Megatherm Induction IPO will open for subscription from 29 January 2024. The company aims for an issue size of ₹53.91 Cr through this IPO.
Company Overview
| Full name | Megatherm Induction Limited |
| Sector | Capital Goods |
| Industry | Engineering – Industrial Equipments |
| Company Website | https://megatherm.com/ |
About Company
Megatherm Induction specializes in manufacturing induction heating and melting products using electric induction, including the induction melting furnace and heating equipment. The company manufactures electric arc furnaces for alloy and special steel industries and offers turnkey solutions for steel plants. It handles everything from design to after-sales service—engineering, supply, erection, commissioning, and maintenance contracts. Elevate its steel production with a comprehensive approach.
Following are the key market areas of the products –
- Secondary Steel producers involved in scrap recycling
- Primary Steel producers are involved in the conversion of iron ore into sponge iron & subsequent conversion into steel through Induction Melting
- Auto ancillaries
- Ordnance factories & Railways
- DI pipe producers and diverse engineering industries involved in producing critical parts in its captive casting, forging & metal working units
As of 31 July 2023, Megatherm Induction had an order book of approximately INR 290 crore. Megatherm Induction exports products to diverse regions: South America (e.g., Argentina, Brazil), Africa (e.g., South Africa, Kenya), Gulf (e.g., Saudi Arabia, UAE), Europe (e.g., Poland, France), SAARC (e.g., Bangladesh, Nepal), and South East Asia (e.g., Indonesia, Malaysia).
For Fiscals 2023, 2022, and 2021, exports were INR 68.26 crore, INR 37.43 crore, and INR 37.85 crore, respectively, contributing 25.67%, 19.93%, and 34.72% to the revenue.
The Objectives of the Issue
- Funding capital expenditure towards the construction of factory shed and installation of additional plant and machinery.
- To meet Working Capital requirements.
- General Corporate Purpose.
Megatherm Induction IPO Timetable
| IPO Opening date | 29 January 2024 |
| IPO Closing | 31 January 2024 |
| Basis of Allotment | 01 February 2024 |
| Initiation Refund | 02 February 2024 |
| Credit to Demat Account | 02 February 2024 |
| Listing Date | 05 February 2024 |
Megatherm Induction IPO details
| Issue type | Book Built Issue IPO |
| IPO issue size | ₹53.91 Cr – 4,992,000 shares |
| Fresh Issue | ₹53.91 Cr – 4,992,000 shares |
| Offer for sale | Nil |
| Face value | ₹10 per share |
| Price Band | ₹100 to ₹108 per share |
| Lot size | 1200 Shares |
| Market Maker portion | 250,800 shares |
| Shareholding pre-issue | 13,848,729 |
| Shareholding post-issue | 18,840,729 |
| Listing Exchange | NSE SME |
Megatherm Induction IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 1200 | ₹129,600 |
| Retail (Max) | 1 | 1200 | ₹129,600 |
| HNI (Min) | 2 | 2,400 | ₹259,200 |
Megatherm Induction IPO Reservation Details
| Investor Category | Shares Offered |
|---|---|
| Anchor Investor Shares Offered | 1,422,000 (28.49%) |
| Market Maker Shares Offered | 250,800 (5.02%) |
| QIB Shares Offered | 948,000 (18.99%) |
| NII (HNI) Shares Offered | 711,600 (14.25%) |
| Retail Shares Offered | 1,659,600 (33.25%) |
| Total Shares Offered | 4,992,000 (100%) |
Megatherm Induction Financial Performance
| FY 2021 | FY 2022 | FY 2023 | H1 FY 2024 | |
| Revenue | 109.01 | 187.83 | 265.88 | 146.88 |
| Expenses | 105.02 | 186.95 | 246.60 | 137.24 |
| Net income | 3.09 | 1.10 | 14.00 | 7.59 |
Megatherm Induction Valuations & Margins
| FY 2021 | FY 2022 | FY 2023 | |
| EPS | 2.25 | 0.80 | 10.11 |
| PE ratio | – | – | 9.89 – 10.68 |
| RONW (%) | 8.80 | 3.01 | 27.66 |
| NAV | 25.55 | 26.44 | 36.56 |
| ROCE (%) | 14.44 | 8.46 | 27.47 |
| EBITDA (%) | 12.08 | 4.22 | 10.36 |
| Debt/Equity | 1.13 | 1.10 | 0.85 |
Company Promoters
- Shesadri Bhusan Chanda
- Satadri Chanda and Megatherm Electronics Private Limited
Promoter Holding
| Pre Issue Share Holding | 98.92% |
| Post Issue Share Holding | 72.71% |
Megatherm Induction IPO Lead Manager(s)
HEM SECURITIES LIMITED
904, A Wing, Naman Midtown, Senapati Bapat Marg,
Elphinstone Road, Lower Parel, Mumbai-400013, India
Phone: +91- 022- 49060000
Email: ib@hemsecurities.com
Website: www.hemsecurities.com
Megatherm Induction Registrar
BIGSHARE SERVICES PRIVATE LIMITED
S6-2, 6th Floor, Pinnacle Business Park,
Next to Ahura Centre, Mahakali
Caves Road, Andheri East, Mumbai – 400 093
Phone: +91 22 6263 8200
Email: ipo@bigshareonline.com
Website: www.bigshareonline.com
Megatherm Induction Contact Details
MEGATHERM INDUCTION LIMITED
Plot- L1 Block GP, Sector V, Electronics Complex,
Saltlake City Kolkata-700091, West Bengal
Phone: +91 33 4088 6200
E-mail: cs@megatherm.com
Website: www.megatherm.com
Megatherm Induction IPO Allotment Status
Megatherm Induction IPO allotment status is now available on Bigshare Services’ website. Click on this link to get allotment status.
Final thoughts
Megatherm Induction IPO is going to hit Dalal Street soon. applying for an IPO is purely a personal choice. study well about the company and subscribe if you are feeling good about the company. I hope this post will give you enough details to make a fundamental study of the company. learn well and make wise decisions.
Happy Investing
