Spectrum Electrical Industries Limited IPO Review

Spectrum Electrical Industries Limited IPO Review

Spectrum Electrical Industries Limited is engaged in the business of design and manufacturing of electrical, automobile and irrigation components. It is Jalgaon (Maharashtra) based company. The article will cover up every detail regarding Spectrum Electrical Industries Limited IPO Review. Besides the the Spectrum Electrical Industries Limited IPO Review, there are issue details and fundamental details of the company.

About Spectrum Electrical Industries Limited IPO Review Issue Details :

  • IPO Opens on – September 17, 2018.
  • IPO Closes on – September 21, 2018.
  • Issue Price – Rs. 65 Per Equity Share.
  • Issue Type – Fixed Price Issue IPO.
  • Face Value – Rs.10 per Equity Share.
  • Min Order Quantity – 2000 Shares.
  • Market Lot – 2000 Shares.
  • Issue Size – 3,980,000 Equity Shares of Rs. 10 aggregating up to Rs. 25.87 Cr.
  • Listing Exchange At – NSE SME Exchange.
  • Draft Prospectus – Click Here.

Objectives of the issue of the Company :

  • To meet long-term working capital requirements.
  • General Corporate Purposes.
  • Issue Expenses.

About The Company –

  • Spectrum Electrical Industries Limited is incorporated in 2008.
  • This company is a contract manufacturer and component suppliers to leading industry players.
  • Spectrum Electrical Industries Limited is manufacturing unit of this company which is located at Jalgaon and Nashik, Maharashtra.
  • This company is an ISO 9001:2015 certified company.
  • Spectrum Electrical Industries Limited provides required products to the customer exceeding their quality expectations.
  • This company offers comprehensive design services, ranging from product conceptualization, designing, technical detailing, tooling and productivity improvement services.

Competitive Strengths of Spectrum Electrical Industries Limited :

  1. Strong in-house capabilities of the product and engineering design.
  2. Multi-Technological capabilities.
  3. Integrated offerings like tool room, injection molding, sheet metal fabrication, stamping, metal finishing, and surface treatments.
  4. Sustainable business model with low risk having industry leaders as their customers.
  5. In-house R&D enables us to quickly develop products and adapt to the needs of their clients.
  6. SAP S/4 HANA implemented by this company for digital enterprise operations.
  7. UL certified molding manufacturing process.
  8. High standard of product quality and customer service.
  9. Availability of up-to-date infrastructure enabling us to meet the bulk requirements of clients.
  10. Experienced management team.

Products of the company :

Spectrum Electrical Industries Limited manufactures a range of products under electrical components domain having different applications and utilities. This company undertakes activities like designing, fabrication, molding, powder coating, electroplating and assembling to develop these products. Some of the products are :

  • Mini MCB Base and Cover.
  • Distribution Board.
  • AC Box.
  • Modular Electric Board Panels.
  • Lamp Angle Holders.
  • Surface Coating Services.

Spectrum Electrical Industries Limited

Business strategies of Spectrum Electrical Industries Limited :

  • Continue to focus on Contract Manufacturing model.
  • Leverage existing customer relationship to supply new products and value-added services.
  • Diversification into new Industries.
  • Entry into new geographies.

Services of the company :

  • Surface coatings –

Surface coatings division is well equipped with the latest state of the art equipment. In this division, the plants are having a manual to fully automatic microprocessor controlled coatings systems.

  • Metallic stamping –

This type of stamping division is having state of the art manufacturing facilities. This metallic stamping is equipped with 65 stamping presses of which 20 are high-speed stamping presses. The balance 45 is mechanical power presses with capacities varying from 10 to 300MT. This metallic stamping manufactures machine precision, high volume, complex electromechanical components.

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  • Plastics Molding –

This division is the latest state of the art technology intensive division deploying top end Molding machines. In this type of machines brands from Arburg to Engel known for engineering plastics processing.

  • Molds, Dies and Tooling –

Spectrum Electrical Industries Limited has gained invaluable hands-on experience and expertise in developing. This company is designing new molds, dies Press tools, Jigs, and fixtures. This has necessitated investments in the latest technologies and processes.

  • End-to-end Solutions –

End-to-end solutions service is provided an implementation of attentive to smart. This system is set up ensuring minimum costs, incorporating the best material and producing the best infrastructure according to the demand of business. The End-to-end solution greatly reduces hassle, costs, resources and time. This company’s project managers often prefer to use end-to-end solution services to keep pace with ever-changing infrastructure and business needs.

Location :

Plot No. V -195, MIDC Area, Ajanta Road,

Jalgaon- 425 003, Maharashtra.

The promoter of Spectrum Electrical Industries Limited :

  • Mr. Deepak Chaudhari, aged 45 years is a Managing Director and Promoter of this company.
  • Mrs. Bharti Chaudhari is the Whole Time Woman Director and Promoter of this company.

The Board of Directors of this company :

  • Mr. Deepak Chaudhari is the Promoter, Chairman and Managing Director of this company.
  • Mrs. Bharti Chaudhari is the Whole Time Woman Director of this company.
  • Mr. Devendra Rane is the Director of this company.
  • Mr. Chandrakant Rane is the Director of the company.
  • Mr. Sanjay Pawade is the Independent Director of this company.
  • Mr. Narendra Wagh is the Independent Director of this company.
  • Mr. Subhash Patil is the Independent Director of this company.
  • Mr. Saurabh Malpani is the Independent Director of this company.

Company Financials :

Spectrum Electrical Industries Limited IPO

Spectrum Electrical Industries Limited IPO Review :

Past five financial years’ performance is attached to the above financial statement. The last year Profit After Tax (PAT) was unreasonably high than the previous years. Before concluding the analyzation, let’s focus on the prospectus of the company. The prospectus is termed as the DRHP or draft red herring prospectus. According to the last financial year 2017-18, Earnings per Share (in short EPS) stands at 5.30 (both basic and diluted). At the end of the FY 2018, Price to Earnings ratio or P/E ratio is at 12.26 (the ratio is based on the EPS of the current year). RoNW (Return on Net Worth) is 17.50% as per the latest FY. NAV/Share is at 30.28, this is based on the FY 2017-18. As last years data are quite high, the question of doubt may arise. Investors are requested to check the validity of the available data twice. Therefore, based on the data, the Spectrum Electrical Industries Limited IPO Review carries a NEGATIVE view. If Investors may apply for it but at their own risk.

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