Milltec Machinery IPO – Review, Allotment, Subscription, Price, Date & more

Milltec Machinery IPO consists of up to 3,751,499 Equity shares of Rs.10 each. Milltec Machinery Limited is engaged in Agro-processing equipment manufacturing in India, with a sales and distribution network in India and overseas. 

Let’s have a detailed review of the company and analytics of the Milltec Machinery IPO release date, IPO offer price, subscription, Milltec Machinery IPO allotment, grey market price and other details like the company’s background, its financial positions, its promoters and other related things.


Milltec Machinery IPO Review & Ratings

Milltec Machinery IPO Ratings & Review
Criteria Ratings
Industry Sentiments  6.9/10
Industry Ranking  7.3/10
Company Background 6.1/10
Company Reputation 6.4/10
Competitive Edge 6.4/10
Financial Statements 6.5/10
Popularity Index 7.2/10
Promoters Reputation 6.3/10
Retail Appetite  7.2/10
Top Brokers Review 6.5/10
Overall Ratings  6.8/10
Star Ratings ★★★☆☆

Summary of Milltec Machinery  IPO

Milltec Machinery IPOMilltec Machinery Limited is engaged in agro-processing equipment manufacturing in India, with a sales and distribution network in India and overseas. It includes equipment to facilitate the processing of rice, pulses, wheat, seeds, and maize.The Issue comprises of a Public Issue of 3,751,499 Equity shares of face value of Rs.10.00 each fully paid (the “Equity Shares”) for cash at a price yet to be known. 10,004,000 Equity Shares are subscribed after the offer.

From FY 2015-16 to FY 2017-2018, as per the Restated Financial Statements:

The Company’s Revenue from operations for Fiscal 2016 and Fiscal 2018 was Rs 1,844.68 million and Rs 2,661.39 million, respectively, representing a CAGR of 20.11%.

As of March 31, 2018, Company’s net worth was Rs 1,055.63 million, as per the Restated Consolidated Financial Information. As of March 31, 2018, the Company’s net worth was Rs 1,064.46 million as per the Restated Standalone Financial Information.

  • During the financial year 2017-18 the Other Income of the company increased to Rs. 31.75 Lakhs as against Rs.22.67 Lakhs for the financial year 2016-17, representing increase by 40.0% due to increase in interest income & insurance claim in FY 2017- 18.
  • Company’s Net Profit after tax for the year 2018-17 is Rs. 290.85 Lacs from the year 2016-17 of Rs. 184.83 Lacs showing an increase of 57.3% from last year, showing remarkable performance.
  • The operating and financial performance has resulted in a growth in EBITDA. For Fiscal 2018, Fiscal 2017, and Fiscal 2016, the EBITDA was Rs 500.25 million, Rs 354.24 million, and Rs 320.47 million, respectively.

The Promoters of this company are Rajendran Joghee, Ravindranath Ramaiah, Manjula Rajendran and Uma Rachappa The lead manager to the issue is Motilal Oswal Investment Advisors Limited and IIFL Holdings Limited and the Registrar to this issue is Link Intime India Private Limited.


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Milltec Machinery IPO Date

The opening and the closing date of Milltec Machinery is not known yet.


Milltec Machinery IPO Subscription

Day / Date QIB NII RII Total Subscription
Day 1
Day 2
Day 3
Day 4
Day 5

 


Milltec Machinery IPO Allotment Status

Check the Allotment status here later. The Issue is being made through the Fixed Price Process wherein up to 3,751,499 Equity Shares shall be reserved for Market Maker up to 3,00,000 and 57,00,000 for the net public issue. Equity shares will be allocated on a proportionate basis to Retail Individual Applicants, subject to valid applications being received from Retail Individual Applicants at the Issue Price. The balance of the Net Issue will be available for allocation on proportionate basis to Non Retail Applicants.


Milltec Machinery IPO Price Band

The face value of each Equity Share is Rs 10 each and the Offer Price at the lower end of the Price Band is Rs X.


Milltec Machinery IPO Equity Share Offering

3,751,499 Equity Shares of Rs 10/- each with the Issue Price yet to known aggregating to Rs. (3751499* issue price).


Milltec Machinery Limited – Company Overview

Milltec Machinery Private Limited was originally as MILLTEC Machinery Private Limited on August 28, 1998, at Bengaluru, Karnataka, India, as a private limited company under the Companies Act, 1956 and converted to public limited on March 21,2018.

