Upcoming IPOs With Good Potential

Upcoming IPOs With Good Potential

  • September 17, 2021
  • Business & Economy

IPO i.e. when a company offers its shares in the market for the first time for public is called an IPO. Recently some shares are ready to be launched in the market. Let’s analyze some upcoming IPOs-

  • Paras Defence and Space Technologies- PDST are basically known for designing, developing, manufacturing, and testing of a variety of defence and space engineering products and solutions. PDST has listed its shares in 5 sectors - Defence & Space Optics, Defence Electronics, Heavy Engineering, Electromagnetic Pulse Protection Solutions, and Niche Technologies. Paras Defence and Space Technologies is the only Indian company with the design capability for space-optics and opto-mechanical assemblies and is one of the leading providers of optics for various Indian defence and space programs. The company also delivers customized turnkey projects in the defence sector. The company is in partnership with some of the leading technology companies around the world to develop some advanced technologies in the defence and space sectors for the Indian market. The company has 2 manufacturing plants in Maharashtra and is extending a manufacturing facility in Navi Mumbai.

IPO will be opening on Sep 21, 2021 and will be closing on Sep 23, 2021. It will be “book built issue”. Its face value will be ?10 per equity share, aggregating up to ?140.60 Cr.

Company is offering 1,724,490 equity shares of ?10 for sale. Credit of shares to Demat Account will be on Sep 30, 2021. IPO Listing Date is Oct 1, 2021

 

Why to bid for this IPO-

According to experts- It provides the defence and space applications in wide range. Also optics for space and defence application has not many manufacturers in India. After it has joined the ‘Make in India’ and ‘Atmanirbhar Bharat’ type initiatives, its focus on R&D with domestic production might give it a solid boost. It has good dealing power with government organizations as well as private ones. Sharad Virji Shah and Munjal Sharad Shah are the promoters of the company. It also has clients in Belgium, Israel and South Korea.

 

Financials information of the company: You can analyze that the company has made very good profits in financial year 2020. But this year has been little tough for them. That’s why they are on NSE and BSE for their requirements of fund capital expenditure and also funding the incremental working capital. Also repayment/prepayment of certain borrowings is on mind of promoters.

 

 

     Index For different years ( Rs in millions)

 

31-Mar-21

31-Mar-20

31-Mar-19

 

Total Assets

3,627.58

3,423.86

3,297.48

Total Revenue

1,446.07

1,490.51

1,571.69

Profit After Tax

157.86

196.57

189.70

 

 

  • Markolines Traffic Controls Limited (NPST) – It was established in 2002. It is a Highway Operations & Maintenance (O&M) Service providing company. The company has mainly 2 areas- one is the Highway Operations (including toll operations, route patrolling, incident management), and another one is Highway Maintenance (including e-routine maintenance, preventive maintenance, major maintenance & repairs), and also some key sectors like - Specialized Maintenance Services (including Micro surfacing (MS), Base/Sub base Stabilization (FDR) and Cold In Place Recycling (CIPR)). The company has around 943.31 km of Toll Operations, Routine Maintenance, and Route Patrolling projects, for National Highways across the country. Major maintenance contributes to more than 80% of the company’s revenues. Since many years, company has more than 90 highway operations and maintenance.

 

Why should you bid for it-

There are not many highway service companies in India with such variety in services provided. It has a fine past of developing projects timely. It has an appreciable business model and its quality of service is also commendable. It is an old company with veteran experts. Mr. Sanjay Bhanudas Patil And Mr. Karan Atul Bora are the company promoters. IPO is opening on Sep 15, 2021 and closing on Sep 20, 2021. Its face value will be ?10 per equity share; it will have market lot of 1600 shares. Company is issuing 5,128,000 equity shares of ?10, aggregating up to ?40.00 Cr. A retail-individual investor can apply for up to 1 lot i.e. 1600 shares or ?124,800.

 

Let’s have a look at the financial situation of the company-  According to experts, company has shown great profits in 2020 but it has declined in 2021. That’s why company is issuing IPO for prepayment/repayment of certain debt facilities availed by company, to meet working capital requirements and also for general corporate requirements.

 

Index For different years ( Rs in million)

 

31-Mar-21

31-Mar-20

31-Mar-19

Total Assets

10,751.99

9,029.24

7,315.17

Total Revenue

15,796.52

17,154.49

7,348.54

Profit After Tax

427.59

718.62

251.51

 

 

 

  • Sansera manufactures complex – The company was established in 1981 and carries clout in the market for its critical precision engineered components and caters across automotive and non-automotive sectors. The company manufactures and supplies a wide range of precision forged and machined components for two-wheeler, passenger vehicle, and commercial vehicle verticals for the automotive sector. For the non-automotive sector, the company also makes components for aerospace, off-road, agriculture, and other segments. The company supplies its products to original equipment manufacturers. Company has its 65% revenue from India and rest 35 % is from foreign countries. Company has 15 manufacturing units. Its main revenue source is automotive sector.

 

Why to bid for this IPO-

According to market analysis, it is prestigious supplier of complex and high quality finely engineered components in both automotive as well as non-automotive sector. It has its roots in all over India with a wide range of products. Its design and engineering is well known among people. It has good relationship with its clients. Its management team is experienced with a team of high quality skilled engineers. S Sekhar Vasan, F R Singhvi, Unni Rajagopal K and D Devaraj are the company promoters. IPO has opened on Sep 14, 2021 and will be closing on Sep 16, 2021.it is a book built issue IPO, with face value of 2 Rs per equity share. It is offering the market lot of 20 shares and price will be ?734 to ?744 per equity share. Issue Size is 17,244,328 equity share of Rs 2, aggregating up to ?1,282.98 Cr. And its offer for sale is 17,244,328 equity shares of ?2, aggregating up to ?1,282.98 Cr. A retail-individual investor can apply for up to 13 lots (260 shares or ?193,440).

 

 

Let’s look at the financials of the company- As you can see from the chart that company is also making huge profits this year, so it has listed its shares just to reap out the benefits of listing the Equity Shares on the Stock Exchanges.

 

 

Index For the years (? in millions)

 

31-Mar-21

31-Mar-20

31-Mar-19

Total Assets

19,288.83

18,282.36

17,454.84

Total Revenue

15,723.64

14,731.39

16,408.09

Profit After Tax

1,098.60

799.05

980.64

 

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