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Arrowhead Seperation Engineering IPO is a fixed price issue of Rs 13.00 crores. The issue is entirely a fresh issue of 5.58 lakh shares.
Arrowhead Seperation Engineering IPO bidding started from November 16, 2023 and ended on November 20, 2023. The allotment for Arrowhead Seperation Engineering IPO was finalized on Thursday, November 23, 2023. The shares got listed on BSE SME on November 28, 2023.
Arrowhead Seperation Engineering IPO price is ₹233 per share. The minimum lot size for an application is 600 Shares. The minimum amount of investment required by retail investors is ₹139,800. The minimum lot size investment for HNI is 2 lots (1,200 shares) amounting to ₹279,600.
Aryaman Financial Services Limited is the book running lead manager of the Arrowhead Seperation Engineering IPO, while Cameo Corporate Services Limited is the registrar for the issue. The market maker for Arrowhead Seperation Engineering IPO is Aryaman Capital Markets.
Refer to Arrowhead Seperation Engineering IPO RHP for detailed information.
| IPO Date | November 16, 2023 to November 20, 2023 |
| Listing Date | November 28, 2023 |
| Face Value | ₹10 per share |
| Price | ₹233 per share |
| Lot Size | 600 Shares |
| Total Issue Size | 558,000 shares (aggregating up to ₹13.00 Cr) |
| Fresh Issue | 558,000 shares (aggregating up to ₹13.00 Cr) |
| Issue Type | Fixed Price Issue IPO |
| Listing At | BSE SME |
| Share holding pre issue | 1,313,325 |
| Share holding post issue | 1,871,325 |
| Market Maker portion | 30,000 shares Aryaman Capital Markets |
Arrowhead Seperation Engineering IPO offers 558,000 shares. 264,000 (47.31%) to NII, 264,000 (47.31%) to RII.
| Investor Category | Shares Offered |
|---|---|
| Anchor Investor Shares Offered | - |
| Market Maker Shares Offered | 30,000 (5.38%) |
| Other Shares Offered | 264,000 (47.31%) |
| Retail Shares Offered | 264,000 (47.31%) |
| Total Shares Offered | 558,000 (100%) |
Arrowhead Seperation Engineering IPO opens on November 16, 2023, and closes on November 20, 2023.
| IPO Open Date | Thursday, November 16, 2023 |
| IPO Close Date | Monday, November 20, 2023 |
| Basis of Allotment | Thursday, November 23, 2023 |
| Initiation of Refunds | Friday, November 24, 2023 |
| Credit of Shares to Demat | Tuesday, November 28, 2023 |
| Listing Date | Tuesday, November 28, 2023 |
| Cut-off time for UPI mandate confirmation | 5 PM on November 20, 2023 |
Investors can bid for a minimum of 600 shares and in multiples thereof. The below table depicts the minimum and maximum investment by retail investors and HNI in terms of shares and amount.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 600 | ₹139,800 |
| Retail (Max) | 1 | 600 | ₹139,800 |
| HNI (Min) | 2 | 1,200 | ₹279,600 |
| Lot Size Calculator | |||
The promoters of the company are Mr. Ajit Mundle and Ms. Jyoti Mundle.
| Share Holding Pre Issue | 50% |
| Share Holding Post Issue | 35.09% |
Incorporated in 1991, Arrowhead Seperation Engineering Limited manufactures and designs chemical process equipment such as drying and cooling system equipment. The company's product portfolio includes a Drum Dryer, Rotary Dryer, Flaker System and Zero Liquid Discharge SystemZLD.
The company manufactures drum dryers, belt dryers, air impigment dryers, rotary vacuum dryers, rotary cascade dryers, steam tube dryers, paddle dryers, industrial flaking systems and drum flakers. The company's registered office with manufacturing facility is located in Nashik, Maharashtra. The company use an outsourcing model, a few steps of manufacturing processes are outsourced to third-party service provider on job work basis. The company sell its product in both domestic and international market. As of June 30, 2023, the company's top 5 customers were 96.82% of total revenue from operations and the top 5 suppliers were 48.82% of total purchases.
As of June 30, 2023, the company has 54 payroll employees who facilitate the manufacturing operations.
