Energy-Mission Machineries (India) Limited manufactures a range of products that enable producers to obtain the essential precision machinery needed for metal cutting and shaping processes. They provide metal fabrication solutions to the industrial sector by designing and manufacturing CNC, NC, and traditional metal forming equipment. Press brake, shearing, plate rolling, iron worker, hydraulic presses, and busbar bending, cutting, and punching machines etc. Energy Mission Machineries IPO intends to raise Rs 41.15 crores. The issue is entirely a fresh issue of 29.82 lakh shares.
IPO opens
May 9, 2024
IPO Closes
May 13, 2024
IPO Size (Rs.)
Rs 41.15 crores
IPO Size (shares)
2,982,000 shares
Breakup
Fresh issue only
Face Value:
₹ 10
IPO Price in Rs :
₹131 to ₹138 per share
Minimum Lot
1000 Shares
Listing At
NSE SME
QIB
~50 %
NII Quota
~15%
Retail Quota
~35%
Lead Manager
Hem Securities Limited
Registrar
Bigshare
Market maker
Hem Finlease
About Energy-Mission Machineries (India) Limited:
Incorporated in 2011, they design and manufacture CNC, NC and conventional metal forming machines which caters to the industrial sector requirement for metal fabrication solutions.
Their wide spectrum of metal forming machines includes press brake machines, shearing machines, plate rolling machines, iron workers machines, hydraulic presses and busbar bending, cutting & punching machine.
Through their array of products, we provide manufacturers with vital precision machines which are required for metal cutting and forming operations. Our machines are utilized across a wide gamut of industries such as automotive, steel, pre-engineered building, furniture, HVAC, agricultural equipments, road construction equipments, elevators, food processing machinery, metalworking workshops and many others.
They operate through their manufacturing facility in Sanand (District – Ahmedabad), which is situated on a vast land area of over 18,234 sq. mtrs and is equipped with capabilities to design, develop and manufacture the product portfolio. Ason December 31, 2023, they have the capacity to manufacture 900 machines p.a.
As on March 31, 2024, their sales & marketing team comprised of 29 employees managing the designated regions within India. Sales team is also backed by an after-sales service team of 22 employees.
Company was founded by Satishkumar Kanjibhai Parmar and Dineshkumar Shankarlal Chaudhary in Jan.’ 2011. Later, in April 2011, Ashokkumar Ramjibhai Panchal, Sanjay Shantukumar Khankar and Snehal Narendra Mehta joined the Company
.The Indian machine tool market size reached US$ 1.4 billion in 2022. The market is expected to reach US$ 2.5 billion by 2028, exhibiting a
growth rate (CAGR) of 9.4% during 2023-28.
The Net Proceeds are proposed to be utilized in the manner set forth below:
Sr.No.
Particulars
Amount (₹ in lakhs)
1.
Funding of capital expenditure towards civil construction work at existing manufacturing unit located at Sanand, District Ahmedabad, Gujarat
686.40
2.
Funding of capital expenditure towards installation of new plant & machineries
742.93
3.
To meet working capital requirements
1500.00
They offer over 600 variants of metal forming machines to customers engaged in various sectors such as metal fabrication, pre-engineered building, agriculture, kitchen equipment, machinery manufacturing, automotive, food processing, furniture, HVAC, elevators, steel etc.
By their very nature, though, metal forming machines are not consumer products and, therefore, we do not, generally, have frequent orders from the customers. During the last 3 Fiscals and the nine months period i.e. Apr.’23 to Dec.’23, our Company has supplied 1657 machines to over 1150 customers
In Fiscal 2023, the largest share of their revenue, accounting for 27.32%, originated from Gujarat, followed by Maharashtra at 17.35%. and then Karnataka. Currently, they market the products to around 20 states & two Union Territories in India .
The company exports its products to the USA, Switzerland, Russia, Nepal, Kenya, Uganda, UAE and Saudi Arabia.. International revenues accounted 6.85% % of revenue from operations for the period Apr-Dec’23.
Clients
Peers
Company
CMP (₹)
Revenue(₹cr)
Net Profit(₹ cr)
NPM %
PE
Macp/sales
RONW
Energy-Mission Machineries
138
100.7
7.9
7.8%
19.8(17.4)
1.6
33.57%
Macpower CNC Machines
1,359
202.1
12.89
6.4%
74.6
6.07
13.34%
Jyoti CNC Automation
810
952.6
15.06
1.6%
177
19.8
18.35%
in F.Y. 2022-23,they have successfully sold their hydraulic shearing machine to CERN which is the European Organization for Nuclear Research based in Geneva, Switzerland.
They derived a significant portion of our revenue from the sale of our key product i.e. CNC press brake machines (65-67%)
Revenue showed a CAGR growth 44.61% (FY21-23) with revenue at Rs.99.56 cr., EBITDA Margin stood at 13.67% & PAT Margin of 7.93% in FY23.
Energy Mission Machineries IPO is coming at a PE ratio of 19.8x (FY23 Earnings) and 17.4x (fy24 annualized earnings)
I intend to apply in Energy Mission Machineries IPO subject to availability of funds.Energy Mission Machineries IPO could see very high subscriptions and issue appears to have excellent prospects in my view.
GMP as reported on social media has been Rs. 140.
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 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.
