Craftsman Automation is one of the foremost engineering organisations engaged in manufacturing of engineering components. They are launching latest IPO available for subscription for the public on 15th March 2020 which closes on 17th March 2020. It’s a Book Built Issue IPO with Face Value per Equity share of INR 5. IPO price band ranges between INR 1488 – 1490 per equity share. This issue has to be issued in the market lot of 10 shares worth INR 14,900 with a maximum of 130 shares aggregating up to INR 1,93,700. These shares are proposed to be listed both on BSE and NSE and Link Intime Private Limited is the registrar to this IPO.
Company details.
Craftsman Automation Limited commenced its operations in 1986 in Coimbatore in Tamil Nadu. 12 of its manufacturing facilities are strategically located in 7 cities in India. The company has been performing robust in financial terms and is a diversified engineering establishment equipped with vertically integrated production capabilities. It is a major in machining of cylinder heads and cylinder blocks in the medium, intermediate and heavy commercial vehicles, it is actively involved with the same in the construction equipment industry as well. Due to its strong product design capabilities and expertise its client base spreads across Tata Motors, Tata Cummins, TAFE Motors and Tractors, Mahindra and Mahindra, Royal Enfield, Ashok Leyland, Escorts, Siemens, VE Commercial Vehicles. Etc.
When is the IPO opening?
IPO of Craftsman Automation Limited is scheduled to float on 15th March 2021 available for public subscription which will close on 17th March 2021.
How is the offer priced?
It’s a Main Board IPO of the Face Value of INR 5 per Equity Share aggregating INR 823.70 crores. The fresh issue is for 150 crores and offer for sale is up to 45 lakh equity shares (approx.)worth INR 674 crores.
Is there any price band?
This issue has a price band ranging between INR 1488 – 1450 per Equity share.
Is there any market lot size for subscription?
Minimum market lot size which any retail individual investor can apply is 10 shares valuing INR 14,900 and can go up to 13 such lots i.e. 130 shares for INR 1,93,700.
Who is the promoter to the company?
Srinivasan Ravi is Chariman, the Managing Director and the promoter to Craftsman Automation Limited and is holding 52,83% of the total paid-up capital of the company. He possesses 63.40% share Pre-Issue which is proposed to rise by 59.76% post-issue.
Tentative date sheet of the IPO
| IPO Opening Date | 15th March 2021 |
| IPO Closing Date | 17th March 2021 |
| Basis of Allotment Date | 22nd March 2021 |
| Initiation of Refunds | 23rd March 2021 |
| Credit of Shares to DEMAT account | 24th March 2021 |
| IPO Listing Date | 25th March 2021 |
Consolidated and restated Financial Summary of the company
| Particulars | For the year/period ended (INR in millions) | |||
| 31st Dec 2020 | 31st March 2020 | 31st March 2019 | 31st March 2018 | |
| Total Assets | 22,462.93 | 23,031.36 | 23,253.98 | 19,994.34 |
| Total Revenue | 10,299.08 | 15,010.57 | 18,316.43 | 15,228.62 |
| Profit After Tax (PAT) | 506.60 | 410.73 | 973.67 | 315.34 |
What is the objective of this issue?
The company has its plans to use the funds so generated to firstly, to pre-pay/repay company’s borrowings to the extent of INR 120 crores and secondly, funds generated from the offer for sale will be given to selling shareholders i.e. investors and promoters..
How is the issue place?
50% of the issue is reserved for qualified institutional buyers, 15% of the issue is for the non-institutional buyers and the balance 35% is for the retail investors.
Where are the shares listed?
The IPO is proposed to be listed both on BSE and NSE.
Who are the Book Running Lead Managers to the company?
IIFL securities, Link Intime and Axis Capitals are the BRLM to the issue.
How to apply for the IPO?
One can apply for the IPO under two ways but should have a DEMAT account.
- UPI method – brokers who do not offer you any banking services use this method.
- ASBA method – All major banks offer this facility and is available via banking interface of your bank account.