IPO Details
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IPO Size
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Schedule of Shining Tools IPO
Start date
End date
Allotment of bids
Refund Initiation
Listing on exchange
About Shining Tools IPO
The IPO of Shining Tools Ltd comprises a fresh issue of up to 15,00,000 equity shares. It has no offer for sale. The IPO is a fixed price issue. The IPO opens on TBA and closes on TBA. The shares will be credited to the demat account on TBA. The basis of allotment will take place on TBA and initiation of refunds will take place on TBA.
Objectives of Shining Tools IPO
- Purchase and installation of plant and machinery for carbide precision tools at existing premises
- Purchase of software for automation
- Funding of working capital requirements
- General corporate purposes
Shining Tools IPO Valuation
Shining Tools IPO Share Offer and Subscription Details
| Investor Category | Shares Offered |
|---|---|
Market Maker | 5% of the issue size |
Non-institutional Investors | 47.48% of the net issue |
Retail Individual Investors | 47.48% of the net Issue |
Industry Outlook
The Indian cutting tools market produces a wide range of tools such as saw blades, taps, reamers, hobs, chasers, broaches, rolling dies, drills, end mills, cutters, burrs, other gear cutting tools, tool bits, tips/inserts and many more. The market has witnessed extensive growth in the last two decades. The demand was driven by industries like construction, automotive, railway network, engineering, and defense.
The India machine tools market size reached US$ 1.5 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 3.2 Billion by 2032, exhibiting a growth rate (CAGR) of 8.2% during 2024-2032.
Company Information
Shining Tools Ltd is engaged in the designing and manufacturing of high-performance solid carbide cutting tools catering to various industries in India. Additionally, it provides reconditioning services for used tools, ensuring their extended usability and performance.
The company specialises in producing a wide range of high-performance cutting tools, including end mills, thread mills, drills, and reamers, offering innovative tooling solutions. These tools are widely used in commercial metal cutting operations across multiple industries.
Shining Tools IPO Strengths
Efficiency through Machine-Based Manufacturing Tools
Efficiency is at the core of its operations, driven by its advanced machine-based manufacturing tools. By leveraging cutting-edge technology, the company optimises production processes, ensuring precision and consistency in every tool it manufactures. The company’s machine-oriented approach reduces human error and enhances productivity, enabling it to meet growing market demands swiftly and cost-effectively.
Tailored Solutions to Customers by Offering Customised Tools
The company specialises in offering customised tools to provide tailored solutions. Its ability to design and manufacture tools specific to individual needs ensures that its clients receive products that perfectly match their operational demands. Whether it's specialised dimensions, materials, or functionalities, its customisation capabilities enable it to serve a wide range of industries with precision.
Wide and Diverse Range of Product Offerings
The company prides itself on its wide and diverse range of product offerings designed to meet the varying needs of its customers across multiple industries. From precision cutting tools to heavy-duty machinery accessories, its extensive portfolio ensures that clients can find the right tools for any application.
Risks of Shining Tools IPO
- Geographical Concentration
The company’s registered office and factory and all the existing contract manufacturers' facilities are based in Gujarat. Thereby resulting in concentration in a single region, posing a concentration risk.
The occurrence of any significant localised social unrest, natural disaster, delay in production at, or shutdown of, or any interruption, including political instability, workforce productivity issues, regulatory compliance challenges, production cost difficulties, or quality assurance concerns, along with unforeseeable events such as natural disasters or pandemics like COVID-19 in or around Gujarat, or any delay or disruption in production at its manufacturing units could significantly impact its business and financial condition.
- Single Manufacturing Facility
The company has only one manufacturing facility, continued operations of its manufacturing facility is critical to the business and any disruption in the operation of its manufacturing facility may have a material adverse effect on its business, results of operations and financial condition.
- Reliance on a Limited Number of Customers
For the period ended March 31, 2022, March 31, 2023, March 31, 2024 and July 31, 2024, the company’s revenue from operations from its top 10 customers contributed to 45.50%, 50.09%, 56.45% and 62% respectively of its revenues from operations as per its restated financial statements. Its reliance on a limited number of customers for its business exposes it to risks.
