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Presstonic Engineering IPO entails a fresh issue of 3,236,800 shares worth ₹23.30 cr. The price is ₹72  per share and the lot size is 1600 shares. Presstonic Engineering Ltd. (PEL) manufactures Metro Rail Rolling Stock Products, Metro Rail Signaling Products, Infrastructure Products

About Presstonic Engineering:

• Company manufactures Metro Rail Rolling Stock Products, Metro Rail Signalling Products, Infrastructure Products and supplies to renowned Global and Domestic OEM’s engaged in the Rail and Metro Rail Rolling stock and Signalling equipments manufacturing and servicing companies.
• Their manufacturing facility is spread over approx. 28,317.50 sq.ft. situated Hoysala Main Road, Pillappa Industrial Layout, Srigandhadakavalu, Sunkadakatte, Viswaneedam, Bangalore and is is equipped with latest machineries, equipment and instruments which is capable of manufacturing of diverse products for Railways and Metros.
• Company is promoted by Mr. Herga Poornachandra Kedilaya and Mr. Yermal Giridhar Rao.
• Presstonic Engineering range of products under our manufacturing capabilities is summarized as under:
  • Metro Rail Rolling Stock Products:
    • Rolling Stock Interior Products: Saloon Bucket/Plain Type Seat, Custom Colored Engineered Handles, Grab Pole System, Hand Rail System, Emergency Evacuation Ramp, Honeycomb Partition Panels etc.
    • Rolling Stock Non-Interior Products: Aluminum Cable Management Systems, Cab Handrail, Under Carriage Frame Module, Air Handling Unit, Battery Box, Equipment Mounting Frames, Gangway Frame, Driver Foot Rest Assembly, Enclosure Box, Driver Simulator Cabin etc.
  • Metro Rail Signaling Products:
    • IP Rated Enclosures, Beacon Mounting Brackets, Ballast less Support Bracket, DCS Mast, Ladder Assembly with DCS Mast Platform etc.
  • Infrastructure Products:
    • Steel Structure and Aluminum Murals, Support Structure for Solar Panels, Wire Form and Cable Trays etc.

Financials: Presstonic Engg IPO

Presstonic Engg IPO: Salient Points

• The IPO constitutes 42% of the post-IPO paid-up capital of the company.
• Currently, India boasts of a total operational metro network of 868 km, across 15 cities. Further, around 714 km is under construction and 1425 km has been proposed. If things work to plan, India will have a total metro network spanning around 3942 km in the next few years.
• Its vision is to be India’s leader in manufacturing metro and rail sub – assemblies by 2030 and to be the first choice for OEMs of diverse sectors to develop newer components.
• Company proposes to utilize the funds which are being raised through this Issue towards the below mentioned objects:

• Product-wise break up of Revenues

• Our manufacturing process includes both through In-house manufacturing and outsourcing model.
• As on March 31, 2023, it had an unexecuted order book of Rs. 64 cr.
• Further April 01, 2023 onwards company has been awarded additional order of ₹456.87 lakhs.
• On the basis of proposed additional metro rail network in the country, the company expects a good opportunity in the near future in Metro Rail Segment as well as Vande Bharat Express.
• Presstonic Engineering IPO is coming at a PE ratio of 21.7x(fy23 earnings) and 18.2x (fy24 annualized earnings).
• I intend to apply in Presstonic Engineering IPO subject to release of funds from other IPOs. Several ongoing and forthcoming Metro projects bode well for the company.
• Finshore Management Services Limited is the Lead Manager and has a reasonable record with some misses as well. Past issues handled by them include Holmarc Opto-Mechatronics Limited, Alphalogic Industries Limited, ITCONS E-Solutions Limited, Indong Tea Company Limited, Arham Technologies Limited, AMBO Agritec Ltd, Containe Technologies Ltd, Mega Flex Plastics Limited, Naturo Indiabull Limited, Upsurge Seeds of Agriculture Limited, Agni Green Power Limited, Healthy Life Agritec Limited, Swaraj Suiting Limited, Swaraj Suiting Limited etc.
• Nikunj Stock Brokers as Market Maker earlier handled IPOs like Swashthik Plascon Limited, Baba Food Processing, Micropro Software Solutions, Micropro Software Solutions, Vrundavan Plantations, Committed Cargo Care, Mish Designs, WomanCart, sharp chucks And Machines Plada Infotech Services, Vishnusurya Projects and Infra etc.
• SME IPO are much more risky than mainboard IPOs. This post is not a suggestion to apply for this IPO.
• Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational/ exploratory 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.