ANI Integrated NSE SME IPO review (Apply)

ANI Integrated Services Ltd. (ANI) (earlier known as ANI Instruments Pvt. Ltd.) is an ISO 9001 certified company engaged in the business of Engineering services such as Erection and Installation of Electrical /Instrumentation/Mechanical Turnkey Projects‘, Operations and Maintenance, Commissioning Assistance, Shutdown services and Technical Manpower deputation, . It has leveraged its track record in India to successfully expand its operations internationally, and have provided a wide range of engineering services on various international projects, particularly in the UAE, Thailand and Kingdom of Saudi Arabia to esteemed clients like, Larsen & Turbo Industries, Tata Consultancy Engineers Limited, Reliance Industries Limited, Nestle India Limited, Engineering India Limited, Mondelez India Foods Limited, GAIL (India) Limited, etc. These services are timely executed as per the varied demands of customers. ANI has been meeting the most demanding requirements of clients for their immediate needs, specific expertise personnel or quality of work.

Through its efficient functioning ANI has been able to grab a niche in the market and would continue to maintain the same goodwill. Backed by a team of more than 1200+ adept and skilled professionals, along with large team of Technicians it became one point solution for Design / Detailed Engineering, System Engineering / Programming Engineers, FAT / SAT Engineers, Field Engineers, Installation / Testing Engineers, Commissioning Engineers, Operation & Maintenance Engineers etc. ANI has a backup of the most Hi tech services and customer care executives that manage and monitor the company business operations. Company has been serving EPC consultants and various other industries like Power Plants, Oil & Gas, Refineries, Chemicals & Petrochemicals, Pharmaceuticals, Cement, FMCG, Breweries, Fertilizers, Hospitality, Construction, Infrastructure Projects and F & B sectors, Metals, Airports etc.

To part finance part repayment of debt, working capital and general corpus fund needs, ANI is coming out with a maiden IPO of 2565600 shares of Rs. 10 each at a fixed price of Rs. 100 per share to mobilize Rs. 25.66 crore. Issue consists of offer for sale of 878400 equity shares and fresh equity issue of1687200 shares. Issue opens for subscription on 08.11.17 and will close on 10.11.17. Minimum application is to be made for 1200 shares and in multiples thereon, thereafter. Post allotment, shares will be listed on NSE SME Emerge platform. Issue is solely lead managed by Hem Securities Ltd. and Bigshare Services Pvt. Ltd. is the registrar to the issue. Issue constitutes 26.48% of the post issue paid up capital of the company. Having issued initial MoA equity at par, it capitalized reserves and issued bonus shares in the ratio of 49 for 1 in March 2014, 1 for 1 in September 2016 and 7 for 1 in September 2017. Post issue its current paid up equity capital of Rs. 8.00 crore will stand enhanced to Rs. 9.69 crore. Cost of acquisition by selling promoter is Rs. 0.01563 per share.

On performance front, ANI has reported turnover/net profits of Rs. 19.82 cr. / Rs.1.05 cr. (FY14), Rs. 23.63 cr. / Rs. 1.16 cr. (FY15), Rs. 39.96 cr. / Rs. 1.82 cr. (FY16) and Rs. 63.61 cr. / Rs. 7.88 cr. (FY17). For Q1 of current fiscal it has posted net profit of Rs. 2.06 cr. on a turnover of Rs. 15.37 crore. For last thee fiscals it has reported average EPS of Rs. 5.83 and average RoNW of41.75%. Asking price is at a P/BV of around 3.12 on the basis of post issue NAV of its shares. If we annualize latest earnings and attribute it on fully diluted equity post issue, then issue is priced at a P/E of around 12 against its peers TeamLease and Quess Corp trading at a P/E of around 50 and 112 respectively. Issue appears to have been priced reasonably. Peers are not comparable in true sense as they are primarily staffing companies, whereas ANI is providing services of experts on critical and time bound projects. With it's skill sharing for deputation, project and services, ANI believes that “every business needs the right kind of people” and based on performance and future prospects of ANI, it appears that “every investor needs the right kind of investment” and this is one of them.

On merchant banker's front, this is the 42nd SME mandate from its stable so far. Out of last 10 listings, 1 issue opened at discount and the rest opened with a premium of 2 .5 to 20% premiums to offer price on the listing day.

Conclusion: Investments may be considered for short to long term in this specialized service company which is the first mover in SME segment. (Subscribe)