IPO Details
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IPO Size
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Schedule of FFS Defence Engineering IPO
Start date
End date
Allotment of bids
Refund Initiation
Listing on exchange
About FFS Defence Engineering Ltd IPO
The IPO of FFS Defence Engineering Ltd comprises of a fresh issue of 35,74,400 equity shares at the issue price of ₹80 each, aggregating ₹28.5952 crores. It’s a fixed price issue.
Objectives of FFS Defence Engineering Ltd IPO
- Prepayment / repayment of loans
- Augmenting funds for capital expenditure requirements
- Augmenting additional working capital requirements
- General corporate purposes
- Issue-related expenses
FFS Defence Engineering Ltd IPO Valuation
| Detail | Information |
|---|---|
Upper Price Band | TBA |
Fresh Issue | 35,74,400 equity shares at the issue price of ₹80 each |
Offer for Sale | NA |
EPS in ₹ for FY 24 | 7.52 |
FFS Defence Engineering Ltd IPO Share Offer and Subscription Details
| Investor Category | Shares Offered (Maximum Application) |
|---|---|
QIBs | 33,95,200 equity shares |
Non-institutional Investors (NIIs) | 33,95,200 equity shares |
Retail Individual Investors | 1,600 equity shares |
Industry Outlook
According to the Global Power Index, the Indian defence sector ranks fourth in terms of firepower with a score of 0.0979 (with 0.0 being the perfect score). The Indian government has set the defence production target at US$ 25 billion by 2025 (including US$ 5 billion from exports by 2025).
India targets to export military hardware worth US$ 5 billion in the next five years. Defence exports rose 240% over five years in FY23 and India now exports to over 85 countries due to collaborative efforts.
Company Information
FFS Defence Engineering Ltd is engaged in the business of manufacturing the ultra large size tubes required by the defence and space industry. It has an ISO 9001:2015 certification for its manufacturing facilities engaged in the making of flow form tubes, titanium structures, mechanical systems and opto-mechanical products.
The company’s production line uses advanced technology to ensure the lenses meet high standards of quality and accuracy. Each product is built to meet strict performance standards, ensuring they work perfectly in demanding situations.
FFS Defence Engineering Ltd Strengths
Precision Measurement and Manufacturing Equipment
The company’s facility is equipped with some of the most advanced measurement and manufacturing tools available, ensuring that it meets the highest standards of precision and quality. It uses Coordinate Measuring Machines (CMM) to accurately measure and inspect every part, ensuring tight tolerances and perfect alignment.
Its Zygo surface profiler provides non-contact surface measurement, allowing it to achieve superior surface finishes, which is crucial for both mechanical and optical components. For polishing and coating, it has specialised machines like TYP 80 and TYP 130, along with advanced coating systems for applying ARC and DLC coatings
Commitment to Quality and Compliance
The company is deeply committed to maintaining the highest standards of quality across all its products and processes. It’s ISO 9001:2015 certified, ensuring that its quality management system meets international standards for manufacturing excellence. This certification reflects its dedication to continuous improvement, customer satisfaction, and compliance with regulatory requirements. Whether manufacturing flow-form tubes, titanium structures, or optical components, the company follows strict quality control procedures at every stage of production.
Material Efficiency
One of the key advantages of the company’s flow-forming process is its exceptional material efficiency. Unlike traditional methods such as machining, which often result in significant material waste, flow forming stretches and shapes the metal without removing much material.
This allows it to maximise the use of raw materials, reducing waste and making the process more cost-effective. By conserving material, the company not only lowers production costs but also reduces the environmental impact of its manufacturing processes.
Risks of FFS Defence Engineering Ltd IPO
- Non-Compliance Due to Failure to Obtain or Renew Regulatory Approvals
The company’s business requires it to obtain and renew certain registrations, licenses and permits from government and regulatory authorities and the failure to obtain and renew them in a timely manner may adversely affect its business operations.
- Geographical Concentration
Currently, the company’s registered office and manufacturing plant are situated in Nagpur and it’s carrying its business mainly from its Nagpur office. Hence its major revenues are generated from operations in Maharashtra region only. In the event that demand for its services in general reduces or stops by any reason including political discord or instability or change in policies of State, its financial condition and operating results may be materially and adversely affected.
- Supply Chain Disruptions
The aerospace and defence industries depend on specialised raw materials, including high-grade metals such as maraging steel, titanium, and advanced alloys. These materials are often sourced from specific suppliers that face challenges like geopolitical tensions, trade restrictions, or local resource shortages.
