Servotech Power Systems Limited was incorporated in 2014. The company is engaged in manufacturing and trading of inverters UPS (uninterrupted power supply), servo stabilizers and related products in India and abroad. The company is shortly coming up with an IPO. Servotech Power Systems IPO review finds the details of this public issue from the DRHP (draft red herring prospectus) submitted to NSE.
About The Issue –
- Issue opens on – 09 August 2017
- Issue closes on – 14 August 2017
- Issue type – Fixed price issue IPO
- Issue price – Rs 31 per equity share
- Lot size – 4000 equity shares or in multiples thereof
- Face value – Rs 10 per equity share
- Issue size – 4,880,000 nos. of equity shares aggregating up to 15.13 crores
- Listing Exchange – NSE SME exchange
Issue objectives – The proceeds from the issue will be used to fulfill; a) working capital requirements, b) to meet issue expenses and c) to fulfill general corporate expenses.
About the company – Servotech Power Systems Limited (SPSL) runs business under the brand name Servotech which has established footprints in domestic and in the markets overseas. The company manufactures and supplies the following items.
- Servo stabilizers
- LED light bulbs
- Flood lights
- Panel lights
- Tube lights
- Bay lights
- Outdoor lights
- Street lights & Floodlights under SAARA brand
- Solar lights
- Solar fans
- Solar HOME LIGHTING SYSTEMS
- Solar PWM
- Solar MPPT charge controllers
- Solar Pump controllers
- Installation and commissioning of turnkey projects
Company Financials – Servotech Power Systems IPO review finds the financials condition from the DRHP is as follows. The company’s revenue has been following a steady growth. The company has also been making consistent profits. Fiscal 17 has been particularly profitable.
Conclusion – Servotech Power Systems IPO review finds that the company has delivered well, particularly in fiscal 17. ROI may turn out to be good if such margin can be maintained in future. But the company has a considerable amount of short and long term debt. Therefore Servotech Power Systems IPO review finds the IPO as kind of Risky investment.
Disclaimer – Views expressed in this review is an educated guess made on the basis of available data from open source expressed for the purpose of knowledge sharing. By no means, it should be taken as an investment advice or recommendation. Investor/ trader should invest money at their own risk.
Partha, an engineer by education, is theoratically actively following the stock and commodity markets since 1990. He is an active trader since 2003. He has received formal education in future and options and quantum analysis. He is presently working on research oriented projects using Python and data analytics.