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)
| Particulars | The period ended on 31st Oct. 2022 | FY 2021-22 | FY 2020-21 | FY 2019-20 |
|---|---|---|---|---|
| Net Worth | 3,044 | 2,382 | 320 | 704 |
| Total Assets | 12,558 | 9,934 | 6,111 | 5,570 |
| Total Borrowings | 2,406 | 2,436 | 1,148 | 485 |
| Total Revenue | 5,603 | 8,009 | 6,212 | 7,350 |
| Profit After Tax | 387 | 504 | 66 | 44 |
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 Type | Book built issue IPO |
| IPO Price | ₹ 95 to ₹ 101 per share |
| Face Value | ₹ 10 per share |
| Market Lot | 1,200 shares |
| Issue Size | 2,276,800 shares (aggregating up to ₹ 23 crores) |
| Fresh Issue | 2,276,800 shares (aggregating up to ₹ [.] crores) |
| QIB Shares Offered | 25.04% of the net issue |
| NII (HNI) Shares Offered | 36.92% of the net issue |
| Retail Shares Offered | 38.03% of the net issue |
| Listing At | NSE SME |
| Company Promoters | Mr. 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 Date | April 28, 2023 |
| Closing Date | May 3, 2023 |
| Basis of Allotment | May 8, 2023 |
| Initiation of Refunds | May 9, 2023 |
| A credit of shares to Demat A/c | May 10, 2023 |
| Listing Date | May 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.
| Applications | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Minimum) | 1 | 1200 | ₹ 121,200 |
| Retail (Maximum) | 1 | 1200 | ₹ 121,200 |
| HNI (Minimum) | 2 | 2,400 | ₹ 242,400 |
SWOT Analysis
| STRENGTHS | WEAKNESSES |
|---|---|
| 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. |
| OPPORTUNITIES | THREATS |
| 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 Information | De 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 Registrar | Bigshare 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
What is De Neers Tools IPO price?
The De Neers Tools IPO price is ₹ 95 to ₹ 101 per share.
What minimum lot size can retail investors subscribe to?
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.
When will De Neers Tools IPO allotment be available?
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.
When will De Neers Tools IPO list on exchanges?
The De Neers Tools IPO shares listing date is May 11, 2023.
How many De Neers Tools IPO Offer shares are reserved for HNIs and retail investors?
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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