Megatherm Induction IPO

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 nameMegatherm Induction Limited
SectorCapital Goods
IndustryEngineering – Industrial Equipments
Company Website

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 date29 January 2024
IPO Closing31 January 2024
Basis of Allotment01 February 2024
Initiation Refund02 February 2024
Credit to Demat Account02 February 2024
Listing Date05 February 2024
(Cut-off time for UPI mandate confirmation – 5 PM on January 31, 2024)

Megatherm Induction IPO details

Issue typeBook Built Issue IPO
IPO issue size₹53.91 Cr – 4,992,000 shares
Fresh Issue₹53.91 Cr – 4,992,000 shares
Offer for saleNil
Face value₹10 per share
Price Band ₹100 to ₹108 per share
Lot size1200 Shares
Market Maker portion250,800 shares
Shareholding pre-issue13,848,729
Shareholding post-issue18,840,729
Listing ExchangeNSE SME

Megatherm Induction IPO Lot Size

Retail (Min)11200₹129,600
Retail (Max)11200₹129,600
HNI (Min)22,400₹259,200

Megatherm Induction IPO Reservation Details

Investor CategoryShares Offered
Anchor Investor Shares Offered1,422,000 (28.49%)
Market Maker Shares Offered250,800 (5.02%)
QIB Shares Offered948,000 (18.99%)
NII (HNI) Shares Offered711,600 (14.25%)
Retail Shares Offered1,659,600 (33.25%)
Total Shares Offered4,992,000 (100%)

Megatherm Induction Financial Performance

 FY 2021FY 2022FY 2023H1 FY 2024
Net income3.091.1014.007.59
(Amount in ₹ Crores)

Megatherm Induction Valuations & Margins

FY 2021FY 2022FY 2023
PE ratio9.89 – 10.68
RONW (%)8.803.0127.66
ROCE (%)14.448.4627.47
EBITDA (%)12.084.2210.36

Company Promoters

  • Shesadri Bhusan Chanda
  • Satadri Chanda and Megatherm Electronics Private Limited

Promoter Holding

Pre Issue Share Holding98.92%
Post Issue Share Holding72.71%

Megatherm Induction IPO Lead Manager(s)

904, A Wing, Naman Midtown, Senapati Bapat Marg,
Elphinstone Road, Lower Parel, Mumbai-400013, India
Phone: +91- 022- 49060000

Megatherm Induction Registrar

S6-2, 6th Floor, Pinnacle Business Park,
Next to Ahura Centre, Mahakali
Caves Road, Andheri East, Mumbai – 400 093
Phone: +91 22 6263 8200

Megatherm Induction Contact Details

Plot- L1 Block GP, Sector V, Electronics Complex,
Saltlake City Kolkata-700091, West Bengal
Phone: +91 33 4088 6200

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

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