Stocks
Invest in Stocks
Invest in stocks, ETFs, IPOs with fast orders. Track returns on your stock holdings and view real-time P&L on your positions.
F&O
Megatherm Induction IPO
Megatherm Induction Limited
₹1,20,000 /1200 sharesMinimum Investment
Megatherm Induction IPO Details
| Bidding Dates | Min. Investment | Lot Size | Price Range |
|---|---|---|---|
| 29 Jan ‘24 - 31 Jan ‘24 | ₹1,20,000 | 1,200 | ₹100 - ₹108 |
| Issue Size | IPO Doc |
|---|---|
| 53.91Cr | RHP PDF |
About Megatherm Induction
Founded in
2010
Managing director
Mr. Shesadri Bhusan Chanda
Parent organisation
Megatherm Induction Limited
Strengths & Financials of Megatherm Induction
Strengths
Risks
Megatherm Induction operates its manufacturing facilities under WBEIDCL at Vidyasagar Industrial Park in Kharagpur. Equipped with machinery and infrastructure, the facility handles end-to-end metal heating and melting equipment manufacturing, ensuring product quality, efficiency, and cost advantages.
The company specializes in complex manufacturing processes, producing items like induction furnaces and transformers with precision and engineering competence. Raw materials are sourced from trusted vendors, after which they undergo stringent quality control at every stage to meet customers' specific requirements in industries such as steel, metal, locomotive, and power distribution.
Megatherm Induction maintains a well-diversified customer base across India and globally. The top ten customers contribute a significant portion of revenue. The company's focus on delivering quality, cost-effective, and energy-efficient products has cultivated long-term relationships with customers, including prominent domestic ones like Ordinance Factory, BHEL, Tata Motors, and international clients in South America, Africa, Gulf, Europe, SAARC, and Southeast Asia.
Operationally, Megatherm Induction has demonstrated consistent growth in revenue and profitability. The revenue from operations for the Financial Years ended on March 31, 2023, March 31, 2022, and March 31, 2021, reflecting a CAGR of 56.17%. Profit after tax for the same periods shows a CAGR of 112.84%. Supported by an order book exceeding Rs. 290 crores as of July 31, 2023, the company anticipates further growth.
Megatherm Induction has agreements for loans that say its main promoter has to promise some company shares. If the company breaks certain rules in these agreements, lenders can lower the promoter's share ownership, which might harm the company.
In Fiscal 2023, 45.05% of Megatherm Induction's total purchases went to the top 10 suppliers. Dependency on a few suppliers for raw materials used in manufacturing induction heating and melting products and transformers exposes the company to risks associated with supply and pricing volatility.
Megatherm Induction relies significantly on a limited number of customers, with the top ten customers accounting for 41.98% of revenue in the fiscal year ending March 31, 2023. This dependency exposes the company to risks such as order reductions, delays, or cancellations, which could materially affect its business, financial condition, and results.
Megatherm Induction's Group Company has incurred losses in recent years, with losses of Rs. 4.95 crore in 2022, Rs. 15.26 crore in 2021, and Rs. 17.44 crore in 2020. Future operating losses could adversely impact the group company's financial condition and results.
As of March 31, 2023, Megatherm Induction had outstanding debtors of Rs. 23.73 crores, including Rs. 3.92 crores in trade receivables overdue for over a year. Doubtful debt amounting to Rs. 1.16 crores has been provisioned for. Customer defaults or delays in payment may materially affect the company's business and financial condition.
Megatherm Induction faces outstanding legal proceedings involving the company, promoters, directors, and group companies. Unsuccessful defense in these proceedings could adversely impact the company's business prospects, reputation, and financial condition.
The company has a total outstanding indebtedness of Rs. 42.82 crores as of March 31, 2023, exposing it to debt repayment risks that may have an adverse effect on business and results.
Megatherm Induction's contingent liability and commitments as of March 31, 2023, amount to Rs. 30.33 crores, potentially impacting its financial condition.
Megatherm Induction Financials
*All values are in Rs. Cr
No Graph Data To Display
Application Details of Megatherm Induction IPO
| Apply as | Price band | Apply Range |
|---|---|---|
| Regular | ₹100 - 108 | ₹2 - 5 Lakh |
| High Networth Individual | ₹100 - 108 | ₹2 - 5 Lakh |
For Megatherm Induction IPO, eligible investors can apply as Regular.