The company Sharp Chunks and Machines Limited is coming up with an IPO of INR 16.84 crores. The offer consists of a fresh issue of equity shares and an offer to sell shares of existing shareholders. The company intends to utilise the raised funds to meet the working capital requirements of the company.
Sharp Chucks And Machines Limited IPO – Important Details
| Sharp Chunks and Machines IPO Date | September 29, 2023 to October 5, 2023 |
| Sharp Chunks and Machines IPO Listing Date | October 12, 2023 |
| Sharp Chunks and Machines IPO Price | INR 58 per share |
| Sharp Chunks and Machines IPO Lot Size | 2000 Shares |
| Sharp Chunks and Machines IPO Total Issue Size | INR 16.84 crores |
| Sharp Chunks and Machines IPO Basis of Allotment | October 9, 2023 |
| Sharp Chunks and Machines IPO Initiation of Refunds | October 10, 2023 |
| Sharp Chunks and Machines IPO Credit of Shares to Demat | October 11, 2023 |
| Sharp Chunks and Machines IPO Issue Type | Fixed Price Issue IPO |
| Sharp Chunks and Machines IPO Listing At | NSE SME |
Sharp Chucks And Machines IPO – Company Profile
The company is engaged in the manufacturing of forging and graded casting machined components of tractors and other automobiles, and are also engaged in power chucks, lathe chucks, drill chucks, and other machine tools accessories The supply to automobile industries in India and OEMs industries.
The manufactured products have diverse applications for tractors, automobiles, material handling & earth moving equipment, railways, defense, machine tools, DIY industry, etc. The company also manufactures customized components as per customer-specific requirements and use, with a high degree of precision both in quality and time, with personalized services to the strong customer base in India and overseas.
The company has received performance appreciation from our leading customer, such as “Excellent Performance in the field of Escorts Supplier Quality Systems Improvement Audit” conducted on July 15. 2021, “Best SCM Performance Award” by a leading automotive & farm equipment company for outstanding performance in 2009-10.
Sharp Chucks And Machines Ltd IPO – Fundamental Analysis
Revenue Growth:
The company’s revenue has seen a consistent upward trend, reaching ₹17,644.97 lakhs in 2023 from ₹13,545.94 lakhs in 2021, demonstrating steady top-line growth.
Profitability:
While profitability improved over this period, with profit after tax at ₹330.96 lakhs in 2023, the overall profit figures are relatively modest.
Return on Net Worth (RoNW):
The RoNW increased from 7.74% in 2021 to 9.68% in 2023, showing an upward trajectory, which is a positive sign.
Earnings Per Share (EPS):
Diluted EPS grew from ₹3.38 in 2021 to ₹5.18 in 2023, indicating enhanced earnings per share.
Net Asset Value (NAV) per Equity Share:
NAV per equity share increased over time, from ₹43.70 in 2021 to ₹53.50 in 2023, demonstrating a rise in intrinsic value per share.
Asset and Liability Management:
he total assets have grown over the years, reaching ₹18,003.58 lakhs in 2023. Liabilities also increased, showcasing a balanced financial structure.
Summary:
Sharp Chucks And Machines Limited has exhibited steady revenue growth and improving profitability. The increasing RoNW and EPS reflect positive financial performance. However, the overall profit figures are relatively modest, and investors should assess industry conditions and risk factors before making an investment decision in the IPO.
Sharp Chucks And Machines Limited IPO Financial Information
| Particular | As at 31 March 2021 | As at 31 March 2022 | As at 31 March 2023 |
| Revenue (₹ in lakhs) | 13,545.94 | 15,190.78 | 17,644.97 |
| Equity (₹ in lakhs) | 4,275.67 | 4 ,728.29 | 5 ,234.79 |
| Expenses (₹ in lakhs) | 17,214.72 | 14,611.53 | 13,112.21 |
| Profit and Loss After Tax (₹ in lakhs) | 506.50 | 452.62 | 330.96 |
| RoNW (%) | 7.74% | 9.57% | 9.68% |
| Diluted EPS only (₹) | 3.38 | 4.63 | 5.18 |
| NAV per Equity Share (₹) | 43.70 | 48.33 | 53.50 |
| Total Assets (in lakhs) | 13,397.98 | 1 8,392.09 | 1 8,003.58 |
| Total Liabilities (in lakhs) | 9,122.31 | 13,663.80 | 12,768.79 |
Sharp Chucks And Machines IPO Peer Comparison
In comparison to its peers, Sharp Chucks And Machines exhibits moderate financial performance with a total income of ₹17,931.45 lakhs, a P/E ratio of 11.20, and a RoNW of 9.68%. In contrast, Bhagwati Autocast leads in income and P/E ratio, while Pritika Engineering Components and Nelcast have their strengths in RoNW.
| Company | Total Income (₹ in lakhs) | Face Value per Equity Share (₹) | P/E | EPS (Basic) (₹) | EPS (Diluted) (₹) | RoNW (%) | NAV per Equity Share (Basic) (₹) |
| Sharp Chucks And Machines Limited | 17,931.45 | 10 | 11.20 | 5.18 | 5.18 | 9.68% | 53.50 |
| Pritika Engineering Components Limited (Consolidated) | 8244.80 | 10 | 18.79 | 3.78 | 3.78 | 11.96% | 31.56 |
| Nelcast Limited (Consolidated) | 1,28,011.84 | 2 | 42.88 | 3.42 | 3.42 | 6.35% | 53.84 |
| Bhagwati Autocast Limited (Standalone) | 15,422.09 | 10 | 21.07 | 26.80 | 26.80 | 22.43% | 119.50 |
Sharp Chucks And Machines Ltd IPO Objective
Sharp Chucks And Machines Ltd’s IPO aims to raise funds for working capital needs, allocating INR 2.67 crores, and for general corporate purposes, which include IT advancements and future expansion.
