Minda Industries IPO Closes on Sep 08, Should you invest?

The torrential rains, pandemic are deterring the pace of the economy and confidence of the investors. However, SEBI is taking various initiatives to spruce up market growth. It has given permissions to various companies to launch its IPO like Rossari Bio, LIC, RIL, now Minda Industries Limited has launched its IPO. Here are the details:

Launched in September 1985, Minda Industries Limited is a flagship brand of UNO Minda. The company manufactures automotive components and provides solutions to original equipments manufacturers. It has 24 subsidiaries, nine joint ventures and four associates.

Minda Industries IPO Details & Objective

The company wishes to utilize its net proceeds to meet the following objectives

• Repayment of principal and interest for the money borrowings taken by the company.
• To fund its joint venture- Toyoda Gosei Minda Industries Private Limited
• To meet the general corporate purpose.

The issue has been opened up for a subscription on August 25, 2020. The company will sell the shares at Rs 250.  Here are the details

• Bid opens and closes on- August 25,2020-Sept 8,2020
• Fund amount- Rs 242.79 crores
• Face value-Rs 2 per share
• Market Lot-Rs 1 per share
• Size of issue- Rs 0.97 crores
• Listing at-BSE/NSE

Should you Subscribe?

The company has registered Rs 48, 3888 million assets for 31 March 2020 as compared to Rs 42,306 million in its previous year. Its revenue is declined from Rs 59,351 million to Rs 55,043. The profit after tax is recorded as Rs 1,747 million which is low than it registered in the earlier year.

Minda Industries is growing at a rapid rate as compared to its peers. It has introduced various new products in its portfolio and has already tasted success in import substitution products. The company has strong financials through which it can easily meet up the massive shift in consumer demands.

Moreover, with the increase in digital sales of the automotive segment, it is believed that the company will further strengthen up. Hence, we recommend the investor to invest in this IPO.