Mandeep Auto Industries Limited’s IPO consists of a fresh issue of 37,68,000 lakh shares worth INR 25.25 crores. The company aims to expand its Faridabad manufacturing facility, repay debt, fund working capital, and address general corporate needs.
Mandeep Auto Industries Ltd IPO – Important Dates
| Mandeep Auto Industries IPO Date | May 13, 2024 to May 15, 2024 |
| Mandeep Auto Industries IPO Listing Date | May 21, 2024 |
| Mandeep Auto Industries IPO Price | INR 67 per share |
| Mandeep Auto Industries IPO Lot Size | 2000 shares |
| Mandeep Auto Industries IPO Total Issue Size | INR 25.25 crores |
| Mandeep Auto Industries IPO Basis of Allotment | May 16, 2024 |
| Mandeep Auto Industries IPO Initiation of Refunds | May 17, 2024 |
| Mandeep Auto Industries IPO Credit of Shares to Demat | May 17, 2024 |
| Mandeep Auto Industries IPO Issue Type | Fixed Price Issue |
| Mandeep Auto Industries IPO Listing At | NSE SME |
Mandeep Auto Industries IPO – Company Profile
Mandeep Auto Industries manufactures and supplies sheet metal components, auto parts, sprocket gears, and machined components for various industries, including automotive, railways, defense, and more, catering to diverse applications.
From their advanced Manufacturing Unit, they produce high-quality sheet metal, auto parts, and gears that meet strict standards. Offering personalized services, they customize components promptly and precisely, serving a robust customer base across India.
They nurture enduring relationships with repeat clients by focusing on expanding their product range through innovative designs. Through proactive marketing and close collaboration with customers, they gather insights to enhance their products and align with industry trends.
Mandeep Auto Industries Limited IPO Review
Mandeep Auto Industries’ financial analysis reveals a mixed performance. Revenue rose initially but fell short later. Profitability and equity improved, yet the return on net worth declined, highlighting mixed performance indicators.
- Revenue Trend: The revenue increased from ₹2,189.73 lakhs in March 2022 to ₹2,978.74 lakhs in March 2023. The revenue for the current year’s 5-month period ending August 2023 is INR 10,246.64 lakhs, crossing last year’s benchmark.
- Equity and Liabilities: Equity has shown a consistent increase over the periods, reflecting potential growth and expansion.
- Profitability: The profit after tax (PAT) has significantly increased from ₹22.73 lakhs in March 2022 to ₹27.23 lakhs by August 2023. This improvement in profitability could be a source of confidence for investors.
- Earnings per Share (EPS): The diluted EPS for August 2023 is 21.57.
- Return on Net Worth (RoNW): The RoNW has declined from 15.64% to 12.02%, indicating a decrease in the company’s ability to generate returns on shareholder equity.
- Financial Position: Total assets have increased, suggesting potential business growth. However, the current ratio has increased, indicating strengthening liquidity and potential challenges in meeting short-term obligations.
Mandeep Auto Industries Ltd IPO Fundamental Analysis
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 31 August 2023 |
| Revenue (₹ in lakhs) | 2,189.73 | 2,978.74 | 10,246.64 |
| Equity (₹ in lakhs) | 413.61 | 453.54 | 661.77 |
| Expenses (₹ in lakhs) | 2,045.61 | 2,757.82 | 871.32 |
| Profit and Loss After Tax (₹ in lakhs) | 22.73 | 36.86 | 27.23 |
| Diluted EPS (₹) | – | – | 21.57 |
| Return on Net Worth (%) | 15.64 | 23.13 | 12.02 |
| NAV per Equity Share (₹) | – | – | 10.07 |
| Total Assets (in lakhs) | 1,297.81 | 1,963.15 | 2,131.31 |
| Total Liabilities (in lakhs) | 884.20 | 1,509.61 | 1,469.54 |
| Current Ratio | 1.524 | 1.235 | 3.127 |
Mandeep Auto Industries IPO Peer Comparison
Mandeep Auto Industries showed stable growth. Kranti Industries had robust profitability. Porwal Auto Components reported losses but significant revenue growth. Lumax Auto Technologies exhibited strong revenue and profit growth, outperforming peers.
| Company | Face Value (₹) | P/E (₹) | EPS (₹) | RoNW (%) | Book value per share (₹) |
| Mandeep Auto Industries Limited | 10 | 3.11 | 21.57 | 8.45 | 10.07 |
| Kranti Industries Limited | 10 | 49.95 | 1.95 | 8.49 | 23.02 |
| Porwal Auto Components Limited | 10 | (76.13) | (0.68) | (1.75) | 39.01 |
| Lumax Auto Technologies Limited | 7 | 34.28 | 10.79 | 12.62 | 85.50 |
Mandeep Auto Industries Ltd IPO Objective
The main objective of Mandeep Auto Industries Limited is to expand, repay debts, and fund working capital requirements.
