About the Company:
Craftsman Automation Ltd is a diversified engineering company with vertically integrated manufacturing capabilities.
Company is 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”).
Company is 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.
Company is among the top three-four component players with respect to machining of cylinder block for the tractor segment in India.
Company is present across the entire value chain in the Automotive-Aluminium Products segment, providing diverse products and solutions.
Company has strong in-house engineering and design capabilities help in offering comprehensive solutions and products to our long standing domestic and international customers in each of the segments in which company operates.
Company’s Business Segments:
- Automotive – Powertrain segment.
- Automotive – Aluminium Products segment.
- Industrial and engineering segment.
Percentage wise Revenue From various Business Segments:
Automotive – Powertrain and Others, Automotive – Aluminium Products and Industrial and Engineering segments accounting for 48.17%, 19.70% and 32.12% of company’s revenue from operations in the six months ended September 30, 2020.
When did Company Commence Operations?
Craftsman Automation Ltd commenced operations in 1986 in Coimbatore, in the State of Tamil Nadu, India.
Company Provides Comprehensive solutions:
Craftsman Automation provides comprehensive solutions include design, process engineering and manufacturing including foundry, heat treatment, fabrication, machining and assembly facilities.
Company has core competence in machining and assembly of industrial and engineering products has helped company to first establish ourselves as a significant player in the Automotive – Powertrain and Others segment.
Company’s Key Products:
Company’s key products in Automotive – Powertrain segment are highly engineered and include engine parts such as cylinder blocks and cylinder heads, camshafts, transmission parts, gear box housings, turbo chargers and bearing caps.
Company’s key products in Automotive – Aluminium Products segment are highly engineered and include crank case and cylinder blocks for two wheelers, engine and structural parts for passenger vehicles and gear box housing for heavy commercial vehicle.
End Users for Company’s products:
The end users for Craftsman Automation’s products include OEMs producing commercial vehicles, special utility vehicle, tractors and off-highway vehicles.
Additionally, company is also providing machining services within the Automotive – Powertrain and Others segment. Over the years, company has been instrumental in import substitution for critical powertrain parts.
Company’s Key Clients:
Craftsman Automation has long term relationships with several marquee domestic and global original equipment manufacturers (“OEMs”) and component manufacturers across our three business segments.
Within the Automotive – Powertrain and Others segment, company’s key customers include Daimler India, Tata Motors, Tata Cummins, Mahindra & Mahindra, Simpson & Co. Limited, TAFE Motors and Tractors, Escorts, Ashok Leyland, Perkins, Mitsubishi Heavy Industries, John Deere and JCB India.
Within the Automotive – Aluminium Products segment, company’s key customers include Daimler India, TVS Motors, Royal Enfield, Perkins and Mahindra & Mahindra.
within the industrial and engineering segment company’s Key customers include Siemens and Mitsubishi Heavy Industries.
Revenue from Top 10 Customers:
Company has a diversified client base with top 10 customers accounting for 56.23%, 53.41% of revenue from operations, in the six months ended September 30, 2020 and Fiscals 2020, respectively.
Company’s Manufacturing Facilities:
Craftsman Automation Ltd owns and operates 12 strategically located manufacturing facilities across seven cities in India, with a total built up area of over 1.5 million sq. ft.
Company’s manufacturing facilities areclose to some of the key customers to enable meeting our customers’ just-in-time delivery schedules, allow economies of scale and logistical advantages for our customers, and to insulate them from local supply or other disruptions.
Company’s overseas subsidiary (Craftsman Europe B.V.)
Company has a wholly-owned overseas subsidiary, Craftsman Europe B.V. (formerly known as Craftsman Marine B.V.), set up in 2008 in Netherlands, through which company is engaged in marketing, sales and servicing of marine engines and other associated equipment used in yachts.
These products are manufactured and assembled by the company in India and exported under the name “Craftsman Marine” and will help us expand our footprint in Europe.
Company’s joint venture in India, (Carl Stahl Craftsman Enterprises Pvt Ltd)
Company has a joint venture in India, Carl Stahl Craftsman Enterprises Pvt Ltd, engaged in marketing, installation, commissioning and rendering after-sales services of material handling equipment, such as chain hoists, rope hoists and cranes kits, manufactured by us under the name “Carl Stahl Craftsman”.
Company’s strategic investment in MC Craftsman Machinery Pvt Ltd.
