Introduction:
Initial Public Offerings (IPOs) offer an exciting chance for companies to raise funds and for investors to get in on the ground floor of potentially promising businesses. Just like larger mainboard companies, small and medium-sized enterprises (SMEs) can also use the IPO route to collect money for their day-to-day operations. These IPOs designed for SMEs are known as SME IPOs.
One such SME IPO is the Transteel Seating Technologies IPO, which started accepting public subscriptions on October 30, 2023, and will close on November 1, 2023. If you're interested in learning more about the Transteel Seating Technologies IPO, including its size and the current subscription status, as well as its listing date, keep reading.
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About Transteel Seating Technologies Limited
Incorporated in 1995, Transteel Seating Technologies Ltd. is an Indian SME company specializing in manufacturing and selling customized furniture in the B2B segment. The company’s product portfolio includes office chairs, tables, cabinets, and other commercial furniture for government and corporate offices, educational institutes, and healthcare facilities.
The lone manufacturing unit of the company is located in Yeshwanthpur, Bengaluru, Karnataka.
The company’s products are sold online, offline, and omni-channel distribution networks. It has already catered to the requirements of more than 80,000 customers across seven Indian cities. Transteel Seating Technologies Ltd. has become a niche player in its industry with a strong focus on quality and production.
Some of the marquee projects of the company include French Build Mart Gurugram, JGC Chennai, Smartworks Bengaluru, and the Telangana Secretariat.
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Strengths of the Company
Below are the key strengths of Transteel Seating Technologies Ltd. as stated in its Draft Red Herring Prospectus (DRHP):
- It offers a wide range of commercial furniture for different types of workspaces
- The demand for modular office furniture is constantly rising
- Boasts a robust marketing and distribution network across the nation
- The company is known for its superior product quality, which also gives it an edge over its competitors
- A team of highly experienced promoters and managers with a successful track record
Key Weaknesses or Risks Highlighted
The key risks or weaknesses of Transteel Seating Technologies Ltd. as highlighted in the DRHP include:
- The inability to identify the change in consumer preferences, tastes, or changes in requirements may lead to a loss of market share
- The company is known for its quality products. Failure to maintain this quality in the long run can prove to be detrimental
- An increase in the cost of raw materials can harm the company’s profit margin
- It operates in a highly competitive industry with several organised players
Key Financials of the Company
The table below depicts the core financials of Transteel Seating Technologies Ltd. for the last three completed financial years. All details are as per the RHP dated 21 October 2023 on the Securities and Exchange Board of India’s website:
*Amount in Crores
The key takeaways from the table mentioned above are:
- The business has picked pace in the last financial year as evidenced by the growth of the company’s revenue
- From a loss-making company in FY21, it has returned with a profit of Rs. 9 crores in FY23
- The EBITDA, EPS, and ROE were healthy for FY23 but erratic for the preceding years
Details of the IPO
Transteel Seating Technology IPO opened for public subscription on Monday, 30 October 2023 and closes on Wednesday, 1 November. The total IPO size is Rs. 49.98 crores, comprising a fresh issue worth Rs. 47.49 crores and an offer for sale worth Rs. 2.49 crores.
At the end of Day 2 of the subscription, the issue was subscribed 7.96 times in the retail category and 4.63 times overall. The shares are expected to be listed on the BSE SME and the NSE SME on Thursday, 9 November 2023. Refer to the table below for more details:
To conclude
Transteel Seating Technologies IPO presents an opportunity for investors to participate in the potential growth of a promising company. However, you should carefully assess your investment goals and risk appetite before investing. With Motilal Oswal, you can open a free Demat account and invest in stocks and IPOs seamlessly.
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