CFF Fluid Control Limited

31 May 2023|

1 min read |

by ICICI Securities Team

About the Company

CFF Fluid Control Limited, incorporated in 2012, specialises in the production and maintenance of shipboard gear. For the Indian Navy, they produce test facilities and vital component systems for submarines and surface ships. The company also develops, produces, and supports mechanical systems and equipment for sectors like nuclear and clean energy.

Products

Fluid control systems, distributor and air panels, weapons and control systems, steering gear, propulsion systems, high-pressure air systems, hydraulics systems, breathing and diving air systems, and integrated platform management systems for submarines and surface ships for the Indian Navy and its OEMs.

Business model

They are a B2B company.

IPO Details

IPO Date	May 30, 2023–Jun 2, 2023
Price	₹165 per share
Lot Size	800 Shares

IPO Objective

The company intends to utilise the proceeds:

To repay loans
To purchase machinery and equipment
To acquire the technology of “Towed Wire Antenna (TWA)”
To meet general corporate purposes

Company Financials

Particulars	For year ended March 31, 2020	For year ended March 31, 2021	For year ended March 31, 2022	For quarter ended December 31, 2022
Net Worth (in lakhs)	679.11	703.71	1,483.22	2,201.33
Total borrowings (in lakhs)	1433.03	2261.21	1,659.17	2693.09
Total Revenues (in lakhs)	3,196.48	1,481.27	4,712.39	-

Liability Situation

Unsecured loans: ₹ 1,991.65 lakhs

Apart from the stated particulars, the company does not have any Contingent Liabilities as on date of filing the RHP.

Strengths

Experienced promoter and management team
Visible growth through robust order book position
Strong financial performance
Technical capabilities, registrations and empanelment
Long-standing strategic partnerships

Major Business-Related Risk

The company has taken out certain unsecured loans that may be recalled by the lenders at any time.
The majority of revenue depends on Indian Navy contracts. Changes in contracts or a decrease in budget could adversely affect the business.
They have reported negative cash flow in the past.
They are exposed to foreign currency exchange risk because they have imported raw materials. Since they deal with suppliers in foreign currency, their business is affected by its fluctuation.

How to apply for a Quick IPO on ICICIdirect

➢ Select IPO

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

➢ Fill in the required details

Fill in the quantity of 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 “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 an UPI link by which payment can be made.

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