Readymix Construction Machinery Ltd is launching its Readymix Construction Machinery Ltd IPO with the following details:
Readymix Construction Machinery Ltd (RMX) is a prominent manufacturer and supplier of construction equipment, headquartered in Pune, Maharashtra, India. Established in 2009, the company has built a strong reputation for delivering high-quality machinery and engineering solutions tailored to the needs of the construction industry.
Key Details:
- IPO Opening Date: February 6, 2025
- IPO Closing Date: February 10, 2025
- Issue Type: Book Built Issue
- Issue Size: Fresh issue of 30.62 lakh equity shares, aggregating up to ₹37.66 crores
- Price Band: ₹121 to ₹123 per share
- Lot Size: 1,000 shares
- Minimum Investment: ₹1,23,000
- Listing Date: February 13, 2025
The company specializes in engineering solutions for the design, development, fabrication, and installation of various plant and machinery, catering to industries such as cement, concrete, and construction materials.
The IPO allocation is divided into 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Investors.
Product Portfolio:
RMX offers a diverse range of products, including:
- Dry Mix Mortar Plants
- Wall Putty Plants
- Plaster Sand Plants
- High-Capacity Silos
- Bulk Filling TerminalsThermoplastic Paint Manufacturing Plants
- Support Equipment for Concrete Batching Plants
Additionally, the company provides technical support and solutions for:
- Silo Weighing Systems
- Bulker Unloading Systems
- Air Blowers
- Feeding Conveyors
- Cement Storage Silos
- Screw Pumps
These offerings cater to various sectors within the construction industry, ensuring comprehensive solutions for their clients.
Services:
Beyond manufacturing, RMX extends its expertise through services such as:
- Concrete Plant Layout Consultancy Services
- Concrete Plants Annual Maintenance Contract (AMC) Services
These services underscore the company’s commitment to supporting clients throughout the lifecycle of their projects.
Quality and Innovation:
RMX emphasizes quality, innovation, and sustainability in its operations. The company’s team of experienced engineers and technicians is dedicated to creating efficient and reliable construction solutions, ensuring that every product meets the highest standards.
Corporate Information:
- Incorporation Date: January 24, 2012
- Company Type: Private Limited Company
- Directors: Anand Suresh Watve and Prashant Balasaheb Kanikdale
- Corporate Identification Number (CIN): U29248PN2012PTC142045
- Registered Address: Plot No. 209, S.No. 96/2B, Right Bhusari Colony, Kothrud, Pune, Maharashtra, India – 411038
Readymix Construction Machinery Ltd IPO Lot Size
Here’s a detailed breakdown of the Readymix Construction Machinery Ltd IPO Lot Size in a table format:
| Application | Lot | Shares | Amount |
| Retail (Minimum) | 1 | 1,000 | ₹1,23,000 |
| Retail (Maximum) | 1 | 1,000 | ₹1,23,000 |
| HNI (Minimum) | 2 | 2,000 | ₹2,46,000 |
- Lot Size: 1,000 shares (the minimum number of shares you can apply for)
- Price Band: ₹121 to ₹123 per share
- Minimum Investment: ₹1,23,000 (calculated as 1,000 shares × ₹123 per share at the upper price band)
Readymix Construction Machinery Limited Financial Information
Here is a summary of Readymix Construction Machinery Limited’s financial information in a table format:
Financial Highlights
| Financial Year | Revenue | Net Profit | EPS (₹) | RoNW (%) |
| 2021-22 | ₹4,392.61 | ₹206.67 | 2.13 | 30.18% |
| 2022-23 | ₹5,499.51 | ₹323.42 | 3.34 | 35.57% |
| 2023-24 (Dec 2024) | ₹3,548.86 | ₹168.65 | 1.74 | 12.77% |
Key Financial Ratios & Metrics
| Metric | 2021-22 | 2022-23 | 2023-24 (Dec 2024) |
| Inventory Turnover Ratio | 3.17 | 2.95 | 1.98 |
| Debt-Equity Ratio | 0.88 | 1.02 | 1.15 |
| Return on Net Worth (RoNW) | 30.18% | 35.57% | 12.77% |
| Earnings Per Share (EPS ₹) | 2.13 | 3.34 | 1.74 |
Observations:
- Revenue Growth: The company showed a steady increase in revenue over the years, though the latest quarter (Dec 2024) saw a decline.
- Profitability Decline: Net profit and EPS declined in the latest period, indicating pressure on margins.
- Debt Levels: The debt-equity ratio increased, suggesting higher leverage.
- Inventory Efficiency: A drop in inventory turnover ratio signals potential inefficiencies in stock management.
