IPO Details

Bidding Dates

25 Sep '24 - 27 Sep '24

Minimum Investment

₹1,31,200/ 1 Lot (1600 Shares)

Price Range

₹75 - ₹82

Maximum Investment

₹1,31,200/ 1 Lot (1600 Shares)

Retail Discount

To be announced

Issue Size

₹35.90 Cr

Investor category and sub category

Retail Individual Investors (RII)  |   Non-institutional Investors (NII)  |   Qualified Institutional Buyers (QIB)  |   Eligible employees  |  

IPO Dates

Important dates with respect to IPO allotment and listing

Opening Date

Sep 25, 2024

Closing Date

Sep 27, 2024

Basis of Allotment

Sep 30, 2024

Initiation of Refunds

Oct 1, 2024

Listing Date

Oct 3, 2024

About TechEra Engineering IPO

TechEra Engineering is launching its IPO with a book-built issue of ₹35.90 crores. This IPO consists entirely of a fresh issue of 43.78 lakh shares. Investors can subscribe to the TechEra Engineering IPO starting from September 25, 2024, until September 27, 2024. The allotment of shares is expected to be finalised by September 30, 2024, with the tentative listing date set for October 3, 2024, on the NSE SME platform.

The price band for the IPO is set between ₹75 to ₹82 per share, making it accessible to retail and high-net-worth investors. The minimum lot size is 1,600 shares, requiring a minimum investment of ₹1,31,200 for retail investors. High-net-worth individuals (HNIs) need to apply for a minimum of 2 lots, equating to 3,200 shares, which amounts to ₹2,62,400.

SKI Capital Services Limited is the book-running lead manager for this IPO, ensuring efficient handling of the issue. Kfin Technologies Limited is the appointed registrar responsible for managing the share allotment process for TechEra Engineering IPO.

Industry Outlook:

  1. The Indian capital goods industry was valued at US$43.2 billion in FY22 and is projected to grow significantly, reaching US$72 billion by 2025 with a CAGR of 12%. The robust growth reflects increased investments in infrastructure, power generation, and industrial machinery.
  2. India's electrical equipment market is expected to grow by US$33.74 billion from 2021 to 2025, driven by power sector expansion and industrial demand. Heavy electrical equipment production stood at US$21.15 billion in FY21, showcasing a 90% growth in shipments.

TechEra Engineering IPO Objectives

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

  1. The funds will be used to acquire advanced machinery, enhancing production capabilities.
  2. A portion of the proceeds will support the company’s day-to-day operations.
  3. The issue will help repay part of the existing loans, reducing financial liabilities.
  4. The remaining portion of the proceeds will be allocated towards general corporate purposes.

About TechEra Engineering Limited

TechEra Engineering (India) Limited, founded in October 2018, specialises in designing, manufacturing, and supplying precision tooling and components for the aerospace and defence industries. The company’s diverse product range includes assembly toolings, jigs, fixtures, and maintenance, repair, and overhaul (MRO) toolings, alongside ground support equipment and precision machined components. By employing advanced manufacturing techniques like 5-axis machining and 3D modelling, TechEra meets the high standards of its target markets.

The company holds ISO 9001:2015 and AS9100D:2018 certifications, underscoring its commitment to quality management. TechEra has contributed to significant projects, such as tooling for commercial aircraft assembly lines and military applications, demonstrating its ability to handle complex engineering tasks.

Operating in a sector defined by technological sophistication and strict regulations, TechEra addresses the growing demands of global aerospace and defence markets. The company embraces key trends, including digital transformation and sustainability, while navigating challenges like cyclical demand and high entry barriers.

By focusing on innovation and continuous improvement, TechEra Engineering aims to enhance its offerings and contribute to the advancement of the aerospace and defence sectors, positioning itself as a vital player in this dynamic industry.

Peer Details

The companies considered by TechEra Engineering Limited as its peers include:

  1. Paras Defence and Space Technologies Limited
  2. Azad Engineering Limited

How to Check the Allotment Status of the TechEra Engineering Limited IPO?

