Taurian MPS NSE SME IPO review

•    The company is engaged in the manufacturing and servicing of crushing and screening plants, washing plants and related spares.
•    It marked growth in top and bottom lines for the reported periods.
•    Boosted net profit it attributed to other income of Rs. 6.6 cr. for FY24.
•    Based on its recent financial data, the issue appears fully priced.
•    Well-informed investors may park moderate funds for medium term.

PREFACE:
The originally planned time line from 08.09.25 to 10.09.25 for its IPO, which was shifted to 09.09.25 to 11.09.25 following shift in bank holiday from 05.09.25 to 08.09.25 for Id. However, the offer document is missing the dilution percentage data on the basis of lower and upper price band in the offer document, which is a bit surprising. 

ABOUT COMPANY:
Taurian MPS Ltd. (TML) is one of the growing engineering and manufacturing company. The business initially began with a focus on sand, aggregates and spare parts, catering to industries such as construction, mining, and aggregates that required these materials for various applications. Over time, the company expanded its product offerings and diversified into the supply of machines and spare parts. This shift marked a strategic transition towards becoming a more comprehensive solutions provider in the industrial sector. The company now offers not only high-quality spare parts but also a range of machinery, such as crushing and screening plants, washing plants, and spare parts. 

TML’s product range includes various plants under the category of crushing and screening plants, washing plants & Spare Parts, catering to various industries aggregating to minerals, metals construction, food processing industry, waste management industry and also includes crushed stone and sand. Additionally, company provides customized solutions where the company undertakes specific tasks such as fabricating parts, assembling machinery, and performing specialized operations based on customer requirements. By offering these services, the company helps clients with tailored solutions, ensuring that machinery is built or modified to their exact specifications. It serves a diverse customer base, from international markets to smaller local companies, offering customized solutions to meet specific industry needs.

Over the past 14 years, it has grown presence in several states, including Uttarakhand, Karnataka, Chhattisgarh, Himachal Pradesh, Delhi, Haryana, Ladakh, Andhra Pradesh, Meghalaya, Rajasthan, Madhya Pradesh, Uttar Pradesh, Jharkhand, Jammu & Kashmir, Gujarat, Maharashtra, Odisha, and West Bengal and also appointed dealers in Maharashtra and Raipur, Chhattisgarh. In December 2024, it successfully expanded dealership network by establishing a presence in the states of Assam and Nepal. In addition, the company has formed an Alliance with Plus Natural Resources to provide comprehensive solutions for the mining and natural resources sectors. TML offers customers the value proposition of a complete solution by combining manufacturing expertise with NR’s expertise in application engineering and project management to enhance operational efficiency. This Alliance not only allows it to offer highly technical and complex solutions but also expands Taurian’s market reach to North and Latin America, Europe, and Africa. The company provides services and Maintenance in addition to its manufacturing of crushing plants, screening plants, washing plants, and other related equipment. These services extend to repairs, maintenance, and upgrades for existing equipment, helping customers keep their operations running smoothly. With a skilled workforce and advanced technology, the company ensures standards in all services, adding value to its offerings and strengthening relationships with clients in various industries.

TML is one of the market players in the crushing and mining industry, specializing in the manufacturing of crushing and screening machines. With a strong focus on innovation, quality, and efficiency, the company has established itself as a key contributor to the industry, catering to the growing demands of mining, quarrying, and construction sectors. As of July 31, 2025, it had 94 employees on its payroll. Rising trade receivables year on year raises concern.

ISSUE DETAILS/CAPITAL HISTORY:
The company is coming out with its book building route maiden IPO of 2487200 equity shares to mobilize Rs. 42.53 cr. (at the upper cap). The company has announced a price band of Rs. 162 – Rs. 171 per share of Rs. 10 each. The IPO opens for subscription on September 09, 2025, and will close on September 11, 2025. The minimum application to be made is for 1600 shares and in multiple of 800 shares thereon, thereafter. Post allotment, shares will be listed on NSE SME Emerge. The issue constitutes 28% of post-IPO paid-up equity capital of the company. From the net proceeds of the issue, the company will utilize Rs. 6.07 cr. for acquisition of machineries and equipments, Rs. 1.95 cr.  for acquisitions of equipments for R & D facility upgrading, Rs. 22.60 cr. for working capital, and the rest for general corporate purposes.

The IPO is solely lead managed by Gretex Corporate Services Ltd., while Bigshare Services Pvt. Ltd., is the registrar to the issue. Gretex Share Broking Pvt. Ltd., and NNM Securities Pvt. Ltd., are the market makers. Gretex Share Broking Ltd. is a syndicate member. The IPO is underwritten to the tune of 50.02% by Gretex Corporate Services Ltd., and 49.98% by Gretex Share Broking Ltd.

The company has issued initial equity shares at par, and issued further equity shares at a fixed price of Rs. 139.00 per share in July and August 2024. The average cost of acquisition of shares by the promoters is Rs. Negative, Rs. 0.72, Rs. 8.33, and Rs. 19.28 per share. 

Post-IPO, company’s current paid-up equity capital of Rs. 6.40 cr. will stand enhanced to Rs. 8.88 cr. Based on the upper price band of the IPO, the company is looking for a market cap of Rs. 151.90 cr. 

FINANCIAL PERFORMANCE:
On the financial performance front, for the last three fiscals, the company has posted total Income/Net Profit of Rs. 10.86 cr. / Rs. 0.22 cr. (FY23), Rs. 44.17 cr. / Rs. 11.32 cr. (FY24), and Rs. 73.70 cr. / Rs. 9.50 cr. (FY25). Surge in bottom lines for FY24 onwards raise eyebrows and concern over its sustainability as it is operating in a highly competitive and fragmented segment. According to the management, one time adjustment of other income (Rs. 6.58 cr.) resulted in a higher net profit for FY24. 

For the last three fiscals, the company has reported an average EPS of Rs. 13.92, and an average RoNW of 33.87%. The issue is priced at a P/BV of 3.19 based on its NAV of Rs. 53.62 as of March 31, 2025, but its post-IPO NAV data is missing from the offer documents. 

If we attribute its FY25 super earnings on post-IPO expanded equity base, then the asking price is at a P/E of 16.00, and based on its FY24 earnings, the P/E stands at 13.42. Thus, based on its recent financial data, the issue appears fully priced.

The company has posted PAT margins of 2.06% (FY23), 30.11% (FY24), 12.92% (FY25), and RoCE Margins of 4.39%, 26.12%, 31.64%, respectively for the referred periods. 

DIVIDEND POLICY:
The company has not declared any dividends for the reported periods of the offer document. It will adopt a prudent dividend policy, based on its financial performances and future prospects.

COMPARISON WITH LISTED PEERS:
As per offer document, the company has shown Macnally Bharat Engg., as its listed peers. It is currently trading at a P/E of around NA (as of September 05, 2025). However, they are not truly comparable on an apple-to-apple basis. This compare appears to be an eyewash.

MERCHANT BANKER’S TRACK RECORDS:
This is the 22nd mandate from Gretex Corporate in the last three fiscals (including the ongoing one). Out of last 11 listings, 2 opened at discount, and the rest with premium ranging from 0.40% to 22.62% on the date of listing.