The company Master Components Limited is coming up with an IPO of INR 15.43 crores. The offer consists of a fresh issue of equity shares and an offer to sell shares of existing shareholders. The company intends to utilise the raised funds towards meeting working capital requirements of the company.
Master Components IPO – Important Details
| Master Components IPO Date | September 18, 2023 to September 21, 2023 |
| Master Components IPO Listing Date | September 29, 2023 |
| Master Components IPO Price | INR 140 per share |
| Master Components IPO Lot Size | 1000 Shares |
| Master Components IPO Total Issue Size | INR 15.43 crores |
| Master Components IPO Basis of Allotment | September 26, 2023 |
| Master Components IPO Initiation of Refunds | September 27, 2023 |
| Master Components IPO Credit of Shares to Demat | September 28, 2023 |
| Master Components IPO Issue Type | Fixed Price Issue IPO |
| Master Components IPO Listing At | NSE SME |
Master Components IPO – Company Profile
Master Components Limited is engaged in manufacturing plastic engineering components and subassemblies. The company believes that the proximity of its Nashik facility to Mumbai- Pune
Highway, and ability to produce a comprehensive range of plastic components provides them significant competitive advantages.
The company’s specialization and primary activity is moulding the materials to produce the components. Following are list of the services:
- Thermoplastic Injection Moulding
- Thermoset Injection Moulding
- Thermoset transfer Moulding
- Compression Moulding
Master Components IPO – Fundamental Analysis
Revenue Growth:
Master Components Ltd has shown steady revenue growth, increasing from ₹1,325.28 lakhs in 2021 to ₹2,070.26 lakhs in 2023, indicating positive momentum.
Profitability:
The company has improved profitability, with a profit of ₹170.54 lakhs in 2023, up from ₹77.18 lakhs in 2021, reflecting enhanced operational efficiency.
Return on Net Worth (RoNW):
The RoNW has exhibited notable growth, rising from 8.57% in 2021 to a solid 14.63% in 2023, indicating improved utilization of net worth.
Earnings Per Share (EPS):
The diluted EPS has experienced significant growth, reaching ₹5.17 in 2023, signifying improved earnings per share.
Asset and Liability Management:
Total assets have increased, indicating growth and a balanced financial structure. Total liabilities remained relatively stable.
Summary:
Master Components Ltd’s IPO showcases positive revenue growth, improved profitability, and enhanced RoNW. Prospective investors should consider these financial improvements and the stable liability structure, which can be indicative of good financial management. However, a comprehensive evaluation of the IPO and market conditions is advised before investment.
Master Components Ltd IPO Financial Information
| Particular | As at 31 March 2021 | As at 31 March 2022 | As at 31 March 2023 |
| Revenue (₹ in lakhs) | 1,325.28 | 1,823.78 | 2,070.26 |
| Equity (₹ in lakhs) | 901.04 | 994.77 | 1165.31 |
| Expenses (₹ in lakhs) | 1,223.43 | 1,712.20 | 1,848.43 |
| Profit and Loss After Tax (₹ in lakhs) | 77.18 | 93.73 | 170.54 |
| RoNW (%) | 8.57% | 9.42% | 14.63% |
| Diluted EPS only (₹) | 2.34 | 2.84 | 5.17 |
| NAV per Equity Share (₹) | 27.30 | 30.14 | 35.31 |
| Total Assets (in lakhs) | 1,419.09 | 1485.24 | 1659.17 |
| Total Liabilities (in lakhs) | 518.05 | 490.47 | 493.86 |
Master Components IPO Peer Comparison
Master Components Limited exhibits lower revenue at ₹2,070.26 lakhs and moderate financial metrics. It has a P/E of 27.09, EPS of 5.17, and RoNW of 14.63%. Notably, Bright Brothers Ltd has negative RoNW. Careful evaluation is advised.
| Company | Revenue (₹ in lakhs) | Face Value per Equity Share (₹) | P/E | EPS (Basic) (₹) | EPS (Diluted) (₹) | RoNW (%) | NAV per Equity Share (Basic) (₹) |
| Master Components Limited | 2,070.26 | 10 | 27.09 | 5.17 | 5.17 | 14.63% | 35.31 |
| Bright Brothers Ltd | 20,673.60 | 10 | – | – | – | (5.22)% | 127.86 |
| Shaily Engineering Plastic Ltd | 60,706.58 | 10 | 44.89 | 38.32 | 38.32 | 8.76% | 437.56 |
| Mitsu ChemPlast Ltd | 30,897.45 | 10 | 18.69 | 9.78 | 9.78 | 18.91% | 51.71 |
Master Components Ltd IPO Objective
Master Components Ltd’s IPO aims to allocate INR 6.81 crores for its working capital requirements due to its capital-intensive operations. The remaining funds will be used for general corporate purposes, including IT advancement and business expansion.
- Funding working capital requirement: The Company’s business is working capital intensive and the Company avails majority of its working capital requirement in the ordinary course of its business from its internal accruals and through working capital facilities/loans from Banks. The company plans to utilise INR 6.81 crores for the said purpose.
