Atmastco Limited IPO - Review & Fundamental Analysis

Atmastco Limited IPO 

Atmastco Limited’s IPO consists of a fresh issue of 54,80,000 shares worth INR 42.20 crores and an offer to sell 73,05,600 existing equity shares. The company seeks funds to fulfill working capital needs, repay loans, and general operations. 

Atmastco Ltd IPO – Important Details

Atmastco Limited IPO DateFebruary 15, 2024 to February 20, 2024
Atmastco Limited IPO Listing DateFebruary 23, 2024
Atmastco Limited IPO PriceINR 77 per share
Atmastco Limited IPO Lot Size1600 Shares
Atmastco Limited IPO Total Issue SizeINR 56.25 crores
Atmastco Limited IPO Basis of AllotmentFebruary 21, 2024
Atmastco Limited IPO Initiation of RefundsFebruary 22, 2024
Atmastco Limited IPO Credit of Shares to DematFebruary 22, 2024
Atmastco Limited IPO Issue TypeFixed Price Issue
Atmastco Limited IPO Listing AtNSE SME

Atmastco Ltd IPO – Company Profile 

Atmastco, a diversified engineering company, excels in EPC services for metal, oil & gas, pollution control, and fabrication. Atmastco Defense Systems’s subsidiary manufactures protective gear for military and paramilitary forces. 

Their company trades various industrial materials and equipment, excelling in cost control and project management. Recognized for quality, they serve diverse industries focusing on manufacturing, EPC projects, and approved vendor status in railway infrastructure. 

They prioritize supplier relationships to enhance market understanding, streamline the raw material supply chain, and ensure timely production and delivery, fostering reliability and customer satisfaction through effective inventory management and supply predictability. 

Atmastco IPO – Fundamental Analysis

Atmastco Limited’s IPO showcases remarkable revenue and profit growth, significant improvements in RoNW and EPS, and a strong asset base, indicating a solid investment opportunity for those interested in a company with a robust growth trajectory.

Revenue Growth:

The company’s revenue has seen an impressive increase, from ₹693,857.53 thousand in 2021 to ₹2,419,505.91 thousand in 2023, indicating strong market demand and successful business expansion.

Equity Growth:

Equity has grown from ₹391,223.03 thousand in 2021 to ₹552,033.14 thousand in 2023, reflecting investor confidence and possibly the retention of earnings to fuel further growth.

Profitability:

Profit after tax has seen a remarkable surge, from ₹6,045.69 thousand in 2021 to ₹127,774.71 thousand in 2023, showcasing the company’s ability to enhance its profitability significantly.

Return on Net Worth (RoNW):

The RoNW has dramatically improved from 1.55% in 2021 to 23.15% in 2023, indicating an efficient use of shareholders’ equity to generate profits.

Diluted EPS:

The Diluted EPS has increased substantially, from ₹0.41 in 2021 to ₹8.63 in 2023, highlighting the company’s growing earnings power per share.

Asset and Liability Management:

Total assets have nearly doubled, indicating significant expansion and investment in the business’s operational capacity. While liabilities have increased, asset growth suggests strategic investment and expansion efforts.

NAV per Equity Share:

The NAV per equity share has increased from ₹26.41 in 2021 to ₹37.27 in 2023, reflecting an increase in the intrinsic value of the company’s shares.

Atmastco Limited IPO Financial Information 

ParticularAs of 31 March 2021As of 31 March 2022As of 31 March 2023
Revenue (₹ in thousands)6,93,857.539,36,123.2924,19,505.91
Equity (₹ in thousands)3,91,223.034,23,523.435,52,033.14
Expenses (₹ in thousands)6,88,996.439,00,526.2822,45,764.69
Profit and Loss After Tax (₹ in thousands)6,045.6932,300.40127,774.71
RoNW (%)1.557.6323.15
NAV per Equity Share (₹)26.4128.5937.27
Diluted EPS only (₹)0.412.188.63
Total Assets (in thousands)12,03,621.3713,27,394.3023,62,071.97
Total Liabilities (in thousands)8,12,398.349,03,870.8718,10,038.83

Atmastco IPO Peer Comparison

There are no listed Indian companies engaged in both EPC and fabrication for industrial sectors, which is a unique market position. Therefore, it is impossible to provide an industry comparison concerning Atmastco Limited. 

Atmastco IPO Objective 

The main objective of Atmastco Limited is to meet working capital needs and repay loans. 

  1. Funding incremental working capital requirements of the company: Their working capital-intensive business seeks additional funding to support incremental requirements in Fiscal 2024, anticipating increased profitability and attainment of proposed targets outlined in their business plan. 
  1. Prepayment or repayment of all or a portion of certain secured and unsecured loans availed by the company: The company proposes to utilize an estimated amount of up to INR 10.41 crores from the Net Proceeds towards prepayment or scheduled repayment of all or a portion of certain secured/unsecured loans availed by the company, aiming at debt reduction, favorable ratio maintenance, prepayment facilitates reinvestment for business growth. 
  1. General Corporate Purposes: The company aims to deploy the balance funds towards the general corporate goal, including funding growth, marketing, contingencies, ordinary business needs, and meeting expenses. 

