The Maharashtra-based valve components manufacturer Shri Balaji Valve Components Limited has announced that its ₹21.60 crore Initial Public Offering (IPO) will open for public subscription on December 27, 2023. The company is offering a fresh issue of 21.6 lakh shares through a book-building process and there is no offer-for-sale component. The price band is set ₹95 to ₹100 per share at a face value of ₹10 each.
About Company
Shri Balaji Valve Components Limited was incorporated on November 17, 2011. The company develops and manufactures customized valve components including forged products. It has two manufacturing units in Pune, Maharashtra, equipped with highly advanced machinery and robust inspection and testing procedures.
The company has a wide range of valve components including all types of balls, bonnets, body, body adaptor, flange bonnet, flanges, seat rings, trunnion plates, discs, retainer rings, stem housing, actuator stem, trunnion, sleeves, piston rod, glande flange, plug, shafts, stems, and more. All these offered components are customized as per customers’ specific needs, meeting all quality checks. The company’s facilities include forging, heat treatment, and machining capabilities.
IPO details at a glance
Hem Securities Limited is the book-running lead manager and Bigshare Services Pvt Ltd is the registrar for Balaji Valve Components IPO. The market maker for the IPO is Hem Finlease.
| IPO Application Date | December 27 to 29, 2023 |
| Listing Date | January 03, 2024 |
| Listing On | BSE SME |
| Face Value | ₹10 per share |
| Price Range | ₹95 to ₹100 per share |
| Lot Size | 1200 shares |
| Total number of issues | 2,160,000 shares aggregating up to ₹21.60 crore |
| Fresh Issue | 2,160,000 shares aggregating up to ₹21.60 crore |
| Holdings before issue | 60,00,000 shares |
| Holdings after issue | 81,60,000 shares |
| Market Maker Reservation | 114,000 shares (Hem Finlease) |
| Net Public Issues | 20,46,000 shares (excluding market maker reservation) |
| QIB Investor Quota | Up to 50% of net offering |
| Retail Investor Quota | Not less than 35% of net offering |
| NII (HNI) Investor Quota | Not less than 15% of net offering |
The retail investors can bid only for 1 lot i.e., 1,200 shares whereas HNIs can bid for up to 2 lots. The investment per lot totals to Rs 1,20,000.
Important dates
Important dates for Shri Balaji Valve Components IPO are given below –
| IPO opening date | December 27, 2023 |
| IPO closing date | December 29, 2023 |
| Finalisation of basis of allotment | January 01, 2024 |
| Allotment initiation to Demat / Refunds / Unblocking of Funds | January 02, 2024 |
| IPO Listing Date | January 03, 2024 |
| Mandate end | January 13, 2024 |
Company’s financials
Shri Balaji Valve Component Limited has recorded a 61.14% growth in revenue and 319.07% rise in profit after tax (PAT) in the financial year ending in 2023 as compared to 2022.
| Financial Period | 30 Jun’23 | 31 Mar’23 | 31 Mar’22 | 31 Mar’21 |
|---|---|---|---|---|
| Assets | 5,132.00 | 5,023.02 | 3,973.46 | 1,758.63 |
| Net Worth | 975.66 | 789.14 | 144.64 | -10.85 |
| Revenue from operation | 1,654.64 | 6,294.10 | 3,906.05 | 1,616.49 |
| EBITDA | 327.44 | 1095.89 | 273.28 | 39.98 |
| EBITDA Margin | 19.83% | 17.60% | 7.03% | 2.48% |
| Profit After Tax (PAT) | 184.84 | 643.15 | 153.47 | -3.22 |
| PAT Margin | 11.91% | 10.33% | 3.95% | – |
| Cash Flow | 330.42 | 1131.13 | 285.23 | 50.57 |
| Debt-Equity (D/E) Ratio | 2.95 | 3.63 | 18.83 | -293.44 |
| Reserves and Surplus | 377.01 | 790.85 | 147.70 | -5.77 |
| Total Borrowing | 2,879.49 | 2,877.99 | 2,799.71 | 1,399.54 |
| Amount in ₹ Lakhs | ||||
IPO Valuation – Key Performance Indicator
| KPI | Values |
| Market Cap (in Cr) | 81.6 |
| P/E ratio | 9.33 |
| ROE | 136.76% |
| Debt/Equity | 3.63 |
| ROCE | 26.47% |
| EPS (Rs) | 10.72 |
| RoNW | 81.50% |
The company proposes to utilise the net proceeds from the issue towards meeting capital requirements for installation of additional plant and machinery along with general corporate purpose.
Laxmikant Sadashiv Kole, Madhuri Laxmikant Kole and Shrinivas Laxmikant Kole are the promoters of the company. The promoters’ shareholding will shrink to 73.53% from 100% post IPO.
Read details about more IPOs here.
Note: Read the details in the official RHP document.
