Master Components IPO Subscription Status

Master Components IPO subscription status started on September 18, 2023 and will close on September 21, 2023. Master Components IPO to raise around ₹15.46 crores via IPO. The retail quota is 50%, while QIB/NII is 50%. The price band is fixed at ₹140 per equity share.

Master Components Limited IPO Details: Master Components is set to launch its initial public offering (IPO) on September 18, 2023. The IPO will close on September 21, 2023. The company is looking to raise ₹15.46 crores through the IPO. The investors’ portion for QIB/NII is 50%, Retail is 50%. The market lot is 1000 shares.

Master Components IPO Subscription Status

Master Components IPO Investor Categories

• Qualified Institutional Buyers (QIB): Financial Institutions, Banks, FIIs, and Mutual Funds
• Non-Institutional Investors(NII): Individual Investors, NRIs, Companies, Trusts, etc.
• Retail Individual Investors (RII): Retail Individual Investors or NRIs
• Employee (EMP): Eligible Employees
• Others: Eligible Shareholders

Master Components IPO Review

Company Overview

Master Components is a Nashik-based company engaged in the manufacturing of plastic engineering components and subassemblies. The company was founded in 2005 and is headquartered in Nashik, Maharashtra. Master Components offers a wide range of plastic components, including injection molded components, extrusion molded components, and blow molded components. The company’s products are used in a variety of industries, including automotive, electrical, electronics, and consumer goods.

Financial Highlights

Master Components has a strong financial track record. The company’s revenue has grown steadily over the past few years, and its profitability has also improved.

• Revenue: ₹20 crores (FY 2022-23)
• Profit after tax: ₹5 crores (FY 2022-23)
• Net margin: 25% (FY 2022-23)

The company’s financial performance is supported by its strong customer base, which includes leading automotive and electrical companies in India. The company also benefits from its low-cost production base.

IPO Details

Master Components is raising ₹15.43 crores through its IPO. The IPO price band is ₹135-140 per share. The IPO will open for subscription on September 18, 2023, and close on September 21, 2023.

Pros and Cons

Pros:

• Strong financial track record with steady revenue growth and improved profitability.
• Strong customer base, which includes leading automotive and electrical companies in India.
• Low-cost production base.
• IPO proceeds will be used to finance expansion plans, which will help the company to increase its production capacity and meet the growing demand.

Cons:

• Operating in a highly competitive and fragmented segment.
• Financial performance sensitive to the overall economic conditions.
• Small equity capital post IPO indicates longer gestation for migration to mainboard.

Overall Assessment

Master Components is a well-established plastic components manufacturing company with a strong financial track record. The company is well-positioned to benefit from the growing demand for plastic components in India. The IPO proceeds will be used to finance expansion plans, which will help the company to increase its production capacity and meet the growing demand.

However, investors should carefully consider the risks involved before investing in the Master Components IPO. The company is operating in a highly competitive and fragmented segment. Its financial performance is also sensitive to the overall economic conditions. Additionally, the small equity capital post IPO indicates that it may take longer for the company to migrate to the mainboard of the NSE.

Investment Recommendation

Master Components IPO is a good option for investors looking for exposure to the plastic components manufacturing industry. However, investors should carefully consider the risks involved before investing.

Recommendation for retail investors:

Retail investors can apply for the Master Components IPO if they are comfortable with the risks involved. The IPO is a good option for investors looking for exposure to the plastic components manufacturing industry. However, retail investors should consider investing a small portion of their portfolio in this IPO.

Recommendation for institutional investors:

Institutional investors can consider investing in the Master Components IPO if they are looking for a well-established company with a strong financial track record. However, institutional investors should do their own due diligence before investing in the IPO.

Master Components IPO Subscription Status FAQs