Initial Public Offering of Craftsman Automation Limited
About the Company
Craftsman Automation is a diversified engineering company with vertically integrated manufacturing capabilities, engaged in three business segments, namely powertrain and other products for the automotive segment (“Automotive -Powertrain and Others”), aluminium products for the automotive segment (“Automotive – Aluminium Products”), and industrial and engineering products segment (“Industrial and Engineering”). The manufacturing facilities of the company include aluminium foundries, pressure die casting facilities, machining and allied facilities, heat treatment, fabrication, and assembly facilities.
The company own and operate 11 strategically located manufacturing facilities across seven cities in India, with a total built-up area of over 1.5 million sq. ft. Its facilities are equipped with advanced machinery, including imported state-of-the-art computer numerical control (“CNC”) machine tools and die casting machines and certain of the facilities are located close to the key customers to enable meeting the customers’ just-in-time delivery schedules, allow economies of scale and logistical advantages for each of the customers, and to insulate them from local suppliers or other disruptions.
Promoters of the Company
- Mr SRINIVASAN RAVI
Objects of the Offer
- Repayment/pre-payment, in full or part, of certain borrowings availed of by our Company
- General corporate purposes
The below is the summarized Financial Details of Company (RESTATED CONSOLIDATED INFORMATION)
|Details||For the Year|
|September 30, 2020||March 31 2020||March 31, 2019||March 31, 2018|
|Total Equity and Liabilities||21,681.85||23,031.36||23,253.98||19,994.34|
|Profit for the Year||69.66||410.73||973.67||315.34|
|Earnings per share(Basic) (₹)||3.46||20.41||48.39||15.67|
*All values are in ₹ Million
|Issue Type||Book Building Issue IPO|
|Face Value||₹ 10 per equity share|
|IPO Price||₹1488 to ₹1490|
|Market Lot||10 Shares|
|Minimum Quantity||10 Shares|
|Issue Size||aggregating up to ₹823.70 Cr|
|Fresh Issue||1,006,711 Equity Shares|
|Offer for Sale||4,521,450 Equity Shares|
Time line of IPO Process
|IPO Subscription Open date||15th March 2021|
|IPO Subscription Close date||17th March 2021|
|Basis of Allotment finalization date||22nd March 2021|
|Issue of refunds and Allotment status link activation date||23rd March 2021|
|Crediting of shares to Demat account||24th March 2021|
|IPO Listing on Stock Exchanges( 10 Am)||25th March 2021|
Basis of the Offer
Comparison with Industry Peers
Note: Please Zoom the table to view the details clearly.
Strengths of the Company
- Diversified engineering company with a focus on providing comprehensive solutions and manufacturing high quality, intricate and critical products, components and parts.
- Strong in-house process and product design capabilities with the ability to interchange capacity and product mix
- Long term and well-established relationships with marquee domestic and global OEMs.
- Extensive manufacturing footprint, with strategically located manufacturing facilities
- Experienced management team supported by the motivated and skilled workforce
- Robust financial performance in a challenging business environment
Risks of Business and Operations
- The extent to which the coronavirus disease (COVID-19) affects the business, results of operations and financial condition will depend on future developments, which are uncertain and cannot be predicted.
- There has been a significant decline in automobile sales even prior to COVID-19 and it is not certain that the sales will recover even after the impact of COVID-19 is over.
- inability to meet our obligations under our debt financing arrangements could adversely affect our business, results of operations and cash flows.
- a substantial portion of our assets is hypothecated or mortgaged in favour of lenders as security for some of our borrowings. lenders may enforce the security in the event of failure to service our debt obligations which may affect the business, financial condition, and results of operations
- Group Companies have incurred losses in the last three Fiscals.
- Company and one of our Director is involved in certain legal proceedings, and an adverse outcome in any such proceedings may adversely affect our business, financial condition and growth strategy
- Any shortfall in the supply of our raw materials or an increase in our raw material costs
LITIGATION INVOLVING OUR COMPANY
Book Running Lead Managers
- Axis Capital Limited
- IIFL Securities Limited
- Link Intime India Private Limited