Associated Coaters is launching an Initial Public Offering (IPO) with a fixed price issue of ₹5.11 crores. This IPO consists solely of a fresh issue of 4.22 lakh shares.
**Key Dates:**
– **Subscription Period:** May 30, 2024, to June 3, 2024
– **Allotment Finalization:** June 4, 2024
– **Listing Date:** June 6, 2024 (BSE SME)
**Pricing and Investment:**
– **Issue Price:** ₹121 per share
– **Minimum Lot Size:** 1000 shares
– **Minimum Investment for Retail Investors:** ₹121,000
– **Minimum Investment for High Net-Worth Individuals (HNI):** ₹242,000 (2 lots)
The IPO is managed by Gretex Corporate Services Limited, with Bigshare Services Pvt Ltd as the registrar and Gretex Share Broking as the market maker.
**IPO Details:**
– **Face Value:** ₹10 per share
– **Total Issue Size:** 422,000 shares (₹5.11 crores)
– **Market Maker Portion:** 66,000 shares (handled by Gretex Share Broking)
**Shareholding Structure:**
– **Pre-Issue Shareholding:** 930,000 shares
– **Post-Issue Shareholding:** 1,352,000 shares
### Associated Coaters IPO Reservation
The IPO offers shares in the following categories:
– **Retail Investors:** 50% of the net offer
– **Other Investors:** 50% of the net offer
### Tentative Timeline
– **IPO Opens:** May 30, 2024
– **IPO Closes:** June 3, 2024
– **Basis of Allotment:** June 4, 2024
– **Refunds Initiation:** June 5, 2024
– **Credit of Shares to Demat Accounts:** June 5, 2024
– **Listing Date:** June 6, 2024
– **Cut-off Time for UPI Mandate Confirmation:** 5 PM on June 3, 2024
### Lot Size and Investment
Investors can bid for a minimum of 1000 shares. The investment details are:
– **Retail Investors:** Minimum and maximum investment of ₹121,000 (1000 shares)
– **HNIs:** Minimum investment of ₹242,000 (2000 shares)
### Promoters and Business Overview
The company’s promoters are Jagjit Singh Dhillon and Navneet Kaur. Founded in 2017, Associated Coaters Limited specializes in pre-treatment and powder coating of aluminum extrusions for the architectural and real estate industries. With an annual capacity of 1,200 metric tons, the company operates two manual and one automatic powder coating plants. It is ISO 9001:2015 certified and had 15 employees as of November 30, 2023.
### Financial Information (Restated)
| Period Ended | 31 Dec 2024 | 31 Mar 2023 | 31 Mar 2022 | 31 Mar 2021 |
|———————|————-|————-|————-|————-|
| Assets | ₹364.74 lakh| ₹296.12 lakh| ₹201.81 lakh| ₹2.72 lakh |
| Revenue | ₹397.00 lakh| ₹358.94 lakh| ₹139.41 lakh| – |
| Profit After Tax | ₹75.77 lakh | ₹54.30 lakh | ₹13.67 lakh | -₹0.14 lakh |
| Net Worth | ₹141.11 lakh| ₹70.34 lakh | ₹16.05 lakh | ₹2.38 lakh |
| Reserves and Surplus| ₹48.11 lakh | ₹67.34 lakh | ₹13.05 lakh | -₹0.62 lakh |
| Total Borrowing | ₹9.90 lakh | ₹9.90 lakh | ₹10.10 lakh | ₹0.20 lakh |
**Key Performance Indicators (as of Dec 31, 2023):**
– **Market Capitalization:** ₹16.36 crore
– **Return on Equity (ROE):** 71.66%
– **Return on Capital Employed (ROCE):** 68.30%
– **Debt/Equity Ratio:** 0.07
– **Return on Net Worth (RoNW):** 53.69%
– **Price-to-Book Value (P/BV):** 7.98
– **Profit After Tax (PAT) Margin:** 19.08%
### IPO Objectives
The funds from the IPO will be used for:
1. **Capital Expenditure:** Installation of plant and machinery in existing premises.
2. **Working Capital Requirements**
3. **General Corporate Purposes**
### Conclusion
The Associated Coaters IPO offers a promising opportunity for investors with its strategic focus on enhancing production capacity and operational efficiency. With a significant growth potential in the architectural and real estate industries, the company aims to leverage its strong market position in eastern India. Investors should consider the financial health and strategic plans of the company when making investment decisions.
