Saketh Seven Star Industries IPO
Saketh Seven Star Industries IPO is a Mainboard book-built issue of 24.35 lakh equity shares, comprising entirely of a Fresh Issue. The company proposed to raise up to ₹31.51 crore through the IPO. The face value is ₹10 per share, while the final price ba
Saketh Seven Star Industries IPO Details
Saketh Seven Star Industries IPO is a proposed SME IPO of Saketh Seven Star Industries Limited. The company filed its Draft Red Herring Prospectus dated March 27, 2024. The issue comprises a Fresh Issue of up to 24,35,200 equity shares aggregating up to ₹31.51 crore. The equity shares are proposed to be listed on the SME Platform of NSE Emerge, with NSE as the Designated Stock Exchange. The price band, minimum bid lot and issue schedule were to be determined and announced later.
Saketh Seven Star Industries IPO Lot Size
The Saketh Seven Star Industries IPO lot size was not disclosed in the Draft Red Herring Prospectus. The company stated that the price band and minimum bid lot would be decided in consultation with the Book Running Lead Manager and announced before the issue opened.
| Application | Lots | Shares | Amount (₹) |
|---|---|---|---|
| Retail (Min) | |||
| Retail (Max) | |||
| S-HNI (Min) | |||
| S-HNI (Max) | |||
| B-HNI (Min) |
Saketh Seven Star Industries IPO Reservation
Saketh Seven Star Industries IPO proposed not more than 50% of the Net Issue for allocation to Qualified Institutional Buyers, not less than 15% to Non-Institutional Investors and not less than 35% to Retail Individual Investors, subject to the applicable SEBI regulations and the final issue structure.
Saketh Seven Star Industries IPO Subscription
Saketh Seven Star Industries IPO had not opened for subscription at the time of the Draft Red Herring Prospectus. Subscription figures are therefore not available.
| Category | Subscription (times) |
|---|---|
| QIB | |
| NII | |
| RII | |
| Total |
About Saketh Seven Star Industries
Saketh Seven Star Industries Limited is engaged in the manufacturing and processing of engineering products and provides zinc flake coating and chemical coating services. The company was incorporated on October 9, 2019 and was subsequently converted into a public limited company in December 2021. Its registered office is located at Turbhe MIDC, Navi Mumbai, Maharashtra.
The company's business activities include Zinc Flake Coating and Chemical Coating, manufacturing of Dies and Moulds, trading of engineering goods and distributorship of Rawlplug products in Maharashtra and Goa. Its zinc flake coating business provides corrosion protection for components used in automotive, construction, wind power, commercial vehicles, bicycles and agricultural machinery.
The company manufactures precision dies and moulds under its Prazision brand and undertakes customised tool-room work. It also has distributorship rights for Rawlplug products in Maharashtra and Goa, while supplying these products to customers in other parts of India. The company operated primarily from the western region and had its manufacturing facility at Vasai, Maharashtra.
Strengths
- Diversified business activities across zinc flake coating, chemical coating, dies and moulds, engineering goods trading and construction-fixing products.
- Zinc flake coating business provides corrosion-protection solutions for automotive, construction, wind power and other industrial applications.
- In-house manufacturing capability for dies, moulds and customised tool-room jobs.
- Distributorship of Rawlplug products provides access to an established range of construction fixings and accessories.
- Experienced management team with knowledge of engineering and manufacturing-related businesses.
- The company had established customers across building construction, industrial factories, infrastructure, automobiles, interiors and fabrication sectors.
Risks to Consider
- The company is dependent on a limited number of customers, with its top five customers accounting for a significant portion of revenue.
- The company is also dependent on a limited number of suppliers, creating supply-chain concentration risk.
- Fluctuations in metal prices may adversely affect production costs, inventory values and profitability.
- The engineering manufacturing and coating industry is competitive and requires continuous innovation and differentiation.
- The company depends partly on third-party transportation providers for movement of goods and materials.
- The company may face risks relating to inventory management and accurately forecasting customer demand.
- The company is exposed to changes in economic conditions, foreign exchange rates and geopolitical factors affecting engineering-product demand.
- Changes in regulatory requirements and industry standards may increase compliance costs.
- The company needs to continue investing in technology and manufacturing capabilities to remain competitive.
- Concentration of ownership among the promoters may limit the influence of other shareholders.