Craftsman Automation Ltd has a strategic investment in MC Craftsman Machinery Private Limited, which is majority held by the Mitsubishi group, strengthening company’s two decades of business relationship with the Mitsubishi group and allowing us recognition and access to customers based in or headquartered out of Japan and the East Asia region.
Management Team:
- Mr. Srinivasan Ravi (Designation: Chairman and Managing Director)
- Mr. Ravi Gauthamram (Designation: Designation: Whole-time Director)
Objectives of the Issue:
Offer for Sale: (Rs. 673 cr)
- Company will not receive any proceeds of the Offer for Sale by the Selling Shareholders.
Fresh Issue: (Rs. 150 cr)
- Repayment/pre-payment, in full or part, of certain borrowings availed of by our Company.
- General corporate purposes.
Positives for the Company:
- 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 motivated and skilled work force.
- Robust financial performance in challenging business environment.
Financials of the Company:
| (in Crores) | FY 18 | FY 19 | FY 20 | 31st Dec 20 |
|---|---|---|---|---|
| Revenue | 1522.8 | 1831.6 | 1501.0 | 1029.9 |
| Net Profit | 31.5 | 97.3 | 41.0 | 50.6 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Craftsman Automation Ltd | 5 | 20.41 | 73.00 | 6.19% | 329.73 |
| Bharat Forge Ltd | 2 | 7.51 | 73.50 | 6.65% | 112.80 |
| Endurance Technologies Ltd | 10 | 40.2 | 29.07 | 18.81% | 213.71 |
| Jamna Auto Industries | 1 | 1.2 | 46.33 | 9.27% | 12.97 |
| Mahindra CIE Automotive | 10 | 9.33 | 17.14 | 7.64% | 122.26 |
| Minda Industries | 2 | 5.91 | 66.51 | 8.94% | 80.03 |
| Sundram Fasteners | 1 | 2.97 | 34.89 | 16.29% | 95.39 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 15th March 2021 |
| Issue Closes on:. | 17th March 2021 |
| Issue Price | Rs.1488 – 1490 |
| Face Value | Rs.5 |
| Retail Category Allocation | 35% |
| Minimum Lot | 10 Shares |
| Minimum Investment | Rs.14900 |
| Issue Constitutes | 26.16% |
| Issue Size | Rs.823 cr ($111 million) |
| Market Cap | Rs. 3148 cr ($425 million) |
| Listing at | NSE & BSE |
| Equity Shares Offered (Fresh) | 10,06,711 |
| Equity Shares Offered (OFS) | 45,21,450 |
| Total Equity Shares Offered (Fresh + OFS) | 55,28,161 |
| Equity Shares Prior to Issue | 2,01,21,600 |
| Equity Shares after the Issue | 2,11,28,311 |
Also Read : List of Upcoming IPO’s in India.
Important Dates:
| Finalization of Basis of Allotment | On of Before 22nd March 2021 |
| Initiation of Refunds | On of Before 23rd March 2021 |
| Credit of Equity Shares: | On of Before 24th March 2021 |
| Listing Date: | On of Before 25th March 2021 |
Subscription Details: (Will be Updated)
| (Subscription-Category-Wise (no. of times) Till time : 05:00 PM) | Shares Offered | 15th March | 16th March | 17th March |
|---|---|---|---|---|
| QIB | 11,05,632 | 0.00 | 0.56 | 5.21 |
| NII | 8,29,225 | 0.09 | 0.19 | 2.84 |
| Retail | 19,34,857 | 1.06 | 1.85 | 3.41 |
| Employee | —– | —- | — | — |
| TOTAL | 38,69,714 | 0.55 | 1.13 | 3.8 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 20.41 | 73.00 | 6.19% | 329.73 |
| Check IPO Allotment Status: |
|---|
Link InTime Website: https://linkintime.co.in/PublicIssue/BSE IPO Website: https://www.bseindia.com/IPO/Allotment |
| Company Contact Info: |
|---|
| Craftsman Automation Ltd Senthel Towers IV Floor, 1078, Avanashi Road Coimbatore 641 018 Tamil Nadu, India Tel: (91 422) 716 5000; E-mail: investor@craftsmanautomation.com; Website: www.craftsmanautomation.com |
| IPO Registrar Info: |
|---|
| Link Intime India Private Limited C-101, 1st floor, 247 Park L. B. S. Marg, Vikhroli West Mumbai 400 083 Maharashtra, India Tel: (91 22) 4918 6200 E-mail: craftsman.ipo@linkintime.co.in Website: www.linkintime.co.in |
