IPO Details
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Schedule of Amtech Esters IPO
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Allotment of bids
Refund Initiation
Listing on exchange
About Amtech Esters IPO
The IPO of Amtech Esters Ltd comprises a fresh issue and an offer for sale. The fresh issue aggregates up to 8,10,000 equity shares, while the offer for sale is up to 2,70,000 equity shares. It’s a fixed price offer.
Objectives of Amtech Esters IPO
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For setting up of new unit at Asoda for manufacture of resins
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To meet the working capital requirement of the company
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Investment in its wholly owned subsidiary, Croda Pigments (P) Limited for capital expenditure and working capital requirements
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General corporate purposes
Amtech Esters Ltd IPO Valuation
Amtech Esters IPO Share Offer and Subscription Details
Industry Outlook
The market for Indian epoxy resin is experiencing robust growth due to its extensive application across various industries, such as construction, woodworking, and manufacturing. Epoxy resins are highly valued for their strong adhesive properties, chemical and moisture resistance, and moderate temperature tolerance. The market size of India’s epoxy resins was 172 kilotonnes in 2024, and it is expected to reach 251.57-kilo tonnes by 2029 with a 7.90 per cent CAGR.
The future of India's resin industry looks promising, driven by its robust chemical sector and significant contributions to various industrial applications. The industry's growth is expected to be driven by advancements in technology, increased demand in key sectors, such as construction, automotive, and electronics, and supportive government policies promoting domestic production and reducing dependency on imports.
Company Information
Amtech Esters Ltd is engaged in the business of manufacturing unsaturated polyester resins and trading in fiberglass, hardeners & ancillaries and silicon. Resins are viscous, liquid polymers derived from either organic or synthetic sources. Their primary advantage lies in their ability to transform from a liquid state into a customisable solid and homogeneous structure.
The company has its manufacturing unit at 2012 MIE, Bahadurgarh, Jhajjar, Haryana 124507. The manufacturing unit has an installed capacity of production of 2960 MTPA of Resins as on March 31, 2024 and of 740 MT Resins as on June 30, 2024.
Amtech Esters Ltd Strengths
Diversified Product Range Appealing to a Wide Range of Customers
The company has a diverse product portfolio across various categories which includes resins such as polyester, epoxy resin, and polymides, alongside paints, chemical allied products, varnishes, dyes, and glue gums etc. Its subsidiary also has various products like pigment pastes, which broadens the offerings to their customers. The company is also trading in various fiberglass products, silicon products and hardeners and ancillaries required in industrial applications.
Quality Assurance Ensuring Standardised Quality of Its Products
The company holds ISO 9001:2015 certification for its quality management system, providing its customers with assurance of the superior quality and durability of its products. With a proven track record in manufacturing and supplying resins, the company has consistently delivered high-calibre products to its valued clientele.
Committed to maintaining the highest standards, it has implemented stringent internal procedures to ensure meticulous quality control at every stage of production, from the procurement of raw materials to inventory storage.
Focus on Increasing Operational Efficiencies
Offering quality products at attractive prices is a key aspect of maintaining and expanding its relationships with its customers. To achieve the same, it uses a variety of lean manufacturing strategies that contribute to cost reduction, minimise wastage, streamline inventory turnover etc.
Risks of Amtech Esters Ltd
Dependence on a Limited Number of Customers for Revenues
Substantial portion of the revenues has been dependent upon a limited number of customers. Contribution to total revenue from the company’s top 10 customers in manufacturing sector constituted 67.01 %, 63.39 %, 57.90 % and 65.42 % of its total revenue from operations for the period ended June 30, 2024, and for the financial year ended March 31, 2024, March 31, 2023 and March 31, 2022 respectively.
- Reliance on Certain Sectors
The company is primarily engaged in the business of manufacturing unsaturated polyester resins for Industries like the Marine, Automotive, Construction, Packaging, Electronics, etc. Consequently, its revenues are dependent on the end users of the industries that use its products as an input. Factors affecting any of these sectors in general, or any of its customers in particular, could have a cascading adverse effect on its business, financial condition and results of operations.
- Single Manufacturing Facility
The company has a single manufacturing facility and its business is dependent on this facility solely. The company is subject to certain risks in its manufacturing process. Any slowdown or shutdown in its manufacturing operations or strikes, work stoppages or increased wage demands by its employees that could interfere with its operations could have an adverse effect on its business, financial condition and results of operations.
All Financial Information about Amtech Esters
Peer Comparison
The company is engaged in the business of manufacturing of unsaturated polyester resins and trading in Fiberglass, Hardeners & Ancillaries and Silicon. There is no listed company in India which is engaged in the similar business to Amtech Esters Ltd and accordingly these data cannot be ascertained.
