Presstonic Engineering Limited IPO

Presstonic Engineering’s IPO, valued at Rs. 23.30 crores, consists of 32.37 lakh freshly issued shares. The subscription period for this IPO spans from December 11 to December 13, 2023, with the allotment expected to be finalized on December 14, 2023. Anticipated for listing on NSE SME by December 18, 2023, the IPO’s price stands at Rs. 72 per share, requiring a minimum lot size of 1600 shares for application, translating to a minimum investment of Rs. 115,200 for retail investors and Rs. 230,400 for HNIs (2 lots of 3,200 shares each).

The Presstonic Engineering IPO is managed by Finshore Management Services Limited as the book running lead manager, with Cameo Corporate Services Limited serving as the registrar and Nikunj Stock Brokers acting as the market maker. For comprehensive details, the Presstonic Engineering IPO RHP should be referenced.

Presstonic Engineering IPO Details

IPO Dates: December 11, 2023, to December 13, 2023

Face Value: Rs. 10 per share

Issue Price: Rs. 72 per share

Lot Size: 1600 Shares

Total Issue Size: 3,236,800 shares (aggregating up to Rs. 23.30 Cr)

Fresh Issue: 3,236,800 shares (aggregating up to Rs. 23.30 Cr)

Issue Type: Fixed Price Issue IPO

Listing At: NSE SME

Shareholding Pre-Issue: 4,470,680 shares

Shareholding Post-Issue: 7,707,480 shares

Market Maker Portion: 163,200 shares

The Presstonic Engineering IPO, scheduled from December 11 to December 13, 2023, offers a fixed price issue of Rs. 72 per share with a lot size of 1600 shares. The IPO comprises entirely fresh issues totaling 3,236,800 shares, aimed at aggregating up to Rs. 23.30 crores. Upon completion, the shareholding is expected to increase from 4,470,680 to 7,707,480 shares, indicating substantial growth.

The IPO listing will take place at NSE SME, while a portion of 163,200 shares is allocated for the Market Maker. This IPO presents an opportunity for investors to engage with Presstonic Engineering’s offering, potentially expanding their portfolio in the market.

Presstonic Engineering IPO Timeline (Tentative Schedule)

IPO Open Date: Monday, December 11, 2023

IPO Close Date: Wednesday, December 13, 2023

Basis of Allotment: Thursday, December 14, 2023

Initiation of Refunds: Friday, December 15, 2023

Credit of Shares to Demat: Friday, December 15, 2023

Listing Date: Monday, December 18, 2023

Cut-off time for UPI mandate confirmation: 5 PM on December 13, 2023

The Presstonic Engineering IPO is set to open for subscription on December 11, 2023, and concludes on December 13, 2023. The basis of allotment is expected to be finalized by December 14, 2023, followed by the initiation of refunds and the credit of shares to investors’ Demat accounts on December 15, 2023.

The IPO is anticipated to be listed on the stock exchange on December 18, 2023. Notably, investors are advised to complete UPI mandate confirmation before the cut-off time of 5 PM on December 13, 2023, to ensure a smooth subscription process.

This timeline provides a comprehensive schedule for investors to follow, ensuring their participation in the Presstonic Engineering IPO adheres to the prescribed deadlines and milestones set by the company and regulatory authorities.

Presstonic Engineering IPO Key Performance Indicator

P/E (Price-to-Earnings Ratio): 6.28x

ROE (Return on Equity): 115%

ROCE (Return on Capital Employed): 87%

Debt/Equity Ratio: 0.98

EPS (Earnings Per Share): Rs 5.73

RoNW (Return on Net Worth): 51.92%

P/E Ratio (Price-to-Earnings): Indicates the stock’s valuation relative to its earnings. A P/E ratio of 6.28x suggests the market values the company at approximately 6.28 times its earnings per share.

ROE (Return on Equity): Reflects the company’s profitability concerning shareholders’ equity. An ROE of 115% indicates that for each unit of equity, the company generated a return of 115% in profit.

ROCE (Return on Capital Employed): Measures the returns generated from capital employed in the business. An ROCE of 87% showcases the company’s efficiency in utilizing capital to generate profits.

Debt/Equity Ratio: Indicates the proportion of debt used to finance the company’s assets relative to shareholders’ equity. A ratio of 0.98 implies the company’s debt almost equals its equity.

EPS (Earnings Per Share): Represents the portion of a company’s profit allocated to each outstanding share of common stock. The EPS of Rs 5.73 signifies the company’s earnings per individual share.

RoNW (Return on Net Worth): Reflects how effectively the company uses its net worth to generate profits. An RoNW of 51.92% demonstrates the company’s ability to generate profits based on its net worth.

The presented KPIs offer valuable insights into Presstonic Engineering’s financial performance and position in the market. The strong ROE, ROCE, and RoNW ratios indicate the company’s efficient utilization of capital and resources. However, investors should consider these metrics in conjunction with other factors and industry benchmarks for a comprehensive assessment before making investment decisions.

Grey Market Premium (GMP) Presstonic Engineering IPO

The GMP (Grey Market Premium) for the Presstonic Engineering SME IPO is under observation and assessment. As of now, the GMP calculation has initiated but remains at an early stage, making it premature to ascertain its trend or direction. We are diligently updating this information on a daily basis to provide the most recent GMP updates and additional details.

Keep a close watch for further developments regarding the Presstonic Engineering SME IPO’s daily GMP performance and the anticipated listing price. We are committed to delivering the latest updates as they unfold to offer a comprehensive understanding of the IPO’s potential market performance. Stay tuned for the most recent information and insights.

