Sunita Tools Limited IPO - Review, Date, Valuation & GMP

Sunita Tools Limited - Complete Overview

Established in 1988, Sunita Tools Limited specializes in the production of Ground Plates, Mould Bases, and Precision CNC Machining components serving a diverse range of industries, including Automotive, Pharmaceutical, Electronics, Consumer Goods, and various manufacturing sectors.

Located in Vasai, Mumbai, the company's manufacturing facility is equipped to manufacture large dimensional products with dimensions ranging from 200*200 mm to 4000*2000 mm, weighing up to 30 tons.

Sunita Tools Limited offers a comprehensive product line that includes Precision Finish CNC Machining, Customized Mould Bases, Pocket Machining, Plastic Mould Bases, Precision Component Machining, Injection Mould Bases, Mould Bases For Caps and Closures, Blow Mould Bases, Compression Mould Bases, Standard Mould Bases, Insert Mould Bases, Die Casting Mould Bases, Prototype Mould Bases, and Over mould Bases.

The company's products serve as capital assets and inputs for the Automotive Industry, Heavy Manufacturing Industry, Plastics Industry, Electrical Industry, and Consumer Goods Industry.

In Fiscal 2023, Sunita Tools Limited achieved a revenue of Rs. 1,384.44 lakhs.

 

What does the company do? 

Sunita Tools Limited is involved in manufacturing Mould Bases and machining parts.

 

 

Company Products

Precision Finish CNC Machining, Customized Mould Bases, Pocket Machining, Plastic Mould Bases, Precision Component Machining, Injection Mould Bases, Mould Bases For Caps and Closures, Blow Mould Bases, Compression Mould bases, Standard Mould Bases, Insert Mould Bases, Die Casting Mould Bases, Prototype Mould Bases, and Over mould Bases.

 

IPO Overview 

Sunita Tools Limited IPO date has been set for the period between September 26, 2023, to September 29, 2023. This SME IPO is a Fixed Price Issue and is anticipated to be listed on October 10, 2023.

The Sunita Tools Limited IPO price is fixed at Rs.145 per share, with a face value of Rs.10 per share. The total issue size for this upcoming SME IPO amounts to Rs.22.04 Crores.

Out of the total issue, 50% has been reserved for retail investors, while the remaining 50% is allocated for other investors.

 

Sunita Tools Limited IPO timetable (Tentative)

Events	Date
IPO Opening Date	26 September 2023
IPO Closing Date	3 October 2023
IPO Allotment Date	6 October 2023
Refund initiation	9 October 2023
IPO Listing Date	11 October 2023

 

Sunita Tools Limited IPO Details 

IPO Opening & Closing Date	26 September to 3 October 2023
Face value	Rs.10 per Share
Issue Price	Rs.145 per Share
Lot Size	1000 Shares
Price of 1 lot	Rs.145,000
Issue Size	1,520,000 Shares (aggregating up to Rs. 22.04 Cr)
Offer for sale	200,000 shares of Rs.10 (aggregating up to Rs. 2.90 Cr)
Fresh issue	1,320,000 Shares (aggregating up to Rs. 19.14 Cr)
Listing at	BSE SME
Issue Type	Fixed Price Issue IPO
Registrar	Kfin Technologies Limited

 

Sunita Tools Limited IPO Lot Details 

Minimum Lot Investment (Retail)	1 Lot
Maximum Lot Investment (Retail)	1 Lot
Minimum Lot Investment (HNI)	2 Lot

 

Sunita Tools Limited IPO Reservation

Other Investors share Portion	50%
Retail Investors share Portion	50%

 

Company Financial

Amount in Lakhs

Period	FY 21	FY 22	FY 23
Total Assets	1,351.82	1,422.66	2,537.71
Total Revenue	691.50	888.88	1,417.33
PAT	26.66	80.99	337.71
Net worth	-348.02	-267.02	320.69
Reserve & Surplus	-528.52	-447.52	-109.81
Total Borrowings	1,334.63	1,249.16	1,659.96

 

Income derived from the Top Customers

(Amount in Lakhs)

Particulars	Revenue (Rs)
Income from Top 5 Customers	884.38
Income from Top 10 Customers	1,204.82

 

Objective of the Issue

The net proceeds will be utilised to achieve the following objectives:

• Covering working capital needs.

• Supporting general corporate objectives.

 

Promoters and Management of Sunita Tools Limited

Sangeeta Pandey, Sanjay Kumar Pandey, Satish Kumar Pandey, and Ragini Pandey are the promoters of the company.

Pre-issue Promoter Shareholding	100.00%
Post-issue Promoter Shareholding	72.97%

 

Peer Comparison

As per Sunita Tools IPO DRHP, there is no other listed company which is specifically comparable to the company regarding its business model, size and financials.

 

IPO's Valuations

With Sunita Tools' IPO price fixed at Rs. 145 per share and an EPS of Rs. 8.59, the company's P/E ratio is calculated at 16.88.

 

Dividend Policy

The company has not distributed any dividends in the past, and its future dividend payments will be contingent upon the financial performance of the company.

 

IPO's Strengths 

• Highly skilled and experienced management team.
• Strategic unit location.
• Established and quality production setup.
• Long-standing customer relationships.

 

IPO weaknesses 

• Legal proceedings involve the Company, Group Company, Promoters, and Directors.
• The company is required to adhere to stringent environmental, health, and safety regulations or strict enforcement of existing laws.
• The issuer has issued specific securities in the last twelve months at a price lower than the issue price.
• The company requires various approvals and licenses as part of its regular business operations.
• The Company experienced negative cash flows in previous years.
• The company is exposed to foreign exchange risks that could impact its operational results negatively.
• A potential interruption in manufacturing processes may occur in case of power supply failure.
• The company faces competition from both organized and unorganized players in the industry.
  

 

 

IPO GMP Today

The Latest GMP of Sunita Tools SME IPO  is Rs. 55

 

Conclusion

Operating within a highly competitive industry, Sunita Tools Limited has experienced negative cash flows in the past and its performance has not been consistent. Therefore, it is recommended to conduct a comprehensive evaluation of all factors before considering investment in this IPO.

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

 

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

 

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