Saketh Seven Star Industries Financials (₹ Cr)
Saketh Seven Star Industries reported strong growth in revenue during the financial years covered in its DRHP. Revenue increased from ₹24.37 crore in FY2022 to ₹57.53 crore in FY2023. Profit after tax increased from ₹0.32 crore in FY2022 to ₹1.69 crore in FY2023. For the nine months ended December 31, 2023, the company reported revenue of ₹87.57 crore and PAT of ₹2.77 crore. Total assets increased from ₹15.14 crore in FY2022 to ₹23.37 crore in FY2023 and ₹46.21 crore as of December 31, 2023.
| Period | Revenue | PAT | Total Assets | Net Worth |
|---|---|---|---|---|
| FY2021 | 0.99 | 0.10 | 1.78 | 1.17 |
| FY2022 | 24.36 | 0.32 | 15.14 | 10.26 |
| FY2023 | 57.77 | 1.69 | 23.37 | 15.00 |
| 9M FY2024 | 87.57 | 2.77 | 46.21 | 35.91 |
KPIs & Valuation
At the time of the DRHP, Saketh Seven Star Industries reported basic and diluted EPS of ₹4.09 for the nine months ended December 31, 2023. The company reported NAV of ₹53.17 per share and Return on Net Worth of 7.70% for the same period. For FY2023, EPS was ₹3.25, NAV was ₹28.88 and Return on Net Worth was 11.26%. Since the final IPO price had not been disclosed, the P/E ratio cannot be calculated.
Objects of the Issue
The Saketh Seven Star Industries IPO comprises a Fresh Issue of 24.35 lakh equity shares. The company proposes to utilise approximately ₹56.45 crore from the Net Proceeds towards funding its working capital requirements, while the balance is proposed to be used for general corporate purposes, subject to the applicable limits and the final terms of the offer document. The final allocation and amount may be subject to the terms of the final offer document. The company proposed to utilise the IPO proceeds for:
- Funding the working capital requirements of the company.
- General corporate purposes.
Promoters, Lead Managers & Registrar
Saketh Seven Star Industries Limited is promoted by Shabbir Huseni Merchant, Fatema Shabbir Kachwala, Shalin Sanjay Patel, Saloni Sanjay Patel, Smita Sanjay Patel and Tembo Global Industries Limited. Inventure Merchant Banker Services Private Limited is the Book Running Lead Manager to the Issue and Bigshare Services Private Limited is the Registrar to the Issue.
Promoters
Lead Managers (BRLM)
Registrar
| Name | Bigshare Services Private Limited |
|---|---|
| Phone | +91 22 6263 8200 |
| ipo@bigshareonline.com | |
| Website | www.bigshareonline.com |
Saketh Seven Star Industries IPO Review
Saketh Seven Star Industries has a diversified engineering-oriented business model covering zinc flake coating, chemical coating, dies and moulds, engineering goods trading and distribution of construction-fixing products. Its zinc flake coating activity is used across automotive, construction, wind power and other industrial applications, while its in-house die and tool manufacturing capability allows it to cater to customised industrial requirements. The company also has a Rawlplug distributorship covering Maharashtra and Goa.
The company recorded strong growth in revenue during the period covered by the DRHP. Revenue increased from ₹24.37 crore in FY2022 to ₹57.53 crore in FY2023, while profit after tax increased from ₹0.32 crore to ₹1.69 crore. For the nine months ended December 31, 2023, revenue stood at ₹87.57 crore and profit after tax was ₹2.77 crore. The proposed IPO proceeds are primarily intended to support the company's working-capital requirements, which is important given the expansion in its business activity.
However, investors should consider the company's customer and supplier concentration, exposure to metal-price movements, competitive industry conditions and working-capital intensity. The top five customers accounted for 91.33% of sales in FY2023, while the top five suppliers accounted for 91.73% of purchases. The valuation also cannot be assessed through the IPO P/E multiple because the final issue price had not been disclosed in the DRHP.
How to Apply
Saketh Seven Star Industries IPO applications can be made through ASBA and UPI mechanisms once the IPO opens for subscription. The price band, minimum bid lot and issue dates were not disclosed in the Draft Red Herring Prospectus and will be announced before the issue opens.
Through UPI
- Log in to your stockbroker app/website.
- Go to the IPO section.
- Select Saketh Seven Star Industries IPO.
- Enter the number of lots you want to apply for.
- Select the bid price. Retail investors can generally choose Cut-off when available.
- Enter your valid UPI ID.
- Submit the IPO application.
- Open your UPI app when the mandate request arrives.
- Approve the mandate using your UPI PIN.
- The application amount will be blocked in your bank account. If shares are allotted, the required amount will be debited; otherwise, the blocked amount will be released.
Prospectus & Documents
Investors can refer to the company's Draft Red Herring Prospectus and subsequent offer documents for detailed information about the business, financial performance, risk factors, IPO structure, objects of the issue and other offer-related information. The Draft Red Herring Prospectus is dated March 27, 2024. The final issue terms, including the price band and bidding schedule, were not included in the DRHP.
Last updated Oct 6, 2026.