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De Neers Tools IPO GMP, Price, Dates & Allotment Details 2023

De Neers Tools IPO GMP, Price, Dates & Allotment Details 2023

Introduction

The De Neers Tools IPO will open on April 28 and close on May 3, 2023. As per the DRHP filed with SEBI, the company intends to raise approximately ₹ 23 crores through this public offering, consisting of 22.76 lakhs shares with a face value of ₹ 10 each, which will be issued at a price of ₹ 95 to ₹ 101 per share.

About De Neers Tools Limited (“the Company”)

Originally, the family business was started in 1952 with a small setup in Delhi. The company was incorporated in 2021. De Neers Tools Ltd. has received accreditation from ISO 9001:2015, ISO 14001:2015, and 45001:2018. From 1952, or more than seven decades ago, the company has served the hand tool industry, and as of today, it has over 3200 SKUs. Companies have learned and adapted new and improved techniques throughout the years to expand their own dealership network, client reach, and best practises to fully meet the needs of their own customers.

De Neers is one of the few significant companies in the hand tool market, according to a CareEdge industry analysis. The company provides a very broad range of hand tools in India, with approximately two-thirds of its revenue geographically concentrated in the states of Delhi NCR, Gujarat, Telangana, Bihar, and Uttar Pradesh (UP). The company offers a wide variety of equipment, such as trolleys, tool kits, tool cabinets, pliers, cutters, allen keys, hammers, sockets, and screwdrivers. They specialise in delivering safety tools such as non-sparking, insulated steel, non-sparking insulated, stainless steel and magnetic, titanium, and numerous other hand tools.

De Neers Tools Limited is widely accepted by dealers, distributors, and hardware suppliers throughout India. The company’s ultimate clients include some of the leading OEMs like Tata Steel, Indian Oil, Larsen & Toubro, Assam Petrochemicals, Lohia Corporation, Polycab Cables, Indian Railways, etc.

Objects of the Issue,

The company proposes utilising the Fresh Issue’s net proceeds towards funding the following objects:

  • To meet the working capital requirements of the company.
  • For general corporate purposes and to meet the issue expenses

Financial Highlights (Restated Consolidated)

ParticularsThe period ended on 31st Oct. 2022FY 2021-22FY 2020-21FY 2019-20
Net Worth3,0442,382320704
Total Assets12,5589,9346,1115,570
Total Borrowings2,4062,4361,148485
Total Revenue5,6038,0096,2127,350
Profit After Tax3875046644
(Amount in ₹ Lakhs)

IPO details

As per the DRHP filed with SEBI, a total of 22.76 lakhs shares will be offered as part of the offer for sale on the NSE SME segment. The face value of the shares is ₹ 10. Khambatta Securities Limited will be the lead manager for the IPO, Bigshare Services Pvt Ltd will be the registrar. It will be a book-built issue, so there will be a price band rather than a price point, and the actual issue price will be discovered by building the book.

Issue TypeBook built issue IPO
IPO Price₹ 95 to ₹ 101 per share
Face Value₹ 10 per share
Market Lot1,200 shares
Issue Size2,276,800 shares (aggregating up to ₹ 23 crores)
Fresh Issue2,276,800 shares (aggregating up to ₹ [.] crores)
QIB Shares Offered25.04% of the net issue
NII (HNI) Shares Offered36.92% of the net issue
Retail Shares Offered38.03% of the net issue
Listing AtNSE SME
Company PromotersMr. Neeraj Kumar Aggarwal, Mrs. Shilpy Aggarwal, Mr. Kanav Gupta

GMP: De Neers Tools IPO

GMP, or grey market premium, is available on this page. The IPO GMP is updated on a day-to-day basis during the running period of the IPO, due to which the GMP rates fluctuate and stabilise after some time. GMP rates are not 100% guaranteed. Please click here for GMP details.

Tentative Dates: De Neers Tools IPO

The issue opens for subscription on April 28, 2023, and closes for subscription on May 3, 2023 (both days inclusive). The basis of allotment will be finalised on May 8th, 2023, and the refunds will be initiated on May 9, 2023. In addition, the demat credits are expected to happen on May 10th, 2023, and the stock will list on May 11, 2023, on the NSE SME segment. The UPI mandate confirmation cut-off time is 5:00 PM on the issue closing day.

