Shining Tools Launches Rs 17.1 Crore SME IPO to Boost Manufacturing Capacity
Shining Tools, a solid carbide cutting tool manufacturer, opens its Rs 17.1 crore SME IPO for subscription from November 7-11, 2023. The fixed price issue of 15 lakh equity shares is priced at Rs 114 per share, with a minimum application of 2,400 shares. The company plans to use the proceeds for expanding manufacturing capacity and meeting working capital needs. Shining Tools, which operates under the 'Tixna' brand, serves industries like automotive, aerospace, defense, and medical. The company reported strong financial growth with a 39% increase in revenue to Rs 14.77 crore and an 86% rise in net profit to Rs 2.93 crore. The IPO will be listed on the BSE SME platform on November 14, 2023, with the current grey market premium at zero.
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Shining Tools, a manufacturer of solid carbide cutting tools, has opened its Rs 17.1 crore Small and Medium Enterprise (SME) Initial Public Offering (IPO) for subscription. The company aims to expand its manufacturing capacity and meet working capital requirements through this public issue.
IPO Details
| Particulars | Details |
|---|---|
| Subscription Period | November 7-11, 2023 |
| Listing Date | November 14, 2023 |
| Listing Platform | BSE SME |
| Issue Type | Fixed Price Issue |
| Issue Size | 15 lakh equity shares |
| Issue Price | Rs 114.00 per share |
| Minimum Application | 2,400 shares (Rs 2.74 lakh) |
| Grey Market Premium | Zero |
Company Overview
Shining Tools manufactures solid carbide cutting tools under the 'Tixna' brand. The company's products cater to various industries, including:
- Automotive
- Aerospace
- Defense
- Medical
The manufacturing facility is located in Rajkot, Gujarat.
Financial Performance
The company has shown strong financial growth:
| Metric | Value | Growth |
|---|---|---|
| Revenue | Rs 14.77 crore | 39.00% |
| Net Profit | Rs 2.93 crore | 86.00% |
| EBITDA Margin | 47.00% | - |
| PAT Margin | 27.00% | - |
IPO Proceeds Allocation
The funds raised from the IPO will be utilized as follows:
| Purpose | Amount (in Rs crore) |
|---|---|
| New Machinery | 9.07 |
| Working Capital | 3.85 |
| General Corporate Purposes | 2.48 |
Market Expectations
The current grey market premium stands at zero, indicating muted listing expectations for Shining Tools' shares.
Investors should carefully consider the company's financials, growth prospects, and the overall market conditions before making an investment decision. It is advisable to read the offer document and consult with a financial advisor before investing in an IPO.
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