There was much activity in the investment circles about the TechEra Engineering IPO, which is widely and largely publicized due to its involvement with aerospace and defense. This guide will give you the nitty-gritty core details, competitive strengths, risks, and some dates associated with the IPO, so whether you are a seasoned investor or an up-and-comer, you will have all your information related to this IPO here.
Overview of TechEra Engineering
TechEra Engineering (India) Limited is a precision tooling and automation solutions provider, specializing in aerospace and defense. The company offers the complete product line-assembly tooling, jigs, fixtures, MRO tooling, ground support equipment, and even precision machine components. Using advanced technologies such as 5-axis machining and 3D modeling, TechEra ensures that all its products meet the tough standards that the target sectors demand.
The company is registered under ISO 9001:2015 and AS9100D:2018. These accreditations assure the company’s accountability for quality. TechEra has overseen diverse complex engineering projects, from producing tooling for commercial aircraft to fighter jet components. In September 2024, TechEra counts 177 full-time qualified professionals, thus depicting its competence.
Key Details of TechEra Engineering IPO
The TechEra Engineering IPO is a book-built issue offering fresh shares worth ₹35.90 crores. The IPO opens for subscription between (September 25, 2024, and September 27, 2024). Below are the essential details:
| Particulars | Details |
|---|---|
| IPO Date | September 25, 2024 – September 27, 2024 |
| Listing Date | October 3, 2024 |
| Price Band | ₹75 to ₹82 per share |
| Face Value | ₹10 per share |
| Lot Size | 1600 Shares |
| Total Issue Size | 4,377,600 shares |
| Total Issue Amount | ₹35.90 Cr |
| Listing At | NSE SME |
| Promoter Shareholding Pre Issue | 57.48% |
| Promoter Shareholding Post Issue | [ ] |
IPO Reservation
| Investor Category | Shares Offered |
|---|---|
| QIB | Not more than 50% of the Net Issue |
| Retail | Not less than 35% of the Net Issue |
| NII (HNI) | Not more than 15% of the Net Issue |
Schedule of TechEra Engineering IPO
Here is a detailed schedule that you as a investors must follow:
| Event | Date |
|---|---|
| IPO Open Date | September 25, 2024 |
| IPO Close Date | September 27, 2024 |
| UPI Mandate Deadline | September 27, 2024 (5 PM) |
| Allotment Finalisation | September 30, 2024 |
| Refund Initiation | October 1, 2024 |
| Credit of Shares to Demat | October 1, 2024 |
| Listing Date | October 3, 2024 |
| Mandate End Date | October 12, 2024 |
| Anchor Lock-in End Date (50%) | October 30, 2024 |
| Anchor Lock-in End Date (Balance) | December 29, 2024 |
Competitive Strengths of TechEra Engineering
Specialized Expertise
TechEra Engineering has specialized expertise in aerospace and defense, manufacturing some of the most crucial components: assembly tooling, jigs, fixtures, and precision-machined parts. Focusing on niche markets is a tactical positioning within high-demand sectors.
Advanced Manufacturing Technologies
The company invested heavily in high-end manufacturing technologies such as 5-axis machining and AR/VR for design visualization. This allows TechEra to successfully deliver such accurate and complex projects, thereby ensuring the projects that are prone to strict quality standards of aerospace and defense markets.
Experienced Leadership
TechEra Engineering management team boasts extensive experience in aerospace engineering and automation. They have provided strategic direction and placed the company at the forefront of technological developments.
Risks Subsumed within the TechEra Engineering IPO
Dependency on One Manufacturing Facility
TechEra is dependent on one manufacturing facility, which forms a major threat. If it faces any kind of problem at its manufacturing facility, the production ability of the corporation would be highly affected.
Payment of Government Dues as Well as Penalties
The company has been seen having a delayed payment of government dues and penalties, which shows an unstable financial scenario. In the future, this may cause difficulties in carrying out operations without interruption.
High Dependency on Third-Party Suppliers
TechEra’s dependency on third-party providers for raw materials makes it prone to supply chain disturbances that may cause the company failure to meet production targets.
Losses in the book
There have been losses in the company’s book that cast a long-term tarnish over its financial health. Any investor would do well to look for these implications before a decision on making any investment to the company.
Legal and Regulatory Issues
There are ongoing criminal charges and legal regulatory issues against the company, which may tarnish the reputation of the company and affect their operational efficiency. The factors will be considered while evaluating the investment opportunities in the IPO.
TechEra Engineering Company Finances
TechEra Engineering’s financial performance is very important for making informed investment decisions. Below is a summary of the company’s financial statements for the last three fiscal years:
| Ended | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
|---|---|---|---|
| Assets (₹ Cr) | 37.24 | 39.21 | 21.36 |
| Revenue (₹ Cr) | 39.08 | 26.59 | 7.37 |
| Profit After Tax (₹ Cr) | 4.82 | 1.31 | -6.29 |
| Net Worth (₹ Cr) | 15.9 | 11.08 | 9.78 |
| Reserves & Surplus (₹ Cr) | 3.76 | -2.72 | -4.02 |
| Total Borrowing (₹ Cr) | 14.3 | 13.77 | 8.87 |
Key Performance Indicators (KPI)
| KPI | Value |
|---|---|
| ROE | 30.33% |
| ROCE | 23.47% |
| Debt/Equity | 0.9 |
| RoNW | 30.33% |
| P/BV | 6.26 |
| PAT Margin (%) | 12.45% |
Objects of the TechEra Engineering IPO
The proceeds from this public issue will be utilized for the following purposes:
- Funding capital expenditure for the purchase of new machinery.
- Funding working capital requirements for business expansion.
- Prepayment or repayment of a portion of certain outstanding borrowings.
- General corporate purposes and issue expenses.
Conclusion
TechEra Engineering IPO is a very unique opportunity for investment in the aerospace and defense sectors. The company has specific specialization and advanced manufacturing capabilities that will support its growth. However, it would be essential to weigh the risks involved with investment in the company such as dependency on one manufacturing facility, financial instability, and going through legal issues.
The strong market position along with the recent improvement in financials puts the TechEra Engineering IPO to add some valuable options to a diversified portfolio. As always, investors should review the detailed RHP and align their decisions with their financial objectives before investing. For more FINANCIAL UPDATE please click here
Disclaimer: This article is for educational purposes only and is not financial or investment advice. Always do your own research or consult a licensed financial advisor before making investment decisions. The author is not liable for any financial loss resulting from actions taken based on this information.
TechEra Engineering LImited Contact Details
TechEra Engineering LImited
Gat No. 565,
Behind Namo Marble & Timbers At Post Velu
Tal. Bhor, Pune-412205
Phone: +91 8605016251
Email: cs@techera.co.in
Website: https://techera.co.in/
