Metalman Auto Ltd IPO

About Metalman Auto Limited IPO

Metalman Auto Limited IPO is an IPO of TBA. It consists of an offer for sale of up to 12,636,162 equity shares and a fresh issue of ₹350 crores. 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 Metalman Auto Limited IPO

• Part-financing the capital expenditure towards procurement of plant and machinery at Pithampur Manufacturing Unit 2.
• Repayment/prepayment of certain indebtedness availed by the company and Metalman Micro Turners.
• General corporate purposes.

Industry Outlook

The automobile industry has been growing, in terms of demand of automobiles and their components, owing to many factors like electrification in India and globally, government policies and initiatives, infrastructural development, FDIs, etc.

CRISIL MI&A projects auto component revenue is expected to increase by 8-10% in fiscal, 2025. This can be attributed to an increase in OEM demand, driven by the recovery in commercial vehicles (CV) and passenger vehicle demand. On the export front, Auto component exports (accounting for 21% of the overall demand in fiscal 2024) are projected to witness growth going ahead post higher double-digit growth post fiscal 2024.

Company Information

Metalman Auto Liited is a one-stop-shop for sheet metal, tubular fabrication, metal finishing and assembly of components for original equipment manufacturers (OEMs) in the automotive and non-automotive sectors. Incorporated in 1986, they are one of the first metal fabrication, metal finishing and assembly companies in India along with the 253 manufacturing processes.

The company has nine manufacturing units (seven operated by them and two operated through Metalman Micro Turners) across five states in India, which are strategically located in close proximity to their OEM customers. Further, they also intend to expand their manufacturing capabilities by increasing their manufacturing capacity at Pithampur Manufacturing Unit 2 by purchase of plant and machinery.

Risks of Metalman Auto Limited IPO

• The company’s business and profitability are substantially dependent on the availability and cost of key raw materials including steel and any disruption to the timely and adequate supply of raw materials, or volatility in the prices of raw materials or their inability to fully pass on costs of their raw materials to their customer, may adversely impact their business, results of operations and financial condition.

• They have significant power, fuel and water requirements and any disruption to the supply of power, fuel or water could disrupt their manufacturing operations and increase their production costs, which could adversely affect their results of operations.

• A slowdown in economic growth in other countries and jurisdictions, such as Europe, China and the United States, could cause the business to suffer.

Anchor Investor Information

The Anchor Investor Bidding Date shall be one Working Day prior to the Bid/Offer Opening Date.

IPO Registrar and Book Running Lead Managers

Book running lead managers:
Axis Capital Limited ICICI Securities Limited Motilal Oswal Investment Advisors Limited

Registrar for the IPO is Link Intime India Private Limited

Business Model

The company earns its revenue through the following sources:

• Manufacturing metal components for: (i) two-wheeler (“2Ws”) (including electric vehicles (“EVs”) and internal combustion engine (“ICE”)) (ii) three wheelers (“3Ws”) (iii) passenger vehicles (“PVs”) (iv) commercial vehicles (“CVs”) (v) agri-vehicles (“AVs”) (vi) off-highway vehicles (“OHVs”)
• Fabrication and manufacturing of aesthetic-focused components for white body goods (such as front and rear panels and rear covers of washing machines)
• Contract manufacturing for 2W EV OEMs.

Company Growth Trajectory

Metalman Auto Limited Company experienced a growth of 43.53% in terms of revenue from operations during the Financial Year 2024 from the Financial Year 2023 and their revenue from operations has grown at a CAGR of 20.94% from ₹10,307.58 million in Fiscal 2022 to ₹15,075.97 million in Fiscal 2024.

Company Market Position

Metalman Auto Limited Company supplied their products to each of the top 4 2W OEMs and to the largest 3W OEM, Bajaj, in Financial Year 2024. With their powertrain agnostic offerings, they serve both 2W EVs and 2W ICE OEM customers. In the Financial Year 2024, one out of every four high-speed EV scooters sold in India, one out of every five 2W motorcycles exported from the country and one out of every 10 2W sold in India was fitted with frames/chassis manufactured by Metalman Auto Limited Company which establishes their position as a prominent supplier in the 2W segment.

How To Check Allotment Status of Metalman Auto Limited IPO?

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

● Visit the BSE 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 Metalman Auto 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 Link Intime India Private Limited ● Choose “Public Issues” from the “Investor Services” drop-down ● Select Metalman Auto Limited from the drop-down ● Enter your PAN number or Application number ● Click on “Submit” to know the allotment status