In a significant move that underscores the dynamism of India's construction sector, Readymix Construction Machinery Limited is gearing up to enter the public markets with a ₹37.66 crore IPO. The construction equipment powerhouse is offering 30.62 lakh fresh shares, opening a new chapter in its growth story when the subscription window launches on February 6, 2025, ahead of its anticipated NSE SME platform debut.
Setting an accessible price band of ₹121-123 per share (face value ₹10), the company presents an intriguing opportunity for investors looking to participate in India's infrastructure growth story. With a retail entry point of ₹123,000 for a 1,000-share lot and HNI participation starting at ₹246,000 for two lots, savvy investors might want to evaluate this equipment manufacturer's potential before the February 10 subscription deadline, especially given the government's continued focus on infrastructure development and construction sector growth.
Readymix Construction Machinery Limited IPO is a fundraise worth ₹37.66 crores comprising purely of a fresh issue with 154,000 shares reserved for the market maker Hem Finlease Private Limited. Qualified Institutional Buyers are being offered not more than 50% of the net issue, retail investors are being offered not less than 35% of the net issue and Non-Institutional Investors (NIIs) / High Net-worth Individuals (HNIs) are being offered not less than 15% of the net issue. The IPO will be available for subscription from February 6, 2025, to February 10, 2025, providing an opportunity for investors looking to gain a stake in the construction equipment space.
| Readymix Construction Machinery IPO date | February 6, 2025 - February 10, 2025 |
| Price band / Fixed price | ₹121 to ₹123 per share |
| Face value | ₹10 per share |
| Lot size | 1,000 shares |
| Issue type | Book Built Issue IPO |
| Fresh issue size | 30,62,000 shares amounting to ₹37.66 crores |
| Total issue size | 30,62,000 shares amounting to ₹37.66 crores |
| Listing at | NSE SME |
| Market maker portion | 154,000 - Hem Finlease Pvt Ltd |
| Shareholding post-issue | 1,09,58,500 shares |
| Shareholding pre-issue | 78,96,500 shares |
The Readymix Construction Machinery Limited IPO opens for subscription on February 6, 2025, and closes on February 10, 2025, with allotment scheduled for February 11, 2025.
| IPO open date | February 6, 2025 (Thursday) |
| IPO close date | February 10, 2025 (Monday) |
| Basis of allotment | February 11, 2025 (Tuesday) |
| Initiation of refunds | February 12, 2025 (Wednesday) |
| Credit of shares to Demat account | February 12, 2025 (Wednesday) |
| Listing date on BSE / NSE SME | February 13, 2025 (Thursday) |
| Cut-off time for UPI mandate confirmation | 5 PM on February 10, 2025 (Monday) |
Readymix Construction Machinery Limited, established in 2012, has evolved into a comprehensive solutions provider in the construction equipment sector, offering a diverse range of plant machinery and equipment. With 114 employees, the company specializes in designing, developing, and fabricating essential construction equipment including Dry Mix Mortar Plants, concrete plant support systems, high-capacity silos, and artificial sand plants. Their turnkey approach encompasses everything from initial conceptualization to post-installation services, providing clients with end-to-end support throughout their project lifecycle.
Beyond manufacturing, the company has positioned itself as a knowledge partner in the construction industry, offering specialized business consultancy services that include design optimization, engineering solutions, and technology integration. Their product portfolio is strategically diverse, featuring essential equipment like wall putty plants and custom storage solutions, while their consultancy wing focuses on recipe optimization and efficiency enhancement, helping clients maximize their operational performance and reduce costs in an increasingly competitive construction landscape.
The company plans to use the proceeds from the issue for repaying or pre-paying its borrowings, in whole or in part, addressing its working capital requirements, and fulfilling general corporate purposes.
