Precision Metaliks IPO to Close Soon, Check Out the Details

Precision Metaliks IPO to close soon, check out the details Precision Metaliks, based in Visakhapatnam, has launched its initial public offering (IPO) on 19^th of January, which will run until January 24, 2022.

Precision Metaliks:

Precision Metaliks, founded in 2012, specializes in trading and manufacturing Aluminum Alloy Wheels, as well as finishing Alloy Wheels (cleaning, washing, buffing, polishing, testing, and packing). Prior to fiscal year 2018-19, the Company was initially engaged in the metals trading business. Following that, the Company began manufacturing activity in the SEZ Unit in FY 2019-20. The Visakhapatnam Special Economic Zone Unit is located in Duvvada, Visakhapatnam. They carry out manufacturing activities / processes on semi-finished wheels under this Unit by providing value added services such as cleaning, washing, buffing, polishing, testing, and packing.

When:

The IPO opened on Jan 19, 2022, and closes on Jan 24, 2022.

• Issue size: ₹ 21.93 Cr
• Price band: Rs 51 per equity share.
• Market value at the upper end of the price band: ₹ crore
• Face value: Rs 10 apiece.
• Lot size: 2000 shares
• Listing: NSE
• Listing Date: Feb 2, 2022
• Promoters:

Abhishek Business Pvt Ltd and Jayanthi Roja Ramani are the company promoters.

Objectives of the IPO:

The company aims to utilize the funds for following purpose:

• Meet additional working capital requirements.
• Meet general corporate purposes.

Precision Metaliks IPO is a SME IPO with a total of 4,300,000 equity shares with a face value of 10 worth up to Rs. 21.93 crores. The issue is priced at 51 cents per share of equity. The order quantity must be at least 2000 Shares.

Summary of Financial Information:

Particulars	Total Assets (₹ in Millions)	Total revenue (₹ in Millions)	Profit after Tax (₹ in Millions)
31 Mar-2019	302.59	5.28	0.46
31 Mar-2020	1367.27	2217.96	82.39
31 Mar-2021	2147.71	4924.13	149.35
31 Sep-2021	2022.96	4813.35	214.57

In terms of financial performance, PML has reported turnover/net profits of Rs. 0.05 cr. / Rs. 0.01 cr. (FY19), Rs. 22.18 cr. / Rs. 0.82 cr. (FY20), and Rs. 49.24 cr. / Rs. 1.49 cr. (FY21) (FY21). The company earned a net profit of Rs. 2.15 crore for the first half of FY22, which ended on September 30, 2021, on a turnover of Rs. 48.13 crore. For the last three fiscals, PML has posted an average EPS of Rs.13.49 and an average RoNW of 7.62 percent over the last 18 months, which raises eyebrows. The issue has a P/BV of 3.48 based on its NAV of Rs. 14.64 as of September 30, 2021, and a P/BV of 2.13 based on the post-issue NAV of Rs. 23.99. The issue is fully priced based on its financial parameters.