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Meson Valves India IPO is offering 30,48,000 Equity shares of ₹10/- each for cash at a price of ₹ 102/- per Equity shares, aggregating to ₹ 31.09 crore. Meson Valves India is in the business of assembling, buying, selling, distributing, importing, exporting products which include valves, actuators, remote control systems, control cabinets, tanks, visualization systems, piping, pumps, fittings, gaskets, flanges, and measurement devices. The company also offer services related to these products, including installation, maintenance, and servicing.

About Meson Valves India :

• The Company was originally incorporated as a Private Limited Company in the name Sander Meson India Private Limited.
• Company is engaged in the business of assembling, buying, selling, distributing, importing, exporting or otherwise dealing in products like valves, actuators, remote control system, control cabinets, tanks, visualization system, piping, pumps, fittings, gaskets, flanges and measurement devices.
• Meson Valves India also deals in installation, maintaining, servicing or otherwise handling of equipment and services that control and manage all products like valves, actuators, remote control system, control cabinets, tanks, visualization system, piping, pumps, fittings, gaskets, flanges and measurement devices.
• Its assembly unit is situated at Khed, Pune. The unit is well equipped with CNC machines, all necessary Fixtures for assembly and test machinery for quality assurance, other handling Equipment’s to facilitate smooth assembly process and easy logistics.
• It has two main business divisions: (i) domestic sales; and (ii) exports. The domestic sales division caters to the needs of industries in Andhra Pradesh, Assam, Goa, Gujarat, Kerela, Maharashtra, Tamil Nadu, Telangana, Uttar Pradesh, West Bengal, and Karnataka states for the year ended March 31, 2023, 2022, and 2021. Internationally they supply products in countries such as Germany, South Korea, Oman, Russia, Sweden, United Arab Emirates, Srilanka, Qatar, and Thailand.
• The promoters of the Company are Brijesh Madhav Manerikar, Swaroop Raghuvir Natekar, Vivekanand Maruti Redekar, India Futuristic Marine Private Limited.

Financials: Meson Valves India IPO

Meson Valves India IPO: Salient Points

• India industrial valves market was valued at USD 2.6 billion in 2021 and is projected to reach USD 3.7 billion by 2028, growing at a CAGR of 5.2% during the forecast period.
• Company proposes to utilise IPO Net Proceeds as follows:

• As indicated on above table, part of IPO proceeds are being raised for purchase of Plant and Machinery for setting up of Manufacturing unit for valves and related items.
• Company supplies mainly to Naval, Oil and gas industries, Power, Refineries and General Industries, both in domestic and international markets.
• Exports form a small portion of its revenues and have declined. For the financial year ended March 31, 2023, 2022 and 2021 revenue from exports constituted 1.20%, 7.71% and 10.24% of the revenue from operation respectively. Company exports to 9 countries (Germany, South Korea, Oman, Russia, Sweden, United Arab Emirates, Srilanka, Qatar and Thailand) .
• Its primary focus is on the B2B customer segment. Its clients represent a variety of industries:

• Meson Valves India is having good experience of supplying Valves with critical requirements for Defense projects
• Company has availed Unsecured Borrowings from Aditya Birla Finance Ltd and Bajaj Finserv.
• Company issued 1,89,562 equity shares vide Rights issue on April 06, 2023 at a price of Rs 83.35/- per equity share. IPO price is Rs. 102/-.
• Meson Valves India IPO is coming at a PE ratio of 22.9x (fy23 earnings).
• There are no comparable peers.
• I intend to apply in Meson Valves India IPO subject to availability of funds.
• GMP as reported on social media has been around Rs. 90-100.
• Shreni Shares Private Limited is the lead manager with quite a decent record of good listing and performance subsequently. Past issues handled by them include C P S Shapers Limited, AccelerateBS India Limited, Global Pet Industries Limited, Veefin Solutions Limited, Sancode Technologies Limited, Bright Outdoor Media Limited, Srivasavi Adhesive Tapes LimitedS, Arihant Academy Limited, PNGS Gargi Fashion Jewellery Limited, DAPS Advertising Limited, Olatech Solutions Limited etc.
• SME IPO are quite illiquid and volatile and exit options sometimes is delayed. They carry very high amount of risk as well comparted to main board IPOs.

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. 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.