Adroit Industries (India) IPO

This issue combines a fresh issue and an offer for sale. The amounts for each part are not available in our data; see the offer document for the split.

Lot size and investment

Reservation

QIB

Not more than 50.00% of the Offer

Retail

Not less than 35.00% of the Offer

NII

Not less than 15.00% of the Offer

Current GMP

₹55

▲+41.04%

Estimated listing price

₹189

Issue price ₹134

Highest

₹58

27 Sep

Lowest

₹32

20 Sep

GMP by day (₹ per share)

Subject to sauda

₹4,600 retail · ₹64,400 HNI

GMP is an unofficial indicator from an unregulated market. It is shown for information only and is not a prediction of the listing price or a recommendation to apply.

P/E Ratio

22.95

EPS (₹)

5.84

RoE

18.97%

RoCE

17.06%

RoNW

18.94%

PAT Margin

13.55%

EBITDA Margin

23.17%

Debt / Equity

0.63

NAV (₹)

29.65

Separate pre- and post-issue P/E are not available for this IPO; the P/E shown is as disclosed for the issue.

Peers are other recent IPOs from the same industry, closest in issue size. Ratios are as disclosed at the time of each issue. This is not the listed-peer table from the offer document.

Adroit Industries (India) Ltd was incorporated in 1966. It manufactures propeller shafts and torque transmission components. A propeller shaft is the rotating tube that carries power from the gearbox to the wheels, so these parts sit in the drive line of a vehicle or in industrial machinery. The company runs a fully integrated setup, handling forging, machining, assembly and testing in house. Doing all of it under one roof helps it control both quality and cost rather than depending on outside job workers for the critical steps. It offers more than 5,000 products and sells to distributors, to large component manufacturers and directly to original equipment makers. Its parts go mainly into commercial vehicles, defence, heavy equipment and industrial machinery. Its manufacturing facilities are in Madhya Pradesh. Its customers include Godrej & Boyce Manufacturing, BEML, VE Commercial Vehicles, Sandvik Mining and Rock Technology India and Oilgear India. It exports to more than 25 countries across North America, Europe and the Asia Pacific region.

Objects of the issue

1. Funding capital expenditure by the Company towards procurement of; (i) machinery and equipment for enhancement of operations at Dewas Facility; and (ii) transportation vehicle for local transportation of goods between the Manufacturing Facilities₹16.77 Cr
2. Investment in the Subsidiary, Adroit Driveshafts Private Limited, in the form of debt or equity or a combination thereof, for funding capital expenditure towards procurement of; (i) machinery and equipment for enhancement of operations at Pithampur Facility; and (ii) transportation vehicle for local transportation of goods between the Manufacturing Facilities₹36.96 Cr
3. Investment in the Subsidiary, Adroit Driveshafts Private Limited, in the form of debt or equity or a combination thereof, for re-payment or pre-payment, in full or in part, of certain borrowings availed by the Subsidiary₹20.27 Cr
4. General Corporate Purposes

Promoters and shareholding

Saurabh Sangla, Mukesh Sangla, Monika Sangla, Shubhangi Trust, Shreya Trust and Swan Irrigation

Promoter holding, pre-issue

96.1%

Promoter holding, post-issue

71.86%