- Expansion of the existing Manufacturing Facility located at Plot No 26, Nangla, Faridabad Haryana -121001 by constructing the building, purchasing equipment/machinery, other assets, etc.: The company plans to allocate INR 908.37 Lakhs to expand its manufacturing facility, incorporating new buildings, equipment, and machinery. This expansion will integrate with existing operations, enhancing production capacity and efficiency—word count.
- Repayment/prepayment of certain borrowings availed by the company: They plan to utilize INR 684.16 Lakhs to repay/prepay term loans and bank working capital, aiming to reduce indebtedness, improve equity base, and enhance leverage capacity for future business growth and expansion.
- Funding working capital requirements: They intend to utilize INR 608.82 lakhs to finance their working capital needs, which is vital for business growth. Currently, their company relies on internal accruals, share capital, and bank financing, with aggregate limits of INR 711 Lakhs and INR 125 Lakhs.
- General Corporate Purpose: The company will deploy the balance funds of INR 234.27 lakhs for prepayment/repayment of borrowings, strategic initiatives, acquisitions, investments in future subsidiaries, business development, R&D, fixed assets, and meeting various expenses.
Mandeep Auto Industries Limited IPO Risks And Challenges
Mandeep Auto Industries Limited’s risks include dependency on permits and licenses, potential setbacks from agricultural land categorization, and limited operating history post-acquisition, which could affect investor evaluation and business continuity.
- The company requires various permits, licenses, and approvals for its operations. Non-renewal or non-issuance of these could adversely affect business, and previous errors in obtaining approvals may lead to penalties.
- The company’s existing and proposed manufacturing lands are categorized as agricultural. Despite plans to seek construction permissions, delays or denials may hinder expansion, potentially negatively impacting the business and financial health.
- It was incorporated on April 19, 2023, as Mandeep Auto Industries Limited, following the acquisition of M/s Mandeep Industries’ business on June 30, 2023. It has a limited operating history, posing challenges for investor assessment.
Mandeep Auto Industries Limited IPO – Industry & Market Potential
India’s growth in FY 2023-24 will be fueled by domestic demand and capital investment, supported by structural reforms like IBC and GST, strong balance sheets, digital infrastructure expansion, and policy execution. Potential downside risks include global inflationary pressures and recessionary tendencies in major advanced economies.
The Indian automobile industry, buoyed by liberalization and robust FDI, is a significant contributor to the economy. It produces a wide range of vehicles and components. Despite challenges, it provides significant employment and contributes significantly to GDP.
India’s EV revolution faces a skills gap, requiring alignment of engineering courses with EV expertise. Industry-academic collaboration, exemplified by MG Motor’s Dakshta program and ASDC’s initiatives, aims to bridge this gap.
Mandeep Auto Industries Ltd IPO – Type of Offer
Mandeep Auto Industries Limited’s IPO consists of a fresh issue of 37,68,000 lakh shares worth INR 25.25 crores. The company aims to expand its Faridabad manufacturing facility, repay debt, fund working capital, and address general corporate needs.
Mandeep Auto Industries IPO Offer Size
The offer size of Mandeep Auto Industries is INR 25.25 crores, consisting of a fresh issue of 37,68,000 lakh shares. The company seeks funds to expand its Faridabad manufacturing facility, repay debt, fund working capital, and address general corporate needs.
Mandeep Auto Industries Limited IPO Allotment Structure
Mandeep Auto Industries 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 1,90,000 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 Makers Reservation: A certain percentage or number of shares is reserved for market makers. The company has set aside 1,90,000 shares for this purpose.
How to apply for the Mandeep Auto Industries Limited IPO?
To apply for the Mandeep Auto Industries IPO through Alice Blue, you would typically follow these steps:
Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.
- Check for IPO Details: Once your account is active, you can check for the Mandeep Auto Industries IPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for the Mandeep Auto Industries 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 do you check Mandeep Auto Industries Ltd IPO Allotment Status?
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.
- 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.
- 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.
- Select the Mandeep Auto Industries 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 Mandeep Auto Industries IPO.
- 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 Mandeep Auto Industries IPO:
● Registrar’s Website: Visit the website of Cameo Corporate Services Private Limited, the registrar of the Mandeep Auto Industries 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) Small Medium Enterprise (SME). 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.
Mandeep Auto Industries Ltd IPO Offer Registrar
The registrar for the Mandeep Auto Industries Limited IPO is Cameo Corporate Services Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
Cameo Corporate Services Limited
“Subramanian Building”, #1, Club House Road, Chennai – 600 002
Tel No.: +91-44-40020700, 28460390; E-mail: [email protected]
Online Investor Portal: https://wisdom.cameoindia.com
Website: www.cameoindia.com
Mandeep Auto Industries Limited IPO – FAQs
The allotment date of the Mandeep Auto Industries Limited IPO is May 16, 2024.
The price band of the issue is INR 67 per share.
The offer size of Mandeep Auto Industries is INR 25.25 crores, consisting of a fresh issue of 37,68,000 lakh shares. The company seeks funds to expand its Faridabad manufacturing facility, repay debt, fund working capital, and address general corporate needs.
The listing date of Mandeep Auto Industries IPO is May 21, 2024.
