Tankup Engineers is a prominent Indian manufacturer of self-bunded fuel tanks, offering a variety of tank sizes for sectors such as agriculture, mining, construction, and logistics. The company’s innovative approach and high-quality standards have established it as a reliable player in the fuel storage solutions market. Now, with the upcoming IPO, Tankup Engineers is looking to expand its footprint in the industry.

IPO Details:

Tankup Engineers is launching a Book Built Issue amounting to ₹19.53 Crores, which consists entirely of a fresh issue of 13.95 lakh shares. The subscription period for the IPO will run from April 23, 2025 to April 25, 2025, with allotment expected to be finalized by April 28, 2025. The shares will be listed on the NSE SME on April 30, 2025.

The price band for the IPO is set between ₹133 and ₹140 per share, and the market capitalization at the upper price of ₹140 per share will be ₹74.13 Crores. The lot size is 1,000 shares, which means retail investors must make a minimum investment of ₹1,40,000. High-Net-Worth Individuals (HNIs) are required to invest a minimum of ₹2,80,000 (2 lots).

The lead manager for the IPO is HEM SECURITIES LIMITED, while BIGSHARE SERVICES PRIVATE LIMITED is the registrar, and Hem Finlease Private Limited serves as the market maker.

Grey Market Premium (GMP):

As of the latest update, the Grey Market Premium (GMP) for Tankup Engineers IPO is ₹0. This suggests that there is no substantial trading or premium observed in the grey market, indicating uncertainty about the IPO listing gains. The GMP should not be considered a reliable indicator, as it is based on unregulated trading, which is not recommended for investment decisions.

IPO Allotment Status:

The allotment for the Tankup Engineers IPO is expected to be finalized on April 28, 2025. Once the allotment is completed, investors can check their allotment status through the registrar’s website. To do so, investors must:

• Visit the IPO allotment status page

• Select Tankup Engineers Limited IPO from the dropdown list

• Enter their application number, PAN, or DP Client ID

• Submit the details to see their allotment status.

This process will allow investors to quickly determine if they have been allotted shares.

Company Financials and Performance:

Tankup Engineers has shown a steady growth trajectory over the years. For the fiscal years ending 2024, 2023, and 2022, the company reported revenues of ₹1,247.51 Lakhs, ₹1,954.07 Lakhs, and ₹1,185.20 Lakhs, respectively. The EBITDA for the same periods was ₹162.28 Lakhs, ₹360.77 Lakhs, and ₹131.92 Lakhs. Additionally, the Profit After Tax (PAT) showed impressive growth, rising from ₹4.60 Lakhs in FY2022 to ₹256.88 Lakhs in FY2023.

For FY24, the company’s Key Metrics show:

• Pre-issue EPS: ₹9.34

• Post-issue EPS: ₹4.85

• Pre-issue P/E ratio: 14.99x

• Post-issue P/E ratio: 28.86x

The company’s Return on Capital Employed (ROCE) for FY24 is 46.49%, and its Return on Equity (ROE) is 107.11%. These financial metrics suggest that the IPO is priced fairly based on its growth potential.

Objectives of the IPO:

The funds raised from the Tankup Engineers IPO will be used for the following purposes:

1. Repayment of outstanding borrowings amounting to ₹350.00 Lakhs

2. Meeting the working capital requirements, with ₹1,000.00 Lakhs allocated for this purpose

3. General corporate purposes

IPO Review and Recommendation:

Given the company’s financial performance and IPO metrics, it is advised that investors exercise caution when considering this IPO for listing gains or long-term investment. The GMP of ₹0 and the company’s relatively high P/E ratio suggest that the IPO may not provide significant listing gains. For long-term investors, the decision should be based on further analysis of the company’s growth strategy and industry outlook.

Disclaimer:
This article is intended for informational purposes only and should not be construed as financial advice. Investors are advised to consult with a professional financial advisor before making any investment decisions. The content is based on publicly available information and is subject to change.

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