Opening DateApril 28, 2023
Closing DateMay 3, 2023
Basis of AllotmentMay 8, 2023
Initiation of RefundsMay 9, 2023
A credit of shares to Demat A/cMay 10, 2023
Listing DateMay 11, 2023

Lot Size

The lot size of the De Neers Tools IPO is 1,200 shares. A retail-individual investor can apply for up to 1 lot, i.e. 1,200 shares of ₹ 121,200.

ApplicationsLotsSharesAmount 
Retail (Minimum)11200₹ 121,200
Retail (Maximum)11200₹ 121,200
HNI (Minimum)22,400₹ 242,400

SWOT Analysis

STRENGTHSWEAKNESSES
1. Decades old presence of promoter family in our industry.
2. Growth in company brand image along with further potential.
3. Established strong distribution system.
4. Strong management.Cordial relationship with customers.
1. Working-capital intensive business.
2. Dependence on suppliers for desired quality of products.
3. Resource limitations. 
4. High volume of inventory.
OPPORTUNITIESTHREATS
1. Underserved markets for specific products.
2. Emerging needs for products leading to expansion.
3. Attract new customers to increase market share.
4. The hand tool industry is highly fragmented with 80% of sector being unorganized as per the report by CareEdge.
1. Changing regulatory environment.
2. Emerging competitors.
3. Changing customer attitudes towards brand.
4. Fluctuations in market prices.

Review [May apply]

De Neers Tools Limited is engaged in the business of tool manufacturing. It is one of the few sign companies in the hand tool market, as per the analysis of CareEdge. The company have a strong distribution network throughout India.

If we analyse the financial performance of the company, the revenue of the company for the last three years stood at ₹ 8,009 lacks, ₹ 6,212 lacks, and ₹ 7,350 lacks in FY22, FY21, and FY20 respectively. We see some growth in revenue except in FY21 because this year business was affected by COVID-19. And on FY23, the company shows revenue of ₹ 5,603 lacks up to 31st October 2022, per the previous trend.

As per the company detail submitted to SEBI, the profit of the company shows exponential growth i.e in FY22 the profit of the company is ₹ 504 lakh which is about eight times high from the previous year. Company EPS during FY22 stood at 7.97 which is very low compared to listed industry peer Tapariya Tools Limited at 214.41. 

The company intend to issue 2,276,800 shares@₹ 95 to ₹ 101 per share for the sum of ₹ 23 crores. The IPO price is high for the company, but the company have a strong presence in the market and it also have the opportunity for expansion in the future. The financial performance of the company is also good as per the detail submitted. 

If you want to invest your own money in a well-settled company IPO then this IPO is a good choice for investing. 

Miscellaneous Information

Download Prospectus (PDF)IPO DRHP
Company Contact InformationDe Neers Tools Limited
P.No. 468, Ground Floor,
Industrial Area, Patparganj,
Delhi – 110 092
Phone: 011 47072555
Email: [email protected]
Website: https://deneerstools.com/
IPO RegistrarBigshare Services Pvt Ltd
Phone: +91-22-6263 8200
Email: [email protected]
Website: https://www.bigshareonline.com/
IPO Lead Manager(s)Khambatta Securities Limited 

FAQ’s

The De Neers Tools IPO price is ₹ 95 to ₹ 101 per share.

The minimum investment size is one lot for retail investors. One lot of the De Neers Tools IPO contains 1,200 shares of ₹ 121,200.

The finalization of the basis of allotment for the De Neers Tools IPO will be done on May 8, 2023, and the allotted shares will be credited to your demat account by May 10, 2023. Check the De Neers Tools IPO allotment status.

The De Neers Tools IPO shares listing date is May 11, 2023.

The investors’ portion for QIB is 25.04% of the Net Issue, NII (HNI) Shares Offered is 36.92%,  and Retail is 38.03% of the Net Issue.

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