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Sharp Chucks IPO
Sharp Chucks And Machines Limited
₹1,16,000 /2000 sharesMinimum Investment
Sharp Chucks IPO Details
| Bidding Dates | Min. Investment | Lot Size | Price Range |
|---|---|---|---|
| 29 Sep ‘23 - 5 Oct ‘23 | ₹1,16,000 | 2,000 | ₹58 - ₹58 |
| Issue Size | IPO Doc |
|---|---|
| 16.84Cr | RHP PDF |
About Sharp Chucks
Founded in
1994
Managing director
Mr. Ajay Sikka
Parent organisation
Sharp Chucks And Machines Limited
Strengths & Financials of Sharp Chucks
Strengths
Risks
Currently, Sharp Chucks operates two manufacturing facilities in Jalandhar. These facilities comprise three foundries with a total production capacity of 30,000 metric tons per annum (MTPA).
Machining facilities are equipped with VMC, CNC, and other machinery, with a combined installed capacity of 14,400 MTPA. Moreover, a forging unit includes hammers and billiard heaters with an installed capacity of 3,600 MTPA.
Sharp Chucks initially started its business by manufacturing drill chucks and lathe chucks. Over time, the company has diversified its product portfolio, including customized castings. The company has also ventured into the forging business, specifically in the field of DIY tools.
The company received recognition for its performance from customers, such as the 'Excellent Performance in the field of Escorts Supplier Quality Systems Improvement Audit' in July 2021, the 'Best SCM Performance Award' from a prominent automotive and farm equipment company for outstanding performance in 2009-10, and commendation for 'Support and Contribution in the timely development of parts & supply during the harvesting season amid Covid-19' from a tractor brand.
Sharp Chucks' in-house machining center is equipped with various resources, including induction furnaces with 1500, 1000, and 500 kilograms capacities.
The facility also houses CAD and CAM facilities and software such as Auto-CAD, SolidWorks, and Solid Edge. CNC machines, including vertical milling machines, turning centers, HMC machines, and conventional lathes, are available for production.
The company's products are distributed both in domestic and international markets. Sharp Chucks has been exporting its products since its inception.
As of March 31, 2023, the company exports to various countries, including but not limited to the USA, Russia, Italy, Germany, Sweden, Venezuela, and Croatia.
Sharp Chucks, the company, and its Independent Director find themselves involved in certain tax proceedings. Any unfavorable outcomes from these proceedings could significantly harm the company's business, financial condition, and operational results.
The company's fortunes are closely tied to the performance of the tractor and automobile industries. Any major disruptions or slowdowns in these sectors, including their associated industries, could negatively impact its business, financial condition, and cash flows.
In the last three years, 2023, 2022, and 2021, top 5 clients accounted for 73.78%, 65.58%, and 68.55% of the company's revenues, respectively. Losing one or more of these major clients would severely affect the company's operations and profitability.
Sharp Chucks extends significant credit terms to its customers, making it vulnerable to counterparty credit risk. If customers' financial positions deteriorate or the company cannot extend credit in line with market norms, it could negatively impact profitability.
The company heavily relies on third-party suppliers for its raw materials, with limited control over them. Obtaining the necessary quality raw materials promptly and in sufficient quantities can significantly affect the company's operational results.
The top ten suppliers of Sharp Chucks constituted 69.61%, 88.31%, and 63.51% of the total purchases in 2023, 2022, and 2021, respectively.
Sharp Chucks' business is closely tied to its manufacturing facilities in Jalandhar, India. Any loss or shutdown of these facilities could adversely affect the company's business and operational results.
The company has availed a total sum of Rs. 819.91 Lakhs as of March 31, 2023, which may be called back at any time.
Negative cash flows have been a recurring issue for Sharp Chucks from its operating, investing, and financing activities. Such occurrences in the future could hinder the company's growth and business.
The company faces foreign exchange risks that could have adverse effects on its operational results and cash flows.
As of March 31, 2023, Sharp Chucks had total short-term borrowings of Rs. 5,042.76 lakhs and long-term borrowings of Rs. 3,080.04 lakhs.
The company's contingent liabilities have the potential to significantly and adversely impact its business, operational results, and financial condition.
Sharp Chucks Financials
*All values are in Rs. Cr
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Application Details of Sharp Chucks IPO
| Apply as | Price band | Apply Range |
|---|---|---|
| Regular | ₹58 - 58 | ₹2 - 5 Lakh |
| High Networth Individual | ₹58 - 58 | ₹2 - 5 Lakh |
For Sharp Chucks IPO, eligible investors can apply as Regular.