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Aimtron Electronics IPO (SME) Overview

 Aimtron Electricals Limited provides products and solutions for electronics system design and manufacturing (“ESDM”) services, with a focus on high-value precision engineering products. 5,404,800 shares. Aimtron Electronics IPO plans to garner Rs. 87.02 crores. The issue is entirely a fresh issue of 54.05 lakh shares.

IPO opensMay 30, 2024
IPO ClosesJun 03 2024
IPO Size (Rs.)₹87.02 Cr
IPO Size (shares)5,404,800 shares
BreakupFresh issue only
Face Value:₹ 10
IPO Price in Rs :₹153 to ₹161 per share
Minimum Lot800 Shares
Listing AtNSE SME
QIB ~50 %
NII Quota~15%
Retail Quota~35%
 Lead ManagerHem Securities Limited
Registrar Link Intime
Market makerHem Finlease

About Aimtron Electronics:

  • They started in 2011 as a pure play PCB designer and assembler and over the years have moved up the ladder.
  • As of now they are engaged in the business of providing products and solutions towards electronics system design and manufacturing (“ESDM”) services with a focus on high value precision engineering products.
  • They provide product and solutions right from printed circuit board (“PCB”) design and assembly to the manufacturing of complete electronic systems (“Box Build”), to certain domestic and global manufacturers located in India, United States of America, Hongkong, United Kingdom, Spain, Mexico.
  • The solutions primarily comprises of: (i) printed circuit board assembly (“PCBA”), (ii) any box build assemblies in addition to finding its application in battery management systems used in electrical vehicles (iii) design solutions offering end to end services.
  • They operate through our two manufacturing facilities, one situated in Vadodara, Gujarat and the other situated in Bengaluru, Karnataka. The manufacturing facilities comprises of 4 Surface Mount Technology (“SMT”) lines, 37 Through (Soldering) Hole setup station (“THT”) lines and 2 box build assembly lines.
  • The manufacturing facilities are staffed by a workforce of 132 persons, as of December 31, 2023 which includes a team of 30 engineers..
  • Promoters Mukesh Jeram Vasani, Nirmal M. Vasani and Sharmilaben Lakhanbhai Bambhaniya have around 30 years of experience, 7 years of experience and 20 years of experience respectively in the field of ESDM.

Financials: Aimtron Electronics IPO

Particulars/ Rs Lacs9m Dec 20232022-232021-222020-21
Total Income6764.177,239.982,689.415,406.18
Profit after tax976.66863.19-180.151,571.72
Equity Share Capital1454.5290.969.7968.43
Net worth4099.923,123.262,038.962,144.26
Earnings per Share6.7110.67-3.3829.6
Net Asset Value28.1938.638.2440.38
Total Borrowings1,821.652,023.60848.98262.54
Post issue Share Capital1995   
FV10.0   
IPO price161.0   
EPS Fy234.3   
PE Fy2337.2   
EPS Fy24 (annualized)6.5   
PE Fy24  (annualized)24.7   
Market cap in Lacs32,120   
Market cap / Sales4.44   

