Macpower CNC Machines Ltd is engaged in manufacturing of CNC Turning Centers, Vertical Machining Centers, Horizontal Machining Centers, Cylindrical Grinder, Vertical Turret Lathe, Turn-Mill Centers, Drill Tap Center, Twin Spindle VMC. This company provides an unbeatable combination of quality, performance and price. Macpower is coming up with their new issue that will launch for applying on 12th March 2018. Let us go through the draft red herring prospectus and consider the issue date and issue price to post our Macpower CNC Machines Ltd IPO Review.
About Macpower CNC Machines Ltd IPO :
- IPO Opens on – March 12, 2018.
- IPO Closes on – March 14, 2018.
- Face Value – Rs. 10 Per Equity Share.
- Issue Price – Rs. 126 – Rs. 140 Per Equity Share.
- Issue Type – Book Built Issue IPO.
- Retail Allocation – 50%
- Market Lot – 1000 Shares.
- Minimum Order Quantity – 1000 Shares.
- Issue Size – 2,615,000 Equity Shares of Rs 10 aggregating up to Rs 36.61 Cr.
- Listing Exchange – NSE SME Exchange.
- Draft Prospectus – Download.
Objectives of the issue:
- Setting Up Backward Integration Facility.
- General Corporate Purpose.
About The Company –
- Macpower CNC Machines Ltd incorporated in 2003.
- This company has also offers Robotic Automation integrated with CNC machines.
- Macpower CNC Machines Ltd’s manufacturing unit in an area of around 4 acres situated at Metoda G.I.D.C., Rajkot (India).
- This company imports of components and parts i.e. spindle, ball screw, linear guide ways, linear glass scale, live tool trret, live tool holder, probe.
- Macpower CNC Machines Ltd design and built machine tools that are famous for their ability to deliver real cost of ownership value.
- This company also engaged in Multi Tasking, 5-axis along with sub spindle.
- Macpower CNC Machines Ltd has various sectors like automobile, agriculture, earth moving equipment’s, bearings, general engineering, aerospace, metal, petroleum, construction industries, defense, PSUs.
Promoters of the company :
- Rupesh Mehta, aged 49 years, is the Promoter, Chairman and Managing Director of this company.
- Nikesh Mehta, aged 39 years, is the Promoter and Director of This company.
Macpower CNC Machines Ltd IPO Review:
Over the years the company has increased their profitability from Rs. 0.28 crores on FY14 to Rs. 0.79 crores on FY17. The current EPS is hovering at 1.19 against a PE Ratio of 117.64. We feel the issue price of Rs. 126 – Rs. 140 is on the higher side. Hence, our Macpower CNC Machines Ltd IPO Review is having a NEUTRAL view on this new issue. However, risk savvy and cash rich investors may invest in the Macpower CNC Machines IPO only if they have a medium to long-term view.