Tankup Engineers Limited, a leading manufacturer of self-bunded fuel tanks in India, is drawing attention with its ongoing IPO. Catering to industries like agriculture, construction, mining, and logistics, the company focuses on quality and innovation, offering international-standard fuel storage solutions.

IPO Details and Timeline

The IPO is a Book Built Issue of ₹19.53 Crores, consisting entirely of a Fresh Issue of 13.95 lakh equity shares. The price band is set at ₹133 to ₹140 per share, and the lot size is 1,000 shares. This means a retail investor needs to invest at least ₹1,40,000, while HNIs need to invest ₹2,80,000 for two lots.

• Issue Opens: April 23, 2025

• Issue Closes: April 25, 2025

• Allotment Date: April 28, 2025 (tentative)

• Listing Date: April 30, 2025 (tentative)

• Stock Exchange: NSE SME

The issue is being managed by Hem Securities Limited as the book running lead manager, with Bigshare Services Pvt Ltd acting as the registrar. Hem Finlease Pvt Ltd is the Market Maker.

Market Capitalisation and Valuation

At the upper end of the price band (₹140), the expected market capitalisation of Tankup Engineers will be ₹74.13 Crores.

According to available data:

• Pre-Issue EPS (FY24): ₹9.34

• Post-Issue EPS: ₹4.85

• Pre-Issue P/E Ratio: 14.99x

• Post-Issue P/E Ratio: 28.86x

• ROCE: 46.49%

• ROE: 107.11%

• RoNW: 69.75%

Despite decent financial ratios, the valuation seems stretched post-issue, raising caution flags for long-term investors.

Grey Market Premium (GMP)

As of April 25, 2025, the Grey Market Premium (GMP) stands at ₹0, indicating no expected listing gain. This reflects neutral market sentiment and low speculative demand.

GMPs are not regulated, and prices fluctuate based on supply and demand in the unorganised market. Investors are advised to avoid relying on GMP for decision-making.

Subscription Status

As per the NSE SME platform, as of 10:30 AM on April 25, 2025, the IPO has been subscribed 6.06 times overall:

• Retail Individual Investors (RIIs): Strong participation

• High Net-Worth Individuals (HNIs): Decent interest

• Qualified Institutional Buyers (QIBs): Moderate uptake

The response suggests healthy demand, particularly from retail and HNI segments.

Anchor Investment

Tankup Engineers raised ₹5.39 Crores from Anchor Investors at the upper price band of ₹140. A total of 3,85,000 equity shares were allotted in consultation with the lead manager.

This indicates confidence from institutional participants, though not necessarily a guarantee of future performance.

Objectives of the Issue

The net proceeds from the IPO will be used for:

1. Repayment of certain borrowings – ₹350.00 Lakhs

2. Working capital requirements – ₹1,000.00 Lakhs

3. General corporate purposes

These goals reflect a focus on financial restructuring and operational expansion.

Financial Highlights

The company has shown a steady increase in revenues and profitability over recent years:

• Revenue

  • FY22: ₹139.81 Lakh

  • FY23: ₹1,185.20 Lakh

  • FY24: ₹1,954.07 Lakh

  • 8M FY25 (till Nov 2024): ₹1,247.51 Lakh

• EBITDA

  • FY22: ₹8.66 Lakh

  • FY23: ₹131.92 Lakh

  • FY24: ₹360.77 Lakh

  • 8M FY25: ₹162.28 Lakh

• Profit After Tax (PAT)

  • FY22: ₹4.60 Lakh

  • FY23: ₹78.87 Lakh

  • FY24: ₹256.88 Lakh

  • 8M FY25: ₹94.70 Lakh

This showcases strong operational scalability and profit growth, albeit from a small base.

Risk Factors

While the financials have improved, some key concerns remain:

• The company’s valuation looks high post-issue compared to peers.

• No GMP activity indicates weak listing momentum.

• Heavy reliance on anchor and retail participation could increase post-listing volatility.

Also, while the promoters—Govind Prasad Lath, Gaurav Lath, and Pankhuri Lath—have 20, 17, and 10 years of experience, respectively, there's no assurance that future growth strategies will yield expected results.

Allotment and Listing

To check your IPO allotment status on April 28, 2025:

• Visit the registrar’s website (Bigshare Services Pvt Ltd)

• Select Tankup Engineers IPO

• Enter your PAN/Application Number/DP ID-Client ID

• Submit the form to view your allotment status

Verdict: Avoid for Listing Gains

Despite decent fundamentals, we recommend avoiding Tankup Engineers IPO for listing gains or long-term investment due to:

• Zero GMP

• High post-issue P/E

• Small market cap with limited float

Investors with higher risk appetite and long-term horizon may consider tracking the stock post-listing before taking exposure.

Disclaimer: This article is for educational purposes only and is not investment advice. Please consult with your financial advisor before making investment decisions. Investment in securities is subject to market risk.

The Upcoming IPOs in this week and coming weeks are Ather Energy, Iware Supplychain Services, Arunaya Organics,Kenrik Industries.

The Current active IPO are Tankup Engineers.

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