January 21, 2025
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SME IPO Guidance Review Advice at a Glance
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Malpani Pipes IPO Review by Paresh Gordhandas, CA & Research Analyst.
Malpani Pipes and Fittings Limited, established in 2017, specializes in manufacturing high-quality plastic pipes. The company offers a range of products including High-Density Polyethylene (HDPE) Pipes, Medium-Density Polyethylene (MDPE) Pipes, and Linear Low-Density Polyethylene (LLDPE) Pipes, all sold under its brand “Volstar.”
Teh size of the IPO is not very large and with 599 applications, retail portion can get one time subscribed.
The company has shown sharp rise in the topline and bottomline during 20223-24 (net profit of Rs. 7.40 crore during 2023-24 as compared to net profit of Rs. 2.08 crore during 2022-23). As on 30.11.2024, it has long term borrowings of Rs. 13.71 crore and short term borrowings and trade payables at Rs. 57.10 crore. The company has shown EPS of Rs. 37.17 for the year 2023-24. However the management has issued 5467500 shares as bonus shares during August 2024 and accordingly the equity capital has expanded to 7897500 shares and one must rework the EPS which works out to Rs. 9.37 on the expanded equity capital. The shares are offered at PE multiple of 9.60. If we compare the same with peer group companies, the offer price seems to be reasonable.
The lead manager: Interactive Financial Services ltd has positive/negative listings ratio of 13:8.
IPO opens on 29 Jan. 2025, Closes on 31 Jan. 2025, Price Rs. 90, Lot of 1600 Shares
+ from fundamental angle: so-so
+ from grey market angle:
H.M. Electro Mech IPO Review by Paresh Gordhandas, CA & Research Analyst.
The company specializes in turnkey projects, offering comprehensive services for the supply, installation, testing, and commissioning of pumping machinery, along with operation and maintenance support.
The size of the IPO Rs. 27.74 crore is not very large, and it can get oversubscribed without any problem. Retail portion can get one time subscribed with just 809 applications.
The shares are offered at reasonable valuation and has enough room for listing gains.
The lead manager: Beeline Capital Advisors ltd has impressive track record of positive listings and more over most of the companies lead managed by them are still in positive price range.
IPO opens on 24 Jan. 2025, Closes on 28 Jan. 2025, Price Rs. 75, Lot of 1600 Shares
+ from fundamental angle: May Apply
+ from grey market angle:
Cln Energy IPO Review by Paresh Gordhandas, CA & Research Analyst.
CLN Energy Limited, established in 2019, specializes in the production of custom lithium-ion batteries and motors. The company also manufactures powertrain components for electric vehicles, including controllers, throttles, DC-DC converters, displays, and differentials.
CLN Energy provides B2B solutions tailored for electric vehicles and stationary applications such as solar energy systems, energy storage solutions (ESS), and telecommunications.
Presently, the company operates two manufacturing facilities, one located in Noida, Uttar Pradesh, and the other in Pune, Maharashtra. The facilities in Noida and Pune span 42,000 sq. ft and 21,000 sq. ft, respectively, and are equipped with the latest technology. It manufactures lithium-ion battery packs for both mobility and stationary applications. Its current installed manufacturing setup has a Cell Grading Capacity of 168 MWH per annum, Cell Sorting capacity of 358 MWH per annum, manufacturing capacity of 130 MWH per annum, and Battery testing capacity of 72 MWH per annum for two-wheeler batteries, which is the combined capacity of both Noida and Pune facilities. For batteries other than two wheelers, its facility has a Cell Grading Capacity of 41 MWH per annum, Cell Sorting capacity of 110 MWH per annum, manufacturing capacity of 115 MWH per annum, and Battery testing capacity of 41 MWH per annum. Additionally, its Noida facility has an installed capacity of 60,000 motors per annum.
Its product has multiple certificates for performance and safety like AIS048, AIS156 for L2 (Two-Wheeler), L3 (e Rickshaw) and L5 (Three-Wheeler) application, IEC62133, IEC62619, QM333 for energy storage application, IS16047 for Solar Lighting application and AIS041 for electric motor. It has received QF103 from TSEC, Department of Telecom, Government of India for telecom lithium-ion batteries.
Out of the total income, 73.69 % comes from E-mobility and 67.51% comes from manufacturing. 15.33% of the total income comes from trading activity and the balance comes from Service activities.
The shares are offered at reasonable valuation compared to its profitability. Huge oversubscription is anticipated.
IPO opens on 23 Jan. 2025, Closes on 27 Jan. 2025, Price Rs. 250, Lot of 600 Shares
+ from fundamental angle: Apply
+ from grey market angle:
Rexpro Enterprises IPO Review by Paresh Gordhandas, CA & Research Analyst.
