Aartech Solonics Limited is a system solution oriented R&D enterprise in the field of specialized and selected energy appliances. This is Gwalior, Madhya Pradesh based company. The content includes Aartech Solonics IPO Review along with issue details and company financials summary. Before stating Aartech Solonics IPO Review, let’s have a look at the issue details of the IPO.
Aartech Solonics IPO Review Issue Details :
- IPO Opens on – February 21, 2019.
- IPO Closes on – February 26, 2019.
- Face Value – Rs.10 Per Equity Share.
- Issue Price – Rs.34 Per Equity Share.
- Issue Type – Fixed Price Issue IPO.
- Market Lot – 4000 Shares.
- Minimum Order Quantity – 4000 Shares.
- Retail Allocation – 50%
- Issue Size – 2,120,000 Equity Shares of Rs. 10 aggregating up to Rs. 7.21 Cr.
- Listing Exchange – BSE SME Exchange.
- Draft Prospectus – Click Here.
Objectives of the issue of the Company :
- The main object of the issue is investment in wholly owned subsidiary company which is known as “M/S AIC Aartech Solonics Private Limited”.
- Another investment in wholly owned subsidiary company which is known as “ M/S Faradigm Ultracapacitors Private Limited”.
- General Corporate Expenses including Capital Expenditure and Research and Development Expenses of Aartech Solonics Limited.
- One of the object of the issue is working Capital Requirement of this company.
- Meeting Public Issue Expenses of Aartech Solonics Limited.
About The Company –
- Aartech Solonics Limited was incorporated in 1982.
- This company works around the concept of System Solution Division and have several operative System Solution Divisions, BTS 2000 – Microprocessor Based Fast Bus Transfer Systems (being the flagship System Solution Divisions at present), Ultra-Capacitor, Load Checker, Control, Relay Panel and Load Checkers.
- Aartech Solonics Limited is an ISO 9001: 2015 certified company.
- This company is associated with some of the best in class technology companies in the power sector in India as well as in USA and Europe. Also works closely with them in offering system integrated products and services to customers all over Asia.
- Aartech Solonics Limited’s popular flagship import substitute product BTS 2000 Fast Bus Transfer System is used in a large number of power plants and process industries and are one of the leading manufacturer of this technology in India, competing with a handful of global manufacturers internationally .
- This company’s customer base includes many names from various domains such as Defense, Power Generation, Railways, Heavy Earth Moving Equipments, Oil and Gas Industry and Academics.
- Aartech Solonics Limited has 55 full-time employees excluding 10 contract employees.
- This company also offers solutions/services on Clip Fault Current Limiters, Pure Wave DSTATCOM, Pure wave UPS and Wedge Tightness Detector. They have also started business line in LED Backlit frames and trading of plastic enclosures for industrial purposes.
Registered Office :
E-2/57, Ashirwad, Arera Colony, Bhopal (M.P) – India 462016.
Unit-1 : 35-A/36 Sector-B, Industrial Area, Mandideep,
District Raisen, Madhya Pradesh (M.P.) India 462046.
Unit-2 : Kharsa No. 311, Near Him Cold Storage, Sector-1A,
Parwanoo District Solan, Himachal Pradesh (H.P.) India 173220.
The promoter of Aartech Solonics Limited :
- Mr. Anil Raje, aged 72 years, is the Promoter of this company.
- Mrs. Chhaya Raje, aged 70 years, is the Promoter of this company.
The Board of Directors of this company :
- Mr. Anil Anant Raje, aged 72 years, is the Chairman and Managing Director of this company.
- Mr. Amit Anil Raje, aged 43 years, is the Whole Time Director of this company.
- Mrs. Poonam Jaideep Mulherkar, aged 45 years, is the Non Executive Director of this company.
- Mr. Prashant Dattatray Lowlekar, aged 61 years, is the Independent Director of this company.
- Mr. Ravindra Kumar Shingwekar, aged 51 years, is the Independent Director of this company.
Competitive Strengths of Aartech Solonics Limited :
- Improve Performance and Enhance Returns from the Core Business.
