Craftsman Automation IPO Details and Review

Dates, Price band, Lot size, Risks, Review and broker recommendations etc.
Craftsman Automation IPO

Craftsman Automation IPO: Key Details

  • Grey Market Premium (GMP) today: To be Updated
  • Raised 247 Crore via anchor investor sale at ₹1,490 per share

Note: We neither trade nor encourage our readers to trade in the Grey Market. We share the GMP information for educational purposes only, so that, you can make an informed decision.

Company Information

Craftsman Automation Limited, incorporated in 1984, 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”).

We are the largest player involved in the machining of cylinder blocks and cylinder heads in the intermediate, medium and heavy commercial vehicles segment as well as in the construction equipment industry in India. We are among the top three-four component players with respect to the machining of cylinder block for the tractor segment in India.

Competitive Strengths

  • 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 a motivated and skilled workforce.
  • Robust financial performance in a challenging business environment.

Company Strategy

  • Leverage vertically integrated manufacturing and engineering capabilities, to tap the growing opportunities for aluminium usage in the Automotive – Aluminium Products and Industrial and Engineering segment
  • Increase wallet share and acquire new business by leveraging existing OEM relationships and adding new customers.
  • Growing opportunities in storage solutions.
  • Continue to reduce operating costs and improve operational efficiencies.

Proceeds from Craftsman Automation IPO will be used to:

  • Repayment/prepayment of certain indebtedness availed by the Company; and
  • General corporate purposes

Craftsman Automation IPO: Financials

201820192020 Mar2020 Dec
Revenue from Ops₹1,511.53 Cr₹1,818.01 Cr₹1,492.47 Cr₹1,022.78 Cr
Profit before Tax₹43.55 Cr₹139.98 Cr₹57.39 Cr₹75.93 Cr
Profit after Tax31.53 Cr₹97.37 Cr₹41.07 Cr₹50.66Cr
EPS (Basic)15.6748.3920.4125.18
As of March 2020EPSP/E (Floor)P/E (Cap)
Based on basic EPS20.4173.0073.40

Comparison with listed industry peers

CompanyP/E (Cap)
Craftsman Automation73.00
Sector Highest181.89
Sector Lowest17.40
Sector Average72.76

Craftsman Automation IPO Dashboard

Issue Details

TypeValue
Issue Size₹823.70 Cr
Fresh Issue₹150 Cr
Offer for Sale₹673.70 Cr
Face Value₹5/- per Equity Share
IPO Price₹1,488 – ₹1,490
Lot Size10 shares
LotsMin 1 – Max 13

Key Dates

Date TypeDate
Bid Open15/03/2021
Bid Close17/03/2021
Allotment Finalization22/03/2021
Initiation of Refunds23/03/2021
Credit of Shares24/03/2021
Listing Date25/03/2021

Lot Size and Price

LotsSharesAmount
110₹14,900
13130₹1,93,700

Promoter Holding

HoldingPercentage
Pre-Issue63.40%
Post-Issue59.76%
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Craftsman Automation IPO: Investor Quota and Shares Offered

Investor TypeQuotaShares on Offer
QIB50%11,05,632*
NII15%8,29,225
RII (Retail)35%19,34,857
Total100%38,69,714
*Shares left for subscription post anchor investor sale of 247 crores

Craftsman Automation IPO: Risks

  • There has been a significant decline in automobile sales even prior to COVID-19 and the company is not certain that the sales will recover even after the impact of COVID-19 is over.
  • Company’s inability to meet obligations under its debt financing arrangements could adversely affect the business
  • Company’s Group Companies have incurred losses in the last three Fiscals
  • The audit reports as at and for Fiscals 2020, 2019 and 2018, the nine months ended December 31, 2020, and the examination report on the Restated Financial Information contain certain emphases of matter and other remarks, which may affect its future financial results
  • The loss of any of its key customers or significant reduction in production and sales of, or demand for its products from its significant customers may adversely affect the business

For complete internal and external risk factors, you can refer the RHP and DRHP of the company.

Craftsman Automation IPO: Registrar and Lead Managers

Registrar of the Issue

Link Intime India Private Limited
C-101, 1st floor, 247 Park
L. B. S. Marg, Vikhroli West
Mumbai 400 083, Maharashtra, India

Phone:(91 22) 4918 6200
Email: [email protected]

Lead Managers of the Issue

Axis Capital Limited
IIFL Securities Limited

Phone: +91-22-4325 2183 / +91-22-4646 4600
Email: [email protected] / [email protected]

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