All Financial Information about Shining Tools IPO
Comparison with peers
| Company Name | Total Income (in ₹ crores) | EPS in ₹ | Return on Net Worth | NAV per Share (in ₹) |
|---|---|---|---|---|
Shining Tools Ltd | 10.6042 | 3.90 | 44.04 | 17.72 |
Birla Precision Technologies Ltd | 227.7826 | 1.62 | 6.96 | 23.20 |
Anchor Investor Bidding Date TBA
IPO Registrar and Book Running Lead Manager
- IPO Registrar: Accurate Securities and Registry Pvt Ltd
- Book Running Lead Manager: Sobhagya Capital Options Pvt Ltd
Business Model
Engaged in the designing and manufacturing of high-performance solid carbide cutting tools, Shining Tools Ltd specialises in producing a wide range of high-performance cutting tools, including end mills, thread mills, drills, and reamers. The product offerings of the company include:
- End mills
- Drill series
- Milling cutters
- Spherical ball tool
- Irrigation carbide tool
- Profile carbide tools
Company Growth Trajectory
The company’s revenue from operations grew from ₹10.0705 crores in FY 22 to ₹10.5295 crores in FY 24. Its EBITDA margin grew from 18.38% in FY 22 to 39.40% in FY 24, while PAT margin grew from (1.93%) in FY 22 to 14.96% in FY 24. Strategic location, quality assurance and good relationships with clients, raw material suppliers and other vendors have played a vital role in the company’s growth over the years.
Market Position
Shining Tools Ltd is an ISO 9001:2015 accredited in Quality Management System for manufacturing solid carbide based cutting tools. ISO accreditation is a testament to its quality offerings. Its manufacturing facility at Rajkot is well-equipped technologically to meet the quality requirements of its clients. Its manufacturing facility is spread over 5,400 sqft and operates in two shifts with dedicated workers on each machine supported by supervisors.
Shining Tools IPO Profit and Loss
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Total Income (in ₹crores) | 10.6042 | 10.4572 | 10.0996 |
Profit Before Tax (in ₹crores) | 2.1152 | (0.1057) | (0.2486) |
Profit After Tax (in ₹crores) | 1.5753 | (0.0792) | (0.1952) |
EPS in ₹ | 3.94 | (0.20) | (0.49) |
Shining Tools IPO Cash Flow Statement
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Profit Before Tax (in ₹ crores) | 2.1152 | (0.1057) | (0.2486) |
Net Cash Flow from/ (used in) Operating Activities (in ₹ crores) | 4.3501 | 2.2992 | 2.2973 |
Net Cash Flow from/ (used in) Investing Activities (in ₹ crores) | (1.3829) | (0.0724) | 0.3975 |
Net Cash Flow from/ (used in) Financing Activities (in ₹ crores) | (2.8278) | (2.1433) | (1.8926) |
Cash & Cash Equivalents as At End of the Year (in ₹ crores) | 0.3431 | 0.2037 | 0.1202 |
How to Check Allotment Status of Shining Tools Ltd?
1. Visit the Registrar’s Website
- Visit the official website of Accurate Securities and Registry Pvt Ltd and click on the IPO Allotment link
- Input the name of the company
- Input either your PAN number, Application No or DP/Client ID
- Click on ‘Submit Now’ 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 Shining Tools 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.
Shining Tools IPO FAQs
Where can I read more about Shining Tools business?
You can read more about Shining Tools and its IPO from the company’s red herring prospectus (RHP) here.
What is the Shining Tools Ltd IPO?
The Shining Tools Ltd IPO comprises a fresh issue of up to 15,00,000 equity shares. It has no offer for sale.
When will the IPO of Shining Tools Ltd go live?
The exact dates of the IPO are yet to be announced.
From where can I read more about the IPO of Shining Tools Ltd?
You can read more about the IPO of Shining Tools Ltd from the company’s draft red herring prospectus here.
