Inspros Engineers IPO

About Inspros Engineers IPO

Inspros Engineers Limited IPO is an IPO of up to 64,00,000 equity shares. It consists of a fresh issue of up to 64,00,000 equity shares. The shares will be allotted on TBA. The credit of shares to the demat account will take place on TBA, and the initiation of refunds will take place on TBA.

Objective of Inspros Engineers IPO

• Funding capital expenditure requirements for the purchase of machinery, equipment, and civil work in their existing manufacturing facilities.
• Funding working capital requirements of the company.
• General corporate purposes.

Industry Outlook

India’s engineering exports continued their winning streak in the month of July by reaching USD 903 crore and recording a growth of 3.7%. In cumulative terms too, engineering exports grew by 4.2%. This result has been in contrast to the trend in overall merchandise exports, which in July declined by more than 1% in y-o-y terms. The performance was made possible by the exporting community despite facing a number of global challenges. The situation in overall engineering exports is expected to improve in the future, as global forecasts for GDP growth remain at around 3% for 2024, with the short-term trade outlook being cautiously optimistic. If positive trends persist, global trade in 2024 could reach almost USD 3,200,000 crores, as per the recent UNCTAD update.

The recently announced Union Budget 2024–25 is expected to facilitate MSMEs and export finance significantly. The Budget has also promised rationalised BCDs for key inputs, which would give a further boost to engineering exports.

Company Information

Inspros Engineers Limited is an electrical engineering company engaged in the manufacture of equipment, components, and subassemblies used in traction control gear, busbars for electrical cabinets for electric locomotives and metro trainsets, solenoids for circuit breakers and switchgears, non-condenser bushings for HV capacitors, and disconnecting actuators for EVs. These parts are primarily used in railway, industrial machinery, electrical measurement and control equipment, electrical power equipment, and electric vehicles.

Risks of Inspros Engineers IPO

• Their raw material cost constitutes a significant percentage of their total expenses. Any increase in the prices, availability, and quality of raw materials could adversely affect their reputation, business, results from operations, financial condition, and cash flows. They rely on a few qualified suppliers for their primary raw material; loss of these suppliers may have an adverse effect on their business, results of operations, and financial condition.

• Their business is exposed to foreign exchange rate-related fluctuations.

• They engage contract workers for carrying out certain functions of their business operations. In the event of non-availability of such contract workers at reasonable cost, any adverse regulatory orders, or any default on payments to them by the agencies, could lead to disruption of their manufacturing facilities and business operations.

IPO Registrar and Book Running Lead Managers

Book running lead managers: Unistone Capital Private Limited

Registrar for the IPO : MUFG Intime India Private Limited

Business Model

The company earns its revenue through the manufacturing of equipment, components, and subassemblies used in traction control gear, busbars for electrical cabinets for electric locomotives and metro trainsets, solenoids for circuit breakers and switchgears, non-condenser bushings for HV capacitors, and disconnecting actuators for EVs.

Company Growth Trajectory

They have demonstrated a strong financial performance in recent years, characterised by significant growth in their Total Revenue, EBITDA, and Profit After Tax (PAT). Their total revenue has increased from ₹43.85 crores to ₹61.32 crores from FY 2022 to FY 2024, giving a CAGR growth of 18.25%. Their EBITDA has increased from ₹9.14 crores to ₹16.65 crores from FY 2022 to FY 2024, giving a CAGR growth of 34.91%. Their PAT has increased from ₹5.40 crores to ₹10.49 crores from FY 2022 to FY 2024, giving a CAGR growth of 39.35%. Further, they have also experienced an increase in net margins in FY 2024 (i.e., 17.10%) as compared to FY 2022 (i.e., 12.32%), indicating improved operational efficiency and cost management.

Company Market Position

Incorporated in 1983, the company was established with the goal of reducing India's dependence on imported electrical equipment. Over the years, they have successfully catered to both domestic and international markets. They embarked on their journey to export their products in 2001 and have since expanded their global reach to over 22 countries, including Argentina, Australia, Brazil, Bulgaria, Canada, Croatia, Czech Republic, Egypt, Finland, France, Germany, Italy, Kazakhstan, Kuwait, Malaysia, Mexico, Slovenia, Spain, Sri Lanka, Turkey, the United Arab Emirates, and the United States of America. Their customers are industry leaders in their respective segments, both in India and globally.

How To Check Allotment Status of Inspros Engineers IPO?

You can check the allotment status of shares either on the website of the National Stock Exchange (NSE) or on the website of the registrar MUFG Intime India Private Limited. To check the status on the NSE website:

• Visit the NSE website
• Click on “Investor Services” and choose “Application Status Check”
• Choose the issue type — Equity or Debt (Equity in this case)
• Select the Issue Name from the drop-down. The issue name is the company’s name, which is Inspros Engineers Limited
• Enter your application number or PAN number
• Check the box which says “I’m not a Robot” and click on “Search” to know the allotment status

Follow these steps to know the allotment status on the registrar’s website:

• Visit the MUFG Intime India Private Limited website
• Choose “Public Issues” from the “Investor Services” drop-down
• Select Inspros Engineers Limited from the drop-down
• Enter your PAN number or Application number
• Click on “Submit” to know the allotment status

How To Apply for Inspros Engineers IPO?

• Step 1: Log in to your Kotak Securities Demat account: Log in to your Demat account to access IPO investments. Next, select the current IPO section.
• Step 2: Specify IPO details: Enter the number of lots and the price you wish to apply for.
• Step 3: Enter UPI ID After entering your UPI ID, click submit. This will place your bid with the exchange.
• Step 4: Mandate Notification: Your UPI app will receive a mandate notification to block funds.
• Step 5: Approve Request Your funds will be blocked once you approve the mandate request on your UPI.