ET
UpcomingSMEManufacturing · Taps and Cutting Tools
Emkay Taps and Cutting Tools Limited
EMKAYTOOLS
★★★☆☆3/5
🔗 Official WebsitePrice Band: —
Lot Size: 400 shares
Issue Size: 1554.96
About the Company
What does this company do?
Manufacturing of HSS Taps and Cutting Tools
IPO Details
Issue parameters, key dates and structure.
Total Issue Size
1554.96
4712000
Fresh Issue
0
0
Proceeds go to company
OFS
1554.96
4712000
Proceeds to selling shareholders
Reservation Structure
RII (Retail Individual Investors)
50
2236000
Minimum 50% allocation
Products & Brands
Key offerings and brand portfolio of the company.
HSS Taps: High Speed Steel Taps for manufacturing applications
Financial Performance
P&L, Balance Sheet and Cash Flow — all figures in ₹ Crores.
| Particulars (₹ Cr) | 10M FY2015 (Apr 2014–Jan 2015) | FY2014 | FY2013 | FY2012 |
|---|---|---|---|---|
| Revenue from Operations | 30.43 | 29.75 | 30.97 | 34.65 |
| Other Income | 2.11 | 0.26 | 0.56 | 1.00 |
| EBITDA | 16.24 | 11.58 | 10.31 | 14.23 |
| EBITDA Margin | 53.4% | 38.9% | 33.3% | 41.1% |
| Depreciation & Amortisation | 2.99 | 2.57 | 2.88 | 2.77 |
| EBIT | 13.25 | 9.01 | 7.43 | 11.46 |
| Finance Costs (Interest) | 0.08 | 0.03 | 0.23 | 0.54 |
| PBT (Profit Before Tax) | 13.18 | 8.98 | 7.23 | 11.13 |
| Tax | 4.54 | 3.24 | 2.31 | 2.78 |
| PAT (Net Profit) | 8.64 | 5.74 | 4.92 | 8.35 |
| PAT Margin | 28.4% | 19.3% | 15.9% | 24.1% |
All figures in ₹ Crores (INR). Data sourced from DRHP/RHP.
Key Financial Ratios
Valuation and profitability metrics at the IPO price.
EPS — Basic (₹)
—
10M FY2015 (not annualised)
EPS — Diluted (₹)
—
10M FY2015
P/E Ratio
—
At ₹330 upper band
RoNW (%)
15.53%
10M FY2015 (PAT ₹8.64 Cr / NW ₹55.61 Cr)
NAV per Share (₹)
312.73
Pre-issue (NW ₹55.61 Cr / 17,78,550 shares)
Debt/Equity
0.003
10M FY2015 (Total debt ₹0.15 Cr / NW ₹55.61 Cr)
EBITDA Margin (%)
53.37%
10M FY2015 (EBITDA on operating revenue)
PAT Margin (%)
28.38%
10M FY2015 (PAT ₹8.64 Cr / Revenue ₹30.43 Cr)
Revenue CAGR
-2.83%
FY2013–FY2014 1-yr; FY2012–FY2014 2-yr approx -7.3%
Objectives of the Issue
How the company intends to use the IPO proceeds.
⚠
Achieve benefits of listing on Stock Exchange
1
Offer for sale of 4,71,200 Equity Shares by Selling Shareholders
2
Enhance brand name and avail future growth opportunities
3
Provide liquidity to existing shareholders
4
Create public trading market for Equity Shares
SWOT Analysis
Internal strengths & weaknesses; external opportunities & threats.
💪Strengths
Single Product Company with total tapping solutions
Well Established Manufacturing Facility
Quality Assurance and Standards
Long Standing and Established relationships
Experienced Management Team
State-of-the-art technology imported from U.S. and Germany
⚠️Weaknesses
Small company size
Single product concentration
First public issue with limited market visibility
🚀Opportunities
Listing benefits and brand enhancement
Access to capital markets
Growth opportunities post-listing
🔥Threats
Technology obsolescence
Supply chain disruptions
Regulatory and licensing risks
Promoter control concentration
Market competition
Competitive Strengths
Key advantages highlighted in the DRHP.
✓
Single Product Company with total tapping solutions
✓
Well Established Manufacturing Facility
✓
Quality Assurance and Standards
✓
Long Standing and Established relationships
✓
Experienced Management Team
Promoters & Shareholding
Pre & post-IPO shareholding pattern. Click a promoter card to learn more.
Promoters
Shareholding Pattern
99.9673.46
0.0426.54
PrePost
Key Risks
Material risk factors to consider before applying.
⚠
First public issue with no formal market history
⚠
Promoters retain 73.46% post-issue control
⚠
Dependence on statutory permits and licenses
⚠
Technology obsolescence risk
⚠
Concentration in single product category
◆ Neutral
Should You Apply?
Emkay Taps and Cutting Tools Limited is an SME company engaged in manufacturing HSS Taps and Cutting Tools. The company is doing an Offer for Sale (OFS) of 4,71,200 equity shares at ₹330 per share (face value ₹10) for listing on NSE EMERGE. This is the company's first public issue. The promoters (Ajayprakash Kanoria, Alka Kanoria and Ajayprakash Kanoria HUF) are selling 64,250, 1,24,910 and 2,32,040 shares respectively, while Nagpur Tools Private Limited is selling 50,000 shares. Post-issue, promoters will retain 73.46% of the company. The issue raised ₹1554.96 Crores (15.5496 Crores) with issue expenses estimated at ₹48 Lakhs. NAV per share pre-issue was ₹585.69 as of March 31, 2014, with a P/E ratio of 11.00x based on FY2014 EPS of ₹29.99.
⚠️ This is not investment advice. CheckIPO provides information for educational purposes only. Always consult a SEBI-registered financial advisor before investing.
Lead Managers & Registrar
Institutions managing the issue and handling allotment.
Book Running Lead Managers (1)
Hem Securities
Registrar to the Issue
📋
Bigshare Services Private Limited
Registrar to the Issue
Company Details
Registered information and contact details.
Company Name
Emkay Taps and Cutting Tools Limited
CIN
U29220MH1995PLC091091
Registered Office
Plot No. B-27 and B-27/1, M.I.D.C. Hingna, Industrial Estate, Nagpur – 440 016, Maharashtra, India
Contact Person
Ms. Shruti R. Sohane
Designation
Company Secretary & Compliance Officer
Phone
+91 – 7104 - 237363
Website
www.emkaytapsandtools.com