Craftsman Automation Ltd
Complete IPO details, including price band, financials, subscription status, and key insights.
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IPO Snapshot
Key metrics and details at a glance.
Price Band
₹1,490
Per ShareLot Size
10 Shares
Minimum Investment
₹14,900
Issue Size
₹823.7 Cr
Face Value
₹5
Per ShareIPO Type
Book Building
Retail Quota
35%
QIB Quota
50%
NII Quota
15%
IPO Timeline
Important dates for your applying strategy.
Subscription Status
Live demand across investor categories.
Track real-time subscription levels:
*Real-time data subject to exchange updates
Craftsman Automation Ltd
Business model, operations, and market positioning.
Promoter Holding (Pre-Issue)
52.83%
Promoter Holding (Post-Issue)
49.7%
Issue Type
Book Building
ISIN
INE00LO01017
About the Company
The company is a diversified engineering company with vertically integrated manufacturing capabilities, engaged in three business segments, namely powertrain and other products for the automotive segment, aluminium products for the automotive segment and industrial and engineering products segment. The company is the largest player involved in the machining of cylinder blocks and cylinder heads in the intermediate, medium and heavy commercial vehicles segment as well as in the construction equipment industry in India. The company is are among the top three-four component players with respect to machining of cylinder block for the tractor segment in India. The company is present across the entire value chain in the Automotive-Aluminium Products segment, providing diverse products and solutions.
Industry Overview
The Indian auto components industry clocked a CAGR of 6% in production over Fiscals 2015 to 2020, led by growth in replacement and exports demand. Domestic demand is forecast to log a CAGR of 6% to 8% to approximately Rs. 4,225 billion, driven by demand from OEMs at 7% to 9%, whereas exports are set to grow at 3% to 5% over Fiscals 2020 to 2024 to reach approximately Rs. 2,772 billion on the back of healthy growth in the OEM segment on a low base of Fiscals 2020 and 2021 due to BS-VI norms and the COVID-19 pandemic, respectively. In the long term, CRISIL Research expects the domestic consumption to grow at a pace of 5 to 7% CAGR between Fiscals 2020-2024.
Company History
Craftsman Automation Limited was incorporated as "Craftsman Automation Private Limited" on July 18, 1986, as a private limited company under the Companies Act 1956, pursuant to a certificate of incorporation granted by the Registrar of Companies, Chennai, Tamil Nadu. Pursuant to the conversion of the Company to a public limited company and as approved by the Shareholders pursuant to a resolution dated April 30, 2018, the name of the Company was changed to "Craftsman Automation Limited" and the Registrar of Companies, Coimbatore, Tamil Nadu ("RoC") issued a fresh certificate of incorporation dated May 4, 2018.
Products & Services
- Manufacturing capabilities, engaged in three business segments, namely powertrain and other products for the automotive segment (5-10 Microns)
Growth Strategy
- Leverage vertically integrated manufacturing and engineering capabilities, to tap the growing opportunities for aluminium usage in the Automotive - Aluminium Products and Industrial and Engineering segments.
- Increase our wallet share and acquire new business by leveraging existing OEM relationships and adding new customers.
- Growing opportunities in storage solutions.
- Continue to reduce operating costs and improve operational efficiencies.
Customer Base
Wholesalers & Retailers
Financial Performance
Revenue, profit after tax and total assets across the last 3 reported financial years.
Revenue
Amount in ₹ crore
Profit After Tax (PAT)
Amount in ₹ crore
Total Assets
Amount in ₹ crore
Figures in ₹ crore, on a consolidated basis, as reported for FY24 to FY26.
Objects of the Issue
How the company plans to utilize IPO proceeds.
Use of Proceeds
The funds raised through this IPO will be used for:
Initial public offering of 5,528,161 equity shares of face value of Rs. 5 each (The "Equity Shares") of Craftsman Automation Limited (The "Company" or The "Issuer") for cash at a price of Rs. 1490 per equity share (Including a share premium of Rs. 1485 per equity share) (The "Offer Price") aggregating to Rs. 823.70 crores (The "Offer") comprising a fresh issue of 1,006,711 equity shares aggregating to Rs. 150.00 crores by the company (The "Fresh Issue") and an offer for sale of 4,521,450 equity shares comprising 130,640 equity shares by Srinivasan Ravi (The "Promoter Selling Shareholder"), 1,559,260 equity shares by Marina III (Singapore) PTE Limited ("Marina") and 1,414,050 equity shares by International Finance Corporation ("IFC") (Marina, together with IFC, The "Investor Selling Shareholders") and 1,417,500 equity shares by K. Gomatheswaran (The "Individual Selling Shareholders") (The Promoter Selling Shareholder, The investor selling shareholders and the individual selling shareholder, Together, The "Selling Shareholders" and such Equity shares offered by the selling shareholders, The "Offered shares") aggregating up to Rs. 673.70 crores (The "Offer for Sale"). The Issue Price 1490 per Equity Share of the face value of Rs. 5 each. The Issue Price is 298.00 times the face value of the Equity Shares.
*Subject to approvals and market conditions.
Strengths & Risks
Key competitive advantages and factors to consider before investing.
- Diversified engineering company with a focus on providing comprehensive solutions and manufacturing high quality, intricate and criticalproducts, components and parts
- Strong in-house process and product design capabilities with the ability to interchange capacity and product mix.
- Long term and well established relationships with marquee domestic and global OEMs.
- Extensive manufacturing footprint, with strategically located manufacturing facilities.
- Experienced management team supported by motivated and skilled work force.
- The extent to which the coronavirus disease (COVID-19) affects the companies business, results of operations and financial condition will depend on future developments, which are uncertain and cannot be predicted.
- There has been a significant decline in automobile sales even prior to COVID-19 and the company is not certain that the sales will recover even after the impact of COVID-19 is over.
- The companies inability to meet the companies obligations under the companies debt financing arrangements could adversely affect our business, results of operations and cash flows.
- The companies Group Companies have incurred losses in the last three Fiscals.
- The audit reports on the companies audited financial statements as at and for Fiscals 2020, 2019 and 2018, the nine months ended December 31, 2020, and the examination report on the Restated Financial Information contain certain emphases of matter and other remarks, which may affect the companies future financial results.