Readymix Construction Machinery Ltd
Readymix Construction Machinery Limited is set to launch its Initial Public Offering (IPO) in February 2025, offering investors an opportunity to participate in its growth trajectory. This article provides a comprehensive overview of the company’s IPO details, financials, strengths, risks, and other pertinent information to assist potential investors in making informed decisions.
Company Overview
Incorporated in 2012, Readymix Construction Machinery Limited specializes in providing engineering solutions for the design, development, fabrication, and installation of various industrial plants and machinery. The company’s product portfolio includes:
- Dry Mix Mortar Plants: Used for producing dry mixed mortar for construction applications such as masonry, plastering, and tile fixing, enhancing strength and durability.
- Support Equipment for Readymix Concrete Plants: Equipment that includes aggregate bins, storage silos, batching units, mixers, and conveyors suitable for large construction projects.
- High-Capacity Silos: Designed for the storage of bulk materials like gypsum, cement, and lime, ensuring uninterrupted supplies and avoiding project delays.
- Artificial Sand Plants: Facilities that wash sand to remove impurities, producing quality sand suitable for construction and industrial use.
- Wall Putty Plants: Premixed blends of cement, fillers with polymers, and additives used to achieve smooth finishes and crack filling.
The company serves industries such as construction, cement, and building materials, with a client base spanning over 200 customers in India and exports to Nepal. Additionally, it offers after-sales services and business consultancy to enhance operational efficiency.
IPO Timeline and Key Dates
The IPO is scheduled with the following key dates:
- Issue Open Date: February 6, 2025
- Issue Close Date: February 10, 2025
- Allotment Finalization: February 11, 2025
- Refund Initiation: February 12, 2025
- Share Credit to Demat Accounts: February 12, 2025
- Listing Date: February 13, 2025
Please note that these dates are tentative and subject to change.
Price Band and Lot Size
The IPO price band is set between ₹121 and ₹123 per equity share, with a face value of ₹10 each. The minimum lot size is 1,000 shares, requiring a minimum investment of ₹123,000. Investors can apply in multiples of 1,000 shares thereafter.
Financials
A snapshot of the company’s financial performance is as follows:
| Financial Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Total Revenue (₹ Cr) | 47.82 | 55.00 | 69.79 |
| Profit After Tax (₹ Cr) | 1.33 | 2.78 | 9.28 |
| Net Worth (₹ Cr) | 6.63 | 9.43 | 18.75 |
| Debt (₹ Cr) | 4.68 | 7.60 | 7.90 |
The company has demonstrated consistent growth in revenue and profitability over the past three financial years.
Strengths
- Diversified Product Portfolio: The company offers a wide range of products catering to various industries, including construction, cement, and building materials.
- Established Client Base: With over 200 customers in India and exports to Nepal, the company has a strong market presence.
- Experienced Management Team: The promoters and management team possess extensive industry experience, ranging from 15 to 30 years.
- After-Sales Services: A dedicated after-sales network provides maintenance and quick spare parts replacement, enhancing customer satisfaction.
Risks
- Dependence on Key Suppliers: The company’s acquisition of raw materials hinges on several suppliers located within a specific region. Any disturbances in these suppliers’ supply chains could adversely affect operations.
- Regulatory and Compliance Risks: Compliance with various safety, health, environmental, and labor laws is mandatory. Any changes in regulations or failure to comply could lead to legal issues and financial penalties.
- Economic and Political Instability: The company’s profitability and growth potential are influenced by external factors such as economic conditions, political factors, inflation, and interest rate fluctuations.
- Technology and Innovation Risks: The industry is characterized by rapid technological changes. Failure to update products and services to meet market demand can affect competitiveness.
IPO Anchor Investors Details
As of now, specific details regarding anchor investors have not been disclosed. Investors are advised to refer to the company’s official communications for updates.
IPO Promoter Holding
The shareholding pattern before and after the IPO is as follows:
| Promoter | Pre-Issue Holding | Post-Issue Holding |
|---|---|---|
| Anand Suresh Watve | 100% | 72.06% |
Note: The above table is for illustrative purposes. Actual promoter holdings may include other individuals/entities.
IPO Grey Market Premium (GMP)
As of February 3, 2025, the Grey Market Premium (GMP) for Readymix Construction Machinery Limited’s IPO is ₹0, indicating that the shares are trading at their issue price in the grey market. Investors should note that GMP is subject to change and may not accurately reflect the stock’s potential performance upon listing.