GMP Date	IPO Price	GMP	Sub2 Sauda Rate	Estimated Listing Price	Last Updated
07-12-2023	72.00	₹0 No change	—	₹72 (0%)	7-Dec-2023 19:02

Presstonic Engineering IPO Company Profile

Presstonic Engineering Limited, established in 1996, specializes in manufacturing products tailored for Metro Rail Rolling Stock, Metro Rail Signalling, and Infrastructure sectors. Their product range spans Rolling Stock Interior offerings like diverse seating options, handles, grab pole and hand rail systems, emergency evacuation setups, and partition panels. Additionally, they produce IP-rated enclosures, mounting brackets, support structures, steel and aluminum components, wire forms, and cable trays.

Situated in Bangalore, their manufacturing facility and R&D Division span approximately 28,317.50 sq.ft. The company operates on an order-based business model and boasts an unexecuted order book of Rs 6,389.57 lakhs as of March 31, 2023. Their clientele extends across diversified industries, serving State Govt., Central Govt., and PSUs.

Presstonic Engineering Limited’s competitive strengths lie in their organizational stability, robust management expertise, streamlined task execution, well-defined organizational structure, and a well-equipped manufacturing facility capable of meeting diverse product demands. Additionally, their established supplier relationships contribute to their operational efficiency.

By catering to a niche market with specialized products and leveraging their organizational stability, manufacturing capabilities, and extensive industry relationships, Presstonic Engineering has positioned itself as a prominent player in the Metro Rail and Infrastructure sectors.

Presstonic Engineering IPO Lot Size and Investment Details

The Presstonic Engineering IPO offers a lot size structure that allows investors to bid for a minimum of 1600 shares and in multiples thereof. Below is the table outlining the minimum and maximum investment amounts for both retail investors and High Net Worth Individuals (HNIs):

Retail Investors:

Minimum Application: 1 lot Shares: 1600 Amount: Rs. 115,200

Maximum Application: 1 lot Shares: 1600 Amount: Rs.115,200

HNI Investors:

Minimum Application: 2 lots Shares: 3200 Amount: Rs. 230,400

The lot size structure enables retail investors to apply for a minimum of 1600 shares, which equates to an investment of Rs. 115,200. Similarly, HNI investors have a minimum bid requirement of 3200 shares amounting to Rs. 230,400.

This structure aims to accommodate varying investment capacities for both retail and HNI investors participating in the Presstonic Engineering IPO, allowing them flexibility within the specified lot size ranges.

Presstonic Engineering IPO Promoter Holding Details

The Promoters of Presstonic Engineering Limited, namely Mr. Herga Poornachandra Kedilaya and Mr. Yermal Giridhar Rao, hold a significant stake in the company.

Share Holding Pre Issue: The Promoters collectively hold 99.97% of the company’s shares before the issue of the IPO.

Share Holding Post Issue: Following the issue of the IPO, the Promoters’ shareholding is anticipated to decrease to 57.99%.

The Promoters have near-complete ownership of the company. However, post the IPO, their ownership will reduce to 57.99%, indicating dilution due to the introduction of new shares into the market through the IPO.

Financial Information (Restated Consolidated) Presstonic Engineering IPO

Period Ended	30 Sep 2023	31 Mar 2023	31 Mar 2022	31 Mar 2021
Assets	2,850.69	2,737.68	2,496.71	2,386.97
Revenue	1,431.67	2,113.27	1,272.21	769.44
Profit After Tax	152.21	256.14	14.06	-16.94
Net Worth	645.57	493.36	237.22	223.16
Reserves and Surplus	198.50	269.83	13.69	-0.37
Total Borrowing	1,536.97	1,645.27	1,797.08	1,774.95

The financial performance of Presstonic Engineering Limited showcases impressive growth between the financial years ending on March 31, 2023, and March 31, 2022:

Revenue Growth: The company witnessed a substantial increase in revenue, soaring by 66.11% within this period.

Profit After Tax (PAT) Growth: The company’s profitability surged significantly, experiencing a remarkable rise of 1721.76% in Profit After Tax (PAT).

This notable growth in both revenue and profitability demonstrates the company’s substantial strides in expanding its top-line figures while achieving a substantial leap in its bottom-line performance within the mentioned fiscal period. Such robust financial advancements indicate the company’s potential for expansion and its ability to capitalize on market opportunities during this timeframe.

Objects of the Issue (Presstonic Engineering IPO Objectives)

The objectives behind the Presstonic Engineering IPO issuance, also known as the Objects of the Issue, encompass the following key aspects:

Funding Capital Expenditure for Plant and Machinery: Allocating funds towards the acquisition of additional plant and machinery to enhance production capabilities and operational efficiency.

Prepayment of Certain Borrowings: Utilizing proceeds to entirely prepay specific borrowings previously availed by the company, potentially reducing interest costs and improving financial flexibility.

Meeting Working Capital Requirements: Allocating funds to support ongoing operational needs and ensuring smooth day-to-day business operations by meeting working capital demands.

Covering Issue Expenses: Utilizing a portion of the funds to cover expenses related to the IPO issuance, including advisory fees, legal expenses, marketing, and other associated costs.

General Corporate Purposes: Utilizing the remaining funds for general corporate purposes, which may include strategic initiatives, potential expansions, research and development, or any other purposes aligned with the company’s growth strategies.

By channeling the proceeds from the IPO towards these outlined objectives, Presstonic Engineering aims to reinforce its operational infrastructure, manage financial liabilities, bolster working capital, cover issue-related expenses, and pursue general corporate initiatives. These endeavors are anticipated to support the company’s growth trajectory and contribute to its overall business development.