Mandeep Auto Industries IPO Review - Issue Date, Price, GMP, Allotment, Lot Size, and Details

Mandeep Auto Industries is set to launch its initial public offering (IPO) with a fixed price issue of Rs 25.25 crores, offering 37.68 lakh fresh shares. Subscriptions for the IPO open on May 13, 2024, and close on May 15, 2024, with allotments expected to be finalized by May 16, 2024.

The IPO is priced at ₹67 per share, with a minimum lot size of 2000 shares requiring an investment of ₹134,000 for retail investors and 2 lots (4,000 shares) amounting to ₹268,000 for HNIs. The listing is slated for May 21, 2024, on NSE SME.

Jawa Capital Services Private Limited serves as the book running lead manager, while Cameo Corporate Services Limited acts as the registrar. Aftertrade Broking is appointed as the market maker for the Mandeep Auto Industries IPO.

The objects of the present issue of Equity Shares are:

  1. Expansion of the existing Manufacturing Facility located at Plot No 26, Nangla, Faridabad Haryana - 121001 by construction of the building on the land adjacent to our existing manufacturing unit, purchase of equipment/machineries, etc.
  2. Repayment/prepayment of certain borrowings availed by Company.
  3. Funding working capital requirements.
  4. General Corporate Purpose.

With a view to expand production capacity, company intend to utilize Rs. 908.31 Lakhs from the Net Proceeds to expand existing manufacturing facility by construction of the building, purchase of equipment/machineries, other assets etc.

Mandeep Auto Industries IPO Details

IPO Date May 13, 2024 to May 15, 2024
Listing Date May 21, 2024
Face Value ₹10 per share
Price ₹67 per share
Lot Size 2000 Shares
Total Issue Size ₹25.25 Cr
Fresh Issue 3,768,000 shares (aggregating up to ₹25.25 Cr)
Offer for Sale Nil
Issue Type Fixed Price Issue IPO
Listing At NSE SME
Share holding pre issue 6,569,894
Share holding post issue 10,337,894

Mandeep Auto Industries IPO Lot Size

Application Lots Shares Amount
Retail (Min) 1 2000 ₹134,000
Retail (Max) 1 2000 ₹134,000
HNI (Min) 2 4,000 ₹268,000

Mandeep Auto Industries IPO Timeline (Tentative Schedule)

IPO Open Date Monday, May 13, 2024
IPO Close Date Wednesday, May 15, 2024
Basis of Allotment Thursday, May 16, 2024
Initiation of Refunds Friday, May 17, 2024
Credit of Shares to Demat Friday, May 17, 2024
Listing Date Tuesday, May 21, 2024
Cut-off time for UPI mandate confirmation 5 PM on May 15, 2024

Mandeep Auto Industries IPO Reservation

Investor Category Shares Offered Reservation %
Anchor Investor Shares Offered - -
Market Maker Shares Offered 190,000 (5.04%) N/A
Other Shares Offered 1,789,000 (47.48%) N/A
Retail Shares Offered 1,789,000 (47.48%) N/A
Total Shares Offered 3,768,000 (100%) N/A

Mandeep Auto Industries IPO Promoter Holding

Share Holding Pre Issue 99.97%
Share Holding Post Issue 63.53%

About Mandeep Auto Industries Limited

Company is engaged in the business of manufacturing and supplying sheet metal components, auto parts, and all types of sprocket gears and machined components, that finds its application in a diverse industry, such as tractor, automobiles, material handling & earth moving equipment, railways, defense, machine tools, DIY industry etc. They also manufacture customized components as per customer specific requirements and use.

Company has their own inhouse manufacturing facility located in Faridabad, Haryana having advanced technologies to develop and manufacture the products that adhere to the stringent quality control requirements of customer.

The automobile industry is one of the key drivers of the Indian economy. Since the liberalization of the sector in 1991 and allowing 100 per cent FDI through automatic route, Indian automobile sector has come a long way. Today, there is a presence of major global auto manufacturer in the country. All categories of vehicles like two-wheeler, three wheelers, passenger cars, light commercial vehicles, Trucks, Buses, Tractors, heavy Commercial vehicles etc. are produced in India. India is the second largest manufacturer of 2W, the largest manufacturer of 3W and 3rd largest manufacturers of passenger cars in the world.

