TechEra Engineering (India) Limited operates in the Aerospace, Defence, and Automation sectors, significantly contributing to India's technological advancements and national security. The company focuses on manufacturing, playing a vital role in producing high-quality components and systems that adhere to the stringent standards of the Aerospace and Defence industries.

The TechEra Engineering IPO is a Book Built Issue valued at ₹35.89 Crores, consisting entirely of a Fresh Issue of 43.77 Lakh Shares. The subscription period for this IPO runs from September 25, 2024, to September 27, 2024. The allotment is anticipated to be finalized on or around September 30, 2024, with shares expected to list on the NSE SME on or about October 03, 2024.

The share price band for the IPO is set between ₹75 to ₹82 per equity share, with a minimum lot size of 1,600 shares. Retail investors are required to invest a minimum of ₹1,31,200, while High-Net-Worth Individuals (HNIs) need to invest in 2 lots (3,200 shares), totaling ₹2,62,400.

SKI CAPITAL SERVICES LIMITED serves as the book-running lead manager, while KFIN TECHNOLOGIES LIMITED acts as the registrar for the issue. Additionally, SKI Capital Services Limited and Acme Capital Market Limited are the Market Makers for TechEra Engineering.

Live Subscription Status

As of 04:28 PM on September 27, 2024, the live subscription status for the TechEra Engineering IPO indicates strong demand, with the IPO subscribed 63.77 times on its final day.

Anchor Investors Report

TechEra Engineering has successfully raised ₹10.22 Crore from anchor investors at a price of ₹82 per share, allocating 12,46,400 equity shares to them. Shares for anchor investors are allotted from the Qualified Institutional Buyers (QIBs) reservation portion.

Allotment Date and Procedure

The allotment date for the TechEra Engineering IPO is set for September 30, 2024. Investors can check their allotment status by following these steps:

Navigate to the IPO allotment status page.

Select TechEra Engineering Limited IPO from the dropdown list.

Enter your application number, PAN, or DP Client ID.

Submit the details to check your allotment status.

Objectives of the IPO

The proceeds from the Fresh Issue will be allocated towards the following purposes:

₹2,000.00 Lakhs for funding capital expenditure to purchase new machinery.

₹600.00 Lakhs for funding the working capital of the company.

₹500.00 Lakhs for the prepayment or repayment of a portion of certain outstanding borrowings.

General corporate purposes.

To cover issue expenses.

Financial Performance Overview

TechEra Engineering has shown remarkable financial growth, with revenue figures for Fiscal 2024, Fiscal 2023, and Fiscal 2022 recorded at ₹3,907.66 Lakhs, ₹2,659.13 Lakhs, and ₹736.74 Lakhs, respectively. The EBITDA for these years was ₹901.38 Lakhs, ₹424.74 Lakhs, and ₹-357.69 Lakhs. The Profit After Tax figures for these years were ₹482.25 Lakhs, ₹130.50 Lakhs, and ₹-628.70 Lakhs.

For the TechEra Engineering IPO, the company is issuing shares at a pre-issue EPS of ₹4.14 and a post-issue EPS of ₹3.83. The pre-issue P/E ratio stands at 19.80x, while the post-issue P/E ratio is 21.40x, compared to the industry P/E of 84.98x. The company's Return on Capital Employed (ROCE) for FY24 is 23.47%, and the Return on Equity (ROE) is 30.33%, indicating that the IPO is fairly priced.

Investment Recommendation

The Grey Market Premium (GMP) for TechEra Engineering suggests potential listing gains of 10% - 15%. However, based on the company's financial performance and the valuation metrics, we recommend that investors avoid the TechEra Engineering India Limited IPO for potential listing gains or long-term investment purposes.

In summary, the TechEra Engineering IPO presents a cautiously optimistic investment opportunity, but the current financial performance and market positioning may not promise substantial returns.

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