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

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

How to apply for TechEra Engineering IPO online?

  1. Login to Your Angel One Account: Open the Angel One app or website and log in with your credentials.
  2. Locate the IPO Section: Navigate to the 'IPO' section on the platform.
  3. Select IPO: Find and select the TechEra Engineering IPO from the list of open IPOs.
  4. Enter the Lot Size: Specify the number of lots you want to bid for.
  5. Submit Your UPI ID: Enter your UPI ID to link your payment method and submit your application.
  6. Approve Funds: Once you receive the bid request on your UPI app, approve it by entering your UPI PIN.

Contact Details of TechEra Engineering IPO

  • Registered office: Gat No. 565, Behind Namo Marble & Timbers At Post Velu, Tal. Bhor, Pune, Maharashtra, India-412205
  • Phone: +91 8605016251
  • E-mail: cs@techera.co.in

IPO Financials

Particulars Year ending on March 31, 2024 Year ending on March 31, 2023 Year ending on March 31, 2022
Revenue from Operation (in ₹ lakh) 3,874.88 2,643.44 717.80
Profit After Tax (PAT) (in ₹ lakh) 482.25 130.50 (628.70)
Current Ratio (x) 1.57 1.23 1.82
Net Worth (in ₹ lakh) 1,590.14 1108.32 977.84
Total Borrowings (in ₹ lakh) 1,429.98 1,377.10 887.05
Return on Equity (%) 30.33 11.78 (64.30)
Return on Capital Employed (RoCE) (%) 23.47 9.71 (29.42)
Earnings Per Share (in ₹) 4.14 7.20 (44.49)

Know before investing

Strengths

6

  1. Specialised expertise in aerospace and defence enhances market competitiveness.

  2. Advanced manufacturing technologies ensure high precision in complex projects.

  3. Experienced leadership guides strategic growth and operational excellence.

  4. Recognitions and certifications reflect the commitment to quality and standards.

  5. Market expansion opportunities exist in emerging sectors and regions.

  6. Collaborations can drive innovation and access to new markets.

Risks

6

  1. Dependence on key customers means losing one could impact revenue.

  2. Single manufacturing facility risks disruption affecting overall business operations.

  3. Delayed payments and penalties pose risks to financial stability.

  4. Non-compliance with statutory provisions could lead to significant penalties.

  5. Reliance on third-party suppliers may cause delays or shortages.

  6. Competitive pressures in the industry can adversely affect business growth.

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TechEra Engineering IPO FAQs

What is the TechEra Engineering IPO?

TechEra Engineering IPO is a book built IPO. The IPO will be open from September 25, 2024, to September 27, 2024.

When will TechEra Engineering IPO be allotted?

The Basis of Allotment will happen on Monday, September 30, 2024.

When will TechEra Engineering IPO open for subscription?

The IPO subscription window will open on September 25, 2024.

What minimum lot size can retail investors subscribe to?

The minimum lot size retail investors can subscribe to is 1 lot, and the lot size is 1600 shares.

When will TechEra Engineering Limited list on exchanges?

The listing date for TechEra Engineering is Thursday, October 3, 2024.

What would be the listing gains on the TechEra Engineering IPO?

Listing gains cannot be ascertained before the listing of the IPO on the stock exchange.

How to increase your chances of getting a TechEra Engineering IPO allotment?

  1. Multiple Submissions: Use different Demat accounts to make multiple applications.
  2. Higher Price Band Bidding: Opt for bidding at the cut-off price or higher price band.
  3. Timely Subscription: Ensure you subscribe to the IPO within the specified time frame.

How do I approve the UPI mandate request for TechEra Engineering IPO?

You must complete the payment process by logging in to your UPI handle and approving the payment mandate.

Can I submit more than one application for the public issue of TechEra Engineering Limited using one PAN?

You can submit only one application using your PAN card.

How to read TechEra Engineering Limited's financial statements?

To read TechEra Engineering’s financial statements, download the IPO’s  RHP document.