The Readymix Construction Machinery Limited IPO’s key performance indicators, as on March 31, 2024, reflect the company's financial health with a Return on Equity of 65.90%, Return on Capital Employed (ROCE) at 48.96% and a Debt-to-Equity ratio of 0.42. The Return on Net-Worth (RoNW) stands at 49.51%, and the PAT Margin was 13.30%. The Price to Book Value was 5.18. The company’s market capitalisation is ₹134.79 crores.
| Period Ended | December 31, 2024 | March 31, 2024 | March 31, 2023 | March 31, 2022 |
| Assets | 52.43 | 38.97 | 32.16 | 30.16 |
| Revenue | 35.50 | 69.84 | 55.01 | 47.83 |
| Profit After Tax | 1.04 | 9.28 | 2.78 | 1.33 |
| Net Worth | 19.80 | 18.75 | 9.43 | 6.63 |
| Reserves & Surplus | 11.90 | 18.29 | 8.96 | 6.17 |
| Total Borrowing | 16.68 | 7.90 | 7.60 | 4.68 |
Amount in ₹ crores
The pre-IPO EPS is at ₹11.76 while the post-IPO EPS will be ₹1.27. Similarly, the pre-IPO Price to Earnings ratio is 10.46 and will become 96.82 post-IPO.
Readymix Construction Machinery Limited's key strengths lie in its diversified product portfolio and comprehensive market approach. The company offers a wide range of construction equipment, from Dry Mix Mortar Plants to high-capacity silos, serving multiple industries across various geographical locations. This diversification, coupled with their end-to-end service model that includes design, engineering, installation, and after-sales support, has helped them build strong, lasting relationships with customers while reducing dependence on any single market segment.
The company's competitive advantage is further reinforced by its experienced promoters and management team, backed by skilled design and development professionals. Their decade-long industry presence has enabled them to develop deep expertise in providing customized solutions and business consultancy services, positioning them as both a manufacturer and knowledge partner in the construction equipment sector.
On the weakness front, the company faces significant operational and supply chain challenges. Their heavy reliance on a limited number of key suppliers within a specific geographic area makes them vulnerable to supply disruptions and raw material price fluctuations. Additionally, their business model's dependence on key customers poses a concentration risk, where the loss of any major client could materially impact their financial stability and cash flows.
Furthermore, their recent strategic pivot towards Dry Mix Mortar Plants for higher margins, moving away from their historically successful Readymix Concrete Plant support equipment, introduces transition risks. The company's working capital-intensive nature, combined with their dependence on in-house design and engineering teams for accurate estimations, could lead to financial pressure and reduced margins if not managed effectively. Their quality requirements and product warranty obligations also expose them to potential reputational and financial risks if quality standards aren't consistently met.
Investing early in Readymix Construction Machinery Limited could offer an opportunity to be part of the company’s growth in the construction equipment sector. However, investors should thoroughly evaluate key factors such as the company's operational performance, financial stability, industry trends, and growth strategy. It is also essential to align these factors with personal investment goals and risk tolerance before making a decision. Reviewing the offer document and consulting a professional advisor is advisable to ensure a well-informed decision regarding participation in this IPO.
What is the Readymix Construction Machinery Limited IPO?
The Readymix Construction Machinery Limited IPO is an NSE SME offering consisting of 30.62 lakh equity shares with a face value of ₹10 per share, aiming to raise ₹37.66 crore. The price band has been set between ₹121 to ₹123 per share, with a minimum order quantity of 1,000 shares. This IPO will be open for subscription from February 6, 2025, to February 10, 2025. Hem Securities Limited is the book-running lead manager, Bigshare Services Private Limited is the registrar while Hem Finlease Private Limited is the market maker.
When will the Readymix Construction Machinery IPO open?
The Readymix Construction Machinery Limited IPO will open for subscription on February 6, 2025, and will close on February 10, 2025.
When is the Readymix Construction Machinery IPO listing date?
The tentative listing date for the Readymix Construction Machinery Limited IPO is Thursday, February 13, 2025.
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