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  • Writer's pictureJatin Agarwal

Cosmic CRF IPO


Company and IPO Overview:


Cosmic CRF is a qualified and RDSO approved supplier of cold rolled stainless sections to renowned wagon manufactures such as, Titagarh Wagons Limited, Hindusthan Engineering & Industries Limited, Melbrow Engineering Works Private Limited, Jindal Rail Infrastructure Limited, Allied Construction Engineers & Fabricators, etc. In addition to this, the Company also supplies cold rolled stainless sections to direct orders of the railways through tender procurement.


As of March 31, 2023, the total order book value of the Company is Rs 53,640.82 lakhs, out of which orders amounting to Rs 13,566.33 lakhs have been executed and orders amounting to Rs 40,074.48 lakhs are ongoing.


Its product portfolio largely consists of cold rolled stainless sections, such as fabricated items for railway, coach &wagons, cold rolled formed items for wagons and coaches, cold rolled formed items for infra companies and EPC projects and products for roadways and national highway. Over the years, it has offered cost effective and customized solutions in accordance with the standardized quality requirements of its customers who work in various sectors such as railway and the infrastructure sectors.


The Company manufactures products which are compliant with the stringent requirements prescribed by Research Design and Standards Organisation, which is an ISO 9001 research and development organisation under the Ministry of Railways of the Government of India, which functions as a technical adviser and consultant to the Railway Board, the Zonal Railways, the Railway Production Units, RITES, RailTel and Ircon International in respect of design and standardization of railway equipment and problems related to railway construction, operations and maintenance.


Cosmic CRF is a BSE SME IPO and the company is about around to raise ₹ 57.21 crores – 60.13 crores via IPO. The Cosmic CRF IPO price band is fixed at ₹314 - ₹330 with a market lot of 400 shares. The retail quota is 71.24%, NII is 21.87, QIB is 1.89% and 5.01% for Market Makers.


Financials (rounded off):

Date

Total Revenue (₹ in cr)

​​​PAT (₹ in cr)

31/03/2022

-

(0.1)

31/03/2023

121.4

6.41


Objectives of the Issue:


The company intends to utilize the Net Proceeds from the Issue towards the following objects:


1. Funding the expansion of company’s existing manufacturing unit.

2. Funding of working capital requirement of the Company.

3. Prepayment or repayment of all or a portion of certain unsecured loans availed by the Company.


IPO Details:

IPO Date

14/06/2023-16/06/2023

Face Value

₹10 per share

IPO Price Band

₹314-₹330 per share

IPO Lot Size

400 Shares

Listing at

BSE SME

Basis of Allotment

21/06/2023

Credit of Shares in Demat

23/06/2023

Listing Date

26/06/2023

Pre-Issue Shareholding

98.42%

Post-Issue Shareholding

72.52%

Retail Minimum Lot Size

400 shares (₹1,32,000)


Valuations & Margins:

Indicators

FY 22

FY 23

EPS

(2.52)

13.5

P/E

-

23.26-24.44

ROCE (%)

(0.01)

0.23

EBITDA (%)

-

9.99

Debt/Equity

0.77

1.93


Important things to note:


1. The company is a reputed manufacturer of cold rolled stainless sections in India with Long term sourcing arrangements for components

2. Strong focus on innovation

3. Effective Cost Control Management

4. Quality Assurance and Quality Control of company’s products, and

5. Strong Order Book.


Crisp Insights:

  • Current Grey Market Premium is 10%.

  • This IPO looks good as it is in an industry which is in strong momentum right now. Investors can consider this IPO for Listing Gains.



Disclaimer: All information is provided for educational and informational purpose only. Data is fetched from publicly available sources such as the DRHP filed by the company. The website or the author takes no guarantee for the accuracy of the data however, we have tried our best to present accurate data to out readers. Please consult a financial advisor or do your own analysis before investing/trading in the stock market.


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