About the Company:
Benara Bearings & Pistons Ltd was incorporated in the year 1990 and is engaged in the manufacturing of engine bearings, bushes, pistons, piston pin, piston rings, cylinder liners and sleeves and engine valves.They are an ISO 9001:2015 company.
Additionally, they are also engaged in the marketing of products like ball bearings, spark plugs, rocker arms, timing chains, connecting rods, valve guides, valve seals & batteries (Motorcycle / Inverter / E Rickshaws) under Company’s own brand which they source through third party contract manufacturing.
Company markets its product in OEM and Replacement market & majorly focuses on two wheeler parts replacement market.
For distribution, they have more than 450 dealers spread throughout the country.
For the fiscal year 2016-17, OEM and Parts Replacement market contribute Rs. 46.44 crores and Rs. 72.66 crores respectively towards the revenue operations of the Company on a standalone basis.
Company’s subsidiary, Benara Solar Private Limited, is engaged in the business of development and deployment of solar energy technologies including inter-alia planning and execution of solar power projects.
Further they also have another subsidiary Securitrans Trading Private Limited, which is engaged in trading of various types of goods and materials.
Company Manufactures Following Products:
Company Sells Products Under the Following Brand Names:
Brand Wise Revenue Contribution Breakup (in Lakhs):
Product Wise Revenue Breakup:
Export & Domestic Revenue Breakup (in Lakhs):
Subsidiaries of the Company:
Benara Solar Private Limited
Benara Solar Private Limited started providing solutions for Solar Home Lighting system, Solar Street Lighting system and water pumps in the year 2016.They procure solar panels from MNRE approved suppliers and successfully install them on the sites.
Company has penetrated their business into rooftop solar market for commercial, Industrial, home and institutional requirements.They have been awarded Category “A” certificate channel partner of Ministry of New & Renewable Energy.
Company was recently awarded Winner in Emerging Company: Rooftop Sales under Solar Innovation & Excellence Award -2017 organized by Mission Energy Foundation.
Management Team:
- Mr. Panna Lal Jain (Designation: Chairman)
- Mr. Vivek Benara (Designation: Managing Director)
- Ms. Ketaki Benara (Designation: Executive Director)
Promoters Average Acquisition Cost:
| Name of the Promoter | No. of Shares held | Average Acquisition Cost (in Rs.) |
|---|---|---|
| Panna Lal Jain | 22,64,852 | 8.74 |
| Vivek Benara | 21,79,012 | 9.66 |
Promoters Stake Pre & Post Issue:
| Shareholder Name | Pre Issue Stake (%) | Post Issue Stake (%) |
|---|---|---|
| Promoters | ||
| Panna Lal Jain | 18.28% | 12.79% |
| Vivek Benara | 17.59% | 12.30% |
| Promoter Group Entities | 64.04% | 44.81% |
| Total | 99.91% | 69.91% |
Objectives of the Issue:
- Expansion of Company by way of opening retail stores for automobile parts across the Country.
- Funding the working capital requirements of Subsidiary Company-Benara Solar Private Limited (BSPL)
- Funding the working capital requirements of the Company.
- General Corporate Purposes.
Fund Utilization:
| Particulars | Amount (Rs. in Crores) |
|---|---|
| Opening Retail stores for automobile parts across the country | 7.5 |
| Working capital requirements of Subsidiary Company-Benara Solar Private Limited | 5.0 |
| Working capital requirements of the Company | 10.50 |
| General Corporate Expenses | 10.49 |
| Net Proceeds | 33.49 crores |
Positives for the Company:
Diversification of Product range:
Company has recently introduced motorcycle, e- rickshaw and inverter battery to their extensive product range.
Further, they also plan to launch BENPRO Lubricants 4T Oil which is suitable for two wheelers and three wheelers.
Strong Brand Focus:
Company’s products are well known in Uttar Pradesh, Madhya Pradesh, Bihar, Rajasthan, Haryana, Gujarat, Delhi NCR and West Bengal. Company has consistently achieved repeat orders from customers which strengthens their brand equity.
Plans to open Retail Chain:
Company plans to open retail stores in the name of “Parts Bazaar” in Delhi and expanding its reach to other Tier I and Tier II cities In three years Company targets to open 150 stores across the country.
The purpose of the store is to provide quality original spare parts at factory rates to the end users.
