Innoventive Industries Ltd is a multiproduct engineering company based in Pune. It is engaged in the manufacturing and sale of precision steel tubes, tubular components, auto components, machined components and other steel products which find application in diverse industrial sectors such as transportation, oil & gas, power, farm equipments and general engineering.
The company has six manufacturing facilities located across Pune and Silvasa. It has an installed capacity of 64,800 MT/annum for ERW tubes and 23,265 MT/annum for CEW tubes.
Objects of the Issue:
• Capacity expansion of manufacturing facility
• Repayment of term loan
• General Corporate purposes
Company Credentials
• The company caters to over 475 customers worldwide.
• The clientele includes the likes of Bajaj Auto Ltd, Bharat Heavy Electricals Ltd, Thermax Ltd, John
Deere India, Sundram Industries Ltd, Gabriel India Ltd and Alstom Projects Ltd. MOIL accounts for
~50% of total production in the country and the demand for manganese is expected to remain robust.
Financials
• Innoventive Industries holds a decent balance sheet, the only concern being the loan. The IPO proceeds
would be used for servicing of this loan.
• Year on year, the company has been reporting healthy revenue & PAT figures.
• The company’s consolidated revenue increased from Rs 32,538.37 lakh in FY08 to Rs 42,515.05 lakh in
FY10. PAT, on the other hand increased from Rs 801.29 lakh to Rs 3,434.07 lakh during this period.
Outlook
Innoventive Industries is a growing company with consistently improving financials. At the upper level of price band the stock would be trading at a PE of 10xFY11 EPS of Rs.12, based on P/E valuation.
The company has a diverse product portfolio and is looking forward to expand its existing capacity of CEW from existing 23265MT p.a to 76701MT by 2012. It is also open to exploring new geographies such as North America, Europe, Middle East and Latin America apart from the domestic market. This indicates growth sustainability. However huge amount of outstanding debts in the books is a cause of concern. On the valuation front the stock is reasonably priced. We recommend Subscribe to the IPO to investors who have a medium to high risk profile.
Snapshot
Issue Open: 26 April’11 – 29 April’11
Issue Type: 100% Book Building
Issue Size: Rs. 219.58 crore
Face Value: Rs. 10 Per Equity Share
Issue Price: Rs.117-120 per share
Lot Size: 50 shares
Exchange: NSE/BSE
The company has six manufacturing facilities located across Pune and Silvasa. It has an installed capacity of 64,800 MT/annum for ERW tubes and 23,265 MT/annum for CEW tubes.
Objects of the Issue:
• Capacity expansion of manufacturing facility
• Repayment of term loan
• General Corporate purposes
Company Credentials
• The company caters to over 475 customers worldwide.
• The clientele includes the likes of Bajaj Auto Ltd, Bharat Heavy Electricals Ltd, Thermax Ltd, John
Deere India, Sundram Industries Ltd, Gabriel India Ltd and Alstom Projects Ltd. MOIL accounts for
~50% of total production in the country and the demand for manganese is expected to remain robust.
Financials
• Innoventive Industries holds a decent balance sheet, the only concern being the loan. The IPO proceeds
would be used for servicing of this loan.
• Year on year, the company has been reporting healthy revenue & PAT figures.
• The company’s consolidated revenue increased from Rs 32,538.37 lakh in FY08 to Rs 42,515.05 lakh in
FY10. PAT, on the other hand increased from Rs 801.29 lakh to Rs 3,434.07 lakh during this period.
Outlook
Innoventive Industries is a growing company with consistently improving financials. At the upper level of price band the stock would be trading at a PE of 10xFY11 EPS of Rs.12, based on P/E valuation.
The company has a diverse product portfolio and is looking forward to expand its existing capacity of CEW from existing 23265MT p.a to 76701MT by 2012. It is also open to exploring new geographies such as North America, Europe, Middle East and Latin America apart from the domestic market. This indicates growth sustainability. However huge amount of outstanding debts in the books is a cause of concern. On the valuation front the stock is reasonably priced. We recommend Subscribe to the IPO to investors who have a medium to high risk profile.
Snapshot
Issue Open: 26 April’11 – 29 April’11
Issue Type: 100% Book Building
Issue Size: Rs. 219.58 crore
Face Value: Rs. 10 Per Equity Share
Issue Price: Rs.117-120 per share
Lot Size: 50 shares
Exchange: NSE/BSE
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