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Atmastco Limited is engaged in the business of executing Turnkey / Engineering, Procurement, and Construction (EPC) contracts in ferrous and non- ferrous sector. Atmastco IPO aims to raise Rs. 56.25 crores. The issue is a combination of fresh issue of 54.8 lakh shares aggregating to Rs 42.20 crores and offer for sale of 18.26 lakh shares aggregating to Rs 14.06 crores.

About Atmastco IPO:

• Company is engaged in the business of executing Turnkey / Engineering, Procurement, and Construction (EPC) contracts in ferrous and non- ferrous sector and provide end-to-end solutions offering multi-disciplinary services and project management solutions.
• As an Engineering services company it is engaged in the business of:
  • EPC : We have forayed into the business of providing engineering, procurement and construction (“EPC”) services in ferrous and non-ferrous sector in the year 2020. We have acquired business of Rs. 65,00,000 Thousands in the last 3 (three) years in verticals like Metal (ferrous & non-ferrous), Oil & Gas, Air Pollution Control,        Lime & associated processing.
  • Steel Fabrication: We are engaged in the business of design, manufacturing and supply of precision equipments and heavy fabrication structures for various industrial use. We undertake designing, Engineering, Fabrication and Erection work for our clients as per their specifications        and customizations.
  • Defence (Wholly owned Subsidiary): They have incorporated a separate legal entity Atmastco Defence Systems Private Limited on July 22, 2020 to carry on the business of manufacture of bullet proof jackets & helmets and paramilitary forces. especially for military application and full body protector for female troops and related activities.

Financials: Atmastco IPO

Atmastco IPO: Salient Points

•  Company intends to utilize the Net Proceeds from the Fresh Offer for the following objects

• Segment wise revenue details

• Key Performance Indicators of Company

• They make fabricated steel structures for Railways bridges & take up many EPC projects booth in ferrous and non-ferrous segments.
• Clients: These span across industries including power plants, refineries, steel plants, Railways, cement plants, Industrial and Infrastructure, Chemicals, Pharmaceuticals, Petrochemicals, Refineries, Power, Oil & Gas etc. like Vedanta, EIL, Adani Copper, BHEL, SAIL, NMDC, EIL, TCS, Jindal Stainless steel etc.

• About 40% business form PSUs/Govt Bodies, rest private.
• Products:

• Some Completed projects include

• Atmastco Defence System Private Limited has not yet commenced production.
• As per some indications by management they could clock 380-499 cr revenues in FY24.
• Due to location they have access to quality steel from Bhilai steel plant and others for their needs.
• To enhance margin they are now giving importance to non ferrous area.
• Peers: No listed Peers
• Their debt to equity ratio as on March 31, 2023 was 0.48  on a consolidated restated basis
• Company has good orders in hand. The contract -wise details of work in hand as per the Order book of Company as of January 31, 2024, is set out below:

• Atmastco IPO is coming at a PE ratio of 14.9x(fy23 earnings) and 12.3x (fy24 annualized earnings)
• I may apply in Atmastco IPO subject to availability of funds & looking at overall response on last day. It is a risky bet. Company has good record of execution. has good orders in hand and IPO is not priced exorbitantly. Iam slightly positive on the company based on performance and products; have concerns on High issue expenses of 675 Lacs and GMP , subscription till now do not support this thesis.
• GMP as reported on social media has been Rs. 6 .
• Affinity Global Capital Market Pvt. Ltd. is the Lead Manager to the issue with little and quite average record. Past issues handled by them include Jiwanram Sheoduttrai Industries, Auro Impex & Chemicals Limited.
• SME IPO are much more risky and volatile than mainboard IPOs.
• 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.