Craftsman Automation IPO Review

Many companies are going to launch their IPOs this year. Among which Craftsman Automation IPO is next on the list. In this article, we will provide you Craftsman Automation IPO review. 

So let’s get ready !!

Before digging deep into the IPO details, let’s first learn about the company. 

Craftsman Automation Limited is one of the prominent engineering organizations established in 1986 and is involved in manufacturing precision components. 

They develop and manufacture a range of engineering products including crane kits, marine engines, industrial gears, and locomotive equipment. 

Their business operates in three main segments, namely Automotive Power Train and Others, Automotive Aluminium Products, and industrial & Engineering division. 

Craftsman Automation spreads across 7 countries of India with a vast customer base which includes Tata Motors, Tata Cumins, Mahindra, Escorts, Tafe Motors, and Tractors. 

Now with an objective to pay its debts and grow its business, it is going to launch its IPO worth ₹ 823.70 Cr on 15 March 2021.

Let’s know about some more details of this upcoming IPO.

Craftsman Automation IPO Review 2021 

Let us take a look at the below table for the Craftsman Automation IPO review. 

 

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Craftsman Automation IPO Date

Before applying for a Craftsman Automation IPO, you should first take a look at the dates. 

This IPO is going to launch on 15 March 2021 and will remain open for subscription for the next three days i.e till 17 March 2021.

Other than this, other important dates of the IPO are:

 

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Craftsman Automation IPO Price

Next in the Craftsman Automation review, we will cover the Craftsman Automation IPO Price. Basically, IPO Price includes two main prices; the Issue price, and Listing price. 

IPO issue price is a price at which any company offers its shares to the investors for the first time in the share market whereas, the listing price is a price at which shares get listed in the stock exchange. 

The Craftsman Automation IPO Price is 5,528,187 Equity shares aggregating up to ₹ 823.70 Cr out of which the Fresh Issue size is approximately 1,006,737 Equity shares aggregating up to ₹ 150  Cr.

And, Offer for sale is 45,21,450 Equity shares aggregating up to ₹673.70 Cr.

Besides, Craftsman Automation has set the price band for its IPO at ₹1,488-₹1490 per equity share. 

So here you would be able to make a minimum investment up to ₹14,880 and a maximum investment of up to ₹1,93,440.

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Craftsman Automation IPO GMP

Next in the Craftsman Automation IPO Review, is Craftsman Automation GMP, GMP is a premium amount at which IPO shares are bought and sold in the Grey Market. These shares are not listed on the stock exchange. 

Craftsman Automation IPO GMP is (₹30). 

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Craftsman Automation IPO Promoters 

Their current promoters are IFC and Marina holding 14.06% and 15.50% stake respectively in this company. Besides, Srinivasan Ravi owns 52.83% stake and K Gomatheswaran has 7.04% shareholding.

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How To Apply For Craftsman Automation IPO?

To apply for any IPOs, you will first need to select a registered stockbroker and open a Demat account with them. 

For this, you will need some documents listed below;

• PAN Card
• Adhar Card
• Bank Account Number 

Once the documents get verified and the account is opened. The broker will provide you an online platform where you can apply online for any IPO using UPI and ASBA effortlessly. 

For this, you will have to  go through the following steps:

• Download the app. 
• Scroll down on the stocks tab. 
• Click on the IPO section. 
• Choose any active IPO name and select the bid quantity.
• Select any of the payment methods; Net banking or UPI method.

Once you complete the process on the UPI app, your application form gets submitted and the amount will get blocked in your Demat account. 

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Craftsman Automation Company Details

So, this is all about Craftsman Automation IPO Review. Now whether you should invest in it or not?

Confused?

Do not worry! 

Here we have mentioned some details about the company fundamentals, strengths, and also the risks associated with this IPO that helps you in planning your investment accordingly.

So let’s have a quick glance at it.

Craftsman Automation is the largest company involved in the machining of cylinder blocks and cylinder heads. 

They have strong-in-house engineering and design capabilities to offer comprehensive solutions and products to their domestic as well as international customers in each of their business segments in which they operate. 

Here is a table below showing total assets, total income, total expenses, and total profit after tax of this company.

 

Now let’s discuss the competitive strengths and risks of the company. 

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Craftsman Automation IPO Is It Worth Buying?

Craftsman Automation Limited is launching its IPO to meet its general corporate purposes and also for paying off its debts. 

Apart from this, it is better to also check the risks as well before taking any final decision. 

The assets of Craftsman Automation have increased by 70% from 31 March 2018 to 30 September 2020. 

Also, there was a sharp decline in their revenue in a few years. The reason for this loss may be the Covid pandemic which results in lockdown and has hugely impacted sales of automobiles.  

But you can see that it was performing well till 31 March 2019. 

There are chances that Craftsman Automation may show some growth in the near future and give you higher returns if you apply for its IPO. Overall, the Craftsman Automation IPO is Average !! Rest, you can take your decision after deeply understanding the fundamentals and strengths of Craftsman Automation.

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Strengths Of Craftsman Automation IPO

Below are the competitive strengths of Craftsman Automation IPO:-

• Leading engineering products manufacturer.
• Strong product design capabilities.
• Good financial performance.
• Strategically located manufacturing units.

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Risks Associated With Craftsman Automation IPO

Craftsman Automation has shown good financial growth over the financial years. However, there are also several risks related to this investment too and they are:

• Its results of operations depend on future developments which are uncertain and cannot be predicted. 
• There is a significant amount of fall in automobile sales due to the COVID-19 which is not yet ascertained.
• Their inability to meet their obligations under debt financing arrangements could adversely affect their business results and cash flows. 
• Some of their assets are mortgaged as securities with lenders. So in case of any failure to pay off their debts may adversely affect their results of operations and cash flows. 
• Their business is subject to risks of interest rate ups and downs, which could adversely affect their results of operations and cash flows.

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After going through the Craftsman Automation IPO review, many of you might invest in IPO? Refer to the form below and open a demat account now.

 

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