Milltec Machinery Limited is engaged in agro-processing equipment manufacturing in India, with a sales and distribution network in India and overseas.It includes equipment to facilitate the processing of rice, pulses, wheat, seeds, and maize. The product portfolio includes equipment for parboiling and drying, pre-cleaning, de-stoning, de-husking, thickness grading, polishing, length grading, sorting, and packaging, which cater to customers who have mills with throughput capacities ranging from two MTPH to 20 MTPH. They are an ISO 9001:2015 and ISO 14001:2015 certified company with four well-equipped manufacturing facilities in Bengaluru, Karnataka, and Chennai, Tamil Nadu.

From a single equipment manufactured to facilitate the whitening and polishing of rice grains in 1998, they have expanded their equipment portfolio to over 200 different types of grain processing equipment, as on March 31, 2018. They have an estimated market share of 10% in the total rice processing equipment industry and are the most preferred brand in the milling segment. They also offer end-to-end turnkey solutions for rice processing activities, as well as solutions to facilitate ancillary grain processing activities such as yield management.

Competitive Strengths of Milltec Machinery Limited:

  • Market leader in manufacture of rice processing equipment in India.
  • Diversified product range appealing to a wide range of customers.
  • Well-equipped manufacturing facilities.
  • Strong focus on research and development, leading to successful commercialization of innovative products.
  • Extensive sales network backed by a robust after-sales team.
  • Effective and efficient business model, resulting in track record of operating and financial performance and growth.
  • Experienced and qualified management team with strong execution track record.

Business strategies of Milltec Machinery Limited:

  • Deepening the presence in the rice processing segment by expansion of product range.
  • Expansion of geographical footprint.
  • Facilitate equipment financing for the customers.
  • Pursue inorganic growth through acquisitions.
  • Diversification of product.
  • Leveraging their Marketing skills and Relationship.
  • Enhancing existing products and product quality

Milltec Machinery Limited – Financial Statements

A quick look into the past financial performance of the company to understand its performance of business and evaluate the growth prospectus:

Financial Summary:

Amount (in INR & Lakhs)
31-Mar-18 31-Mar-17 31-Mar-16
Total Assets 1995.59 1670.05 1398.15
Total Revenue 2693.14 2231.44 1862.35
Total Expense 2242.86 1942.01 1618.95
Profit After Tax 290.85 184.83 174.02

Earnings per Equity Share (in Lakhs)

31-Dec-17 31-Mar-16 31-Mar-15
Basic /Diluted 95.73 63.89 59.30

From the above statements, one could find that the Milltec Machinery Limited may perform well.


Milltec Machinery IPO – Promoters

The Promoter of this company are:

  1. Rajendran Joghee
  2. Ravindranath Ramaiah
  3. Manjula Rajendran
  4. Uma Rachappa

List of Related Parties (Key Managerial Personnel)

  • J. Rajendran, Director
  • R. Ravindranath, Director
  • Prabhakar Tadepalli, Director
  • Prakash Kulathu Iyer, Nominee Director
  • Sridhar Sankararaman, Nominee Director

Interest in promotion of the Company

Company is currently promoted by the Promoters in order to carry on its present business. Promoters are interested in the Company to the extent of their shareholding and directorship of the Individual Promoter in the Company and the dividend declared, if any, by the Company. The Promoters are interested in the transactions entered into the Company and the Promoter Group.

Property Interest

The promoters along with the promoter group will continue to hold collectively some percentage of the equity share capital of the company. As a result of the same, they will be able to exercise significant influence over the control of the outcome of the matter that requires approval of the majority shareholders vote.

Interest in Intellectual Rights of the Company

Promoters has not shown any interest in acquiring the intellectual rights of the company.


