About the Company:
Ahlada Engineers Ltd is in the business of manufacturing steel doors and windows (steel-frame) and we cater to customers across various segments and industries.
Additionally, Company is also in the business of manufacturing cleanroom equipment for customers in the pharmaceutical, biotechnology and food industries.
With nearly a decade of experience in making steel doors and windows, they have developed in-house expertise in the process of manufacturing our product range, i.e. steel doors, windows and clean room equipment,
Company currently has facilities spread across 3 manufacturing units in addition to one assembling unit and stock yard, with an area admeasuring 34,211 square yards on the outskirts of Hyderabad.
Company’s History:
Established in 2005, Company had started commercial operations in February 2006 with manufacturing of cleanroom equipment and furniture. Further in the year 2008, they started manufacturing steel doors which catered to the then existing customers of cleanroom equipment and furniture.
Gradually company started expanding the customer base for their products manufactured to healthcare, entertainment and real estate vertical as well.
They have been gradually expanding their manufacturing facilities and have over the past decade, expanded the facilities to its current form and capacity. Presently, they have an installed capacity to manufacture 11,000 doors per month.
Company currently manufactures the following Products:
Steel Doors: Company manufactures a variety of steel doors for various industrial, commercial and residential purposes.
Steel Frame windows: Company manufactures a variety of steel frame windows as well which are used for various industry and residential purposes.
Clean Room Equipment:
A cleanroom is essentially an environment, typically used in manufacturing or scientific research that has low level of environmental pollutants such as dust, airborne microbes, aerosol particles and chemical vapours.
They are used extensively in semiconductor manufacturing, biotechnology and life sciences and other fields that are sensitive to environmental contamination.
Projected Capacity Utilization:
Agreement with Tata Steel.
In order to expand the business and customer base, they have on August 22, 2017, entered into a Master Manufacturing and Supply Agreement (MMSA) with Tata Steel Limited (TSL), whereby TSL has assured offtake of doors manufactured and shall work with them to improve process and line efficiency.
Key terms of the Agreement are set out below:
Term : the Agreement is valid for an initial term of 48 months from the date of signing, and may be extended for an additional period of 11 months (Extension Period). The Agreement may be renewed by executing a fresh agreement on mutually acceptable terms for another 4 years (Renewed Period).
Orders and Minimum offtake: Company shall provide the Products as per purchase orders issued from time to time and Tata has committed to order minimum quantity of 11.75 lac doors during the term of the agreement.
Management Team:
- Mr. Koduru Iswara Varaprasad Reddy (Designation: Chairman and Non-Executive Director)
- Mr. Chedepudi Suresh Mohan Reddy (Designation: Managing Director)
- Mr. Kurre Raja Sekhar Reddy (Designation: Whole Time Director)
Objectives of the Issue:
- Repayment of certain identified loans availed from lenders and directors.
- Purchase of Machinery/Equipment.
- Funding of Working Capital Gap.
- General Corporate Purposes.
Fund Utilization:
| Particulars | Amount (Rs. in Crores) |
|---|---|
| Repayment of certain loans availed from lenders | 6.50 |
| Purchase of Machinery/Equipment | 17.40 |
| Funding of Working Capital Gap | 17.00 |
Positives for the Company:
Assured Offtake of Products.
While Company was into manufacturing and selling of steel doors and clean room equipment, the agreement with Tata Steel Limited has ensured an assured offtake of their products i.e. steel doors.
Additionally, Company manufactures and supplies steel doors and windows to other industrial customers (other than Tata Steel Limited and the products manufactured and supplied to TSL) as well.
Housing for All by 2022 and Affordable Housing.
With the government’s focus on ‘Housing for All’ by 2022 and ‘Affordable Housing’ being the flavour within the realty sector, the demand for doors and windows is expected to be robust, based on the new homes and also substantially due to the replacement of existing wooden doors and windows.
With established real estate players also expanding their footprints beyond Metro and Tier I cities to more affordable Tier II and Tier III cities, the demand for housing, and therefore doors is expected to be robust.
Peer Group Comparison:
Company is engaged in the manufacturing of steel doors and windows (steel frame) and cater to customers across various segments and industries. We believe there are no listed entities similar to Ahlada Engineers Ltd line of business and comparable to their scale of operations, hence comparison is not possible.
Financials of the Company:
| (in Crores) | FY 14 | FY 15 | FY 16 | FY 17 | FY 18 |
|---|---|---|---|---|---|
| Revenue | 79.13 | 96.30 | 111.47 | 117.55 | 127.89 |
| Net Profit | 2.64 | 2.58 | 3.05 | 3.27 | 8.09 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 11th September 2018 |
| Issue Closes on:. | 18th September 2018 |
| Issue Price | Rs.147 – 150 |
| Face Value | Rs.10 |
| Minimum Lot | 1000 shares |
| Minimum Investment | Rs.1,50,000 |
| Issue Constitutes | 26.35% |
| Issue Size | Rs.51.06 cr |
| Market Cap | Rs.193.77 cr |
| Listing at | NSE SME |
| Equity Shares Offered | 34,04,000 |
| Equity Shares Prior to the Issue | 95,16,000 |
| Equity Shares after the Issue | Will be Updated |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 9.24 | 16.23 | 22.22% | 41.57 |
Important Dates:
| Finalization of Basis of Allotment | on or before 24th September 2018 |
| Initiation of Refunds | on or before 25th September 2018 |
| Credit of Equity Shares: | on or before 25th September 2018 |
| Listing Date: | on or before 27th September 2018 |
| Check IPO Allotment Status: |
|---|
Bigshare Website (Click on the below Link)http://www.bigshareonline.com/bssipoapplicationstatus.aspx |
Knowledge Corner: (Click on the Link)
| Company Contact Info: |
|---|
| Ahlada Engineers Limited Door No 4-56, Survey No. 62/1/A & 67, Tech Mahindra Road, Bahadurpally, Qutbullapur Mandal, Hyderabad 500043, Rangareddi, Telangana, India Telephone: +91 98 6650 0811 / +91 98 6650 0822 E-mail: engineers@ahlada.com Website: www.ahlada.com |
| IPO Registrar Info: |
|---|
| BIGSHARE SERVICES PRIVATE LIMITED 1st Floor, Bharat Tin Works Building, Opposite Vasant Oasis, Makwana Road, Marol, Andheri (East), Mumbai – 400 059, Maharashtra, India Telephone: +91 22 6263 8200 Facsimile: +91 22 6263 8299 E-mail: ipo@bigshareonline.com Website: www.bigshareonline.com |
| Lead Manager to the Issue: |
|---|
| SAFFRON CAPITAL ADVISORS PRIVATE LIMITED 605, 6th floor, Centre Point, Andheri Kurla Road, J.B. Nagar, Andheri (East), Mumbai – 400 059, Maharashtra, India. Telephone: +91 22 4082 0901/0915 Facsimile: +91 22 4082 0999 E-mail: sme.ipos@saffronadvisor.com Website: www.saffronadvisor.com |
