About the Company:
Sintercom India is an ISO/TS 16949:2009 certified company by DQS Holding GmbH for manufacture of sintered metal products, machining and assembly of metal components.
Company had started the business with the selling of their product “Hego Bosses” to Tier-1 automotive exhaust system manufacturing companies in India and globally.
Company is currently engaged in the business of manufacturing sintered metal automotive components of engines, transmissions systems, body chassis and exhaust applications using sintering manufacturing processes.
They currently have a manufacturing facility situated at Pune, Maharashtra to manufacture mainly sintered metal components.
The products manufactured by Sintercom are used in the commercial and passenger vehicles.
Company mainly caters to the domestic OEM buyers in automotive segment, resulting into 79.74% of their revenue from operations for the and year 2017.
Currently, they cater to OEMs like Maruti Suzuki Limited, Mahindra & Mahindra Limited, Bajaj Auto Limited and Fiat India Automobiles Private Limited.
They have an in-house dedicated Research & Development team and have been developing new products in engines, transmission systems and body chasis for OEMs and Tier-1 customers.
The main product line of the Company is manufacturing of high strength structural sintered components of Engine and Transmissions.
One of the Corporate Promoter, MIBA Sinter Holding GmbH & CO KG, which is part of MIBA group, has track record of more than five decades in sintered technology.
What is Sintering Technology?
Sintering technology is a green manufacturing process as the raw material is produced out of recycled steel scrap and the end product is produced with minimal scrap generation. These attributes have enabled Powder Metallurgy (PM) to firmly establish itself in applications for the automotive, electrical, energy, aerospace, medical, defense, industrial, and consumer markets.
- Mr. Jignesh Raval (Designation: Managing Director)
- Mr. Hari Nair (Designation: Non-Executive Director and Chairman)
- Mr. Harald Neubert (Designation: Non-Executive Director)
Promoters Average Acquisition Cost:
|Name of the Promoter||No. of Shares held||Average Acquisition Cost (in Rs.)|
|BRN Industries Limited||95,52,700||16.00|
|Miba Sinter Holding GmbH & Co. KG||49,89,085||31.87|
Promoters Stake Pre & Post Issue:
|Shareholder Name||Pre Issue Stake (%)||Post Issue Stake (%)|
|BRN Industries Limited||49.79%||39.46%|
|Miba Sinter Holding GmbH & Co. KG||26.00%||20.61%|
|Promoter Group Entities||Negligible||Negligible|
|Name of the Selling Shareholder||No. of Equity Shares Equity Shares Offered|
|Victora Stock Invest Private Limited||10,31,213 (Full Exit)|
|Maurill Industries Limited||24,98,787 (Full Exit)|
Objectives of the Issue:
Offer For sale (OFS): (Around Rs.22.94 crores)
- Company will not receive any proceeds from the Offer for Sale by the Selling Shareholders.
Fresh Issue: (Around Rs.32.6 crores)
- To finance expansion of production capacity at the existing unit at Talegaon-Dabhade
- Part repayment of secured and unsecured loan availed by the Company.
- Funding the working capital requirements of the Company
- General corporate purposes.
|Particulars||Amount (Rs. in Crores)|
|To finance expansion of production capacity||16.56|
|Part repayment of secured and unsecured loan availed by the Company||11.50|
|Funding the working capital requirements of the Company||3.00|
|General Corporate Expenses||1.54|
|Net Proceeds||32.6 crores|
Peer Group Comparison:
- We believe that there are no listed Companies in India which are engaged in manufacturing of sintered metal components.
- Further there are no listed entities which are focused exclusively on the segment in which Sintercom India Ltd operates. Hence we cannot make any comparison.
Positives for the Company:
Wide product range and customized product offering.
They manufacture a range of components of various systems of Engine and Transmission and body chasis for two-wheelers, passenger and commercial vehicles using Sintering manufacturing technology.
Some of the components that they supply to OEMs are Engine Gears, Chain Driver Sprockets, Timing Belt Pulleys, Engine Sensor parts, Exhaust Sensor Hego Boss, Synchronizer Hubs, ABS Sensor Rings.
Track record of Corporate Promoter Miba Sinter Holding and Technology Transfer from Miba Sinter Austria.
The Corporate Promoter, Miba Sinter Holding is a global player in manufacturing of high precision parts.
Miba Sinter Holding has a track record of over five decades. Its global presence and competitiveness gives us the strength to expand our presence in existing as well as potential markets.
Miba Group has invested in the Company through Miba Sinter Holding GmbH & Co. KG. and transferred technology through Miba Sinter Austria which we believe gives them the cutting edge over their competitors.
Financials of the Company:
|(in Crores)||FY 13||FY 14||FY 15||FY 16||FY 17||30th Sept 17|
|Issue Opens on||5th February 2018|
|Issue Closes on:.||7th February 2018|
|Issue Price||Rs.63 – 65|
|Issue Size||Rs.55.54 cr|
|Market Cap||Rs.157.31 cr|
|Listing at||NSE SME|
|Equity Shares Offered (Fresh)||50,16,000|
|Equity Shares Offered (OFS)||35,30,000|
|Total Equity Shares Offered (Fresh + OFS)||85,46,000|
|Equity Shares Prior||1,91,86,822|
|Equity Shares after the issue||2,42,02,822|
IPO Valuation Parameters:
|Earnings Per Share (EPS)||Price To Earnings ratio (PE)||Return on Net Worth (RoNW)||Net Asset Value (NAV)||Debt/ Equity Ratio|
Grey Market Premium :
|Date||IPO||Price Band||Grey Market premium|
|12/02/18||Sintercom India Ltd||63 – 65||17 – 21|
Markets Guruji Opinion:
|IPO View||Apply For:||Expected listing Gain:|
|Check IPO Allotment Status:|
Link InTime Website (Click on the below Link)
|Company Contact Info:|
|Sintercom India Limited
Gat No. 127, At Post Mangrul,
Taluka Maval, Talegaon Dabhade,
Pune – 410 507
Tel: +91 2114 661200
Fax: +91 2114 661202
|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
Fax: +91 22 4918 6195
|Lead Manager to the Issue:|
|PANTOMATH CAPITAL ADVISORS PRIVATE LIMITED
406-408, Keshava Premises, Behind Family Court,
Bandra Kurla Complex, Bandra East,
Mumbai – 400 051, Maharashtra, India
Tel: +91-22 6194 6700
Fax: +91-22 2659 8690