Milltec Machinery IPO Offer Details or Issue Details

 Particulars  No. Of Equity Shares
 Equity Shares Offered Issue of 3,751,499 Equity Shares of face value Rs.10 each at a price yet to be known.
 Of which:
QIB 1,875,750 Equity Shares
 Retail Investors Portion Not less than 562,724 Equity Shares available for allocation or Offer less allocation to QIB Bidders and Retail Individual Bidders shall be available for allocation.
 Non-Retail Investors Portion Not less than 1,313,025 Equity Shares available for allocation or Offer less allocation to QIB Bidders and Non-Institutional Bidders shall be available for allocation
 Equity Shares outstanding prior to the Issue 10,004,000 Equity Shares
 Equity Shares outstanding after the Issue 10,004,000 Equity Shares

Milltec Machinery IPO Issue Object

These are the IPO Issue Objects of the company

  • Part finance the setting up of additional cotton yarn manufacturing facility
  • Issue Expenses

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Milltec Machinery IPO – Basis of the Offer Price

The issue price is determined by the company in consultation with the Lead manager on the basis of the following qualitative and quantitative factors.

Qualitative factors are:

  • Market leader in manufacture of rice processing equipment in India.
  • Diversified product range appealing to a wide range of customers.
  • Well-equipped manufacturing facilities.
  • Strong focus on research and development, leading to successful commercialization of innovative products.
  • Extensive sales network backed by a robust after-sales team.
  • Effective and efficient business model, resulting in track record of operating and financial performance and growth.
  • Experienced and qualified management team with strong execution track record.

The relevant quantitative factors are:

Basic & Diluted EPS

(consolidated)

RONW (%)

(consolidated)

NAV in Rs.
31-Mar-16 18.15 28.38 61.29
31-Mar-17 19.55 22.85 80.85
31-Mar-18 29.29 27.55 105.52
  • Industry P/E Ratio:

There are no listed entities whose business portfolio is comparable with that of the business, and comparable with their scale of operations.

  • Competitive Peers:

Company does not have any listed industry peers


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Milltec Machinery IPO Lead Managers

Lead Managers
Motilal Oswal Investment Advisors Limited
Motilal Oswal Tower, Rahimtullah Sayani Road
Opposite Parel S T Depot, Prabhadevi
Mumbai – 400 025, Maharashtra, India
Tel: +91 22 3846 5541, Fax: +91 22 3980 4315
E-mail:
Investor Grievance E-mail:
Website: www.motilaloswalgroup.com
Contact Person: Keyur Desai / Kristina Dias
SEBI Registration No.: INM000011005

Milltec Machinery IPO Registrar to offer

Registrar to the Offer
Link Intime India Private Limited
C-101, 247 Park, L B S Marg, Vikhroli (West)
Mumbai 400 083, Maharashtra, India
Tel: +91 22 4918 6200, Fax: +91 22 4918 6195
E-mail:
Investor Grievance e-mail:
Website: www.linkintime.co.in
Contact Person: Shanti Gopalkrishnan
SEBI Registration No.: INR000004058

Other Details:

  • Statutory Auditor – Deloitte Haskins & Sells, Chartered Accountants
  • Peer Review Auditor – Deloitte Haskins & Sells, Chartered Accountants
  • Bankers to the Company – STATE BANK OF INDIA

Milltec Machinery IPO Review by Top 10 Stock Brokers

Top Stock Brokers Review Company Reputation Competitive Edge Financial Statement Popularity Index Promoters Reputation
Angel Broking 6.5/10 6.6/10 6.6/10 6.4/10 6.4/10
Sharekhan 6.7/10 6.4/10 6.6/10 6.1/10 6.2/10
Kotak Securities 6.7/10 6.7/10 6.7/10 6.4/10 6.3/10
ICICI Direct 6.6/10 6.3/10 6.7/10 6.5/10 6.5/10
IIFL 6.4/10 6.7/10 6.8/10 6.4/10 6.7/10
Edelweiss 6.7/10 6.4/10 6.4/10 6.3/10 6.7/10
Zerodha 6.5/10 6.4/10 6.7/10 6.4/10 6.5/10
5Paisa 6.7/10 6.4/10 6.3/10 6.7/10 6.5/10
Karvy 6.8/10 6.3/10 6.7/10 6.4/10 6.0/10
Motilal Oswal 6.6/10 6.4/10 6.6/10 6.6/10 6.4/10

The ratings would be updated once the financials and the other details of the IPO are released.


Milltec Machinery IPO Grey Market Premium

The Milltec Machinery IPO Grey Market Premium is yet to be announced. It will be updated as soon as the premium rates are announced.


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Milltec Machinery IPO News

News 1 – IPO ISSUE OPENS SOON (Download Prospectus)

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