TechEra Engineering Limited IPO Overview

TechEra Engineering IPO, a book-built issue of ₹35.90 crores, will open for subscription on September 25, 2024, and close on September 27, 2024. This fresh issue comprises 43.78 lakh shares, with a price band set between ₹75 and ₹82 per share. Retail investors can apply for a minimum lot of 1,600 shares, requiring an investment of ₹131,200, while high-net-worth individuals (HNIs) need to invest in a minimum of 2 lots (3,200 shares) for a total of ₹262,400.

Allotments are expected to be finalized on September 30, 2024, with the listing on NSE SME scheduled for October 3, 2024. SKI Capital Services Limited is the book-running lead manager, and Kfin Technologies Limited serves as the registrar for the IPO.

Refer to TechEra Engineering IPO RHP for detailed information.

TechEra Engineering Limited IPO Important dates

TechEra Engineering IPO opens on September 25, 2024, and closes on September 27, 2024.

IPO Open Date Wednesday, September 25, 2024
IPO Close Date Friday, September 27, 2024
Basis of Allotment Monday, September 30, 2024
Initiation of Refunds Tuesday, October 1, 2024
The credit of Shares to Demat Tuesday, October 1, 2024
Listing Date Thursday, October 3, 2024
Cut-off time for UPI mandate confirmation 5 PM on September 27, 2024

TechEra Engineering Limited Financial Performance

TechEra Engineering LImited’s revenue increased by 47% and profit after tax (PAT) rose by 270% between the financial year ending with March 31, 2024 and March 31, 2023.

Financial Metric 31 Mar 2024 31 Mar 2023 31 Mar 2022
Assets (₹ Crore) 37.24 Crore 39.21 Crore 21.36 Crore
Revenue (₹ Crore) 39.08 Crore 26.59 Crore 7.37 Crore
Profit After Tax (₹ Crore) 4.82 Crore 1.31 Crore -6.29 Crore
Net Worth (₹ Crore) 15.9 Crore 11.08 Crore 9.78 Crore
Reserves and Surplus (₹ Crore) 3.76 Crore -2.72 Crore -4.02 Crore
Total Borrowing (₹ Crore) 14.3 Crore 13.77 Crore 8.87 Crore

TechEra Engineering Limited IPO Key Performance Indicator

The market capitalization of TechEra Engineering IPO is Rs 135.47 Cr. KPI as of March 31, 2024.

KPI Values
ROE 30.33%
ROCE 23..47%
Debt/Equity 0.9
RoNW 30.33%
P/BV 6.26
PAT Margin (%) 12.45
Pre IPO Post IPO
EPS (Rs)  3.97 2.92
P/E (x)  20.65 28.09

TechEra Engineering Limited IPO Objectives

The company proposes to utilize the Net Proceeds for the following objects:

  1. Funding capital expenditure for the purchase of new machinery
  2. Funding working capital requirements of the Company
  3. Prepayment or repayment of a portion of certain outstanding borrowings availed by the Company
  4. General corporate purposes
  5. Issue expenses

TechEra Engineering Limited IPO Lot Size

Investors can bid for a minimum of 1600 shares and in multiples thereof. The below table depicts the minimum and maximum investment by retail investors and HNI in terms of shares and amount.

Application Lots Shares Amount
Retail (Min) 1 1600 ₹131,200
Retail (Max) 1 1600 ₹131,200
HNI (Min) 2 3200 ₹262,400

TechEra Engineering Limited IPO Details

IPO Date September 25, 2024 to September 27, 2024
Listing Date [October 3, 2024]
Face Value ₹10 per share
Price Band ₹75 to ₹82 per share
Lot Size 1600 Shares
Total Issue Size 4,377,600 shares
(aggregating up to ₹35.90 Cr)
Fresh Issue 4,377,600 shares
(aggregating up to ₹35.90 Cr)
Issue Type Book Built Issue IPO
Listing At NSE SME
Shareholding pre issue 12,143,325
Shareholding post issue 16,520,925

TechEra Engineering Limited Company Overview and Services

Incorporated in 2018, TechEra Engineering (India) Limited specializes in designing, manufacturing, and supplying precision tooling and components for the aerospace and defense sectors. The company also offers automation system solutions.

TechEra produces a variety of products, including assembly tools, jigs, fixtures, maintenance and repair tools, ground support equipment, and precision-machined components. Utilizing advanced manufacturing technologies like 5-axis machining and 3D modeling, the company effectively addresses the specific needs of its target industries. It holds ISO 9001:2015 and ISO 14001:2018 certifications, underscoring its commitment to quality management systems. As of September 2024, TechEra employs 177 qualified professionals.

Competitive Strengths:

  • Specialized Expertise: The company focuses on aerospace and defense manufacturing, particularly in assembly tooling, jigs, fixtures, and precision components, targeting niche markets.
  • Technical Capabilities: TechEra has invested in cutting-edge manufacturing technologies, including 5-axis machining and augmented reality/virtual reality for design visualization, enabling it to manage complex projects.
  • Experienced Leadership: The management team boasts extensive experience in aerospace engineering and automation, providing strategic guidance.
  • Recognitions and Certifications: Awards and certifications from reputable organizations reflect the company’s dedication to quality and excellence.

TechEra Engineering Limited IPO SWOT Analysis

Strengths:

  • Specialized Expertise: Focus on aerospace and defense sectors with niche market capabilities in assembly tooling and precision components.
  • Advanced Technology: Utilization of cutting-edge manufacturing technologies like 5-axis machining and 3D modeling enhances production efficiency and precision.
  • Quality Certifications: ISO 9001:2015 and ISO 14001:2018 certifications demonstrate commitment to quality management and environmental standards.
  • Experienced Leadership: A skilled management team with extensive experience in aerospace engineering provides strategic direction and industry insights.

