MCON Rasayan IPO Details – MCON Rasayan IPO subscription is opening up soon in February 2023. According to the prospectus, the IPO consists of a fresh issue of 20,00,000 Equity Shares. There is no offer for sales in the IPO issue. The Equity Shares have a face value of Rs 10 each. This is a 100% fixed price issue. The retail allocation is 50% of the total size.
MCON Rasayan IPO – The Company Business Operation
MCON Rasayan is engaged in manufacturing marketing and selling modern building materials and construction chemicals in India. The company has more than 80 products in construction materials and construction chemicals both powder and liquid forms.
- The powder products consist of ready-mix plaster, tile adhesives, block adhesives, wall putty, micro concrete & polymer mortar, engineering non-shrink grouts, and floor hardeners.\
- The liquid portfolio products consist of polyurethane (PU) based liquid membranes, bonding agents, paints, anti-corrosive coatings, concrete admixtures, and curing compounds.
- The products are marketed and sold under the “MCON” brand.
- The company has two manufacturing plants in Valsad, Gujarat with an installed capacity of 2,500 MTPA.and Navsari, Gujarat with an installed capacity of 12,500 MTPA.
- The third manufacturing plant is under construction at Ambethi, Valsad, and is expected to be operational by the end of FY 2023.
- Once completed the total capacity of the company will be 36,000 MTPA for powder products and 6,000 MTPA for liquid products.
- The company has more than 100 distributors and dealers concentrated in the States of Maharashtra, Gujarat, and Rajasthan.
MCON Rasayan Limited Founders
Mr. Mahesh Ravji Bhanushali is one of the Promoters and Chairman cum Managing Director of the Company. It is a family business.
MCON Rasayan Limited Revenue and Profit
The company has registered strong revenue growth over the years. Though the revenue from the operation of the company remains flat from INR 896.62 lakh in 2020 to INR 897.77 lakhs in the fiscal year 2021, it has gone up by over 2 times in FY 2022 to reach INR 1,921.65 lakh. For the half year of FY 2023, the company has recorded revenue from operation of INR 654.21 lakh by end of June 2022. The Profit after tax (PAT) has gone up from INR 3.61 lakhs in FY2020 to INR 44.40 in FY 2022.
MCON Rasayan IPO Review – Financial Snapshot
| All amounts in INR Lakhs | |||
| (Year ended March 31) | 2020 | 2021 | 2022 |
| Revenue Operation | 896.62 | 897.77 | 1,921.65 |
| Total Revenue | 896.95 | 899.78 | 1922.36 |
| EBITDA | 65.41 | 91.38 | 128.04 |
| Profit After Tax | 3.61 | 18.68 | 44.40 |
| Earnings per Share (EPS) | 0.32 | 1.25 | 2.96 |
| Net Cash from Operating Activities | (56.85) | (1.68) | (195.83) |
| Return on Equity (%) | 3.26 | 10.47 | 20.06 |
| ROCE (%) | 7.90 | 12.12 | 9.93 |
| Net debt | 321.61 | 346.58 | 740.85 |
Objective Behind the MCON Rasayan SME IPO
- Out of the net proceeds of this IPO, the company is planning to spend INR 400 lakh to fund the working capital requirements of the company.
- The rest net proceeds will be utilized for general corporate purposes.
MCON Rasayan IPO Review – Is it worth investing?
- MCON Rasayan registered a revenue growth of over 100% from FY2020 to FY2022. However, the growth was stagnant over FY2020 and FY2021.
- The company has witnessed significant growth in PAT from INR 3.61 lakh in FY 2020 to INR 44.40 lakh in FY 2022.
- However, net debt is INR 740.85 lakh in FY2022 which has increased from INR 321.61 lakh in FY 2020. This is significant for a small company with a profit of INR 44 lakh.
- Return on capital employed is also less than 10% for two years reported in the prospectus.
- The net cash flow from operating activities was negative for all three years mentioned in the prospectus.
- Global growth is forecast slow during 2023 and 2024, with a slowdown in construction Industries.
- The Indian construction market is also slowing down with a higher interest rate cycle. The only part is government expenditure on infrastructure.
- Looking at the financials and other factors mentioned above, I would prefer to avoid this SME IPO at the moment as a retail investor.
MCON Rasayan IPO Details
| MCON Rasayan IPO Details | MCON Rasayan IPO Date, Price and other details |
| MCON Rasayan IPO subscription Date | Mar 6, 2023 to Mar 10, 2023 |
| IPO Price | ₹40 per share |
| IPO Allotment date | Mar 15, 2023 |
| Refunds Initiation date | Mar 16, 2023 |
| Credit of Shares to Demat Account | Mar 17, 2023 |
| IPO Listing Date | Mar 20, 2023 |
| Offer for Sale | Nil |
| IPO Issue Size (Fresh Issue) | 1,710,000 shares of ₹10 (aggregating up to ₹6.84 Cr) |
| Minimum bid (lot size) For retail investor | 1 lot of 3000 equity shares investment of ₹120,000 |
| Retail Shares Offered | 50% of the Net Issue |
| Minimum bid (lot size) HNI investor | 2 lot of 3000 equity shares (6000) investment of ₹240,000 |
| NII (HNI) Shares Offered | 50% of the Net Issue |
| Face Value | INR 10 per share |
| Listing on | NSE SME |
| Promoters | Mr. Mahesh Ravji Bhanushali |
MCON Rasayan IPO: Lead Managers and Contact
| Contact Details | MCON Rasayan IPO Lead Managers |
| 101/A, 1st floor, Maxheal House, Plot-169, CTS-104 Bangur Nagar, Goregaon West, Near Ayyappa Temple, Mumbai- 400090, Maharashtra, India. Email-id: compliance@mconrasayan.com Tel.: +91 86559 88698 www.mconrasayan.com | 1. GYR Capital Advisors Private Limited |
MCON Rasayan SME IPO Allotment Status
MCON Rasayan SME IPO Allotment status will be available on Link Intime’s website. To know your allotment status, get ready with your PAN number and click on this link. You may also reach out to Telephone: +91 810 811 4949, E-mail: mconrasayan.ipo@linkintime.co.in
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