TechEra Engineering Limited is coming up with an IPO with a fresh issue of 43,77,600 shares worth INR 35.90 crores. The company aims to meet working capital needs, repay borrowings, purchase new machinery, and fund general corporate purposes. 

TechEra Engineering IPO – Important Dates

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TechEra Engineering Limited IPO  – Company Profile

The Company operates within the aerospace and defence market, a sector characterized by high technological complexity, stringent regulatory standards, and significant capital investment. This market is globally distributed, with major hubs in North America, Europe, Asia-Pacific, and other regions, reflecting the international demand for aerospace and defence products and services.

The Company is positioned within this complex and dynamic environment, where its specialized capabilities in design, manufacturing, and supply of aerospace and defence tooling, precision components, and automation solutions align with the sector’s demands.

The market is influenced by several key trends. There is a growing emphasis on digital transformation and the adoption of Industry 4.0 technologies, such as automation, data analytics, and interconnected systems, to enhance manufacturing efficiency, product quality, and operational flexibility. 

TechEra Engineering India Ltd IPO Fundamental Analysis 

TechEra shows a clear turnaround from losses to profitability, with significant revenue growth and improved returns for shareholders. However, fluctuating EPS and increasing liabilities indicate some risk. Given the positive growth trajectory and improving financial health, the IPO could be a good investment, but potential investors should consider risks tied to managing debt and profitability stability.

Revenue and Profitability: The company’s revenue has grown impressively from ₹736.74 lakhs in 2022 to ₹3,907.66 lakhs in 2024, indicating rapid expansion. The company moved from a loss of ₹628.70 lakhs in 2022 to a profit of ₹482.25 lakhs in 2024, showing improved operational efficiency and profitability.

Equity and EPS: Equity increased significantly from ₹977.84 lakhs in 2022 to ₹1,590.14 lakhs in 2024, which is a positive indicator for the company’s financial health. The Diluted EPS improved from a negative ₹40.49 in 2022 to ₹4.14 in 2024, showing better earnings per share, though still relatively modest.

Return on Net Worth (RoNW): The company’s RoNW grew from -64.30% in 2022 to 30.33% in 2024, which reflects a strong recovery and suggests that the company is generating better returns on equity.

Assets and Liabilities: Total assets grew from ₹2,136.23 lakhs in 2022 to ₹3,723.87 lakhs in 2024, while total liabilities also increased, indicating that the company is leveraging its growth but must manage its debt carefully. The debt-equity ratio improved slightly to 0.90 in 2024, showing better control over borrowing.

Liquidity: The current ratio improved to 1.57 in 2024, suggesting better short-term liquidity, meaning the company can meet its obligations more comfortably.

TechEra Engineering IPO Financial Analysis

TechEra Engineering Limited IPO Peer Comparison

TechEra Engineering shows strong RoNW at 30.33% but lacks a P/E ratio, indicating growth potential. Paras Defence and Azad Engineering have higher revenues, but lower RoNW, with significantly higher P/E ratios, reflecting premium valuations.

TechEra Engineering India Ltd IPO Objective

The main objective of  TechEra Engineering is to allocate INR 20 crores for machinery, INR 6 crores for working capital, and INR 5 crores for loan repayment. The remaining funds will support general corporate purposes, including business development and unforeseen expenses.

1. To purchase machinery: The company proposed to purchase additional machinery to increase the capacity and increase the capability to design and manufacture more products. The total estimated cost of the total expenditure is INR 20.13 crores, and the company proposes to utilize INR 20. crores from the Net Proceeds.

2. To fund the working capital requirement: The business is working capital intensive. The Company requires additional working capital to fund its incremental working capital requirements. The company intends to utilise INR 6 crores for the said purpose.

3. Repayment of borrowings: The company proposes to utilise an amount of INR 5. crores from the Net Proceeds towards repayment or prepayment, in part or full, of certain borrowings.

4. General Corporate Purpose: The company will deploy the balance of funds for general corporate purposes, including meeting operating expenses and initial development costs for various projects, strengthening business development and marketing capabilities, and addressing unforeseen exigencies in ordinary operations. 

TechEra Engineering IPO Risks And Challenges

TechEra Engineering’s risks include its reliance on key customers and a single manufacturing facility poses significant risks. Any disruption or competitive pressure in the global industry could negatively impact its operations, financials, and future prospects.

1. The business is dependent on the sale of the products to key customers. The loss of any of the key customers or loss of revenue from sales to the customers could have a material adverse effect on the business.

2. The company is highly dependent on a single Manufacturing Facility for the entire portion of the revenue from operations. Any disruption, breakdown, or shutdown of the Manufacturing Facility may adversely affect the business, results of operations, financial condition, cash flows, and future prospects.

3. Any failure to compete effectively in the highly competitive global industry of high precision and mission-critical components manufacturing could have a material adverse effect on the business.

TechEra Engineering India Ltd IPO – Industry & Market Potential

India’s Capital Goods manufacturing industry serves as a strong base for its engagement across sectors such as Engineering, Construction, Infrastructure, and Consumer goods, amongst others.

India is one of the strongest military forces in the world and holds a place of strategic importance for the Indian government. The top three largest market segments of the Indian defence sector are military fixed wing, naval vessels and surface combatants, and missiles and missile defence systems.

Military rotorcraft, submarines, artillery, tactical communications, electronic warfare, and military land vehicles are some of the other well-known segments. Some of the major defence manufacturing companies in India are Bharat Earth Movers Ltd. (BEML), Bharat Electronics Ltd. (BEL), and Hindustan Aeronautics Ltd. (HAL). 

TechEra Engineering Limited IPO – Type of Offer

TechEra Engineering Limited is launching an IPO featuring a fresh issue of 43,77,600 shares valued at INR 35.90 crores. The funds will be used to meet working capital requirements, repay borrowings, acquire new machinery, and support general corporate purposes.

TechEra Engineering IPO Offer Size

The offer size for TechEra Engineering Limited’s IPO is a fresh issue of 43,77,600 shares worth INR 35.90 crores. The proceeds will be allocated to meet working capital needs, repay borrowings, purchase new machinery, and fund general corporate purposes.

TechEra Engineering Limited IPO Allotment Structure

TechEra Engineering Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) according to SEBI regulations. 5% of the issue is reserved for market makers. 

● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.

● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.

● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs. 

● Market Maker Reservation: A portion of shares are reserved for market makers. 

Read more about TechEra Engineering IPO Allotment Status

How to apply for the TechEra Engineering IPO?

To apply for the TechEra Engineering Limited IPO through Alice Blue, 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.

1. Check for IPO Details: Once your account is active, you can check for the TechEra Engineering Limited IPO details in the IPO section of the Alice Blue platform.
2. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
3. Submit the Application: Confirm all your details and submit your application.

 You can apply for the TechEra Engineering 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.

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How do you check TechEra Engineering IPO Allotment Status?

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

1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
2. 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.
3. 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.
4. Select the TechEra Engineering 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 TechEra Engineering Limited IPO.
5. 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, we request you to reach out to our customer support team at Alice Blue for detailed assistance. 

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

● Registrar’s Website: Visit the website of Kfin Technologies Limited, the registrar of the TechEra Engineering 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) Small Medium Exchange (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.

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TechEra Engineering India Ltd IPO Offer Registrar

The registrar for the TechEra Engineering Limited IPO is Kfin Technologies Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.

Contact information for the registrar: 

Kfin Technologies Limited

Selenium Building, Tower-B, 

Plot No 31 & 32, Financial District, Nanakramguda, 

Serilingampally, Hyderabad, Telangana – 500 032..

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TechEra Engineering IPO  – FAQs