Shigan Quantum Technologies Limited – SME IPO

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Shigan Quantum Technologies is a company that has been engaged in the various sub-division and business fronts regarding CNG, LNG, and Hydrogen Fuel Kit Systems. The company carries out work of designing, manufacturing, and developing. The company has recently carried out an expansion of their business in Fire Detection & Alarm systems. It also operates in Fire Suppression System. The capacity of their FDAS & FDSS is around 36,000 units every year. The company started its operation in this new business horizon in April 2020. In this article, we take a closer look at the Shigan Quantum IPO details and its possible future prospects.

Shigan Quantum Technologies also carries out the work of manufacturing Alternate Fuel Systems. It develops this technology for light-duty vehicles and high-duty vehicles. Shigan is also working on the same technology for generators of power, other off-highway, along with industrial machines. Shigan also conducts its operations across other countries, excluding India. The company also engages in exports that are related to CNG system for fuel. The company has its reach in Sweden, various cities of Canada, Italy, and Australia. It also carries out operations in New Jersey city of USA.

Shigan Quantum Technologies has secured the Foreign Suppliers’ expertise. In addition, it has set up a Joint Venture that has helped the company with significant acquisitions in the past. Some of the investments are in the field of Gaseous Fuel Injection Technology. It will boost the company’s financial terms product diversification to meet the emission norms. In addition, it will help improve the performance of the vehicle.

Some other strengths of the company are as follows:

  • Shigan Quantum Technologies has a highly experienced managerial and technical team.
  • The company also holds various Standard Quality Assurance Certificates.
  • It has a robust overseas connection and expands its business model to other countries.
  • Product and Design diversification 
  • Shigan Quantum Technologies has a strong relationship with its suppliers and merchants. It has sourced critical and high precision technology from various MNC via client agreements and manufacturing licenses.
  • Another strength of the company is to produce customized products as per the need of their clients.

Some of the threats that the company is liable to are as follows:

  • Shigan Quantum Technologies works in a highly competitive field.
  • The field of its business operation is highly fragmented; hence there are many solid and unorganized competitors.
  • Though the company registered static margins, with super results, the company’s financial ratios and net cash flows aren’t that good.
  • The IPO of the company has been carried out on upper valuations. The IPO appears to be a bit overpriced.

OBJECTS OF THE IPO ISSUE:

  • Prepayment of all the company’s loans, which be availed on a consolidated basis. 
  • To meet corporate targets. 
  • To meet finance that has been required for the machinery purposes.
  • To finance your working capital needs, and to provide expenses.
  • The company also has an objective to fund their CAPEX Plan to expand their existing manufacturing units and develop new facilities of refinery and manufacturing.
  • The company also intends to fund various investments and strategic acquisitions.
  • General corporate purposes.

SHIGAN QUANTUM IPO DETAILS:

Shigan Quantum Technologies recently got approval from SEBI to float their IPO in the market. The company had previously completed their DRHP through SEBI. The IPO that the company has brought will be under the SME category, and the listing of the company will be under the NSE SME platform. The company’s IPO is of 4,539,000 equity shares that corporate to Rs. 22.70 Crores. The IPO issue price is Rs. 50 per equity shares with a lot size of 3000 Shares. Check Day by Day IPO Subscription Details (Live Status)

IPO Opening DateFebruary 28, 2022
IPO Closing DateMarch 3, 2022
Issue TypeFixed Price Issue IPO for Book Building Purpose
Face ValueRs.10 per equity share
IPO PriceRs.50 per equity share
Market Lot1 lot of 3000 equity shares
Minimum Order Quantity3000 equity shares
Minimum Order PriceRs. 150,000
Maximum Order Quantity3000 equity shares
Maximum Order PriceRs. 150,000
Listing AtNSE SME platform
Issue Size4,539,000 equity Shares of Rs.10 face value that
aggregates up to Rs. 22.70 Crores
Fresh Issue4,539,000 equity Shares of Rs.10 face value that
aggregates up to Rs. 22.70 Crores
Basis of Allotment DateMarch 8, 2022
Initiation of RefundsMarch 9, 2022
The credit of Shares to Demat AccountMarch 10, 2022
IPO Listing DateMarch 11, 2022

FINANCIAL TRENDS:

   Earnings Per Share (Rs)13.8611.5220.29
   CEPS (Rs)4.012.7446.47
   Book NAV/Share (Rs)66.4952.6326.33
   Tax Rate (%)25.5525.75-0.77
   Core EBITDA Margin (%)7.597.64-0.64
   EBIT Margin (%)6.336.90-8.27
   Pre-Tax Margin (%)4.935.41-8.73
   PAT Margin (%)3.674.01-8.48
   Cash Profit Margin (%)5.314.7711.43
   ROA (%)10.1012.28-17.74
   ROE (%)23.2726.95-13.67
   ROCE (%)26.4327.93-5.38
   Asset Turnover (x)2.753.06-10.12
   Sales/Fixed Asset (x)12.3315.57-20.79
   Working Capital/Sales (x)8.008.88-9.87
   Fixed Capital/Sales (x)0.080.0626.25
   Receivable days29.5722.9229.01
   Inventory Days48.1068.36-29.63
   Payable days50.2928.3177.63
   EV/Net Sales (x)0.100.13-24.26
   EV/Core EBITDA (x)1.201.65-27.25
   EV/EBIT (x)1.511.83-17.43
   EV/CE (x)0.200.37-45.89
   Net Sales Growth (%)31.445.36486.13
   Core EBITDA Growth (%)36.84-2.681473.08
   EBIT Growth (%)20.57-4.26582.63
   PAT Growth (%)20.298.29144.93
   EPS Growth (%)20.29-14.57239.24
   Total Debt/Equity (x)0.520.511.17
   Current Ratio (x)1.451.77-18.22
   Quick Ratio (x)0.990.5484.63
   Interest Cover (x)4.534.61-1.77
ParticularsFor the year with the amount ending in crores
 31Aug 2131Mar 2131Mar 2031 Mar 19
Total Assets4,679.174,529.572,473.482,205.65
Total Revenue6,439.769,602.267,278.786,908.42
Profit After Tax289.29351.34292.07266.07

PROMOTER HOLDING:

The company’s promoters are Mr. Shishir Agrawal, SA Shigan Trust, Shigan Autotronics Private Limited, Mr. Gagan Agrawal, and GA Shigan Trust.

Pre-Issue Share Holding100%
Post Issue Share Holding73.63%

COMPANY CONTACT INFORMATION:

Shigan Quantum Technologies Limited
Shyam Kunj, 183-A, Sainik Farms,
Western Avenue, New Delhi-110062
Phone: +91-9818162569
Email: cs@shigan.net
Website: http://www.shigan-quantum.com/

IPO REGISTRAR:

KFintech Private Limited
Phone: 04067162222, 04079611000
Email: shigan.ipo@kfintech.com
Website: https://karisma.kfintech.com/

IPO LEAD MANAGER(S):

Finshore Management Services Limited

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