Srigee DLM IPO: Unpacking the Upcoming Manufacturing Opportunity
The Indian manufacturing sector is witnessing significant growth, driven by favorable government policies and rising domestic demand. Against this backdrop, Srigee DLM Limited, a company specializing in design-led manufacturing across diverse segments, is set to launch its Initial Public Offering (IPO). This upcoming SME IPO presents an opportunity for investors to potentially participate in the company's expansion journey. Let's delve into the details of the Srigee DLM IPO, its business, financials, and key considerations.
Understanding Srigee DLM Limited
Established in 2005, Srigee DLM began its operations with plastic mouldings for consumer durables. Over the years, the company strategically expanded its capabilities, venturing into home appliances by 2013. Today, Srigee DLM is recognized for its design-led manufacturing services, encompassing various critical processes like plastic injection moulding, tool and die making, mobile phone sub-assembly, and polymer compounding. The company caters to a wide array of sectors including electronics, automotive, and home appliances, partnering with prominent Original Equipment Manufacturers (OEMs). With plans to expand its manufacturing footprint with a new facility in Greater Noida, Uttar Pradesh, Srigee DLM aims to leverage the growing demand for outsourced manufacturing services.
Srigee DLM IPO at a Glance: Key Details
| Detail | Information |
|---|---|
| IPO Status | Upcoming |
| Open Date | May 05, 2025 |
| Close Date | May 07, 2025 |
| Listing Date | May 12, 2025 |
| Price Range | ₹94 to ₹99 per share |
| IPO Size | ₹16.98 Crores (Fresh Issue) |
| Listing Exchange | BSE SME |
IPO Timeline Visual Tracker
Keep track of the key dates for the Srigee DLM IPO:
Purpose of the IPO Proceeds
Srigee DLM intends to utilize the capital raised through the IPO for the following key objectives:
- Meeting capital expenditure requirements.
- Establishing a new manufacturing facility in Greater Noida, Uttar Pradesh.
- Acquiring necessary machinery for the proposed manufacturing facility.
- General corporate purposes.
Financial Performance Snapshot (in ₹ Crores)
Analyzing the company's recent financial performance provides insight into its trajectory:
Profit and Loss
| Particulars | FY22 | FY23 | FY24 |
|---|---|---|---|
| Revenue | 33.04 | 47.25 | 54.65 |
| EBITDA | 2.24 | 4.65 | 4.92 |
| PAT (Profit After Tax) | 1.13 | 2.81 | 3.10 |
Balance Sheet
| Particulars | FY22 | FY23 | FY24 |
|---|---|---|---|
| Total Assets | 16.23 | 19.89 | 24.99 |
| Share Capital | 1.81 | 1.81 | 4.26 |
| Total Borrowings | 3.71 | 2.51 | 2.27 |
The financials indicate consistent growth in revenue and profitability over the last three fiscal years, alongside an increase in total assets and a reduction in total borrowings.
IPO Structure and Lot Size
| IPO Component | Size (₹ Cr) |
|---|---|
| Total IPO Size | 16.98 |
| Fresh Issue | 16.98 |
| Offer For Sale (OFS) | - |
Minimum Investment and Lot Size
| Investor Category | Min Lots | Min Shares | Min Amount (₹) |
|---|---|---|---|
| Retail | 1 | 1200 | 112,800 |
| HNI | 2 | 2400 | 225,600 |
Industry Landscape and Growth Drivers
The Design-Led Manufacturing (DLM) sector in India is poised for growth. Several factors contribute to this potential:
- Increased tendency among OEMs to outsource manufacturing processes to enhance cost efficiency and focus on core competencies.
- Supportive government initiatives like 'Make in India' and the Production Linked Incentive (PLI) schemes, which are actively promoting domestic manufacturing.
- Robust demand and expansion witnessed in key end-user sectors such as consumer durables, electronics, and automotive.
Srigee DLM's integrated service offerings and strategic expansion plans, particularly the new facility in Greater Noida, position the company to potentially capitalize on these favorable industry tailwinds and achieve scalable growth.
Evaluating the Srigee DLM IPO: A Look at Strengths, Weaknesses, Opportunities, and Threats
Strengths of Srigee DLM
- Established relationships with leading OEMs across multiple sectors provide a stable customer base.
- Offers end-to-end manufacturing solutions, supported by an in-house design and development team, enhancing efficiency and control.
- Holds relevant certifications for quality, safety, and automotive manufacturing, indicating adherence to industry standards.
- Demonstrated consistent growth in revenue and profitability over the past three financial years, reflecting operational health.
Potential Challenges (Weaknesses)
- Significant dependency on a small number of top customers for a majority of revenue could pose business risks if these relationships change.
- Concentrated customer base suggests limited diversification, which might impact revenue stability in case of sector-specific downturns or customer issues.
- The company and its promoters are involved in ongoing legal proceedings, which could potentially impact future performance.
- Unfavorable outcomes from these legal matters might negatively affect the company's financial and operational standing.
Growth Avenues (Opportunities)
- Expansion plans, including the new Greater Noida facility, open avenues for growth, particularly in electronics and advanced assembly processes.
- Rising demand in sectors like consumer durables and automotive presents opportunities for increased order volumes.
- There is potential to expand the customer base by onboarding new clients, reducing customer concentration risk.
- The polymer compounding and trading business offers scope for future growth and diversification of revenue streams.
External Factors (Threats)
- The risk associated with a concentrated customer base could impact revenue predictability and overall business stability.
- Competition from larger, established contract manufacturers in the industry poses a significant external threat.
- Any delays or cost overruns in the planned facility expansion could hinder the company's projected growth trajectory.
- Potential economic slowdowns could lead to reduced order volumes from OEMs across its served sectors.
How to Apply for the Srigee DLM IPO
Investors interested in applying for the Srigee DLM IPO can typically do so through their brokerage account. Here are the general steps using a platform like 5paisa:
- Login to your brokerage account .
- Navigate to the IPO section and select the Srigee DLM IPO.
- Enter the number of lots you wish to apply for and select your preferred price within the band (or apply at the cut-off price).
- Enter your UPI ID linked to your bank account.
- Submit your application.
- Approve the UPI mandate request received on your UPI app to block the application amount in your bank account.
Ensure you have sufficient funds in your bank account and the UPI mandate is approved before the application window closes.
Key IPO Stakeholders
- Book Running Lead Manager: GYR Capital Advisors Private Limited
- IPO Registrar: Bigshare Services Pvt Ltd
- Company Contact Information:
- Srigee DLM Limited
- Plot No. 434, Udyog Kendra 2, Ecotech 3, Greater Noida
- Phone: +91 9911786252
- Email: compliance@srigee.com
- Website: http://www.srigee.com/
Conclusion
Srigee DLM's IPO is an upcoming event in the SME segment, offering investors a chance to invest in a company with a growing presence in the design-led manufacturing sector, serving key industries and showing consistent financial growth. The company aims to use the IPO proceeds for expansion, targeting further growth. However, like any investment, potential investors should carefully review the RHP (Red Herring Prospectus) document, assess the company's business model, financials, the potential risks outlined (such as customer concentration and legal proceedings), and consider the prevailing market conditions. Evaluating these factors against individual investment goals and risk appetite is crucial before making an investment decision. Considering consulting with a financial advisor is also advisable.