Tankup Engineers IPO: Subscription Closes 116x; Allotment on April 28

Sandip Raj Gupta

25/Apr/2025

IPO Details - ₹19.53 Cr fresh issue at ₹133-140/share; 116x subscription on final day
Financial Snapshot - Revenue grew from ₹1.39 Cr (FY22) to ₹19.54 Cr (FY24); PAT at ₹2.57 Cr (FY24)
Key Risks - High post-issue P/E of 28.86x; experts recommend avoiding for listing gains

IPO Essentials

Issue Period: April 23-25, 2025
Lot Size: 1,000 shares (Retail min. ₹1.4L)
Listing: NSE SME (Tentative: April 30)
Lead Manager: HEM Securities
GMP: ₹0 (No grey market premium)

Financial Performance

Metric	Nov 2024 (6M)	FY2024	FY2023	FY2022
Revenue (₹Cr)	1.25	19.54	11.85	1.39
EBITDA (₹Lakh)	162.28	360.77	131.92	8.66
PAT (₹Lakh)	94.70	256.88	78.87	4.60

Valuation Metrics:

Pre-issue P/E: 14.99x
Post-issue P/E: 28.86x
ROCE (FY24): 46.49%
ROE (FY24): 107.11%

Business Overview

Core Product: Self-bunded fuel tanks for agriculture, mining, and logistics
Promoters: Govind Prasad Lath (20 yrs exp), Gaurav Lath (17 yrs), Pankhuri Lath (10 yrs)
AUM Growth: Revenue CAGR of 265% (FY22-24)

IPO Objectives

Repay borrowings (₹3.5 Cr)
Working capital (₹10 Cr)
General corporate purposes

Key Risks

⚠️ High Valuation: Post-issue P/E of 28.86x vs industry avg. ~18x
⚠️ Limited Operating History: Only 3 years of substantial revenue
⚠️ Concentrated Business: Dependent on industrial fuel tank demand

Expert Recommendation

*"Avoid for listing gains due to rich valuation (32.07x annualized P/E) and muted GMP. Long-term investors should wait for post-listing performance."*
- CA Abhay Kumar, SEBI Reg. Research Analyst (INH300008465)

Next Steps for Investors

Allotment Status: Check on Bigshare Services (April 28)
Listing: Expected April 30 on NSE SME
Post-Listing Strategy: Monitor volume trends before entry

Bold Takeaway: While the 116x subscription shows strong demand, the absence of GMP and high P/E warrant caution. Consider waiting for post-listing price discovery before investment decisions.

Disclaimer: This is not investment advice. Consult a SEBI-registered advisor before investing. IPO markets carry risks – read RHP carefully.

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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