Arrowhead Seperation Engineering Limited's revenue increased by 98.91% and profit after tax (PAT) rose by 1744.93% between the financial year ending with March 31, 2023 and March 31, 2022.
| Period Ended | 30 Jun 2023 | 31 Mar 2023 | 31 Mar 2022 | 31 Mar 2021 |
| Assets | 2,180.62 | 2,070.53 | 1,832.23 | 1,567.43 |
| Revenue | 881.71 | 2,171.57 | 1,091.73 | 916.63 |
| Profit After Tax | 64.34 | 169.18 | 9.17 | -179.19 |
| Net Worth | 310.41 | 246.07 | 77.26 | 68.09 |
| Reserves and Surplus | 179.08 | 114.74 | -3.56 | -12.73 |
| Total Borrowing | 896.02 | 812.67 | 699.45 | 600.59 |
| Amount in ₹ Lakhs | ||||
The market capitalization of Arrowhead Seperation Engineering IPO is Rs 43.6 Cr.
| KPI | Values |
|---|---|
| ROE | 105% |
| ROCE | 30.94% |
| Debt/Equity | 3.3 |
| RoNW | 68.75% |
| Pre IPO | Post IPO | |
|---|---|---|
| EPS (Rs) | 12.88 | |
| P/E (x) | 18.09 | 16.95 |
The Company proposes to utilize the Net Proceeds from Issue towards funding the following objects (collectively, referred to herein as the "Objects"):
1. Repayment of Loan from NBFC's;
2. Funding Working capital requirements;
3. General Corporate Purpose;
Further, the Company expects to receive the benefits of listing the Equity Shares on the Stock Exchange including enhancing visibility and the brand image among the existing and potential customers and creating a public market for the Equity Shares in India.
[Dilip Davda] Though the company has shown growth in its top and bottom lines for the reported periods, the issue appears aggressively priced based on its super annualized earnings for FY24. The small paid-up equity capital post-IPO indicates longer gestation for migration to mainboard. There is no harm in skipping this pricey bet. Read detail review...
The Arrowhead Seperation Engineering IPO is subscribed 94.79 times on November 20, 2023 7:02:00 PM. The public issue subscribed 142.30 times in the retail category, times in the QIB category, and 46.02 times in the NII category. Check Day by Day Subscription Details (Live Status)
| Category | Subscription (times) |
|---|---|
| Other | 46.02 |
| Retail | 142.30 |
| Total | 94.79 |
Total Application : 69,474 (157.90 times)
| Listing Date | November 28, 2023 |
| BSE Script Code | 544025 |
| NSE Symbol | |
| ISIN | INE0PP401015 |
| Final Issue Price | ₹233 per share |
| Price Details |
|---|
| Final Issue Price |
| Open |
| Low |
| High |
| Last Trade |
| BSE SME |
|---|
| ₹233.00 |
| ₹250.00 |
| ₹237.50 |
| ₹255.00 |
| ₹237.50 |
Arrowhead Seperation Engineering Limited
Survey No 39,
Village Mundhegaon, Tal
Igatpuri, Nashik 422403
Phone: + 91 84228 2906
Email: info@arrowhead-dryers.co.in
Website: https://www.arrowhead-dryers.com/
Cameo Corporate Services Limited
Phone: +91-44-28460390
Email: priya@cameoindia.com
Website: https://ipo.cameoindia.com/
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Check our SME IPO Guide 
Arrowhead Seperation Engineering IPO is a SME IPO of 558,000 equity shares of the face value of ₹10 aggregating up to ₹13.00 Crores. The issue is priced at ₹233 per share. The minimum order quantity is 600 Shares.
The IPO opens on November 16, 2023, and closes on November 20, 2023.
Cameo Corporate Services Limited is the registrar for the IPO. The shares are proposed to be listed on BSE SME.
Zerodha customers can apply online in Arrowhead Seperation Engineering IPO using UPI as a payment gateway. Zerodha customers can apply in Arrowhead Seperation Engineering IPO by login into Zerodha Console (back office) and submitting an IPO application form.
Steps to apply in Arrowhead Seperation Engineering IPO through Zerodha
Visit Zerodha IPO Application Process Review for more detail.
The Arrowhead Seperation Engineering IPO opens on November 16, 2023 and closes on November 20, 2023.
Arrowhead Seperation Engineering IPO lot size is 600 Shares, and the minimum amount required is ₹139,800.
You can apply in Arrowhead Seperation Engineering IPO online using either UPI or ASBA as payment method. ASBA IPO application is available in the net banking of your bank account. UPI IPO application is offered by brokers who don't offer banking services. Read more detail about apply IPO online through Zerodha, Upstox, 5Paisa, Nuvama, ICICI Bank, HDFC Bank and SBI Bank.
The finalization of Basis of Allotment for Arrowhead Seperation Engineering IPO will be done on Thursday, November 23, 2023, and the allotted shares will be credited to your demat account by Tuesday, November 28, 2023. Check the Arrowhead Seperation Engineering IPO allotment status.
