About the Company:
Supreme Engineering Ltd (Incorporated in the year 1987) is engaged in the business of manufacturing special alloys and special wire products.
Over the years, Company has expanded its operations by investing in high-end technology & infrastructure and presently has these two (2) units. Both these units have different product processing capabilities with modern infrastructure.
Companys manufacturing units Unit I being the Special Steels division, located at Khopoli, and engaged with the manufacturing of special alloys such as super alloys, austenitic stainless steel, ultra high strength steel and high speed steels which have their end use in sectors such as aerospace, space, defence, nuclear power thermal power, oil & gas, and heavy engineering.
Company’s Unit II being the Wire division, located at Rabale, Navi Mumbai, engaged with the manufacturing of wires, bright bars, fine wires and profiles. These products find their end use in sectors such as automotive, oil & gas, industrial machinery and hand tools industries.
Company’s units have been approved by various Defence Public Sector Undertakings, Public Sector Undertakings, Ordnance factories and undertakings belonging to aerospace, automotive and energy sectors.
Company’s products form an integral part of the critical end use equipment manufactured for defence, power and aerospace industries.
Competition for the Company:
Processing of metals is a competitive business and company faces competition from various domestic and international players for their steel and alloy products. The industry is largely composed of both, established names as well many small and medium-sized companies and entities.
Among listed companies, they face competition from major players such as Bharat Forge Limited and Tirupati Forging Limited. The special steel division at Khopoli faces competition from M/s Mishra Dhatru Nigam Limited.
Management Team:
- Mrs. Lalita Sanjay Chowdhri (Designation: Chairperson & Non- Executive Director)
- Mr. Sanjay Rattan Prakash Chowdhri (Designation: Managing Director)
- Mr. Abhinav Sanjay Chowdhri (Designation: Executive Director)
Objectives of the Issue:
- Part finance the Working Capital requirements
- Part repayment of High Cost Debt
- Finance Capital expenditure for the following purpose:
(A) Acquisition of Plant & Machinery
(B) Up-gradation of existing technology - Meet General Corporate Expenses.
Positives for the Company:
Approved by Public Sector Undertakings.
Company’s Special Steels Division at Khopoli is approved by the end users being public sector undertakings in the aerospace, defence and power sectors.
Company processes special alloys such as superalloys, precipitation hardening steels, martensitic stainless steel, austenitic stainless steel, high strength steel and high speed steels at their Special Steels division at Khopoli.
Company have been supplying these special alloy products to various public sector undertakings which are then used in the manufacturing of equipment and supplies for the defence, aerospace and power sector.
The end users for company’s products include various Defence Public Sector Undertakings, Public Sector Undertakings, Ordnance factories and undertakings belonging to aerospace, automotive and energy sectors.
Long standing relationship with Customers.
Companys longstanding relationship with customers has helped them in obtaining repeat business from them. Companys Unit II (Rabale – Wire Division) manufactures precision profiles and wires used in the oil & gas and automotive sectors.
Company has received repeat orders from customers in these sectors and have developed strong client relationship over the years.
Indigenization of special alloys that are currently imported into the country.
India imports many special alloys from foreign countries for defence, space, aerospace, nuclear and power industries. As a part of the Make in India programme initiated by the Government of India, company has developed and are in the process of entering into contracts with public sector undertakings for indigenization of special steels & alloys used in critical sectors such as defence, aerospace, nuclear and power.
These products include super alloys of nickel, cobalt, special steels and such other products. The manufacturing of these products requires special engineering techniques which Company is able and capable of executing.
The manufacturing of these products has the potential of earning high returns considering the fact that there are not many players in the industry who have the capacity to enter and execute sophisticated manufacturing of such special alloys.
Financials of the Company:
| (in Crores) | FY 13 | FY 14 | FY 15 | FY 16 | FY 17 | FY 18 |
|---|---|---|---|---|---|---|
| Revenue | 58.44 | 77.27 | 79.59 | 113.64 | 120.86 | 152.26 |
| Net Profit | 3.92 | 0.19 | 0.73 | 1.12 | 2.15 | 4.65 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Supreme Engineering Limited | 10 | 3.17 | 10.09 | 16.03% | 15.76 |
| Bharat Forge Limited | 2 | 16.38 | 38.95 | 16.11% | 100.53 |
| Mishra Dhatu Nigam Limited | 10 | 7.01 | 20.08 | 16.64% | 42.12 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 24th August 2018 |
| Issue Closes on:. | 29th August 2018 |
| Issue Price | Rs.27 – 32 |
| Face Value | Rs.10 |
| Minimum Lot | 4000 shares |
| Minimum Investment | Rs.1,28,000 |
| Issue Constitutes | 26.34% |
| Issue Size | Rs.21.06 cr |
| Market Cap | Rs.79.98 cr |
| Listing at | NSE SME |
| Equity Shares Offered (Fresh) | 65,84,000 |
| Equity Shares Prior to the Issue | 1,84,19,000 |
| Equity Shares after the Issue | 2,49,95,000 |
Important Dates:
| Finalization of Basis of Allotment | on or Before 3rd September 2018 |
| Initiation of Refunds | on or Before 4th September 2018 |
| Credit of Equity Shares: | on or Before 5th September 2018 |
| Listing Date: | on or Before 6th September 2018 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 3.17 | 10.09 | 16.03 | 15.76 |
| Check IPO Allotment Status: |
|---|
Bigshare Website (Click on the below Link)http://www.bigshareonline.com/bssipoapplicationstatus.aspx |
| Company Contact Info: |
|---|
| Supreme Engineering Limited R-223, M.I.D.C. Complex, Rabale Thane Belapur Road, Navi Mumbai 400 701 Maharashtra, India. Telephone: +91 22 2769 2232 Facsimile: +91 22 2769 0341 Email id: info@supremesteels.com Website: www.supremesteels.com |
| IPO Registrar Info: |
|---|
| BIGSHARE SERVICES PRIVATE LIMITED 1st Floor, Bharat Tin Works Building Opp. Vasant Oasis, Makwana Road Marol, Andheri (East), Mumbai 400059, India. Telephone: 022 6263 8200; Facsimile: 022 6263 8299 Email: ipo@bigshareonline.com Website: www.bigshareonline.com |
| Lead Manager to the Issue: |
|---|
| CKP FINANCIAL SERVICES PRIVATE LIMITED 906, Jay Antariksh 13/14, Makawana Road, Marol Naka, Andheri (East) Mumbai 400 059, India. Telephone: +91 9322997964/ 022-49749802 Email: info@ckpfinancialservices.com Website: www.ckpfinancialservices.com |
