Accent Microcell Limited IPO: A Deep Dive into the Upcoming IPO 2023

Accent Microcell Limited IPO

Leading producer of microcellular components with exceptional precision, Accent Microcell Limited (AML) is getting ready for its first public offering (IPO) on the BSE SME platform. A thorough summary of the IPO is given in this article, together with important dates, a price range, allotment information, and a company analysis.

IPO Dates and Details:

• IPO Opening Date: December 8, 2023
• IPO Closing Date: December 12, 2023
• Price Band: Rs. 133 to Rs. 140 per equity share
• Lot Size: 1,000 equity shares
• Issue Size: Rs. 78.40 crore
• Issue Type: Purely Fresh Issue
• Listing Date: December 19, 2023
• Lead Managers: Monarch Networth Capital Limited and Aryaman Financial Services Limited

Allotment Details:

• Basis of Allotment: Proportionate basis
• Date of Allotment: December 15, 2023
• Initiation of Refunds: December 16, 2023
• Credit of Equity Shares to Demat Accounts: December 18, 2023

Company Analysis:

Accent Microcell Limited is a business that is expanding quickly and is well-known for producing high-precision microcellular components. Many different industries employ these parts, including:

• Automotive: Engine parts, fuel injection systems, and air conditioners
• Aerospace: Aircraft components and engine parts
• Medical: Surgical instruments and medical devices
• Telecommunications: Mobile phone components and networking equipment

With a solid client base and a wide range of products, the business has a proven track record. It also has a cutting-edge production plant and a group of skilled professionals.

Key Financials:

• Revenue: Rs. 137.84 crore for FY 2022
• Profit After Tax: Rs. 23.62 crore for FY 2022
• Debt-to-Equity Ratio: 0.03

Investment Highlights:

• Robust financial performance with steady expansion: Over the last five years, the company has consistently increased its revenue and profits.
• High growth potential: Over the next five years, the market for microcellular components is anticipated to expand at a compound annual growth rate (CAGR) of 12.5%, propelled by factors such the rising demand for electronics and medical devices.
• Skilled management group: A group of seasoned experts with a solid track record oversees the business.
• Attractive valuations: The IPO is a desirable investment opportunity because it is priced lower than its peers.

Risks to Consider:

• Dependency on important clients: A small number of important clients account for a sizable amount of the company’s revenue. The company’s financial performance could be adversely affected by the loss of these clients.
• Competition: There is fierce competition in the market for microcellular components. To stay competitive, the business must continue to prioritise innovation and high-quality products.
• The business operations of the corporation exhibit cyclicality and are susceptible to fluctuations in the economy.

Conclusion:

With Accent Microcell Limited’s IPO, investors will have a chance to support the expansion of a promising business in a market with significant potential. However, before making an investment choice, investors should thoroughly weigh the dangers.