Tool manufacturer De Neers Tools IPO opens on 28th April 2023, and closes on 3rd May, 2023. The issue is entirely fresh issue of 2,276,800 equity shares of face value Rs. 10 each and envisages to raise Rs. 23 cr. The issue will be listed on the NSE SME. De Neers Tools IPO opens on 28th April 2023, and closes on 3rd May, 2023.De Neers an established Hand tools Manufacturer and Supplier in India.
| IPO opens | Apr 28, 2023 |
| IPO Closes | May 03, 2023 |
| IPO Size (Rs.) | ₹22.99 Cr |
| IPO Size (shares) (100% fresh issue) | 2,276,400 shares |
| Face Value: | ₹10 |
| IPO Price in Rs : | ₹95 to ₹101 |
| Minimum Lot | 1200 |
| Listing At | NSE SME |
| QIB Quota | 50.00% |
| NII Quota | 15.00% |
| Retail Quota | 35.00% |
| Lead Manager | Khambatta Securities, Share India Capital Services |
| Registrar | BIGSHARE SERVICES |
- De Neers Tools Ltd is an ISO 9001:2015, ISO 14001:2015 and 45001:2018 accredited company.
- It has over 3200 SKUs and is on the fourth-generation of serving the hand tools industry since 1952.
- De Neers is known as one of the reputed and key hand tools suppliers that provides the broadest range of hand
- tools in India. Our extensive range of products includes spanners, wrenches, pliers, cutters, allen keys, hammers,
- socketry, screw drivers, tool kits, tool cabinets, trolleys, etc.
- It also specialized in providing safety tools like non- sparking tools, insulated steel tools, non-sparking insulated tools, stainless steel & magnetic tools, titanium
- tools along with multiple other hand tools.
- Company has its procurement facility at Jalandhar and Ludhiana and is equipped with Forge Shop, Machine Shop, Heat treatment, Polishing, and Nickel chrome plating.
- As of November 30, 2022, it had 92 employees on its payroll.
- Mr. Neeraj Kumar Aggarwal, Mrs. Shilpy Aggarwal, and Mr. Kanav Gupta are the company promoters.
De Neers Tools IPO: Financials
Salient Points
- De Neers a top rated Hand tools Manufacturers and Suppliers in India.
- Company is operating in a highly competitive and fragmented segment
- De Neers is widely accepted by the dealers / distributors, hardware suppliers throughout India.
- The company also sells its tool through ecommerce platforms.
- IPO proceeds will be utilized for:
- 1) Working Capital Requirements (1800 lacs)
- 2) General Corporate purposes (
- 3) Issue expenses (50 Lac)
- The listed peer Taparia tools enjoys little trading as is held by promoter group widely.
- Other peer JK files is expected to come with an IPO in future.
- To increase its brand outreach company offers long credit periods to large distributers. It also help us lower our inventory maintenance cost. It may in future cut it by half.
- Two-third of its operations have been geographically concentrated in the states of Delhi NCR, Gujarat, Telangana, Bihar & Uttar Pradesh (UP).
- Company exports are miniscule.
- The company’s revenues have been growing over the years but profits have shown very big jump in last 1.5 years rasing some doubts.grown at a scorching good pace.
- Has availed term loans from HDFC Bank.
- PE ratio is 17x (fy22 earnings) and 7.7x (fy23 annualized). Looks reasonable.
- I intend to apply in De Neers Tools IPO though it is extremely risky and its overall assessment like other SME issues remains hazy due to limited information.
- SME IPO are more volatile and I generally exit on the listing day, many times in pre open session.
- There are two lead managers for this IPO, Share India Securities Limited and Khambatta Securities Limited.
- Share India Securities Limited recently managed Quicktouch Technologies, Maiden Forgings Limited and Exhicon Events Media Solutions Limited.
- In case of Khambatta Securities Limited, last managed issue was quality foils, a small issue which did well.
- Share India Securities Limited will act as the Market Maker
- Please do your own diligence as SME IPOs are more volatile and risky than mainboard IPOs and need more funds.
- Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . Also Certified in 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. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.