Rexpro Enterprises Limited, established in March 2012, is a prominent furniture manufacturing company based in Vashi, Maharashtra. Initially focused on providing furniture and fixtures to retailers, the company has expanded its client base across diverse sectors including fashion, lifestyle, electronics, grocery, beauty, and telecom.
The size of the IPO is not very large and with 1757 applications, retail portion can get one time subscribed. The shares are offered at reasonable valuation. However the sector in which the company operates may not have much fancy.
The lead manager: Horizon Management Pvt Ltd has 6:5 ratio of Positive:Negative listings.
IPO opens on 22 Jan. 2025, Closes on 24 Jan. 2025, Price Rs. 145, Lot of 1000 Shares
+ from fundamental angle: May Apply
+ from grey market angle:
Capitalnumbers IPO Review by Paresh Gordhandas, CA & Research Analyst.
Capitalnumbers Infotech is engaged in the business of digital consulting and IT engineering offering end-to-end software development solutions to enterprises, and startups worldwide. The company provides services in technological advancement, offering a comprehensive suite of services include Digital Engineering, Data Analytics, Artificial Intelligence/Machine Learning (AI/ML), Cloud Engineering, UI/UX Design and advanced technologies such as Blockchain and Augmented Reality/Virtual Reality (AR/VR). The company have more than 500 IT professionals and consultants to serve more than 250 clients worldwide,
The company has track-record of excellent financial performance during last 3 years and its results show NIL sign of financial manipulations. The shares are offered at very reasonable and attractive valuations, which offers scope for listing gains as well as long term returns.
The lead manager: GYR Capital Advisors Ltd has managed 36 IPOs out of which 35 IPOs have given positive listings.
IPO opens on 20 Jan. 2025, Closes on 22 Jan. 2025, Price Rs. 263, Lot of 400 Shares
+ from fundamental angle: Must Apply
+ from grey market angle:
EMA Partners IPO Review by Paresh Gordhandas, CA & Research Analyst.
Incorporated in 2003, EMA Partners India Limited is an executive search firm offering specialized hiring solutions. The company provides various leadership hiring solutions to clients across various sectors, successfully recruiting business and functional leaders globally.
During last 3 years, the company has earned strong topline and bottom line. The business of the company (being Executive search) has strong growth potential. The shares are offered at reasonable PE multiple and offers scope for listing gains. The lead manager: Indorient Financial Services Ltd has managed only 2 IPOs during last one year and both the IPOs have given positive listings.
IPO opens on 17 Jan. 2025, Closes on 21 Jan. 2025, Price Rs. 124, Lot of 1000 Shares
+ from fundamental angle: Apply
+ from grey market angle:
Landmark Immigration IPO Review by Paresh Gordhandas, CA & Research Analyst.
Landmark Immigration Consultants Limited, incorporated in 2010, specializes in providing Global Consultancy Services. The company offers comprehensive Global Education Consultancy for students aspiring to study abroad and Immigration Consultancy services for visas, tourism, business, and permanent residency, with a primary focus on Canada.
The company has track record of growing topline and bottom-line. The shares are offered at reasonable valuation, compared to peer group company. The lead manager: Shreni Shares has impressive track record of positive listings.
+ from fundamental angle: Apply
+ from grey market angle:
Rikhav Securities IPO Review by Paresh Gordhandas, CA & Research Analyst.
Founded in 1995, Rikhav Securities Limited is a leading financial services provider in India, specializing in brokerage, investment, and banking solutions. The company is registered with the Securities and Exchange Board of India (SEBI) as a stockbroker and holds memberships with the Bombay Stock Exchange (BSE), the National Stock Exchange (NSE), and the Multi Commodity Exchange (MCX).
The company has impressive profitability and the shares in this IPO are offered at reasonable and attractive valuations. In the grey market, premium to offer price ratio is also good.
+ from fundamental angle: Apply
+ from grey market angle: Apply
Kabra Jewels IPO Review by Paresh Gordhandas, CA & Research Analyst.
Kabra Jewels Limited, established in 2010, operates in the retail jewelry sector, offering an extensive collection of gold, diamond, and silver ornaments. The company designs, manufactures, and retails a wide range of jewelry, catering to various price points. Its product lineup includes high-demand categories such as wedding jewelry—their best-selling segment—as well as daily-wear jewelry.
The company has good profits and the shares are offered at reasonable valuation.