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▪️Incorporated in 1991, Arrowhead Seperation Engineering Limited✅ is engaged in the design and manufacturing of various chemical process equipments with specialization in continuous drying and cooling system equipment.
▪️PRODUCTS:- Vacuum Double Drum Dryer, Rotary Dryers, Single Drum Dryer, Double Drum Dryers, Paddle Dryer, Flaker Systems, Totally Enclosed Single Drum Dryer, Continuous Particulate Dryer, etc.
(➡️Work of these dryers is to eliminate or remove moisture, water, and other solvents from the material under processing. )
▪️The company has a vision to develop Equipments and provide solution which matches with the Global standard✅.
▪️ASEL is in dryer manufacturing business for more than two decades💫 now and its team with its experience has been instrumental in driving growth and business strategies of the Company. It has been continuously focusing on upgrading itself with better designs and team to be able to cater the needs of client and provide them with quality equipment.
▪️As of June 2023, the company employs 54 people and also employs industry professionals for project-specific work on a professional basis from time to time.
📍Major Market: Dubai, USA, Singapore, Nepal.🔥
▪️Export: 40-60%.✅
▪️factory workshop area is 24000 sq. ft. (located in nashik).
📌📌
▪️IPO price: Rs.233
▪️IPO size: 13CR
▪️CMP:Rs.219 (below IPO price✅)
▪️Market cap: 41 CR
▪️P/E: 16✅ (Industry Avg : 30.90 )
▪️EPS:Rs.14.6
▪️52 Wk High: 255
▪️52 Wk Low: 208.5
▪️ROE: 105%
▪️ROCE: 30.94%
▪️RoNW: 68.75%
▪️Assets: 21.8Cr
▪️Total Borrowing:8.9Cr (Reserves and Surplus:1.8Cr)
▪️Share Holding Pre Issue: 50%
▪️Share Holding Post Issue: 35.09%
📌FINANCIALS:
▪️FY24Q1 Rev: 8.81 Cr 🔥
▪️FY24Q1 PAT: 0.65 Cr 🔥
( Good growth in Q1, waiting for H1 results now)
▪️FY23 revenue is 21.71CR as compared to 10.91 CR(FY22), 99%✅ growth yoy.
▪️FY23 PAT is 1.69 CR as compared to 0.09 CR(FY22), 1778%✅ growth yoy.
▪️137% growth in revenue in last 2 years.
▪️16900%🔥 growth in PAT in last 2 years.(-ve PAT in FY21,so considered PAT as ~0 for calculation )
(➡️ PAT margins of -(19.64) % (FY21), 0.84 % (FY22), 7.87% (FY23), and 7.38% (Q1-FY24)✅)
📌IPO funds:
It will utilize Rs. 2.00 cr. for repayment of loan from NBFC💫, Rs. 6.50 cr. for working capital, and Rs. 3.20 cr. for general corporate purposes.
📌PEERS:
As per the offer document the company has shown Kilburn Engg, and Praj Ind., as their listed peers. They are trading at a P/E of 27.28, and 39.12 (as of November 10, 2023). However, they are not comparable on an apple-to-apple basis.
📌SECTOR GROWTH:
▪️ The global industrial dryer market was estimated to be valued at more than US$ 2,500 million by 2016 end and is expected to touch nearly US$ 3,415 million by the end of 2024, expanding at a CAGR of 3.5% over the forecast period✅.
▪️ The global industrial dryer market is projected to represent incremental opportunity of more than US$ 830 million between 2016 and 2024✅.
▪️The average replacement rate of industrial dryers per year is expected to be around 7% to 9%✅.
▪️The Global Zero Liquid Discharge (ZLD) Systems Market size is estimated at USD 6,805.08 million in 2023, and is expected to reach USD 10,096.49 million by 2028, growing at a CAGR of 8.21% during the forecast period (2023-2028)✅.
▪️Drying is an integral part of the process industry. Drying is used in the manufacturing of products.
📌STRENGTH:
➢Qualified and Experienced Executive Directors.
➢Wide range of products.💫
➢Customized product for each client.
➢Location of Manufacturing Unit.(Raw material and labour easily available and also connected to Mumbai highway).
📌FUTURE PLAN:
▪️Reduction of debt.
▪️Augment their fund based capacities in order to scale up business operation.
▪️Continue to strengthen relationships with key service providers and take benefit of scalability by outsourcing model.
▪️Focus on international market with competitive pricing.
📌Disclosure: Not a buy/sell recommendation. only for study and education purpose. Please consult your financial advisor before investing. Please stop investing blindly 🙏. I'm holding only 1 lot for tracking purpose