Anchor Investor Bidding Date TBA
IPO Registrar and Book Running Lead Manager
- IPO Registrar: Maashitla Securities Pvt Ltd
- Book Running Lead Manager: Sobhagaya Capital Options Pvt Ltd
Business Model
Engaged in the business of manufacturing Unsaturated Polyester Resins and trading in Fiberglass, Hardeners & Ancillaries and Silicon, the company’s product portfolio includes resins such as polyester, epoxy resin along with Industrial input for paints, varnishes, dyes, and glue gums.
Under its trading portfolio, its offers a comprehensive range of fiberglass products, including CSM 225 E, CSM 450 E/P, CSM 300 E/P, fiber cut pieces, surface mat, woven rovings (360/400 and 600), fiberglass cloth, and chopped strands.
Additionally, it provides a wide selection of hardeners and ancillary products such as MEKP catalyst, cobalt (2% and 6%), FRP cobalt, promoter, FRP brushes, wax polish, Croda pigment pastes, latex rubbers, styrene monomer, PVA powder, French chalk powder, marble powder, and polyester film.
Its silicone product offerings include premium silicone rubbers from DOW, silicone hardener, silicone oil, silicone spray, and silicone adhesive tubes.
Company Growth Trajectory
The company’s revenue from operations grew from ₹21.5155 crores in FY 22 to ₹24.6037 crores in FY 24, while its EBITDA margin grew from 3.94% in FY 22 to 17.50% in FY 24. Its PAT margin grew from 2.87% in FY 22 to 11.73% in FY 24. Strong connections with suppliers and focus on increasing operational efficiencies have contributed to the company’s growth over the years.
Market Position
The main markets of Amtech Esters Ltd are in the northern part of the country. Its commitment to quality is validated by its ISO 9001:2015 certification, assuring customers of its adherence to stringent quality control processes throughout manufacturing. It maintains a well-equipped R&D and QC department to ensure product consistency and innovation. In the realm of automotive engineering, their GP resin stands as a cornerstone, offering robustness and resilience to withstand the rigors of the road.
Amtech Esters Ltd Profit and Loss
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Total Income (in ₹ crores) | 27.2395 | 22.3358 | 22.0614 |
Net Profit Before Tax (in ₹ crores) | 3.4259 | 0.7402 | 0.7157 |
Profit After Tax (in ₹ crores) | 2.8751 | 0.5556 | 0.6190 |
EPS in ₹ | 8.92 | 1.98 | 2.21 |
EBITDA | 4.3063 | 0.9920 | 0.8464 |
Amtech Esters Ltd Cash Flow
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Net Profit Before Tax (in ₹ crores) | 3.4259 | 0.7402 | 0.7157 |
Net Cash Flow from Operating Activities (in ₹ crores) | 2.2525 | (2.2957) | 2.7938 |
Net Cash Flow from Investing Activities (in ₹ crores) | (1.6375) | 0.0149 | (3.4426) |
Net Cash Flow from Financing Activities (in ₹ crores) | 3.1095 | 2.2681 | 0.6329 |
Cash & Cash Equivalent at the End of the Year (in ₹ crores) | 3.7726 | 0.0480 | 0.0606 |
How to Check Allotment Status of Amtech Esters Ltd IPO?
1. Visit the Registrar’s Website
- Visit the official website of Maashitla Securities Pvt Ltd
- Click on ‘Public Issues’ under ‘Allotment Status’
- Choose the Company Name from dropdown and enter either your PAN, Application No or Demat Account No
- Click on ‘Submit’ to know the status
2. Check on the Bombay Stock Exchange Website
The Bombay Stock Exchange (BSE) also has an IPO allotment status page. Go to www.bseindia.com and find the 'Investor Services' tab. Under 'Investors Services', click on 'Status of Issue Application'. This will take you to the IPO allotment status page. On the BSE IPO page, follow these steps:
- Choose the Issue Type
- Select the Issue Name from dropdown
- Put in either your application number or PAN number
- Check the box ‘I’m not a robot’
- Click on ‘Search’ to know allotment status
How to Apply for Amtech Esters Ltd IPO?
- Log in to your Kotak Securities Demat account - Log in to your Demat account to access IPO investments. Next, select the current IPO section.
- Specify IPO details - Enter the number of lots and the price you wish to apply for.
- Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.
- Mandate Notification - Your UPI app will receive a mandate notification to block funds.
- Approve Request - Your funds will be blocked once you approve the mandate request on your UPI.
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.
Amtech Esters IPO FAQs
Where can I read more about Amtech Esters business?
You can read more about Amtech Esters and its IPO from the company’s red herring prospectus (RHP) here.
What is the Amtech Esters Ltd IPO?
The IPO of Amtech Esters Ltd consists of up to 10,80,000 equity shares, aggregating up to ₹11.88 crores.
When will the IPO of Amtech Esters Ltd go live?
The exact dates of the IPO are yet to be announced.
From where can I learn more about the IPO of Amtech Esters Ltd?
You can learn more about the IPO of Amtech Esters Ltd from the company’s draft red herring prospectus here.