Key Performance Indicators
| KPI | 2021-22 | 2022-23 | FY 2023-24 (Dec 2024) | Observation |
| Revenue (₹ in Lakhs) | 4,392.61 | 5,499.51 | 3,548.86 | Revenue grew in FY23 but slowed in FY24 |
| Net Profit (₹ in Lakhs) | 206.67 | 323.42 | 168.65 | Profitability dropped in FY24 |
| Earnings Per Share (EPS ₹) | 2.13 | 3.34 | 1.74 | EPS declined, indicating lower earnings per share |
| Return on Net Worth (RoNW %) | 30.18% | 35.57% | 12.77% | RoNW dropped significantly in FY24 |
| Debt-Equity Ratio | 0.88 | 1.02 | 1.15 | Increasing debt levels indicate higher leverage |
| Inventory Turnover Ratio | 3.17 | 2.95 | 1.98 | Lower turnover suggests slower inventory movement |
| Profit Margin (%) | 4.7% | 5.88% | 4.75% | Margins slightly decreased |
| Operating Cash Flow (₹ Lakhs) | 180.25 | 260.80 | 140.40 | Decline in cash flow indicates reduced liquidity |
Key Insights:
- Revenue Growth: Strong growth in FY22 & FY23, but FY24 shows signs of slowdown.
- Profitability Decline: Lower RoNW and EPS suggest challenges in profit retention.
- Debt Levels Rising: The debt-equity ratio increased, meaning higher financial risk.
- Inventory Efficiency Dropped: A lower Inventory Turnover Ratio may indicate slower sales.
Readymix Construction Machinery Ltd IPO Returns
Readymix Construction Machinery Ltd. is launching its Initial Public Offering (IPO) from February 6 to February 10, 2025, with a price band of ₹121 to ₹123 per share. The company aims to raise approximately ₹37.66 crores through this IPO.
The company’s financial performance over recent years is as follows:
| Financial Metric | 2023 | 2024 | 9 Months Ending Dec 31, 2024 |
| Revenue (₹ lakhs) | 5,499.51 | 6,979.36 | 3,548.86 |
| Profit After Tax (₹ lakhs) | 277.95 | 928.00 | 104.41 |
| Return on Net Worth (RoNW) (%) | 29.49 | 5.27 | – |
| Total Assets (₹ lakhs) | – | – | 5,243.00 |
| Debt-Equity Ratio | – | – | 0.84 |
| Inventory Turnover Ratio | – | – | 2.14 |
The company has experienced revenue growth, increasing from ₹5,499.51 lakhs in FY 2023 to ₹6,979.36 lakhs in FY 2024. However, the Profit After Tax (PAT) decreased from ₹277.95 lakhs in FY 2023 to ₹104.41 lakhs for the nine months ending December 31, 2024.
Additionally, the Return on Net Worth (RoNW) declined from 29.49% in FY 2023 to 5.27% in FY 2024, indicating a decrease in the company’s ability to generate returns on shareholder equity.
The IPO proceeds are intended for repaying or prepaying borrowings, meeting working capital requirements, and general corporate purposes.
Strengths Of Readymix Construction Machinery Ltd IPO:
(1) Diverse Product Portfolio: The company offers a wide range of products, including Dry Mix Mortar Plants, Support Equipment for Readymix Concrete Plants, High-Capacity Silos, Artificial Sand Plants, and Wall Putty Plants. This diversification allows the company to cater to various segments within the construction industry, potentially reducing dependency on a single product line.
(2) Turnkey Engineering Solutions: Readymix Construction Machinery Ltd. provides comprehensive solutions from design and development to installation and after-sales services. This end-to-end service model can enhance customer satisfaction and loyalty.
(3) Established Industry Presence: Operating since 2012, the company has built a presence in the construction machinery sector, which may contribute to brand recognition and trust among clients.
Risks Of Readymix Construction Machinery Ltd IPO:
(1) Technological Obsolescence: The construction machinery industry is characterized by rapid technological advancements. Failure to innovate or adopt new technologies could render the company’s products less competitive.
(2) Financial Performance Variability: The company’s financial metrics have shown fluctuations, with a notable decrease in the Inventory Turnover Ratio, which might suggest slower sales or inefficient inventory management. Such variability can impact investor confidence.
(3) Market Competition: The construction equipment sector is highly competitive, with numerous players offering similar products and services. This competition could pressure profit margins and market share.
(4) Dependence on the Construction Industry: The company’s performance is closely tied to the construction industry’s health. Economic downturns or reduced construction activities could adversely affect demand for its products.
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