Weaknesses:

  • Dependency on Niche Markets: Heavy reliance on the aerospace and defense sectors may expose the company to market fluctuations.
  • High Investment Costs: The use of advanced technologies may require significant capital investment, impacting short-term profitability.
  • Limited Brand Recognition: Being a relatively new player in the market, the company may face challenges in building brand awareness compared to established competitors.

Opportunities:

  • Growing Defense Budget: Increasing government spending on defense and aerospace projects presents growth opportunities for the company.
  • Expansion into New Markets: The potential to diversify into emerging markets or related industries can help mitigate risks associated with niche dependency.
  • Innovation and R&D: Investment in research and development can lead to new product offerings and technological advancements.

Threats:

  • Intense Competition: The aerospace and defense sectors are highly competitive, with established players posing a challenge to market entry and growth.
  • Economic Fluctuations: Economic downturns can affect government budgets and spending in defense, impacting demand for TechEra’s products.
  • Regulatory Changes: Changes in regulations and compliance standards in the aerospace and defense industries may pose operational challenges.

TechEra Engineering Limited IPO GMP Details

TechEra Engineering  SME IPO last GMP is ₹20, last updated Sep 21st, 2024. With a price band of 82.00, TechEra Engineering SME IPO’s estimated listing price is ₹102 (cap price + today’s GMP). The expected percentage gain/loss per share is  24.39%..

Stay with us to know the daily price trend of TechEra Engineering SME IPO  GMP with an expected listing price.

GMP Date IPO Price GMP Sub2 Sauda Rate Estimated Listing Price Last Updated
27-09-2024 Close 82.00 ₹20  24300 ₹102 (24.39%) 27-Sep-2024
26-09-2024 82.00 ₹20  24300 ₹102 (24.39%) 26-Sep-2024
25-09-2024 Open 82.00 ₹20  24300 ₹102 (24.39%) 25-Sep-2024
24-09-2024 82.00 ₹20   24300 ₹102 (24.39%) 24-Sep-2024
23-09-2024 82.00 ₹15   18200 ₹97 (18.29%) 23-Sep-2024
22-09-2024 82.00 ₹10  12200 ₹92 (12.2%) 22-Sep-2024
21-09-2024 82.00 ₹10  12200 ₹92 (12.2%) 21-Sep-2024
20-09-2024 82.00 ₹10  12200 ₹92 (12.2%) 20-Sep-2024
19-09-2024 82.00 ₹10  12200 ₹92 (12.2%) 19-Sep-2024

TechEra Engineering Limited IPO subscription status 

TechEra Engineering IPO subscribed 9.95 times. The public issue subscribed 16.09 times in the retail category, 0.27 times in QIB, and 8.52 times in the NII category by September 27, 2024.

Investor Category Subscription (times) Shares Offered* Shares bid for Total Amount (Rs Cr.)*
Anchor Investors 1 12,46,400 12,46,400 10.22
Market Maker 1 2,19,200 2,19,200 1.80
Qualified Institutions 0.27 8,32,000 2,27,200 1.86
Non-Institutional Buyers*** 8.52 6,24,000 53,15,200 43.58
Retail Investors 16.09 14,56,000 2,34,25,600 192.09
Total ** 9.95 29,12,000 2,89,68,000 237.54

Total Application : 14,641

Note:

  • *: “Shares Offered” and “Total Amount” are calculated based on the upper price of the issue price range.

  • **: The portion of anchor investors (or market makers) is not included in the total number of shares offered.

  • ***: Market Maker portion is not included to NII/HNI.

TechEra Engineering IPO Subscription Details (times)

Date QIB NII* Retail Total
Day 1
Sep 25, 2024		 0.00 2.41 3.13 2.10
Day 2
Sep 26, 2024		 0.27 6.92 13.56 8.34
Day 3
Sep 27, 2024		 0.27 8.52 16.09 9.95

TechEra Engineering Limited IPO Allotment status 

The allotment status of TechEra Engineering IPO is expected to be available on September 30, 2024.

TechEra Engineering IPO allotment status is not available at this time. TechEra Engineering IPO – The allotment status will be available once the basis of the allotment is finalized. Please revisit us to check the latest updates for TechEra Engineering Limited’s IPO allotment status.

To check TechEra Engineering’s IPO allotment status, follow the steps below:

  1. Click on the allotment status check button below.
  2. Select Company Name.
  3. Enter your PAN Number, Application Number, or DP Client ID (Anyone).
  4. Click on Search.

On securing the allotment, you will receive the credit of equivalent shares in your Demat account.

If you have any concerns or queries about the allotment status, contact Kfin Technologies Limited by phone or email. Investors can call on 04067162222, 04079611000, or email all relevant details to teil.ipo@kfintech.com.

TechEra Engineering Limited Contact Details

TechEra Engineering Limited
Gat No. 565,
Behind Namo Marble & Timbers At Post Velu
Tal. Bhor, Pune-412205
Phone: +91 8605016251
Email: cs@techera.co.in
Website: https://techera.co.in/

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 Disclaimer: Investing in Initial Public Offerings (IPOs) involves substantial risk, and financial returns are not guaranteed. The information provided should not be construed as financial or investment advice. Prospective investors are advised to consider their economic situation, investment objectives, and risk tolerance before participating in an IPO. It is recommended to consult with a qualified financial advisor or professional before making any investment decisions. Past performance is not indicative of future results. Investments in IPOs may be subject to market risk, including the potential loss of principal.