Anchors: Aimtron Electronics IPO

Aimtron Electronics IPO: Salient Points

  • Government’s push to promote domestic electronics manufacturing, which has led to increased investment and the creation of new jobs. The global electronics manufacturing services (EMS) market is projected to reach $ 1145 billion by 2026, registering a CAGR of 5.4% during the forecast period 2021-2026. From $ 9.8 billion in 2021, India’s domestic demand for consumer electronics is seeing significant growth and is expected to touch $ 21.18 billion by 2025.
  • The Net Proceeds are proposed to be utilized in the manner set forth below:
Sr. NoParticularsAmt (Rs. in Lacs)
1.Repayment in full or in part, of certain of our outstanding borrowings;1500.00
2.Funding  Capital  Expenditure   towards  installation   of  additional   plant   and machinery1863.01
3.Funding to meet working capital requirements2520.00
4.General Corporate Purpose.[●]
  • Breakdown of the revenue from sale to various sectors:
  IndustryDec-232022-232021-222020-21
Amt% of revenueAmt% of revenueAmt% of revenueAmt% of revenue
Automobiles1065.8815.89%398.465.57%88.213.35%4.140.08%
Gaming281.544.20%1769.8124.72%320.1812.17%254.364.82%
Industrial Sector4571.0668.15%2500.0234.92%1469.5955.84%537.0610.18%
Drones and UAV369.725.51%278.373.89%70.012.66%19.120.36%
Medical & Healthcare372.985.56%673.229.40%434.4816.51%4360.9682.63%
Power43.930.66%0.000.00%46.511.77%0.000.00%
Others2.150.03%1538.4921.49%202.947.71%102.301.94%
Total6707.26100%7158.36100%2631.92100%5277.93100%
  • They offer well diversified solutions comprising PCB design and assembly, box build assemblies and design solutions offering end to end services right from designing to mass manufacturing. Their integrated services include our focus on assembly of cable and wire harnesses, electro-mechanical components, sheet metal fabrication, sheet metal machining and plastic injection moulding.
  • Revenue from operations by products and service offerings.
Product & Service OfferingsRevenue from Operations
December 31, 2023FY 2022-23FY 2021-22FY 2020-21
Amt%Amt%Amt%Amt%
PCBA5295.2078.95%6299.7788.01%2093.0679.53%998.6318.92%
Box-Build1128.3716.82%661.419.24%434.1816.50%4276.2381.02%
End to End Solutions283.694.23%197.192.75%104.673.98%3.080.06%
Total6707.26100%7158.36100%2631.91100%5277.93100%
  • Revenue from sales of PCBA, which represented 78.95%, 88.01%, 79.53% and 18.92 % of our revenue from operations.
  • Customer base currently comprises a host of international and domestic companies. We are dependent on certain key customers for sale of our products. During the period ended on December 31, 2023 and for the FY 22-23, FY 21-22 and FY 20-21 their top 10 customers contributed to 88.76 %, 96.70 %, 94.66 % and 98.58 % of revenue from operations.
  • Their largest customer, being Group Company, Aimtron Corporation, USA contributed to approximately 51.74%, 55.99%, 49.42% and 7.78% of their revenue from operations.
  • They have historically derived a significant portion of our revenues from operations from export to countries like: United States of America, Hong kong, United Kingdom, Spain, Mexico etc. During the stub period ending December 31, 2023, Fiscal 2023, Fiscal 2022 and Fiscal 2021, Their revenues from our exports amounted to ₹3559.84 lakhs, ₹ 5697.61 lakhs, ₹ 1758.92 lakhs and ₹ 4731.52 lakhs respectively, which constituted 53.07%, 79.59%, 66.83% and 89.65% respectively, of total revenues from operations, wherein export to group companies accounted for 59.00%, 60.78%, 51.81% and 7.84% respectively, of total revenues from operations,
  • Key Performance Indicators:
Key Financial PerformanceDecember 31, 2023FY 2022-23FY 2021-22FY 2020-21
Revenue from operations6,707.267158.362631.925277.93
EBITDA1654.101648.94(70.67)2040.33
EBITDA Margin24.66%23.04%(2.69%)38.66%
PAT976.66863.19(180.15)1571.72
PAT Margin14.56%12.06%(6.84%)29.78%
Net Worth 4099.923123.262038.962144.26
Return on Net Worth23.82%27.64%(8.84%)73.30%
RoCE (%)27.93%25.33%(5.55%)87.29%
  • Voltamp Transformers Limited is their largest customer and represented 41.93%, 42.82%, 53.76% and 53.15% of their revenues from sale of products for the period December 31, 2023, Fiscal year 2023, 2022 and 2021 respectively.
  • Peers:
Company/ FY23 figuresCMP Rs.Revenue Rs. CrNet Profit Rs. CrNPM (%)PEMacp/salesRoNW(%)
Aimtron Electronics16172.408.6311.9%37(24.7)4.4427.64%
Kaynes Technology India3,3891,137.5195.008.4%118129.91%
Vinyas Innovative828234.5273.0%67.83.2816.13%
Avalon Technologies487959.07525.4%1143.699.78%
Syrma SGS Technology4802,092.141235.9%78.82.77.98%
  • Aimtron Electronics started in 2011 as a pure play PCB designer and assembler and over the years has invested in capabilities and has graduated to a one stop ESDM solution provider.
  • They have long-term relationships with a diversified customer base across multiple industry verticals such as :Industrial sector, Medical & Healthcare equipment, Automobiles, Power, Gaming, Drones and UAV (unmanned aerial vehicles).
  • Aimtron Electronics IPO is coming at a PE ratio of 37x (FY23 Earnings) and 24.7x (fy24 annualized earnings).
  • I intend to apply in Aimtron Electronics IPO subject to availability of funds. Companies in ESDM space have done well and there is good thrust from the Govt. on this sector.
  • GMP as reported on social media has been Rs. 75 (46%).
  • Hem securities is the Lead Manager to the issue. The IPOs lead managed by them have given a good return to the investors. These include names like Premier Roadlines Limited, Aztec Fluids & Machinery Limited , Amkay Products Limited, Aspire & Innovative Advertising Limited, Blue Pebble Limited, Enfuse Solutions, Sona Machinery Limited, Harshdeep Hortico Limited, Megatherm Induction Limited, New Swan Multitech Limited, Shri Balaji Valve Components Limited, Shanti Spintex, SJ Logistics,Siyaram Recycling Industries Limited, Deepak Chemtex Limited, Paragon Fine And Specialty Chemicals, E Factor Experiences Limited, Arabian Petroleum Limited, ,Saakshi Medtech and Panels Limited, Kahan Packaging Limited, Asarfi Hospital Limited, Kaka Industries, Green Chef, Vasa Denticity, Chaman Mettalics, Hemant Surgicals, Labelkraft, Concord Control Systems Limited, Earthstahl & Alloys Limited, Silicon Rental Solutions Limited, Krishna Defence and Allied Industries, Prevest Denpro Limited etc.
  • SME IPOs are quite volatile and new retail investors need to exercise considerable caution in my view.
  • This post is exploratory and educational purposes only. Please do your own diligence before investing in SME IPOs like this.
  • Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.

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