Craftsman Automation IPO Review 2021: The Craftsman Automation Limited IPO opens on 15th March and closes on 17th March 2021. In this article, we cover the Craftsman Automation Limited IPO review and look into important IPO information and find out the possible prospects of the company. Let’s get started.
Table of Contents
Craftsman Automation IPO Review – About the Company
Craftsman Automation Limited was founded in 1986 by Srinivasan Ravi in Coimbatore in the State of Tamil Nadu. They create products for the powertrain, industrial and engineering products segment, and automotive segment. This also includes aluminium products for the automotive segment.
The company product portfolio includes material handling equipment such as hoists, crane kits, industrial gears, gearboxes, locomotive components, railway products, storage solutions, marine engines and accessories, tool room, mould base products and Special Purpose Machines (“SPM”). The SPMs also includes metal cutting and non-metal applications such as washing and leak testing solutions.
The company has come a long way over the 32 years. They have developed strong in-house engineering and design capabilities allowing them to offer comprehensive solutions and products. Their facilities also include imported state-of-the-art computer numerical control (“CNC”) machine tools and die casting machines.
They have set up 12 manufacturing facilities across 7 cities in India, with a total built-up area of over 1.5 million square feet. These facilities have been set up in strategic locations closer to the clients in order to facilitate the clients just-in-time delivery schedules and for other logistical advantages.
The manufacturing facilities of the company include aluminium foundries, pressure die casting facilities, machining and allied facilities, heat treatment, fabrication, and assembly facilities.
They are currently the largest component manufacturer engaged in the machining of cylinder heads and cylinder blocks in the construction equipment industry as well as in the IMHCV segment of the commercial vehicle Industry. The company is also part of the top 4 manufacturers in cylinder block machining for the tractor industry.
They have a long-standing list of domestic and international clients which includes:
- Tata Motors
- Daimler India
- Tata Cummins
- Mahindra & Mahindra
- Royal Enfield, Siemens
- Escorts
- Ashok Leyland
- VE Commercial Vehicles
- TAFE Motors & Tractors
Craftsman Automation Limited IPO Review – Key IPO Information
Srinivasan Ravi, the promoter of the company is a mechanical engineer and a first-generation entrepreneur with over 32 years of relevant industry experience. He owns a 52.83% stake in the auto component maker. Other investors in the company include IFC, Marina III (Singapore) and K Gomatheswaran hold 14.06%, 15.50% and 7.04% stake, respectively.
The IPO comprises a fresh issue of equity shares worth Rs 150 crore and offer-for-sale (OFS) of up to 45.21 lakh equity shares by promoters and existing shareholders.
They have appointed Axis Capital Ltd and IIFL Securities Ltd as the book running lead managers to the issue. Link Intime India Private Ltd has been appointed as the registrar to the issue.
Important Craftsman Automation IPO details
| Particular | Details |
|---|---|
| IPO Size | ₹823.70 Cr |
| Fresh Issue | ₹150.00 Cr |
| Offer For Sale(OFS) | ₹673.70 Cr |
| Opening Date | Mar 15, 2021 |
| Closing Date | Mar 17, 2021 |
| Face Value | ₹5 per equity share |
| Price Band | ₹1488 to ₹1490 per equity share |
| Lot Size | 10 Shares |
| Minimum Lot Size | 1 |
| Maximum Lot Size | 13 |
| Listing Date | Mar 25, 2021 |
Craftsman Automation’s Competitors
Craftsman Automation listed competitors include:
- Bharat Forge Ltd
- Endurance Technologies Ltd
- Jamna Auto Ltd
- Mahindra CIE Automotive Ltd
- Minda Industries Ltd
- Sundram Fasteners Ltd
- Ramkrishna Forgings Ltd
Craftsman Automation IPO Review – Purpose of the IPO
The proceeds from the issue will be used for the following purposes:
- Repayment or pre-payment of the company’s borrowings.
- Other general corporate purposes.
Closing Thoughts
The IPO opens on 15th March and closes on 17th March 2021. For retail investors, it can be a good opportunity to look into the company’s future prospects and apply for the IPO if they believe in the products and growth prospects of Craftsman Automation Limited.
That’s all for this post. Do let us know what you think of Craftsman Automation Limited IPO Review. Are you planning to apply for this IPO or not? Comment below. Cheers!
Aron, Bachelors in Commerce from Mangalore University, entered the world of Equity research to explore his interests in financial markets. Outside of work, you can catch him binging on a show, supporting RCB, and dreaming of visiting Kasol soon. He also believes that eating kid’s ice-cream is the best way to teach them taxes.
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