Craftsman Automation IPO: Key Details
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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
| 2018 | 2019 | 2020 Mar | 2020 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 Tax | ₹31.53 Cr | ₹97.37 Cr | ₹41.07 Cr | ₹50.66Cr |
| EPS (Basic) | 15.67 | 48.39 | 20.41 | 25.18 |
| As of March 2020 | EPS | P/E (Floor) | P/E (Cap) |
|---|---|---|---|
| Based on basic EPS | 20.41 | 73.00 | 73.40 |
Comparison with listed industry peers
| Company | P/E (Cap) |
|---|---|
| Craftsman Automation | 73.00 |
| Sector Highest | 181.89 |
| Sector Lowest | 17.40 |
| Sector Average | 72.76 |
Craftsman Automation IPO Dashboard
Issue Details
| Type | Value |
|---|---|
| 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 Size | 10 shares |
| Lots | Min 1 – Max 13 |
Key Dates
| Date Type | Date |
|---|---|
| Bid Open | 15/03/2021 |
| Bid Close | 17/03/2021 |
| Allotment Finalization | 22/03/2021 |
| Initiation of Refunds | 23/03/2021 |
| Credit of Shares | 24/03/2021 |
| Listing Date | 25/03/2021 |
Lot Size and Price
| Lots | Shares | Amount |
|---|---|---|
| 1 | 10 | ₹14,900 |
| 13 | 130 | ₹1,93,700 |
Promoter Holding
| Holding | Percentage |
|---|---|
| Pre-Issue | 63.40% |
| Post-Issue | 59.76% |
Craftsman Automation IPO: Investor Quota and Shares Offered
| Investor Type | Quota | Shares on Offer |
|---|---|---|
| QIB | 50% | 11,05,632* |
| NII | 15% | 8,29,225 |
| RII (Retail) | 35% | 19,34,857 |
| Total | 100% | 38,69,714 |
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]
