Tankup Engineers Limited, a prominent manufacturer of self-bunded fuel tanks in India, is gearing up for its Initial Public Offering (IPO) to raise capital. The company, well-known for its innovation in providing reliable fuel storage solutions, targets industries like agriculture, mining, construction, and logistics. With a solid track record of delivering fuel tanks that adhere to international standards, Tankup Engineers is now looking to expand its business by going public.

IPO Details
The Tankup Engineers IPO is a Book Built Issue amounting to ₹19.53 Crores, consisting entirely of a Fresh Issue of 13.95 Lakh shares. The IPO is open for subscription from April 23, 2025, and will close on April 25, 2025. The allotment date is expected on April 28, 2025, and the shares will be listed on the NSE SME with a tentative listing date of April 30, 2025.

The price band for the Tankup Engineers IPO has been set at ₹133 to ₹140 per equity share, offering an attractive opportunity for investors. The market capitalization of the company at the upper price band of ₹140 will stand at ₹74.13 Crores. The lot size is set at 1,000 shares, with retail investors required to invest a minimum of ₹1,40,000. High-net-worth individuals (HNIs) can invest in 2 lots (2,000 shares), totaling ₹2,80,000.

The IPO is being managed by HEM SECURITIES LIMITED, with BIGSHARE SERVICES PRIVATE LIMITED serving as the registrar. Hem Finlease Private Limited is acting as the market maker for the Tankup Engineers IPO.

Grey Market Premium (GMP)
As of today, the Grey Market Premium (GMP) for Tankup Engineers IPO stands at ₹0. This indicates that no real trading has occurred in the grey market based on demand and supply. The GMP is zero, which means there’s no discernible price movement before the shares are listed on the stock exchange. This can fluctuate depending on investor demand, but it should be noted that grey market trading is unofficial and not recommended for investment decisions.

Subscription Status
The Tankup Engineers IPO subscription status is currently showing 1.80 times subscription on its second day of the subscription period (as of 12:55 PM on April 24, 2025). This indicates a strong interest in the issue, with the retail portion and institutional investor portions seeing active participation. You can check live updates for Tankup Engineers IPO subscription status on the NSE.

Anchor Investors
Tankup Engineers has successfully raised ₹5.39 Crores from anchor investors. A total of 3,85,000 shares have been allocated to anchor investors at the upper price band of ₹140. The inclusion of these institutional investors is a positive sign, indicating confidence in the company’s prospects. These shares are allotted from the Qualified Institutional Buyers (QIBs) portion, which suggests institutional interest and support for the IPO.

Financial Performance
Tankup Engineers has shown impressive financial growth over the years. For the year ending November 30, 2024, the company reported revenue from operations of ₹1,247.51 Lakh. Over the previous years, the revenue growth has been steady, with the company achieving ₹1,954.07 Lakh in FY2024, up from ₹1,185.20 Lakh in FY2023, and ₹139.81 Lakh in FY2022.

In terms of profitability, the EBITDA for FY2024 stood at ₹162.28 Lakh, while the profit after tax (PAT) for the same period was ₹94.70 Lakh. These figures represent a strong upward trajectory, indicating healthy growth in both top-line and bottom-line metrics.

The company’s key performance metrics include a pre-issue EPS of ₹9.34 and a post-issue EPS of ₹4.85 for FY24. The P/E ratio is 14.99x pre-issue and 28.86x post-issue, suggesting that the IPO is fairly priced based on its earnings potential.

Objectives of the IPO
Tankup Engineers aims to utilize the net proceeds from the IPO for the following objectives:

1. ₹350 Lakhs will be used for repaying part of its outstanding borrowings.

2. ₹1,000 Lakhs will be allocated for meeting working capital requirements.

3. The remaining funds will be used for general corporate purposes.

Tankup Engineers IPO Review
In terms of valuation, the Tankup Engineers IPO appears to be fairly priced at a P/E ratio of 28.86x. Given its solid financial performance, high return on capital employed (ROCE of 46.49%), and return on equity (ROE of 107.11%), the company seems poised for continued growth. However, despite these positive indicators, the Grey Market Premium (GMP) of ₹0 and the relatively high P/E ratio raise concerns for long-term investment or short-term listing gains.

For investors looking for listing gains, the Tankup Engineers IPO may not be the ideal choice, given the flat GMP. Similarly, investors considering long-term investment should weigh the company’s potential in a highly competitive market.

Conclusion
Tankup Engineers IPO presents a solid investment opportunity with a strong growth trajectory, but investors should carefully evaluate the GMP and price-to-earnings ratio before making a final decision. Based on current metrics and financial performance, the IPO is likely to attract considerable interest but may not offer significant short-term gains based on current market conditions. Therefore, it is advisable to avoid the Tankup Engineers IPO for short-term listing gains and assess the company's long-term prospects before committing funds.

The Upcoming IPOs in this week and coming weeks are Ather Energy.

The Current active IPO are Tankup Engineers.

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