A & M Febcon Ltd is engaged in the business of providing engineering services which are applied to the planning, designing and control of industrial operations. The headquartered of the company in Ahmedabad & Gujarat. The most complex three things of Industrial Equipment Fabrications are structural, commercial, and industrial. The company used these primarily to develop industrial machinery. A& M Febcon Ltd is coming up with their new issue and in this post, we will discuss A & M Febcon Ltd IPO review with date, prospectus and allotment.
About A & M Febcon Issue :
- IPO opens on – September 01, 2017
- IPO closes on – September 06, 2017
- Face Value – Rs. 10 per equity share
- Issue Price – Rs. 18
- Minimum Lot – 8000 shares.
- Equity shares offered – 37,12,000 equity shares.
- Equity Shares prior to the offer – 54,40,289 equity shares.
- Equity Shares after the offer – 91,52,289 equity shares.
- Issue constitutes – 40.55%(Post offer paid-up Equity Share Capital).
- Issue size – Around Rs.6.68 cr. (Market cap Rs.16.47 cr)
- Listing at – BSE SME Exchange.
About The Company-
- Provides services like planning, designing and control of industrial operations and also provides Industrial equipment and metal fabrication.
- Specializes in Industrial equipment fabrication which is used to develop industrial machinery.
- Industrial fabrication services include boilers, storage tanks, heat exchangers, columns, and towers etc.
- Manufactures equipment for various clients across sectors like petrochemical plants, oil and gas refinery, metal industry, cement plants, pulp & paper manufacturing plants etc.
- In adding to manufacturing solutions, they also offer support services such as installation, and on site start-up.
Total sales in previous financial years:
- 31.03.2015 – 52,239,320.00
- 31.03.2016 – 82,711,089.00
- 31.03.2017 – 100,110,061.00
Total sales (proposed):
- 31.03.2018 – 120,132,000.00
- 31.03.2019 – 144,158,000.00
Sales Manufacturing in previous financial years:
- 31.03.2015 – Nil
- 31.03.2016 – 7,299,009.00
- 31.03.2017 – 7,711,851.00
Sales Manufacturing (proposed):
- 31.03.2018 – 21,056,780.00
- 31.03.2019 – 39,528,769.00
Production Manufacturing in previous financial years:
- 31.03.2015 – Nil
- 31.03.2016 – 8,654,890.00
- 31.03.2017 – 9,865,470.00
Production Manufacturing (proposed):
- 31.03.2018 – 29,187,120.00
- 31.03.2019 – 46,778,320.00
Rate per KG in previous financial years:
- 31.03.2015 – 40.00
- 31.03.2016 – 40.00
- 31.03.2017 – 40.00
Rate per KG (proposed):
- 31.03.2018 – 45.00
- 31.03.2019 – 48.00
Utilized capacity (%) in previous financial years:
- 31.03.2015 – Nil
- 31.03.2016 – 72.12
- 31.03.2017 – 36.54
Utilized capacity(%) (proposed):
- 31.03.2018 – 36.03
- 31.03.2019 – 54.14
Total Installed in previous financial years:
- 31.03.2015 – 300
- 31.03.2016 – 300
- 31.03.2017 – 675
Total Installed in (proposed):
- 31.03.2018 – 1800
- 31.03.2019 – Nil
Name of TOP Shareholders :
- Mrs. Renukaben Rameshbhai Shah
- Mr. Yash Shaileshbhai Patel
- Mr. Devabhai Nagjibhai Desai
- Mr. Varun Jigneshkumar Shah
- Mrs. Zalak Purvesh Parikh
- Mrs. Vanita Patel
- Mr. Mandeep Pannu
- Mr. Pinal R. Shah
Promoters Average Acquisition Cost :
- Mrs. Zalak Parikh’s equity shares 19,36,875 and the average cost of acquisition in Rs. 12.93.
- Mrs. Renukaben R Shas’s equity shares 6,45,063 and the average cost of acquisition in Rs. 10.73.
A & M Febcon Ltd IPO Review: Due to very little information and financial data available about the company this A & M Febcon Ltd IPO review advises to stay NEUTRAL on this issue. However as the issue price is less than double of the promoter’s cost, risky investors may try this issue for medium to long term
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