They also plan to collaborate with all the major brands and suppliers in Tier I and Tier II cities for providing the aftermarket of spares and accessories for two wheelers and three wheelers in the Indian market.
Plans to Increase Revenue from Exports:
Currently, they undertake both direct and deemed exports. However company’s revenue from export operations is not contributing significantly to their revenue from operations.
Company’s strategy is to expand their exports in different countries, to market their products & reach out to foreign customers.
Financials of the Company:
| (in Crores) | FY 13 | FY 14 | FY 15 | FY 16 | FY 17 | 30th Sept 17 |
|---|---|---|---|---|---|---|
| Revenue | 49.87 | 51.88 | 71.80 | 80.24 | 122.63 | 67.25 |
| Net Profit | 0.23 | 0.028 | 0.46 | 0.76 | 4.21 | 4.08 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Benara Bearings and Pistons Limited |
10 | 3.40 | 18.52 | 21.44% | 15.87 |
| Shriram Pistons & Rings Limited |
10 | 52.78 | 35.48 | 14.87% | 355.11 |
| Federal-Mogul Goetze (India) Limited |
10 | 12.94 | 43.54 | 12.80% | 101.09 |
| SAMKRG PISTONS & RINGS Limited |
10 | 20.29 | 17.59 | 17.73% | 111.76 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 20th March 2018 |
| Issue Closes on:. | 22nd March 2018 |
| Issue Price | Rs.60 – 63 |
| Face Value | Rs.10 |
| Minimum Lot | 2000 |
| Minimum Investment | Rs.1,26,000 |
| Issue Constitutes | 30.02% |
| Issue Size | Rs.33.49 cr |
| Market Cap | Rs.111.55 cr |
| Listing at | BSE SME |
| Total Equity Shares Offered (Fresh) | 53,16,000 |
| Equity Shares Prior to the Issue | 1,23,91,288 |
| Equity Shares after the Issue | 1,77,07,288 |
Important Dates:
| Finalization of Basis of Allotment | on or Before 27th March 2018 |
| Initiation of Refunds | on or Before 28th March 2018 |
| Credit of Equity Shares: | on or Before 02nd April 2018 |
| Listing Date: | on or Before 03rd April 2018 |
Subscription Details: (Will be Updated)
| (Subscription-Category-Wise (no. of times) Till time : 00:00) | Shares Offered | Day-1 | Day-2 | Day-3 |
|---|---|---|---|---|
| HNI | 24,84,000 | |||
| Retail | 24,84,000 | |||
| Others | 2,72,000 | |||
| Employee | 76,000 | |||
| TOTAL | 53,16,000 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 3.40 | 18.52 | 21.44% | 15.87 |
Markets Guruji Opinion:
| IPO View | Apply For: | Expected listing Gain: |
|---|---|---|
| Subscribe | Long Term | 20% |
Grey Market Premium :
| Date | IPO | Price Band | Grey Market premium |
|---|---|---|---|
| 09/03/18 | Benara Bearings and Pistons Ltd | 60 – 63 | 6 -7 |
| Check IPO Allotment Status: |
|---|
Bigshare Website (Click on the below Link)http://www.bigshareonline.com/bssipoapplicationstatus.aspx |
| Company Contact Info: |
|---|
| Benara Bearings & Pistons Limited A-3 & 4, Site B, Industrial Area Sikandra Agra, Uttar Pradesh India 282007 Tel: +91 562 2970158 Fax: +91 562 2970158 Email: investorgrievance@benara-phb.com Website: www.benara-phb.com |
| IPO Registrar Info: |
|---|
| BIGSHARE SERVICES PRIVATE LIMITED 1st Floor, Bharat Tin Works Building, Opp. Vasant Oasis, Makwana Road, Marol, Andheri East, Mumbai-400059 Tel: +91 22 6263 8200 Fax: +91 22 6263 8299 Email: ipo@bigshareonline.com Website: www.bigshareonline.com |
| Lead Manager to the Issue: |
|---|
| PANTOMATH CAPITAL ADVISORS PRIVATE LIMITED 406-408, Keshva Premises, Behind Family Court, Bandra Kurla Complex, Bandra (East), Mumbai – 400051, Maharashtra, India Tel: +91-22 6194 6700 Fax: +91-22 2659 8690 Email: ipo@pantomathgroup.com Website: www.pantomathgroup.com |
