Transteel Seating Technologies IPO entails to raise ₹49.98 Cr through issue of 7140000 equity shares of Rs. 10 each with a price band of Rs. 67 – Rs. 70 per share. The issue consists of 6784000 fresh equity shares (worth Rs. 47.49 cr.) and 356000 equity shares (worth Rs. 2.49 cr.) by an Offer for Sale (OFS). Transteel Seating Technologies is a furniture provider with over 20 years of corporate and B2B experience.
IPO opens
Oct 30, 2023
IPO Closes
Nov 1, 2023
IPO Size (Rs.)
₹49.98 Cr
IPO Size (shares)
7,140,000 shares
Breakup
Fresh issue ₹47.49 Cr+ OFS ₹2.49 Cr
Face Value:
₹ 10
IPO Price in Rs :
₹67 to ₹70
Minimum Lot
2000 Shares
Listing At
NSE SME
QIB
~50 %
NII Quota
~15%
Retail Quota
~35%
Lead Manager
Gretex Corporate Services, Pantomath Capital
Registrar
Link Intime India Pvt. Ltd
Market maker
Gretex Share Broking
About Transteel Seating Technologies:
Transteel Seating Technologies Ltd. (TSTL) is a furniture provider, and has been catering to businesses of all sizes.
The company’s manufacturing unit is located in , Yeshwanthpur, Bangalore, Karnataka.
With seamless online browsing and purchasing, they have served over 80,000 satisfied customers and expanded across seven cities in India.
They specialize in making chairs, office furniture, and other residential and commercial furniture
They have focus on craft performance oriented Tables and Chairs . Their furniture solutions are a delightful mix of design, value, and ergonomics, which ensure that back stays in good shape, day after day.
Company is promoted by Ms. Nasreen Shiraz and Mr. Shiraz Ibrahim. Our promoters have a combined experience of over 26 years in the Furniture Industry.
Financials: Transteel Seating Technologies
Particulars/ Rs. Lacs
Sept 30,2023
2023
2022
2021
Total Income
3,133.39
5,961.43
2,806.74
2,287.74
Profit before tax
562.77
1,253.54
218.21
17.91
Profit after Tax
417.64
909.36
159.08
-0.59
Share Capital
1,339.45
58.24
23.81
23.81
Reserves and surplus
1,521.41
2,385.87
605.91
446.82
Net Worth
2,860.86
2,444.11
629.71
470.63
Total Borrowings
3,853.15
2,691.10
1,326.75
988.55
Basic & Diluted EPS (₹) (Post Bonus)
3.12
6.8
1.19
0.01
Return on Net worth (%)
14.60%
37.21%
25.26%
0.40%
Net Asset Value Per Share (₹) (Post Bonus and After Split)
21.36
18.28
4.71
3.52
Post issue Share Capital
2,018
FV
10.0
IPO price
70.0
EPS Fy23
4.5
PE Fy23
15.5
EPS Fy24 (annulaized)
3.5
PE Fy24 (annulaized)
19.7
Market cap in Lacs
14,126.0
Market Cap/sales
2.4
Anchor:
Transteel Seating Technologies garnered Rs 13 Crores from anchor investors ahead of its IPO. Some of the marquee institutions who participated in the anchor book are Chanakya Opportunity Fund, Nav Capital, VPK Global, Moneywise Financials and Nexus Global.
Promoters stake shall come down to 54% from 83% at present.
The IPO constitutes 35.38% of the post-IPO paid-up capital of the company.
From the proceeds of the Issue, the company will use Rs. 6.65 cr. for repayment/prepayment of existing debt, Rs. 14.90 cr. for purchase of equipment to facilitate manufacturing, Rs. 20.00 cr. for working capital and the rest for general corporate purposes.
.30% of Revenue in Fiscal 2022-2023, 30% of Revenue in Fiscal 2021-2022 and 37% of Revenue in Fiscal 2020-2021 was from only one city i.e. Bangalore. The company have also expanded its presence in Mumbai, Chennai, Delhi NCR, Pune and Hyderabad.
Year
Bangalore
Chennai
Hyderabad
Delhi NCR
Mumbai
Pune
Others
FY 2020-2021
37 %
15%
18%
15%
5%
NA
10%
FY 2021-2022
30 %
15%
20%
20%
10%
0
5%
FY 2022-2023
30 %
15%
20%
20%
10%
3%
2%
In 2019, the company took a major step by going for a digital-first approach and thus transforming the way customers engage with its brand.
Key Performance Indicators
Key Financial Performance
April 01, 2023 –September 30, 2023
FY 2022-23
FY 2021-22
FY 2020-21
Revenue from operations(1)
3,125.67
5,947.95
2,798.86
2,281.15
EBITDA(2)
807.34
1,543.53
388.07
137.22
EBITDA Margin(3)
25.83%
25.95%
13.87 %
6.02%
PAT
417.64
909.36
159.08
(0.59)
PAT Margin(4)
13.36%
15.29%
5.68%
(0.03) %
Networth(5)
2,860.86
2,444.11
629.71
470.63
RoE %(6)
14.60%
37.21%
25.26%
(0.13)%
RoCE% (7)
15.34%
36.69%
32.95%
11.84%
r
Transteel Seating Technologies financials for the last three years show a good growth in revenue and profits.
Transteel Seating Technologies IPO is coming at a PE ratio of 13.1x(fy23 earnings) and12.8x (fy24 annualized earnings)
I may apply in Transteel Seating Technologies IPO subject to availability of funds though I think it is not cheap.
GMP as reported on social media has been around Rs. 20.
Gretex Corporate Services Limited is the Lead Manager. Past issues handled by them include Shelter Pharma Limited, Comrade Appliances Limited, Innokaiz India Limited Retina Paints Limited, Sudarshan Pharma Industries, ResGen Limited, Reetech International Cargo and Courier Ltd, Steelman Telecom Limited, Shantidoot Infra Services.
Present downturn in market, ongoing war poses significant risk to SME market.
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.