Atmastco Ltd IPO Risks And Challenges 

Atmastco Limited’s risks include legal uncertainties, customer dependency, and bidding competition. Despite challenges, strategic strengths bolster their competitive position in winning projects aligned with their expertise. 

  • Their company and directors are involved in ongoing legal proceedings, with outcomes uncertain. They’re dedicated to addressing them, aware of potential reputational and business impacts from unfavorable results.
  • Their business depends on a small number of critical customers for revenue. While strong relationships are vital, fluctuations in orders or the loss of these customers could negatively impact their financial stability and results. 
  • Their company competes for contracts through a rigorous bidding process, emphasizing experience, technical capabilities, and competitive pricing. While success isn’t guaranteed, their skilled team and strategic advantages position them well for winning projects aligned with their expertise. 

Atmastco Ltd IPO – Industry & Market Potential

The global structural steel fabrication market size experienced significant growth from $142.95 billion in 2022 to $163.16 billion in 2023, with a compound annual growth rate (CAGR) of 14.1%. Projections indicate continued expansion, with an expected market size of $245.8 billion by 2027, reflecting a CAGR of 10.8%. 

The Steel Fabrication Market, valued at $6.111B in 2020, is expected to reach $9.78B by 2028, driven by construction demand, metal 3D printing, and stainless steel’s anti-corrosion properties, fostering rapid growth in India. 

India’s defense budget in 2023 is $74 billion, set to grow at over 4% CAGR from 2024-2028. The defense market research report outlines the market size, growth drivers, technology trends, challenges, and government programs influencing military platform demand. 

Atmastco Limited IPO – Type of Offer

Atmastco plans a fresh issue of shares, seeking INR 42.20 crores to augment the company’s capital needs. Additionally, the company proposes an offer for sale, intending to sell 73,05,600 existing shares.

  • Fresh Issue: The company will issue new shares to raise capital, aiming to collect INR 42.20 crores. The company intends to utilize the proceeds from the fresh issue to meet working capital needs, repay loans, and general operations. 
  • Offer for sale: Atmastco is offering to sell 73,05,600 existing shares. The following is the detail of the existing shareholder, who is also the promoter selling the shares:
Name of the promoter selling shareholderMaximum number of offered shares for sale (in millions)
Mr. Subramaniam Swaminathan Iyer10,95,360
Mr. Venkataraman Ganesan7,30,240

Atmastco Limited IPO Offer Size 

The size of Atmastco Limited’s offer is valued at INR 56.25 crores. This comprises a new issuance of shares totaling INR 42.20 crores and the sale of 73,05,600 crores of existing equity shares. The funds generated will meet working capital needs, repay loans, and general operations. 

Atmastco Ltd IPO Allotment Structure

Atmastco Limited Limited’s IPO allotment structure includes a category for Retail Individual Investors (RII) with investments below ₹2 lakhs, a category for other investors exceeding ₹2 lakhs, and a reservation of 3,66,400 shares for Market Makers.

        Retail Individual Investors (RII): These individual investors apply for shares with a total value of less than Rs.2 lakhs.

         Other than retail individual investors: Such applications where the value exceeds INR 2 lakhs.

         Market Maker Reservation: A certain percentage or number of shares is reserved for market makers. The company has set aside 3,66,400 shares for this purpose.

How to apply for an Atmastco Limited IPO through Alice Blue?

To apply for the Atmastco Limited IPO through Alice Blue, you would typically follow these steps:

  1. Open a Demat and Trading Account: If you don’t have one already, you would need to open a Demat and trading account with Alice Blue.
  2. Check for IPO Details: Once your account is active, you can check for the Atmastco Limited IPO details in the IPO section of the Alice Blue platform.
  3. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
  4. Submit the Application: Confirm all your details and submit your application.

 You can apply for the Atmastco Limited  IPO at Alice Blue in just a few clicks!

 Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.

 Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.

How to check Atmastco Limited IPO Allotment Status on Alice Blue?

 Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:

 Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.

  1. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
  2. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
  3. Select the Atmastco Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Atmastco Limited IPO.
  4. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.

If you face any issues, it’s recommended that you contact Alice Blue’s customer support for detailed assistance.

 Apart from Alice Blue, there are other ways to check the allotment status of the Atmastco Limited IPO:

●  Registrar’s Website: Visit the website of Cameo Corporate Services Limited, the registrar of the Atmastco Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.

●   NSE SME: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) SME (Small Medium Enterprise) Platform. You would need your application number and PAN to check the status. 

 Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.

Atmastco Limited Limited IPO Offer Registrar

The registrar for the Atmastco Limited IPO is Cameo Corporate Services Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.

Contact information for the registrar:

Subramanian Building” 1 Club House Road,

Chennai- 600 002

Tel: +91 40 6716 2222

E-mail: [email protected]

Website: w