- General corporate purpose: The company plans to deploy the balance funds towards general corporate purpose which is not limited to meeting expenses incurred in ordinary course of business such as strategic initiatives including advancement of information technology, meeting future branch and business expansion,etc
Master Components Ltd IPO Risks And Challenges
Master Components Ltd’s IPO faces significant concentration risk with 77.14% of revenue reliant on the top 10 customers. Trade receivables and inventory issues also pose threats to sales, profitability, cash flow, and liquidity.
- Concentration Risk: As on 31.03.2023, 77.14% of the revenue of the company is generated from top 10 customers of the company. If the customers choose not to source their requirements from the company, the business and results of operations may be adversely affected.
- Trade Receivables and Inventories form a substantial part of the current assets and net worth. Failure to manage the trade receivables could have an adverse effect on the net sales, profitability, cash flow and liquidity.
Master Components IPO – Industry & Market Potential
The engineering sector is the largest of the industrial sectors in India. It accounts for 27% of the total factories in the industrial sector and represents 63% of the overall foreign collaborations. Demand for engineering sector services is being driven by capacity expansion in industries like infrastructure, electricity, mining, oil and gas, refinery, steel, automobiles, and consumer durables.
India has a competitive advantage in terms of manufacturing costs, market knowledge, technology, and innovation in various engineering sub-sectors. India’s engineering sector has witnessed a remarkable growth over the last few years, driven by increased investment in infrastructure and industrial production.
The engineering sector, being closely associated with the manufacturing and infrastructure sectors, is of huge strategic importance to India’s economy. The development of the engineering sector of the economy is also significantly aided by the policies and initiatives of the Indian government. The engineering industry has been de-licensed and allows 100% foreign direct investment (FDI). Additionally, it has grown to be the biggest contributor to the nation’s overall merchandise exports.
Master Components Limited IPO – Type of Offer
The company plans to raise INR 9.08 Crores via new share issuance for working capital and research. Existing shareholders will sell INR 5.63 crores worth of their stake.
● Fresh Issue: The company will issue new shares to raise capital, aiming to collect INR 9.08 Crores. This fund will be utilised towards meeting the working capital requirement and to fund the capital expenditure for research and development.
● Offer for sale: Existing shareholders, including promoters and early investors, will sell a portion of their stake in the company worth INR 5.63 crores.
Master Components Limited IPO Offer Size
Master Components Limited is set to launch an IPO valued at INR 15.43 crores, including fresh equity share issuance and shares sold by existing shareholders, with the funds aimed at fulfilling the company’s working capital needs.
Master Components IPO Allotment Structure
The Master Components IPO allocation structure includes separate categories for Retail Individual Investors (RII) with applications below INR 2 lakhs and those exceeding INR 2 lakhs, with Market Makers reserved 5.08% of the total issue.
Retail Individual Investors (RII): The application value does not exceed INR 2 lakhs. These individual investors apply for shares with a total value of less than Rs. 2 lakhs.
Other than retail individual investors: Such applications where the value exceeds INR 2 lakhs
Market Maker Reservation: Total of 56,000 equity shares are reserved for market makers. This forms 5.08% of the total issue.
How to apply for a Master Components Limited IPO?
To apply for the Master Components IPO through Alice Blue, you would typically follow these steps:
1. Open a Demat and Trading Account: If you don’t have one already, you would need to open a Demat and trading account with Alice Blue.
2. Check for IPO Details: Once your account is active, you can check for the Master Components IPO details in the IPO section of the Alice Blue platform.
3. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
4. Submit the Application: Confirm all your details and submit your application.
You can apply for Master Components IPO at Alice Blue in just a few clicks!
Check Allotment Status: Post the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How to Check Master Components IPO Allotment Status on Alice Blue?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
4. Select the Master Components IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Master Components IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, it’s recommended to contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Master Components IPO:
Registrar’s Website: Visit the website of Bigshare Services Private Limited, the registrar of the Master Components IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN and application number or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
NSE SME: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) SME Platform. You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after the allotment process has been completed, a few days after the IPO window closes.
Master Components IPO Offer Registrar
The registrar for the Master Components Limited’s IPO is Bigshare Services Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
Bigshare Services Private Limited
Office No S6-2, 6th Floor, Pinnacle Business Park,,
Mahakali Caves Road, Andheri (East) Mumbai – 400093
Tel. No.: +91 22 6263 8200
Email: [email protected]
Website: www.bigshareonline.com
Master Components IPO FAQs
What is the allotment date of the Master Components Limited IPO?
The allotment date is September 26, 2023.
What is the price band of the Master Components Limited IPO?
The price is INR 140 per share.
What is the size of the Master Components Limited IPO?
The company Master Components Limited is coming up with an IPO of INR 15.43 crores. The offer consists of a fresh issue of equity shares and an offer to sell shares of existing shareholders. The company intends to utilise the raised funds towards meeting working capital requirements of the company.
What is the listing date of the Master Components Limited IPO?
The listing date is September 29, 2023.
