About the Company:
MacPower CNC Machines (Established in 2003) is engaged in manufacturing of CNC Turning Centers, Vertical Machining Centers, Horizontal Machining Centers, Cylindrical Grinder, Vertical Turret Lathe and also Multi Tasking, 5-axis along with sub spindle.
Macpower is registered to ISO 9001(Design), a universally accepted quality assurance designation by Tuv Suddeutchland India Private Limited (Germany) and also ISO 9001: 2008 by BSCIC, India.
Macpower has also offers Robotic Automation integrated with CNC machines to cope up the demand of technology driven machining excellence.
Company is importing various components and parts i.e. Spindle, Ball Screw, Linear Guide ways, Linear Glass Scale, Live Tool Turret, Live Tool Holder, Probe, CNC System from Taiwan, Germany, Japan, Italy etc.
Company is well equipped with the latest infrastructure and equipments, well qualified skilled intellectual capital to support the manufacturing of high end technology driven machines.
Company’s Sales and Service Team is spread in 31 cities in the Country with 107 qualified Sales & Service Engineers.These 31 cities cover 3 Technical Centre at Ahmedabad, Pune and Hyderabad for advance services.
Company has 7 Distributors in different cities i.e. Mohali, Sonipat, Bangalore, Coimbatore, Hyderabad and Kolkata. For expanding the business, Company holds 4 Places as its Branch Offices at Ahmedabad, Pune, Jaipur and Delhi.
Company has Sales representatives at various places like Ahmedabad, Surendra nagar, Jamnagar, Baroda, Rajkot, Mumbai, Nasik, Nagpur, Aurangabad, Kolhapur, Pune, Delhi, Gurgaon, Bhiwadi, Manesar, Faridabad, Ghaziabad, Ludhiana, Noida, Rohtak, Jaipur, , Mohali, Indore, Alwar, Bhopal, Kolkata, Bangalore, Chennai, Coimbatore, and Hyderabad.
Company has supplied series of Machines to Government of India Establishments like Ordnance Factories, PSUs, Educational Institutes of State and Central Government, Research Centers and is firmly establishing footholds in those categories.
What is CNC?
- The CNC in CNC Machining stands for Computer Numerical Control.
- CNC Machining is a process used in the manufacturing sector that involves the use of computers to control machine tools. Tools that can be controlled in this manner include lathes, mills, routers and grinders.
- A computer program is customized for an object and the machines are programmed with CNC machining language (called G-code) that essentially controls all features
like feed rate, coordination, Position and RPM. With CNC machining, the computer can control exact positioning and speed.
Company’s Product Profile:
Awards and Recognitions received by the Company in the Recent past:
- FIE Foundation Award at IMTEX 2017 for Designing Excellence of Twin Spindle VMC V855 Twin Head.
- FIE Foundation Award at IMTEX 2015 for Designing Excellence of Multitasking Machine Turn O’ Mill Y S.
Tenders Submitted by the Company to various Government entities (As on 11th December 2017):
Management Team:
- Mr. Rupesh Mehta (Designation: Managing Director & Chairman)
- Ms. Riya Mehta (Designation: Director)
- Mr.Nikesh Mehta (Designation: Whole Time Director)
Promoters Average Acquisition Cost:
| Name of the Promoter | No. of Shares held | Average Acquisition Cost (in Rs.) |
|---|---|---|
| Rupesh Mehta | 31,49,000 | 4.49 |
| Nikesh Mehta | 11,84,400 | 3.84 |
Promoters Stake Pre & Post Issue:
| Shareholder Name | Pre Issue Stake (%) | Post Issue Stake |
|---|---|---|
| Promoters | ||
| Rupesh Mehta | 43.78% | 32.10% |
| Nikesh Mehta | 16.47% | 12.07% |
| Promoter Group Entities | 33.85% | 24.82% |
| Total | 94.09% | 69.00% |
Objectives of the Issue:
- Setting Up Backward Integration Facility.
- General Corporate Purpose.
Fund Utilization:
| Particulars | Amount (Rs. in Crores) |
|---|---|
| Setting Up Backward Integration Facility | 32.90 |
| General Corporate Expenses | 3.71 |
| Net Proceeds | 36.61 cr |
Positives for the Company:
Diversified Customer Base:
Company has catered to over 178 customers with total 213 Machines during the six months ended September 30, 2017 and 236 customers with total 343 Machines in Financial Year 2017 across various sectors like Automobile, Agriculture, Earth Moving Equipment’s, Bearings, General Engineering, Aerospace, Metal, Petroleum, Construction Industries, Defense, PSUs.