If any of the company’s supplier’s face disruptions, whether from a natural disaster, labour strikes, or supply shortages it can create a significant delay in its production schedules.
All Financial Information about FFS Defence Engineering
Comparison with peers
| Company Name | Total Income (in ₹ crores) | Return on Net Worth (in %) | EPS in ₹ | NAV Per Equity Share (in ₹) |
|---|---|---|---|---|
FFS Defence Engineering Ltd | 23.9344 | 10.63 | 7.52 | 57.54 |
Bharat Dynamics Ltd | 2731.1044 | 16.85 | 16.72 | 198.43 |
Bharat Electronics Ltd | 20938.3800 | 24.38 | 5.45 | 223.60 |
NIBE Ltd | 285.4213 | 9.90 | 14.97 | 142.49 |
Anchor Investor Bidding Date TBA
IPO Registrar and Book Running Lead Manager
- IPO Registrar: Link Intime India Pvt Ltd
- Book Running Lead Manager: Inventure Merchant Banker Services Pvt Ltd
Business Model
FFS Defence Engineering Ltd specialises in manufacturing motor tubes for rockets and related components. In addition to making rocket motor tubes, the company also has a special production line for high-performance optical components. This includes making metal mirrors, infrared (IR) lenses and silicon carbide mirrors. The company also produces lenses for gyro boxes, which are used in navigation systems, along with lenses coated with advanced materials like Anti-Reflective Coating (ARC) and Diamond-Like Carbon (DLC) coatings.
Company Growth Trajectory
The revenue from operations of FFS Defence Engineering Ltd grew from ₹0.1907 crores in FY 22 to ₹23.5788 crores in FY 24. Its EBITDA margin grew from 18.74% in FY 22 to 29.96% in FY 24. Along with material efficiency and commitment to quality and compliance, serving clients from multiple industries, including aerospace, defence, space exploration, automotive and energy has contributed to the company’s growth over the years.
Market Position
An ISO 9001:2015 certified company, FFS Defence Engineering Ltd consistently delivers products that support the success of complex space and defence missions. The company serves a wide range of industries, including aerospace, defence, space exploration, automotive, and energy.
Its client base is varied and includes private companies as well as government organisations. Its expertise allows it to create high-performance parts for rocket motors, satellite systems, and advanced optical components.
FFS Defence Engineering Ltd Profit and Loss
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Total Income (in ₹ crores) | 23.9344 | 8.7969 | 0.1923 |
Profit/(Loss) Before Tax (in ₹ crores) | 3.3060 | (2.1653) | 0.0360 |
Profit After Tax (in ₹ crores) | 3.0584 | -3.3081 | 0.0267 |
EPS in ₹ | 7.52 | -16.54 | 0.13 |
EBITDA | 7.1716 | (0.1453) | 0.0360 |
FFS Defence Engineering Ltd Cash Flow Statement
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Profit/(Loss) Before Tax (in ₹ crores) | 3.3060 | (2.1653) | 0.0360 |
Net Cash Flow from Operating Activities (in ₹ crores) | 4.4056 | (1.5183) | (19.9953) |
Net Cash Flow from Investing Activities (in ₹ crores) | 0.1364 | (0.1050) | (0.0525) |
Net Cash Flow from Financing Activities (in ₹ crores) | (3.0457) | 1.8308 | 17.8305 |
Cash and Cash Equivalents at the End of the Year (in ₹ crores) | 1.7257 | 0.2294 | 0.0218 |
How to Check Allotment Status of FFS Defence Engineering Ltd?
1. Visit the Registrar’s Website
- Visit the website of Link Intime India Pvt Ltd
- Choose ‘Rights Issues’ from ‘Investor Services’
- Click ‘Check Allotment Status’
- Input the company name and enter either your Demat account number or CAF serial number
- Click on ‘Submit’ to know the allotment 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 FFS Defence Engineering 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.
FFS Defence Engineering IPO FAQs
What is the FFS Defence Engineering Ltd IPO?
The issue size of FFS Defence Engineering Ltd IPO is ₹28.5952 crores. It consists of a fresh issue of 35,74,400 equity shares.
When will the IPO of FFS Defence Engineering Ltd go live?
The exact dates of the IPO are yet to be announced.
From where can I read more about FFS Defence Engineering Ltd and its IPO?
You can read more about FFS Defence Engineering Ltd and its IPO from the company’s draft red herring prospectus here.
