Powerful Technologies Limited IPO Review (Date, Price, DRHP)

Powerful Technologies Limited IPO Review

Powerful Technologies Limited is engaged in the business of manufacturing/assembling LED TVs, LED monitors and Power Banks. It is Delhi based company. Today, we are going to discuss about Powerful Technologies Limited IPO Review along with date, price, DRHP.

About Powerful Technologies Limited IPO Issue Details :

  • IPO Opens on – August 9, 2018.
  • IPO Closes on – August 14, 2018.
  • Face Value – Rs. 10 Per Equity Share.
  • Issue Price – Rs. 51 Per Equity Share.
  • Issue Type – Fixed Price Issue IPO.
  • Market Lot – 2000 Shares.
  • Minimum Order Quantity – 2000 Shares.
  • Issue Size – 2,656,000 Equity Shares of Rs. 10 aggregating up to Rs. 13.55 Cr.
  • Listing Exchange – NSE SME Exchange.
  • Draft Prospectus – Download

Objectives of the issue :

  • To meet the working capital requirements of this company.
  • Issue Expenses.

About The Company –

  • Powerful Technologies Limited is incorporated in 2015.
  • This company initially sold its products under the brand names of “Powereye” and “Lappy Master”. The company also used to make power banks for other brands.
  • Powerful Technologies Limited got approval from Kodak and Polaroid to manufacturer mobile power banks and LED TVs respectively.
  • This company is an authorized licensee for Kodak Power banks and Polaroid LED TVs and LED Monitors in India.
  • Powerful Technologies Limited’s focus to sell its products online.
  • This company has recently tied-up with Appraio Retail Pvt. Ltd, a JV of Amazon Asia and Patni group as also with Flipkart India Pvt. Ltd.
  • The company’s manufacturing unit is located at Noida. The company has recently delivered the first shipment of mobile adapters to its distributors under “Powereye” brand.
  • The company has 73 employees including contractual employees on its payroll.
  • Competitive strengths of this company-1. License rights with reputed global brands like Polaroid for India, Nepal, and Bangladesh and with Kodak for India.
    2. Ownership of brand names “Powereye” and “Lappy Master”.
    3. Wide distribution network.

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Promoters of the company :

  • Mr. Aditya Gupta, aged 35 Years, is one of the the Promoter and Managing Director of this company.
  • Mrs. Karuna Chhabra, aged 37 Years, is one of the Promoter and Non-Executive Director of this company.
  • Mr. Nitin Chhabra, aged 40 years, is one of the Promoter and Executive Director of this company.

Company Financials :

powerful technologies limited ipo review image

Powerful Technologies Limited IPO Review :

The above attachment is the financial statement of Powerful Technologies Limited. The statement is quite confusing and unreasonable. The sudden jump of PAT (Profit after tax) from the FY 17 to FY 18 is quite eye-catching. If the progress happens in real, the track record of the company is really good. Otherwise, it is advisable to check twice about the previous financial track records of the company. Now, move on to the Prospectus of the company. From the DRHP (draft red herring prospectus) we come to know about the quantitative fundamental details of the company. According to the FY 18 EPS (Earnings Per Share) stands at 7.32. P/E ratio based on basic EPS FY 2017-18 is at 6.97. RoNW and NAV/Share in the FY 18 are at 35.73 and 17.11. If you notice carefully, you can see a sudden increase in all the data of the company. Therefore, traders need to be very careful about the reasonability of data. Hence, Powerful Technologies Limited IPO Review carries a NEUTRAL view. Investors should think twice before applying for this IPO. Apply on your own risk.

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