- Funding working capital requirement: The company requires additional working capital to fund future growth requirements of the company and for other business purposes. The company plans to utilize INR 2.67 crores for the said purpose.
- General corporate purpose: The company plans to deploy the balance funds towards the general corporate purpose, which is not limited to meeting expenses incurred in the ordinary course of business, such as strategic initiatives, including the advancement of information technology, meeting future branch and business expansion, etc.
Sharp Chucks And Machines Limited IPO Risks And Challenges
Sharp Chucks And Machines Ltd faces risks due to heavy reliance on tractor and automobile industries, with 73% of revenue from the top five clients. Persistent negative cash flows and industry fluctuations pose threats to operations and profitability.
- The company heavily depends on the performance of the tractor industry and automobile. Major upsets or slowdowns adversely affecting the tractor industry and automobiles and its ancillary industries can impact the business, results of operations, financial condition, and cash flows.
- A substantial portion of the revenues has been dependent upon the top five clients i.e. % for the year 2022-23. The loss of any one or more of the major clients would have a material adverse effect on our business operations and profitability
- The company has negative cash flows from its operating, investing and financing activities for the last 3 years. Any such recurrence in future could impact the growth and business.
Sharp Chucks And Machines Ltd IPO – Industry & Market Potential
India’s auto components industry’s market share has significantly expanded, led by increasing demand for automobiles by the growing middle class and exports globally. Due to the remarkable growth in demand for Indian auto components, several Indian and international players have entered the industry.
As per the Automobile Component Manufacturers Association (ACMA) forecast, auto component exports from India is expected to reach US$ 30 billion by 2026. The auto component industry is projected to record US$ 200 billion in revenue by 2026.
The Government has reaffirmed its commitment towards EVs and its mission for 30% electric mobility by 2030. Budget announced customs duty exemption on the import of capital goods and machinery required for the manufacture of lithium-ion batteries that typically power EVs.
Sharp Chucks And Machines Limited IPO – Type of Offer
The company plans to raise INR1 5.66 crores via new share issuance for working capital and research. Existing shareholders will sell INR11.19 crores worth of their stake.
● Fresh Issue: The company will issue new shares to raise capital, aiming to collect INR 5.66 Crores. This fund will be utilised towards meeting the working capital requirement of the company.
● Offer for sale: Existing shareholders, including promoters and early investors, will sell a portion of their stake in the company worth INR 11.19 crores.
Sharp Chucks And Machines IPO Offer Size
Sharp Chunks and Machines Limited plans to launch an INR 16.84 crore IPO, comprising new equity shares and shares from existing shareholders, to address the company’s working capital needs.
Sharp Chucks And Machines IPO Allotment Structure
Sharp Chucks And Machines IPO Allotment Structure allocates 5.10% (1,48,000 shares) to Market Makers. Retail Individual Investors (RII) apply for shares up to INR 2 lakhs, while “Other than retail individual investors” apply for amounts exceeding INR 2 lakhs.
Retail Individual Investors (RII): The application value does not exceed INR 2 lakhs. 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: Total of 1,48,000 equity shares are reserved for market makers. This forms 5.10% of the total issue.
How to apply for a Sharp Chunks and Machines Limited IPO?
To apply for the Sharp Chunks and Machines IPO through Alice Blue, you would typically follow these steps:
- 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.
- Check for IPO Details: Once your account is active, you can check for the Sharp Chunks and Machines 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 Sharp Chunks and Machines IPO at Alice Blue in just a few clicks!
Check Allotment Status: Post 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 Sharp Chunks and Machines 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.
- 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 Sharp Chunks and Machines 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 Sharp Chunks and Machines 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 to contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Sharp Chunks and Machines IPO:
- Registrar’s Website: Visit the website of Skyline Financial Services Private Limited, the registrar of the Sharp Chunks and Machines IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN and application number 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 Platform. You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after the allotment process has been completed, a few days after the IPO window closes.
Sharp Chunks and Machines IPO Offer Registrar
The registrar for Sharp Chunk and Machines Limited’s IPO is Skyline Financial Services Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
Skyline Financial Services Private Limited
D-153 A, 1st Floor Okhla Industrial Area, Phase – I,
New Delhi – 110020,
Tel No.: 011-40450193-97
Email: [email protected]
Website: www.skylinerta.com
Sharp Chucks And Machines Limited IPO FAQs
1. What is the allotment date of the Sharp Chunks and Machines Limited IPO?
The allotment date is 9th October 2023.
2. What is the price band of the Sharp Chunks and Machines Limited IPO?
The price is INR 58 per share.
3. What is the size of the Sharp Chunks and Machines Limited IPO?
The company Sharp Chunks and Machines Limited is coming up with an IPO of INR 16.84 crores. The offer consists of a fresh issue of equity shares and an offer to sell shares of existing shareholder
4. What is the listing date of the Sharp Chunks and Machines Limited IPO?
The listing date is October 12, 2023.
