Spectrum Electrical IPO – Review, Allotment, Subscription, GMP & DRHP

Last Updated Date: Nov 17, 2022

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

Issue Price of this IPO is Rs 65. Check the Live Share Price here Spectrum Electrical Share Price
To track the performance of this IPO, click on this link – IPO Performance

Spectrum Electrical IPO Review & Ratings

Spectrum Electrical IPO Ratings & Review
Criteria	Ratings
Industry Sentiments	6.3/10
Industry Ranking	6.3/10
Company Background	6.1/10
Company Reputation	6.4/10
Competitive Edge	6.4/10
Financial Statements	6.5/10
Popularity Index	6.2/10
Promoters Reputation	6.3/10
Retail Appetite	6.2/10
Top Brokers Review	6.3/10
Overall Ratings	6.3/10
Star Ratings	★★★☆☆

Summary of Spectrum Electrical IPO

Spectrum Electrical focus has been on providing one-stop-shop solutions mainly to manufacturers of electrical products and components in India. The Company offer integrated design and manufacturing solutions for local and internationally recognized brands in the electrical products industry.The Company offer end-to-end product solutions to their customers under the B2B model wherein they provide services ranging from global sourcing, manufacturing, quality testing and packaging to logistics. The Company also offer products in the intermediate stages to many of their customers. Spectrum Electrical IPO comprises of 39,80,000 Equity shares, face value of Rs.10 each.

From FY 2014-15 to FY 2016-2017, as per the Restated Financial Statements,

From fiscal 2016 to 2017, company’s revenue from operations and net profit has increased at a growth rate of 205.2% and 71.02%, respectively.

For the period ended March 31, 2018, FY 2016-17 and FY 2015-16, its revenue from operations was Rs.11,954.82 Lakhs, Rs. 658.80 Lakhs and Rs. 215.88 Lakhs, respectively representing growth of 205.20% from the FY 2015-16 to FY 2016-17. For the period ended March 31, 2017, FY 2016-17 and FY 2015-16 our net profit was Rs. 810.28 Lakhs, Rs. 66.53 Lakhs and Rs. 38.90 Lakhs, respectively, representing a growth of 71.02 % from the FY 2015-16 to FY 2016-17.

During the financial year 2017-18 the Other Income of our company increased to Rs. 28.42 Lakhs as against Rs. 0.97 Lakhs for the financial year 2016-17 .
Company’s Net Profit after tax for the year 2016-17 is Rs.590.32 Lakhs from the year 2015-16 of Rs.53.27 Lakhs .

The Promoter of this company is Mr. Deepak Chaudhari. The lead manager to the issue is Arihant Capital Markets Limited and the Registrar to this issue is Bigshare Services Private Limited .

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Spectrum Electrical IPO Date

The opening and the closing date of IPO of Spectrum Electrical is 17 Sept 2018 – 21 Sept 2018.

Spectrum Electrical IPO Subscription

Day / Date	QIB	NII	RII	Total Subscription
Day 1: 17 Sept 2018	–	0.18x	0.02x	0.10x
Day 2: 18 Sept 2018	–	0.20x	0.05x	0.12x
Day 3	–
Day 4	–
Day 5	–
Shares Offered or Net Issue	–	1,890,000	1,890,000	3,780,000

Spectrum Electrical IPO Allotment Status

Here, you can find the Allotment Status of this IPO.

Spectrum Electrical IPO Price Band

The face value of each share is Rs 10, but the price band or the cash price is Rs 65 each.

Spectrum Electrical IPO Equity Share Offering

39,80,000 Equity Shares of Rs 10/- each but Issue Price or cash price is Rs 65 each; aggregating to Rs. 2,587.00 Lakhs. The Net Issue offered to the Public is 37,80,000 equity shares at cash price of Rs 65 each, aggregating to Rs. 2,457 Lakhs.

Spectrum Electrical – Company Overview

Spectrum Electrical focus has been on providing one-stop-shop solutions mainly to manufacturers of electrical products and components in India. The Company offer integrated design and manufacturing solutions for local and internationally recognised brands in the electrical products industry.The Company offer end-to-end product solutions to their customers under the B2B model wherein they provide services ranging from global sourcing, manufacturing, quality testing and packaging to logistics. The Company also offer products in the intermediate stages to many of their customers.

The Company manufacturing unit(s) are located at Jalgaon & Nashik in Maharashtra. The Company also has a commercial tool room with modern infrastructure backed by an experienced team. The Company offer comprehensive design services, ranging from product conceptualisation, designing, technical detailing, tooling and productivity improvement services resulting in improved manufacturing processes for our customers’ products

The Company is promoted by Mr. Deepak Chaudhari and Mrs. Bharti Chaudhari and is the guiding force behind the growth and strategic decisions of the Company.

