Maini Precision Products Limited IPO 

Last Updated on October 26, 2023 by BFSLTeam BFSLTeam

Maini Precision Products Limited is a company that offers its global and domestic customers a diverse range of end-to-end business solutions. It has filed its draft prospectus with the market regulator SEBI (Securities and Exchange Board of India) to launch an IPO (Initial Public Offering). It’s a Rs. 900 crore IPO with a fresh issue and an Offer for Sale (OFS).

If you wish to invest in Maini Precision Products Limited IPO, give this blog a quick read. You’ll get to know the important details which will help you to make an informed investment decision.

About Maini Precision Products Limited

Maini Precision Products Limited is an end-to-end solutions provider for precision component manufacturing. It covers everything from engineering and process design to manufacturing, testing and distribution of components for various industries.

The company specialises in a wide range of manufacturing and finishing processes, including die castings, machined castings, bar route machining, and much more. Ancillary activities such as export packing, warehousing, and end-of-line testing enable the company to offer end-to-end solutions for its clients.

CRISIL (Credit Rating Information Services of India Limited) has stated that Maini Precision Products is a market leader when it comes to the export of precision components. The company boasts a diverse portfolio of more than 126 product families and more than 50 customers. As a result, Maini Precision Products enjoys a good position as a strategic and much-preferred supplier. 

The precision products offered by Maini Precision Products Limited can be categorised primarily into two businesses—(i) aerospace, comprising precision products specially built for defence and aerospace, and (ii) automotive and industrial businesses comprising precision products manufactured for fuel injections, transmissions, and internal combustion engines.

The top five products that substantially contributed to Maini Precision Products Ltd’s revenue in FY 2021 were PF pumps, machined and ground shafts, heavy-duty engine parts, bearing housings, and GDI pump bodies. 

A wide range of industries such as defence, aerospace, power tools, automotive clean power train, and material handling use Maini Precision Products’ products. The company maintains a steadfast focus on the safety, quality, value proposition, and price competitiveness of its products. These factors have helped the company form long-standing relationships with its customers. 

IPO Objectives and Details 

Maini Precision Products filed its Draft Red Herring Prospectus (DRHP) with SEBI in December 2021 to seek approval for an IPO of Rs. 900 crore. The size of the fresh issue comprises equity shares worth Rs. 150 crore. The Offer for Sale (OFS) component comprises 25,481,705 equity shares. Of this, promoters will offer nearly 60.21 lakh shares. The rest of the shares will be offered by other shareholders. 

A portion of the proceedings of this IPO will be used to repay/prepay its debt of Rs. 112.5 crore. The rest of the funds will be used for general corporate purposes. The company also plans to use the funds for purchasing inventory and for long-term and short-term working capital requirements. 

Also Read: IPO investment strategy

Strengths of Maini Precision Products Limited

It’s important to be aware of the strengths of Maini Precision Products Limited, so check out the company’s strengths below: 

• Maini Precision Products boasts of advanced manufacturing processes and engineering expertise. Its high-quality products have helped the company build a good reputation in the highly competitive market of precision-engineered products.
• The company is a strategic supplier and holds quite a diverse product and business portfolio which is a significant benefit.
• It has maintained long-standing relationships with a diverse customer base.
• The company has a global delivery model and end-to-end capabilities.
• The company has an advanced technological and innovative infrastructure in place. Its R&D capabilities are quite strong and help Maini Precision Products to effectively use emerging trends.

In the coming years, the company plans to use its expertise and manufacture a diverse range of products. Moreover, it plans to manufacture precision products to cater to emerging trends.

Risks Involved 

When you decide to invest in an IPO, analysing the risks involved is a must:

• Maini Precision Products Ltd’s business depends greatly on exports and the performance of those geographies where the company supplies its products. Negative changes in the global industries where this company supplies its products will have an adverse effect on its operations. 
• The company depends upon its top ten customers to run its business smoothly. If any of these customers decide to discontinue their working relationship with Maini Precision Product, there will be a negative impact on the company’s business. 
• The incremental business pipeline of Maini Precision Products may not be an accurate indicator of the company’s future growth rate or new business orders. 

Conclusion 

If you are interested in investing in Maini Precision Products Limited IPO, go through its strengths and IPO details in this blog. While the company is a market leader in its sector, it will be better to know the risks associated as well. 

In the coming days, the company is expected to form strategic tech partnerships which will help it to grow further. It has also received SEBI’s green signal to go ahead with its IPO. 

Also Read: Risk of investing in IPO

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