IPO opens on 15 Jan. 2025, Closes on 17 Jan. 2025, Price Rs. 128, Lot of 1000 Shares
+ from fundamental angle: May Apply
+ from grey market angle: May Apply
Barflex Polyfilms IPO Review by Paresh Gordhandas, CA & Research Analyst.
Founded in January 2005, Barflex Polyfilms Limited specializes in the production of COEX films, laminates, and labels. The company manufactures flexible packaging materials tailored for a wide range of industries, including FMCG, processed foods, adhesives, pharmaceuticals, cosmetics, engineering applications, construction, and more. The size of the IPO Rs. 37.41 crore(net) is somewhat large. The retail portion of the IPO consists of RS13.09 crore and with 1091 applications, the retail portion can get one time subscribed.
The company has clean and sound balace sheet. Its trade receivable, debtors, trade payables & inventories are at reasonable level & there appears to be no manipulation or inflated earnings. The shares are offered at reasonable and attractive valuation and there is enough room for listing gains and as long-term returns.
IPO opens on 10 Jan. 2025, Closes on 15 Jan. 2025, Price Rs. 60, Lot of 2000 Shares
+ from fundamental angle: Apply
+ from grey market angle:
Sat Kartar Shopping IPO Review by Paresh Gordhandas, CA & Research Analyst.
Founded in June 2012, Sat Kartar Shopping Limited is an Ayurveda-based healthcare company dedicated to providing natural wellness solutions through therapeutic and lifestyle products, aimed at promoting a healthier way of life.
In the RHP the company has mentioned: “Our Company operates in D2C (Direct-to-Consumer) segment, selling Ayurveda products directly to consumer through our own D2C website and third-party e-commerce websites, TV marketing and Google and Meta Applications.”
It has also mentioned: “Our company operates under a strategic contract manufacturing model, which allows us to concentrate on high value activities like product innovation, branding, marketing, and distribution. By partnering with trusted third-party manufacturers, we leverage their expertise and resources while maintaining control over our formulations and ensuring quality through comprehensive agreements…
The RHP also indicate:” Since we do not carry out manufacturing ourselves, this clause, capacity utilisation, is not applicable to us.” …As on November 30, 2024, we have total of 1,122 employees operating under various department”
As per RHP, as on 15 Dec 2024, the company has trade receivables of Rs. 6.68 crore, short term loans and Advances given of Rs. 7.98 crore, other current assets of Rs. 4.23 crore and inventory of Rs. 1.92 crore.
Mr. Manprit Singh Chadha is the Promoter of the Company. He is a Chartered Accountant by profession, with experience of more than 30 years in the corporate and entrepreneurial realms. In the past he served as a Financial Controller at Daksh e-services,
+ from fundamental angle: Avoid
+ from grey market angle:
Delta Autocorp IPO Review by Paresh Gordhandas, CA & Research Analyst.
The company manufactures and sells 2W & 3W EVs using cutting edge components procured from reputed Original Equipment Manufacturers (OEMs) who use design & engineering specifications given by us using state-of-the art manufacturing process.
The company has impressive track record of total income and net profits. The EV 2 wheeler market has turned highly competitive with the players like Ola Electric, Bajaj EV, TVS electric etc and yet small players like Delta Corp have captured small segment of this market.
The shares are offered at attractive valuation and leaves room for listing gains as well as long term returns. The lead manager: GYR Capital Advisors Pvt ltd has impressive track record of positive listings. The premium to offer price ratio at present is good.
IPO opens on 7 Jan. 2025, Closes on 9 Jan. 2025, Price Rs. 130, Lot of 1000 Shares
+ from fundamental angle: Apply
+ from grey market angle: Apply
B.R.Goyal Infrastructure IPO Review by Paresh Gordhandas, CA & Research Analyst.
Founded in 2005, B.R. Goyal Infrastructure Limited has established itself as a key player in the construction of significant infrastructure projects, including roads, highways, bridges, and buildings.
As of September 30, 2024, the company operates a fleet of over 199 construction vehicles and equipment, supporting its extensive operations.
In addition to its core construction business, B.R. Goyal expanded into the wind energy sector by installing a 1.25 MW wind turbine in Jaisalmer, Rajasthan, which was commissioned in 2005. Over the past three years, the company has experienced significant growth in both top-line and bottom-line figures, a trend that appears to be sustainable. The shares are being offered at a reasonable valuation.
The SME IPO of B.R. Goyal Infrastructure is relatively large, with 2,099 applications the retail portion is expected to see one-time subscription. The lead manager for the IPO, Beeline Capital Advisors, has an impressive track record, having successfully managed 55 SME IPOs, all of which have seen positive listings.