Competitive Strengths of Spectrum Electrical :

Strong in-house capabilities of product and engineering design –
Multi-Technological capabilities and integrated offerings such as tool room, injection moulding, sheet metal fabrication, stamping, metal finishing and surface treatments
Sustainable business model with low risk having industry leaders as our customers
In house R&D enables us to quickly develop products and adapt to the needs of our clients
SAP S/4 HANA implemented by Company for digital enterprise operations
UL certified moulding manufacturing process
High standard of product quality and customer service –
Availability of up-to-date infrastructure enabling us to meet bulk requirements of clients
Experienced management team

Business strategies of Spectrum Electrical :

Continue to focus on Contract Manufacturing model
Leverage existing customer relationship to supply new products and value added services
Diversification into new Industries
Entry into new geographies

Spectrum Electrical – 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	31-Mar-15	31-Mar-14
Total Assets	10,763.34	2,506.00	1,491.32	490.27	89.93
Total Revenue	11,983.24	659.77	215.88	13.90	–
Total Expense	11,172.96	593.24	176.97	11.39	5.39
Profit After Tax	590.32	53.27	30.03	1.73	(5.39)

Earnings per Equity Share (in Lakhs)

	31-Mar-18	31-Mar-17	31-Mar-16
Basic and Diluted	5.30	1.07	0.60

From the above statements, one could find that the Spectrum Electrical may perform well.

Spectrum Electrical IPO – Promoters

The Promoter of this company are:

Mr. Deepak Chaudhari
Mrs. Bharti Chaudhari

List of Related Parties (Key Managerial Personnel)

Mr. Satish Jaiswal
Mr. Gajanan Sanglea
Mr. Rajendra Wani
Mr. Rahul Rane
Mr. Govardhan Reddy
Mr. Balu Patil
Mr. Nishikant Somvanshi

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.

Spectrum Electrical IPO Offer Details or Issue Details

Particulars	No. Of Equity Shares
Equity Shares Offered	39,80,000 Equity Shares of Rs.10/- each for cash at a premium of Rs. 55/- per Equity Share aggregating Rs. 2,587.00 Lacs.
Of which:
Reserved for Market Makers	2,00,000 Equity Shares of Rs.10/- each for cash at a premium of Rs. 55/- per Equity Share aggregating Rs. 130 Lacs.
Net Issue to the Public	37,80,000 Equity Shares of Rs.10/- each for cash at a premium of Rs. 55/- per Equity Share aggregating Rs. 2,457.00 Lacs
Of which:
Equity Shares outstanding prior to the Issue	1,11,39,840 Equity Shares of Rs. 10/- each
Equity Shares outstanding after the Issue	1,51,19,840 Equity Shares of Rs. 10/- each

Spectrum Electrical IPO Issue Object

These are the IPO Issue Objects of the company:

Setting up of Zinc plating plant at Umale (Rs. 750 lakhs)
To meet long-term working capital requirements (Rs.1,000 lakhs)
General Corporate purposes (Rs. 587.00 lacs)
Issue Expenses (Rs. 250 lacs)

Spectrum Electrical 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:

Proven track-record of the Promoter, Mr. Deepak Chaudhari in creating, establishing and growing the business into an integrated, multi-technology electrical components designing and manufacturing company;
Emerged as reliable supplier of wide range of high quality intermediate and finished products to leading names in the electrical industry;
Top customers include marquee brands like Legrand, Schneider and Anchor-Panasonic;
Well-equipped manufacturing facilities with in-house tool room;
Dedicated research and development capabilities focussed on improved production processes, cost savings and better product performances;
Huge growth potential through entry into new geographies;
Strong financial performance and stable cash flows

The relevant quantitative factors are:

	Basic & Diluted EPS	RONW (%)	NAV (Rs.)
31-Mar-16	5.30	17.50	30.28
31-Mar-17	1.07	9.21	65
31-Mar-18	0.60	5.72	39.42

Spectrum Electrical IPO Lead Managers

Lead Managers

Arihant Capital Markets Limited
SEBI Registration No: INM000011070
1011, Solitaire Corporate Park, 1st floor
Guru Hargovindji Road, Chakala,
Andheri (East), Mumbai – 400 093
Tel. :022-42254800; Fax. :022- 42254880
Website: www.arihantcapital.com
Email:mbd@arihantcapital.com
Contact Persons: Mr. Amol Kshirsagar/
Mr. Ankur Sharma

Spectrum Electrical IPO Registrar to offer

Registrar to the Offer

Bigshare Services Private Limited
SEBI Registration No: INR000001383
E/2, Ansa Industrial Estate,
Saki Vihar Road,
Andheri (E), Mumbai-400072
Tel: 022-40430200; Fax: 022-28475207
Website: www.bigshareonline.com
E-Mail: ipo@bigshareonline.com
Contact Person : Mr. Ashok Shetty

Other Details:

Statutory Auditor – M/s. S. D. Chopde & Co., Chartered Accountants
Peer Review Auditor – M/s. HMA & Associates, Chartered Accountants
Bankers to the Company – Axis Bank Limited

Spectrum Electrical 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

Spectrum Electrical IPO Grey Market Premium

The Spectrum Electrical IPO Grey Market Premium price is Rs X, the Kostak rate is Rs X and the Subject to Sauda is X.

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