Presstonic Engineering IPO: Open/Close Date, Price, Lot Size, Allotment, Subscription

IPO Details

Bidding Dates

10 Dec '23 - 12 Dec '23

Minimum Investment

₹115,200 / 1 Lots ( 1600 Shares )

Price Range

₹72

Maximum Investment

₹115,200 / 1 Lots ( 1600 Shares )

Retail Discount

Not Applicable

Issue Size

₹23.30 Cr

Investor category and sub category

Non-Institutional Buyers | Retail Investors |

IPO Dates

Important dates with respect to IPO allotment and listing

IPO Opening Date

Dec 10, 2023

IPO Closing Date

Dec 12, 2023

Basis of Allotment

Dec 13, 2023

Initiation of Refunds

Dec 14, 2023

Credit of Shares to Demat Account

Dec 14, 2023

IPO Listing Date

Dec 17, 2023

UPI Mandate Expiry Date

Dec 12, 2023

IPO Subscription Details

Date	NII	Retail	Total
Day 1Dec 10, 2023	5.89x	27.86x	16.88x
Day 2Dec 11, 2023	21.70x	77.86x	49.80x
Day 3To be announced

IPO Subscription Live Status

Investor Category	Subscription (Times)
Non-Institutional Buyers	21.70
Retail Investors	77.86
Total	49.80

About Company

Presstonic Engineering Limited, initially "Presston Engineering Corporation," was co-founded by Herga Poornachandra Kedilaya and Yermal Giridhar Rao in 1996. It became a Public Limited company in 2021 and was officially registered in Bangalore on July 31, 2023.

The company's core business revolves around producing various Metro Rail Rolling Stock, Signalling Products, and Infrastructure Products. The company is known for supplying these high-quality products to well-established Global and Domestic Original Equipment Manufacturers (OEMs) involved in manufacturing and maintaining rail and metro rail rolling stock and signalling equipment.

Product Portfolio:

Interior Rolling Stock: Seats, coloured handles, grab poles, handrails, emergency ramps, and partition panels.
Non-Interior Rolling Stock: Cable management systems, cabin handrails, undercarriage frames, air units, battery boxes, and equipment frames.
Signaling Products: Weather-proof enclosures, beacon brackets, support brackets, and communication masts.
Infrastructure Products: Steel and aluminium structures, solar panel supports, and wire/cable trays.

Manufacturing Facility:

The manufacturing base of the entity encompasses approximately 28,317.50 sq ft in North Bangalore, Karnataka.

This facility is outfitted with state-of-the-art machinery, equipment, and tools, enabling the production of a wide array of products designed for railway and metro applications.

Industry Outlook

India's steel industry is essential, contributing about 2% to its GDP and ranking as the world's second-largest steel producer. The country is also poised to become the second-largest steel consumer, surpassing China, in line with its "Make in India" initiative.
The steel sector's expansion is boosting India's manufacturing exports and balancing its steel trade. The National Steel Policy of 2017 aims for a production capacity of 300 million tonnes by 2030-31. India's per capita steel consumption has risen from 57.6 kg to 74.1 kg in five years, with goals to increase rural consumption significantly by 2030-31. The Indian Steel Association forecasts a 7.2% demand growth in 2019-20 and 2020-21.
India's steel industry has substantial growth potential, driven by its current low per capita consumption and expected demand increases from the infrastructure, automobile, and railway sectors.

Presstonic Engineering Limited IPO Details

Presstonic Engineering Limited IPO Date

The IPO of Presstonic Engineering Limited is open for subscription from December 11, 2023 to December 13, 2023.

Presstonic Engineering Limited IPO's Price Band

Presstonic Engineering Limited’s IPO is a fresh issue IPO of up to ₹23.30 crore. It is a fixed-price issue. The price range is set to ₹72 per share.

Presstonic Engineering Limited IPO’s Lot Size

The lot size for Presstonic Engineering Limited’s IPO is 1,600 shares with a minimum investment of ₹1,15,200.

Presstonic Engineering Limited IPO’s Objectives

The company plans to allocate the net proceeds from the issuance to the following purposes:

Funding Capital Expenditure towards the purchase of additional plant and machinery
Prepayment in full of certain borrowings availed by our Company
To meet the Working Capital Requirements
To meet the Issue Expenses
General Corporate Purposes

How To Check the Allotment Status of Presstonic Engineering Limited’s IPO?

Steps to check IPO allotment status on Angel One’s app:

Log in to the Angel One app
Go to the IPO Section and then to IPO Orders
Select the individual IPO that you had applied for and check the allotment status.
As such, Angel One will notify you of your IPO allotment status via push notification and email.

Contact Details of Presstonic Engineering Limited

Registered office: Sy. No. 2, Khatha No. 145, Hoysala Main Road, Pillappa Industrial Layout, Srigandhadakavalu, Sunkadakatte, Viswaneedam, Bangalore, North Bangalore, Karnataka – 560091, India

Contact Person: Mrs. Sudha Gajanana Hegde (Company Secretary and Compliance Officer)

Phone: +91-80-23480001

E-mail: cs@presstonengg.co

Company Financials

Particulars ( ₹ in lakh )	Year ending on March 31, 2023	Year ending on March 31, 2022	Year ending on March 31, 2021
Total Revenue	2,113.27	1,272.21	769.44
EBITDA Margin (%)	33.10%	23.84%	38.45%
Profit After Tax (PAT)	256.14	14.06	-16.94
PAT Margin (%)	12.18%	1.11%	-2.22%
Total Borrowings	1,645.27	1,797.08	1,774.95
Cash & Cash Equivalents	26.31	7.13	47.77
Debt to Equity Ratio(x)	0.98	2.72	2.06
Return on Equity Ratio (x)	1.15	0.06	-0.06
Return on Capital Employed (RoCE) (x)	0.87	0.28	0.33
Earning Per Share (EPS) in absolute ₹	11.46	0.63	-0.76

Know before investing

Strengths

The company produces a wide array of Metro Rail Rolling Stock and Signalling Products tailored to customer needs. This strategy diversifies their revenue stream.
As of March 31, 2023, there's an unexecuted order book of ₹6,389.57 lakh, with additional orders of ₹456.87 lakh received from April 1, 2023.
They focus on enhancing customer satisfaction through ongoing skill development and innovative marketing, including social media and public engagement.

Risks

The company's reliance on a limited number of customers poses a risk. A significant reduction in orders or loss of these customers could adversely affect the business.
The business significantly depends on a few suppliers for raw materials. If these suppliers fail to meet the company's quality, quantity, or timely delivery requirements, it could harm the business. Any disruptions in procuring raw materials could materially affect the company's operations and financial health.
As the company is relatively new, having been formed from the conversion of a partnership firm, it has a limited track record. This lack of extensive operational history may make it challenging for investors to evaluate the company's past performance and future potential.
The business's success is closely tied to stable and reliable logistics and transportation infrastructure. Disruptions in these services could impair the delivery of materials to and from the company, potentially increasing transportation costs and adversely affecting operations.
The company is in the process of acquiring machinery, which is crucial for commencing operations. Any delays in ordering or obtaining this machinery could postpone the start of operations and potentially increase costs.