While the company’s business fundamentals may not appear particularly striking in terms of delivering high returns, the overall factors—such as the company’s growth trajectory, IPO size, and the lead manager’s strong track record—make this IPO a solid investment opportunity.
IPO opens on 7 Jan. 2025, Closes on 9 Jan. 2025, Price Rs. 135, Lot of 1000 Shares
+ from fundamental angle: Ok
+ from grey market angle: Apply
Indobell Insulation IPO Review by Paresh Gordhandas, CA & Research Analyst.
Founded in May 1972, Indobell Insulation Limited specializes in the manufacturing of insulation products, including nodulated and granulated wool (comprising mineral and ceramic fibre nodules) and prefabricated thermal insulation jackets.
The size of the IPO is very small. Net offer to the public is of Rs. 9.63 crore with HNI portion of Rs. 1.44 crore and retail portion being Rs. 3.37 crore. With only 244 applications, retail portion can be one time subscribed.
On financial front, the topline and the net profit (Rs. 1.03 crore from Rs. 15 lacs in 2021-22) have surged sharply in the year prior to the IPO eg 2023-24 and because this surge, the shares appear to be properly priced. We are not sure whether the company can maintain such sharp rise of profits in the future or not.
The lead manager, Beeline Capital Advisors have excellent track record of positive listings. In the grey market, premium trades are not seen for this IPO.
IPO opens on 6 Jan. 2025, Closes on 8 Jan. 2025, Price Rs. 46, Lot of 3000 Shares
+ from fundamental angle: OK
+ from grey market angle: Not attractive
Fabtech Technologies IPO Review by Paresh Gordhandas, CA & Research Analyst.
Founded in 2015, Fabtech Technologies Cleanrooms Limited specializes in the production of pre-engineered, prefabricated modular panels and doors for cleanroom construction in the pharmaceutical, healthcare, and biotech industries.
The company offers a comprehensive range of cleanroom products and technologies, positioning itself as a complete end-to-end supplier for plant construction needs. Its product portfolio includes cleanroom panels, view panels, doors, ceiling panels, covings, HVAC systems, and electrical works, all tailored to meet the specific design and operational requirements of each plant. Over the past three years, the company has demonstrated strong profitability.
In June 2024, Fabtech Technologies declared bonus shares, and with the enhanced equity, the earnings per share for the year 2023-24 stands at Rs. 6.92, indicating an attractive valuation for the offer price. A further positive factor is the involvement of Vivro Financial Services as the lead manager, which boasts an impressive track record of successful listings.
IPO opens on 3 Jan. 2025, Closes on 7 Jan. 2025, Price Rs. 85, Lot of 1600 Shares
+ from fundamental angle: Apply
+ from grey market angle:
Parmeshwar Metal IPO Review by Paresh Gordhandas, CA & Research Analyst.
Parmeshwar Metal Limited, founded in August 2016, specializes in the production of copper wire and rods through the recycling of copper scrap. The company’s manufacturing facility is located in Dehgam, Gujarat.
Certified with ISO 9001:2015, Parmeshwar Metal Limited offers a wide range of products, including 1.6 mm, 8 mm, and 12.5 mm copper wire rods, all customized to meet specific customer requirements. The plant has demonstrated high capacity utilization and strong profitability over the past three years.
To further expand its operations and establish a new plant, the company is launching an IPO. The shares in this IPO are offered at an attractive valuation, providing significant potential for listing gains and long-term returns. Beeline Capital Services, the lead manager for this IPO, has a proven track record of successful listings.
IPO opens on 2 Jan. 2025, Closes on 6 Jan. 2025, Price Rs. 61, Lot of 2000 Shares
+ from fundamental angle: Apply
+ from grey market angle:
Davin Sons Retail IPO Review by Paresh Gordhandas, CA & Research Analyst.
Founded in March 2022, Davin Sons Retail Limited specializes in the design and manufacturing of a wide range of high-quality ready-made garments, including jeans, denim jackets, and shirts, for various brands.
The company operates in two primary business segments: 1) Manufacturing ready-made garments on a job work basis, and 2) Distribution of FMCG products.
While the company operates in a competitive market, its business does not offer any distinctive or novel advantages. The size of the IPO is relatively small, and given the strong interest from SME investors, oversubscription is unlikely to pose a major issue. The shares are being offered at an attractive, low valuation; however, considering the high competition in the industry, we do not recommend this IPO. While any potential grey market activity could lead to oversubscription, this should be viewed as a separate consideration.
IPO opens on 2 Jan. 2025, Closes on 6 Jan. 2025, Price Rs. 55, Lot of 2000 Shares
+ from fundamental angle: Not so attractive.
+ from grey market angle:
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