Risk associated to the issue:

  • The company do not have Factory Licence for their present manufacturing unit. The land on which their existing manufacturing unit is located and the land on which they are proposing to carry out expansion activities is Agricultural Land. This might create an alert if efforts are not made on time.
  • No long-term agreements with most of suppliers or customers.
  • Business is subject to a variety of safety, health and environmental laws, labour, and workplace related laws and regulations. Any failure can effect the business.
  • Top 5 clients account for more than 82.47% of revenue. Naming J.L AUTO PARTS PRIVATE LIMITED, TUBE INVESTMENT OF INDIA LIMITED, ROCKMAN INDUSTRIES LIMITED, MANVI AUTOMOBILES, JAIN INDUSTRIAL LIMITED.
  • Top three suppliers account for more than 71.58% of the raw material procured. Namely ROYAL ISPAT UDYOG, SHARU INDUSTRIES PRIVATE LIMITED, & RAMA STEEL CORPORATION.
  • M/s JBJ Industries, a Sole Proprietorship belonging to one of the Promoter Mrs. Nidhi Bedi, has objects similar to that of this Company’s business and is engaged in the similar line of business / industry in which Company operates.
  • The company faces competition from both organized and unorganized players.

Mandeep Auto Industries Limited Financial Information (Restated Consolidated)

Amount in (Rs. Crore)

Period Ended 31st Dec 23 31st Mar 23 31st Mar 22 31st Mar 21
Reserve of Surplus 1.64 0.00 0.00 0.00
Total Assets 24.25 19.63 12.98 10.50
Total Borrowings 8.21 8.30 5.28 4.02
Fixed Assets 2.46 3.08 3.19 3.18
Cash 0.20 0.03 0.05 0.02
Net Borrowing 8.01 8.27 5.23 4.00
Revenue 21.53 29.09 21.90 15.63
EBITDA 3.40 2.21 1.44 1.26
PAT 2.37 1.05 0.65 0.50
EPS 6.60 0.00 0.00 0.00

Key Performance Indicator

KPI Values
EPS Pre IPO (Rs.) 1.60
EPS Post IPO (Rs.) 3.05
P/E Pre IPO 41.96
P/E Post IPO 21.96
ROE 24.20%
ROCE 28.18%
P/BV 5.36
Debt/Equity 1.00
RoNW 24.20%

Mandeep Auto Industries Limited IPO Peer Comparison

Company Name EPS ROCE ROE P/E (x) P/Bv Debt/Equity RoNW (%)
Mandeep Auto Industries Limited 1.60 28.18% 24.20% 41.96 5.36 1.00 24.20%
Kranti Industries Ltd 2.85 9.70% 8.31% 32.6 2.24 1.11 9.70%
Porwal Auto Components Ltd 1.40 2.43% -1.78% 39.8 1.36 0.08 2.43%
Lumax Auto Technologies Ltd 15.4 14.8% 15.9% 28.9 4.55 1.02 14.8%
Mandeep Auto Industries Limited Contact Details

MANDEEP AUTO INDUSTRIES LIMITED

Plot No 26, Nangla, Faridabad Haryana -121001

E-mail: info@mandeepautoindustries.com

Tel No.: +91-129-2440045

Website: www.mandeepautoindustries.com

Mandeep Auto Industries IPO Registrar and Lead Manager(s)

Cameo Corporate Services Limited

"Subramanian Building", #1, Club House Road, Chennai - 600 002

Tel No.: +91-44-40020700, 28460390

E-mail: ipo@cameoindia.com

Website: www.cameoindia.com

Mandeep Auto Industries IPO Review

Mandeep Auto Industries Ltd. (MAIL) makes sheet metal components, auto parts, and specialized gears used in various industries like automobiles, tractors, and defense. Its RoCE margins have been steady ranging from 24.61% in FY21 to 27.94% for Q2 & Q3-FY24. Despite no dividends, MAIL's sales and profits are growing steadily. It's expanding to meet demand. Based on FY24 earnings, the IPO price seems fair. Investors could think about investing for medium to long-term gains.

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