO is Presstonic Engineering Limited. The IPO, worth Rs. 23.30 crores, opens for public subscription on 11 December 2023 and closes on 13 December 2023. Continue reading to take a deep dive into the details of the Presstonic Engineering IPO, including the issue price, lot size, listing date, and more.

Start Investing with Free Expert Advice!

About Presstonic Engineering Limited

Presstonic Engineering Limited specializes in manufacturing products for metro rail rolling stock, signaling, and other metro rail infrastructure. These products are manufactured and supplied to domestic and global Original Equipment Manufacturers (OEMs) engaged in the manufacturing and servicing of rail and metro rail rolling stock and signaling equipment.

The company has a full-fledged manufacturing facility in Bengaluru spanning 28,317.50 square feet of land area. The manufacturing facility has the latest machinery, equipment, and state-of-the-art infrastructure. The company’s client portfolio in India primarily includes state and central governments and public sector undertakings (PSUs).

The product portfolio includes saloon bucket seats, engineering handles, handrail systems, evacuation ramps, grab pole systems, and honeycomb partition panels. As of 31 March 2023, the company has an unexecuted order book of approximately Rs. 64 crores. The top clients include Alstom, Hyundai Rotem, L&T, Airbus Defence, Mumbai Metro, Jaipur Metro, Pune Metro, Chennai Metro, Carrier, and SAPA.

Key Strengths of the Company

Analysing the issuing company’s strengths can help you gain insights into its future growth prospects and make an informed IPO investment decision. Below are the key strengths of Presstonic Engineering Limited as stated in the company’s Red Herring Prospectus (RHP):

  • Boasts excellent organisational stability and management expertise
  • The company has an experience of almost 28 years in the industry
  • It has maintained a smooth flow of operations since its inception
  • Received several quality certifications and accreditations from various state and national governments
  • An extensive customer base spanning several cities and countries
  • The client list includes some of the most prestigious names in the industry
  • The company has well-established relationships with its raw materials suppliers
  • A full-fledged manufacturing facility equipped with state-of-the-art equipment and machinery for manufacturing a diverse range of products 

Key Risks and Weaknesses

Assessing the risks and weaknesses can help you discover the threats that hamper a company’s long-term growth. The key risks and weaknesses associated with Presstonic Engineering Ltd. include:

  • The company derives a significant portion of its revenue from limited clients
  • Any fluctuations in the prices, availability, or quantity of raw materials can impact the business
  • The company is in a capital-intensive business. It required funding from time to time
  • Delays or defaults in customer payments can adversely impact the working capital and revenues
  • The company has yet to place fresh orders for machinery and equipment

Core Financials of the Company

You must analyze the issuing company’s financials before investing in its IPO. It helps you know if the company can generate significant future profits and make an informed investment decision. The table below depicts the core financials of Presstonic Engineering Ltd. for the last three completed financial years:

Particulars Period Ended September 2023 As of and for FY Ended March 31
2023 2022 2021
Share Capital 4 2 2 2
Net Worth 6 5 2 2
Total Borrowings 15 16 18 18
Revenue From Operations 14 21 13 8
Profit After Tax 2 3 0 0
Earnings Per Share (Diluted) 3 11 1 -1
Return on Net Worth (%) 24% 52% 6% -7.59%

*Amount in Crores

Source – RHP Dated 5 December 2023 on NSE website

Key Details of the IPO

Presstonic Engineering Ltd. plans to raise up to Rs. 23.30 crores through its IPO, which opens for public subscription on Monday, 11 December 2023, and closes on Wednesday, 13 December 2023. The company has fixed the issue price for the IPO as Rs. 72 per share. Retail investors can apply for at least 1,600 shares (one lot) and in multiples thereof. Refer to the table below for more IPO details:

IPO Date 11 December to 13 December 2023
Basis of Allotment 14-Dec-23
Listing Date 18-Dec-23
Face Value Rs. 10 per share
Issue Price Rs. 72
Lot Size 1,600 shares
Total Issue Size 3,236,800 equity shares (Worth Rs. 23.30 crores)
Fresh Issue 3,236,800 equity shares (Worth Rs. 23.30 crores)
Listing At NSE SME

To conclude

Presstonic Engineering IPO presents an opportunity for investors looking to invest in India’s precision engineering sector. However, you must analyse factors such as your risk appetite, investment goals, and prevailing market conditions before making a final investment decision.

 

Related Articles:  How to Analyse an IPO | What is IPO Grading? | What is Cut Off Price In IPO Application 

 

Popular Stocks:  HDFC Bank share price | ICICI Bank Share Price | UPL Share Price | Tata Consumer Share Price | Divislab Share Price

Checkout more Blogs

You may also like…

Get Exclusive Updates

Be the first to read our new blogs

Intelligent investment insights delivered to your inbox, for Free, daily!

Open Demat Account
I wish to talk in South Indian language
By proceeding you’re agree to our T&C
Click here to see your activities