Aprameya Engineering IPO in 2022
Aprameya Engineering Limited Overview and operation
Aprameya Engineering IPO – The company filed DRHP on September 07, 2022. Aprameya Engineering is coming up with a Fresh Issue of up to 50,00,000 equity shares with a face value of ₹ 10 each. There is no offer for sale (OFS) in this public offering. The company was incorporated as ‘‘M/s. Aprameya Engineering” in Anandnagar, Prahladnagar, Ahmedabad, Gujarat, India on August 13, 2004. To become a public company before IPO, the name again changed to “Aprameya Engineering Limited” on May 12, 2022, and a certificate of change of name was issued by the RoC.
- Aprameya Engineering Limited is one of the Top 5 Electrosurgical Generator suppliers & Distributors in Ahmedabad, India.
- The company offers end-to-end solutions in the field of healthcare services relating to ICU setup, operation theatre setup
- Aprameya Engineering Limited provides medical equipment for easing operations related to patient treatment, monitoring, and diagnosis.
- The company is a recognized name for providing an extensive range of solutions in the hospital infrastructure segment.
- Aprameya Engineering Limited has an extensive distribution network across India.
Aprameya Engineering Limited Products
The company’s products and services can be classified into two different segments.
- Setting up of healthcare infrastructure within the hospitals and medical care centers – set up & maintenance of
- Intensive Care Units (“ICU”),
- Neonatal Intensive Care Units (“NICU”),
- Pediatric Intensive Care Units (“PICU”), Operation Theatre, and prefabricated structure wards in the hospitals and medical care centers.
- Dealing in high-value medical equipment – offers solutions including devices and equipment designed for several medical facilities, such as examination rooms, operating rooms, hospital wards, laboratories, etc.
Aprameya Engineering IPO – Company Founders and Leadership team
The company is run under the leadership of Mr.Saurabh Bhatt & Mr. Chetan Joshi. Both hold 49.29% of the share in the company.
Mr. Saurabh Kishorbhai Bhatt is one of the promoters, Chairman & Joint Managing Director of the company. He holds a Bachelor of Engineering degree – BE, Electrical, Electronic, and Communications Engineering Technology. Mr. Bhatt has been with the company for over 21 years.
Mr. Chetan Mohan Joshi is one of the promoters and Managing Director of Aprameya Engineering Limited. He has been working with the company for over 10 years. Mr. Joshi holds a Bachelor of Engineering in Industrial Electronics.
Aprameya Engineering IPO – Company Financial Performance
As per the Aprameya Engineering Limited Annual Report, the total income for the fiscal year 2022 is INR 3504 lakhs which is approximately 35% up from the previous fiscal year 2021 with revenue of INR 2601 lakhs. The total income of the company grew over the years.
However, the profit after tax (PAT) does not seem strong, though PAT has increased ~8 folds from INR 86 lakhs in FY 2021 to INR 745 lakhs in FY 2022.
Aprameya Engineering IPO – Valuation Parameters
The debt-equity ratio of Aprameya Engineering Limited is not good at around 1 time. The return on equity, ROCE, and profit margin do not look strong.
Aprameya Engineering IPO Financials
|All amounts in INR Lakhs except percentages|
(Year ended March 31)
|Revenue from Operations||1,223.24||2,593.16||3499.72|
|Profit After Tax for the Year||65.42||86.00||745|
|Return on Equity (%)||0.22||0.21||1.76|
|Return on Capital Employed (%)||23.92||41.95||35.81|
|Net Debt / Equity||1.08||0.34||0.94|
|Earnings Per Share-Diluted (in INR)||0.47||0.61||10.65|
|Net Cash from Operating Activities||6.18||358.14||1040|
Aprameya Engineering IPO: Do you invest?
- The Healthcare sector is one of the largest sectors of the Indian economy, in terms of both revenue and employment in FY 2022.
- The Aatmanirbhar Bharat Abhiyaan packages include Production-Linked Incentive (PLI) programs to increase domestic production of pharmaceuticals and medical equipment.
- Government investment in improving healthcare infrastructure such as hospitals, and healthcare centers in India will benefit this company.
- However, the company depends on a few top customers for a major part of its revenue.
- The top 10 customers accounted for approximately 91%, 80%, and 50% of our revenue from operations in Fiscals 2022, 2021, and 2020, respectively.
- The top five customers represented 80%, 73%, and 36% of its revenue from operations in Fiscals 2022, 2021, and 2020, respectively.
- The loss of any key customer will adversely impact on the business and financial performance of the company.
- Aprameya Engineering depends on customers spending on the healthcare infrastructure. Any decline in spending in India will adversely affect profitability.
- Higher debt along with lower return on equity of the company is discouraging me from investing in the Aprameya Engineering IPO.