Shri Balaji Valve Components IPO - Key Details You Need to Know
About the Company
Shri Balaji Valve Components is one of India’s leading manufacturers and suppliers of valve components. An ISO 9001:2015 certified company, it manufactures and supplies various valve components used in manufacturing butterfly valves, ball valves, and forging products.
The company’s manufacturing system holds certification for establishing and applying quality management systems in accordance with directives 2014/68/EU by PED. Additionally, the products produced through closed die forging have obtained certification, confirming their compliance with the specified requirements outlined by NORSOK.
IPO Details
The issue size of the company's IPO is Rs 21.60 crore, and the total shares offered is 2,160,000. Some of the other key details of the IPO are as follows:
| IPO Subscription Opens On | 27 December 2023 |
|---|---|
IPO Subscription Ends On | 29 December 2023 |
Lot Size | 1200 |
Issue Price | Rs 95 - 100 |
Face Value | Rs 10 |
With the proceeds received, the company plans to:
- Fund its capital expenditure towards the installation of additional plant and machinery
- Meet working capital requirements
- Fulfill general corporate purposes
Financial Snapshot
The company's revenue increased by 61.14% between FY 22 and FY 22. Its profit after tax during the same period rose by 319.07%. Given below are some key financial details for the company for FY 23.
| Total Revenue | Rs 6294.10 lakhs |
|---|---|
Total Expenses | Rs 5432.06 lakhs |
Return on Net Worth | 81.50% |
Total Assets | Rs 5023.02 lakhs |
Profit After Tax | Rs 643.15 lakhs |
Earnings Per Share | 10.72 |
Company Strengths and Risks
Strengths
Given below are the key strengths of the company:
- Integrated manufacturing capabilities
- Product diversification
- Long-standing relationships with customers and suppliers
- Quality assurance and standards
- Experienced management team
Risks
The associated risks are as follows:
- History of net losses in one of the year out of the last three financial years
- Majority of revenues contributed by top five customers
- Dependent on a few suppliers for the purchase of a major portion of raw materials
- Involvement of the company's directors and promoters in certain legal proceedings
How to Apply for the IPO?
Applying for this IPO is pretty easy. Kotak Securities makes the entire process seamless and hassle-free for you. All you need to do is:
- Login to your Demat account you have with Kotak Securities
- Visit the current IPO section
- Feed in the IPO details, specify the number of lots, and put your application price
- Enter your UPI ID and click on submit to place your bid
- You will get a notification on your UPI ID to block funds
- Once you approve the same, your funds get blocked
Summing it Up
The global industrial valve market is projected to reach USD 85.7 billion by 2025 from USD 48.1 billion in 2020, growing at a CAGR of 12.3%. An increase in demand from the energy and power sector is likely to drive the industrial valves market.
With India becoming one of the fastest-growing economies with growth focused on the development of smart cities, the need for connected networks and the establishment of new nuclear power plants will catalyze the industrial valves market. This positions Shri Balaji Valves Components to make gains in the coming days. However, as an investor, it’s crucial for you to know the associated risks with IPO investment and ensure you have a good grasp of the company’s valuation before subscribing.