Sticky Customer Base:
One of the characteristics of the machine tool industry is the reluctance of the customer to switch vendors, if an existing process has been running efficiently. MacPower CNC Machines have been able to retain customers by promising and delivering cost savings and process enhancements.
Research and Development:
Right from the beginning Company has believed in research and development which has benefited them to lay a technical foundation and the capability that allows the Company to offer customized solutions to the customers.
Company’s inhouse Research and Development Center has a team of 15 experienced design engineers headed by President R & D having core experience of 40 years in Machine tool Design, this has resulted in new models, and implemented into latest machines.
Pursuing International Growth opportunities:
Historically Company’s revenue has been dependent on domestic market but going forward, company intends to develop new distribution channels in international geographies and increase the export operations.
Financials of the Company:
| (in Crores) | FY 13 | FY 14 | FY 15 | FY 16 | FY 17 | 30th Sept 17 |
|---|---|---|---|---|---|---|
| Revenue | 37.57 | 42.37 | 64.26 | 64.16 | 69.56 | 46.45 |
| Net Profit | (-1.22) | 0.27 | 0.29 | 0.49 | 0.79 | 2.50 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Macpower CNC Machines Ltd |
10 | 1.19 | 117.64 | 21.70% | 10.06 |
| Lokesh Machines Limited |
10 | 1.29 | 53.02 | 1.68% | 76.74 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 12th March 2018 |
| Issue Closes on:. | 14th March 2018 |
| Issue Price | Rs.126 – 140 |
| Face Value | Rs.10 |
| Minimum Lot | 1000 |
| Minimum Investment | Rs.1,40,000 |
| Issue Constitutes | 26.66% |
| Issue Size | Rs.36.61 cr |
| Market Cap | Rs.137.31 cr |
| Listing at | NSE SME |
| Total Equity Shares Offered (Fresh) | 26,15,000 |
| Equity Shares Prior to the Issue | 71,93,000 |
| Equity Shares after the issue | 98,08,000 |
Important Dates:
| Finalization of Basis of Allotment | on or Before 19th March 2018 |
| Initiation of Refunds | on or Before 20th March 2018 |
| Credit of Equity Shares: | on or Before 21st March 2018 |
| Listing Date: | on or Before 22nd March 2018 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 1.19 | 117.64 | 21.70% | 10.06 |
Markets Guruji Opinion:
| IPO View | Apply For: | Expected listing Gain: |
|---|---|---|
| Subscribe | Long Term | 15% |
Subscription Details: (12/13/14 March 2018)
| (Subscription-Category-Wise (no. of times) Till time : 06:00 PM) | Shares Offered | Day-1 | Day-2 | Day-3 |
|---|---|---|---|---|
| HNI | 12,30,000 | 0.46 | 0.46 | 1.93 |
| Retail | 12,32,000 | 0.66 | 1.5 | 5.06 |
| Others | 1,53,000 | 0.00 | 0.00 | 4.8 |
| Employee | —— | —– | —– | —- |
| TOTAL | 26,15,000 | 0.53 | 0.93 | 3.57 |
Grey Market Premium :
| Date | IPO | Price Band | Grey Market premium |
|---|---|---|---|
| 02/03/18 | MacPower CNC Machines Ltd | 126 – 140 | 3- 5 |
| Check IPO Allotment Status: |
|---|
Link InTime Website (Click on the below Link)https://linkintime.co.in/PublicIssue/ |
| Company Contact Info: |
|---|
| Macpower CNC Machines Limited Plot No.2234, Nr. Kranti Gate, GIDC Metoda, Tal Lodhika Dist Rajkot Gujarat 360021 India Tel: 02827-287930/31/32 Fax: 02827 287933 Email: info@macpowercnc.com Website: www.macpowercnc.com |
| IPO Registrar Info: |
|---|
| PANTOMATH CAPITAL ADVISORS PRIVATE LIMITED 406-408, Keshava Premises, Behind Family Court, Bandra Kurla Complex, Bandra East, Mumbai – 400 051 Tel: +91-22 6194 6700; Fax: +91-22 2659 8690 Email: ipo@pantomathgroup.com Website: www.pantomathgroup.com |
| Lead Manager to the Issue: |
|---|
| LINK INTIME INDIA PRIVATE LIMITED C-101, 247 Park, L.B.S. Marg, Vikhroli (West), Mumbai- 400 083, India Tel: 022-49186200; Fax: 022-49186195 Email: macpower.ipo@linkintime.co.in Website: www.linkintime.co.in |
