About the Company:
TechEra Engineering (India) Limited, established in October 2018, engages in the design, manufacture, and supply of precision tooling, components for the aerospace and defence industries, and automation system solutions.
The company’s product portfolio includes assembly toolings, jigs, fixtures, maintenance, repair, and overhaul (MRO) toolings, ground support equipment, and precision machined components. It utilizes advanced manufacturing technologies, such as 5-axis machining and 3-D modelling for design visualization, to meet the requirements of its target sectors.
Company is ISO 9001:2015 and AS9100D:2018 certified, reflecting its adherence to quality management systems. It has participated in notable projects, including the manufacture of tooling for the commercial aircraft vertical fin assembly line and fighter wing skin layup tool, indicating its capability to execute complex engineering projects.
Company aims to contribute to technological advancement and the upliftment of the sectors it serves, through continuous improvement and innovation in its processes and offerings.
Aerospace and Defence market in India.
Company operates within the aerospace and defence market, a sector characterized by high technological complexity, stringent regulatory standards, and significant capital investment. This market is globally distributed, with major hubs in North America, Europe, Asia-Pacific, and other regions, reflecting the international demand for aerospace and defence products and services.
The aerospace segment encompasses the manufacturing, design, and maintenance of aircraft and spacecraft, ranging from commercial airliners and cargo transport aircraft to military fighters and unmanned aerial vehicles.
This segment is driven by factors such as global air traffic growth, advancements in aerospace technology, and increasing defence spending by countries seeking to modernize or expand their military capabilities.
The defence segment includes the development and production of a wide array of military hardware, software, and services, including vehicles, weapons systems, and surveillance and communication technologies.
Company is positioned within this complex and dynamic environment, where its specialized capabilities in design, manufacturing, and supply of aerospace and defence tooling, precision components, and automation solutions align with the sector’s demands.
The company’s focus on advanced manufacturing technologies and engineering services places it at the intersection of traditional manufacturing excellence and cutting-edge technological innovation.
Company’s Revenue from various Sectors: (in Lakhs)
Management Team:
- Mr. Nimesh Rameshchandra Desai (Designation: Managing Director)
- Mrs. Kalpana Nimesh Desai (Designation: Director)
Objectives of the Issue:
Fresh issue: (Rs.35.89 cr)
- Funding capital expenditure for the purchase of new machinery.
- Funding working capital requirements of the Company.
- Prepayment or repayment of a portion of certain outstanding borrowings availed by our Company.
- General corporate purposes.
- To meet the Issue expenses.
Fund Utilization:
| Particulars | Amount (Rs. in Lakhs/Crores) |
|---|---|
| Funding capital expenditure for the purchase of new machinery | 20 cr |
| Funding working capital requirements of the Company | 6 cr |
| Prepayment or repayment of a portion of certain outstanding borrowings availed by our Company | 5 cr |
Positives for the Company:
Company has Specialized Expertise in Aerospace and Defence products Manufacturing.
- TechEra Engineering demonstrates expertise in aerospace and defence manufacturing, emphasizing products such as assembly toolings, jigs, fixtures, and precision machined components. The focus on niche markets is a key characteristic.
Company has done investments in Advanced Manufacturing technologies.
- Company’s Investments in advanced manufacturing technologies, including 5-axis machining and augmented reality/virtual reality for design visualization, positions the company for projects requiring high precision and complexity.
Company has Experienced Leadership.
- The management team, comprised of individuals with significant experience in aerospace engineering and automation, provides strategic direction.
Company has Received Recognitions and Certifications from Reputable Organizations.
- Receipt of awards and certifications from reputable organizations indicates a commitment to quality and excellence in the company’s operational domain.
Increased Government Contracts.
- Increased global defence spending and aerospace sector initiatives offer avenues for new projects and contracts.
Financials of the Company:
| (in Crores) | FY 22 | FY 23 | FY 24 |
|---|---|---|---|
| Revenue | 7.36 | 26.59 | 39.07 |
| Net Profit | (-6.28) | 1.30 | 4.82 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| TechEra Engineering Ltd | 10 | 4.14 | 19.80 | 30.33% | 13.09 |
| Paras Defence and Space Technologies Ltd | 10 | 8.22 | 140.51 | 6.75% | 114.01 |
| Azad Engineering Ltd | 2 | 11.2 | 141.25 | 9.08% | 109.12 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 25th September 2024 |
| Issue Closes on | 27th September 2024 |
| Issue Price | Rs.75-82 |
| Face Value | Rs.10 |
| Minimum Lot | 1600 Shares |
| Minimum Investment | Rs. 1,31,200 |
| Issue Constitutes | 26.49 % |
| Issue Size | Rs.35.89 cr |
| Market Cap | Rs.135.5 cr |
| Listing at | NSE SME |
| Equity Shares Offered (Fresh) | 43,77,600 (Rs.35.89 cr) |
| Equity Shares Prior to the Issue | 1,21,43,325 |
| Equity Shares after the Issue | 1,65,20,925 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 4.14 | 19.80 | 30.33% | 13.09 |
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| Should You Subscribe or Not ? (Markets Guruji’s View) |
|---|
| TechEra Engineering (India) Limited, established in October 2018, specializes in the design, manufacture, and supply of precision tooling, components for the aerospace and defense sectors, and automation system solutions. The company’s product lineup includes assembly toolings, jigs, fixtures, MRO toolings, ground support equipment, and precision machined components. Utilizing advanced technologies such as 5-axis machining and 3D modeling for design, TechEra ensures the highest standards of precision for its clients.
The company has contributed to key projects, including tooling for commercial aircraft vertical fin assembly and fighter wing skin layup tools, showcasing its capacity to manage complex engineering tasks. With a focus on innovation and continuous improvement, TechEra is committed to driving technological progress in the industries it serves. Through strong partnerships with nodal defense and aerospace agencies, TechEra has built a reputation for specialized expertise and has invested heavily in advanced manufacturing technologies. Led by experienced professionals, the company has earned recognition and certifications from respected organizations, making it an attractive option for long-term investors. |
| Company Contact Info: |
|---|
| TechEra Engineering Ltd Gat No. 565, Behind Namo Marble & Timbers At Post Velu, Tal. Bhor, Pune, Maharashtra, India – 412205 Tel: +91 8605016251 Email: cs@techera.co.in Website: www.techera.co.in |
| Registrar to the Issue: |
|---|
| KFIN TECHNOLOGIES LIMITED Address: Selenium Building, Tower-B, Plot No 31 & 32,Financial District, Nanakramguda, Serilingampally, Hyderabad, Rangareddi, Telangana India – 500 032. Tel No: +91-40-67162222/ 7961 1000; Email Id : teil.ipo@kfintech.com Website: https://www.kfintech.com/ |
