Auro Impex & Chemicals Limited IPO

About the company

Auro Impex & Chemicals Limited is an Auro Group Company founded in 1994. This is an ISO 9001:2015 certified company that focuses on the manufacturing, exporting and supply of Discharge & Collecting Electrodes, and Electrostatic Precipitator (ESP) internal parts and spares.

Products

Auro Impex & Chemicals Limited is involved in manufacturing of Collecting Electrodes of all profiles, Discharge Electrodes, Electro- magnetic rapper, Tank Fabrication and Duct Fabrication, and other ESP Internal spare parts, for some Original Equipment manufacturers (OEMs) and service providers ranging from sourcing of components, designing, manufacturing, quality testing as per the specifications provided by OEMs and service providers.

Business Model

The company has been selling its products through OEMs and Service Providers like – Larsen & Toubro Limited, Isgec Heavy Engineering Limited, Thermax Limited, KC Cottrell India Private Limited, Par Techno-Heat Pvt Ltd, Hariaksh Industries Private Limited, Imeco Overseas Private Limited and Filter Flow Engineering Private Limited amongst others.

Strengths

• Consistent focus on quality and safety
• Established manufacturing facilities with over decades of operations in the heavy electrical and engineering industry
• Established distribution network and long term relationship with customers

IPO Details:

IPO subscription dates: May 11 to May 15, 2023

Price: Rs. 74-78 per share

Lot size: 1,600 shares (i.e., Rs. 1,18,400 to Rs. 1,24,800)

IPO Objective

The funds generated would be utilised for the following objectives:

• To meet the capital requirements
• General corporate purpose and to meet the issue expenses.

Company Financials

*as per RHP

Major Business-Related Risk

• The company’s business is dependent on limited customers and a remarkable reduction in purchases or the loss of customers could impact the business adversely.
• There is a heavy dependency on a few suppliers for raw materials, so any delays could have a cascading impact on the business.
• There is a heavy risk of production cost increase as the products are designed as per the specifications provided by the OEMs or Service providers.
• The company has only one manufacturing facility and is affected by the prices, availability and quality of the raw materials used in production.
• It has availed certain unsecured loans from various body corporates and had a had negative cash flows in the past years.
• There are outstanding legal proceedings involving the Company, Promoters and Directors.

How to apply for a Quick IPO on ICICI Direct?

• Select IPO

Go to the IPO section, select the IPO you want to apply for from the list, and click on ‘Apply’.

• Fill in the required details

Fill in the number of shares you want to buy. To apply at maximum price, check the cut-off price box and amount is auto-calculated. If you want to apply at some other price within the price band, then you can enter the price manually by clicking on the “Add bid” option.

• Confirm your request

Click on proceed to confirm the order. You can view the placed order under “Order book”. If you are applying using UPI, check the A/C and UPI details before clicking on proceed. You will get a UPI link through which the payment can be made.

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