- Vast Experience of more than two Decades.
- To Build-up a Professional Organization.
- Optimal Utilization of Resources.
- Advancement in R&D.
- Reduction of operational costs and achieving efficiency.
SWOT Analysis of this company :
- The main strength is Product or Industry of Aartech Solonics Limited.
- Industry Expertise : Aartech Solonics Limited’s promoters have more than 35 years of experience and knowledge in the power electronics sector.
- Reputed clientele – Aartech Solonics Limited has developed a reputed and reliable clientele in public and private utilities in thermal power sector.
- Inhouse R&D – Aartech Solonics Limited executes turnkey projects which provide one stop solution to the customers through DSIR recognized inhouse Research and Development department.
- Product Sustainability – Power being a basic necessity and a large part of the country having huge power
requirements makes Aartech Solonics Limited’s product sustainable in lieu of the demand.
- Upgradation of technlogies – Aartech Solonics Limited provide retrofit solutions bundled with the latest technologies to assist their customers overcome old technologies.
- Flagship product – Bus Transfer System of Aartech Solonics Limited’s pioneered in the product used for process continuity on the power generation side.
- Recognition from Niti Aayog – Aartech Solonics Limited has been recognized by Niti Aayog as one of the first for profit Incubation centres for start ups in MP out of 3000 applications all over the country.
- Financial or Commercial Strengths No funded debt on the books on the principal company Positive Cash Flows and adequate cash and cash equivalents of Aartech Solonics Limited.
- Satisfactory covenants as per industry standards of Aartech Solonics Limited.
- Significant investments for customised solutions: Aartech Solonics Limited requires high investments in technical and human resources to provide customised solutions which could be not acceptable to the customers as compared to the benefits it may offer.
- Significant risks to decide in which market opportunity to invest as it may lead to costly investments if the decision works against the industry wishlist Amongst the numerous opportunities, the management needs to decide the best which can take considerable resources.
- Succession Planning needs considerable attention as the promoter directors need sound technical resources as back up of Aartech Solonics Limited.
- High volume – low margin products vs low volume high margin products – The management of Aartech Solonics Limited needs to prioritize in which market segment the organization would like to be. A balance on this requires considerable sensitivity in the current business scenario of this company.
- To provide customised solutions in specialized energy applications with Aartech Solonics Limited’s proven expertise in other sectors including hydro and solar.
- To explore of Aartech Solonics Limited the startup space by engaging in innovative ideas through the NITI Aayog approved incubation centre.
- To be the first Ultracapacitor manufacturing unit in India through Aartech Solonics Limited’s subsidiary company.
- Rendundant Technology – Aartech Solonics Limited can end up spending huge investments on a redundant technology as technologies are changing at a rapid speed.
- The threats are Significant attention and Appropriate investments in trademarks and patents are required. Absence of this may lead to legal disputes affecting business operations of this company.
- Change in Industry standards and statutory provisions of Aartech Solonics Limited can lead to change in the business operations working and past business commitments will need to be honored at a cost.
Company Financials :
Company financials is required to state Aartech Solonics IPO Review.
Aartech Solonics IPO Review :
This is the last part of Aartech Solonics IPO Review. The statement reflects annual profit-loss data of the company. The five years data shows the company has gone gone through many ups and down. Last FY 18, the company has gained maximum profit in the last five years span. Now, let’s have a look at the company prospectus. EPS (earnings per share) stands at the level of 1.47 (as per the consolidated statement). As per the basic and diluted EPS, P/E ratio stands at 23.13 (consolidated statement). RoNW (return on net worth) was at 5.45. NAV/Share is 25. All the above data is based on the FY 2017-18. Our analysis says Aartech Solonics IPO Review carries a NEGATIVE view. It is advisable to avoid the IPO.
Ankita has done her Diploma Engineering in Computer Science & Technology. She is pursuing her degree in Engineering and also well experienced in the equity market and real estate related content writing. She is the one who has developed the technical indicators section of our site.
Categories: IPO Review