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📈 IC Electricals IPO Management Interview | Complete IPO Analysis

This video discusses the key points of the conversation with the IC Electricals IPO management. The company's business model, growth plan, industry outlook, fund utilization, management vision, potential risks, and key aspects for investors are analyzed.

If you invest in IPOs or follow SME IPOs, this video may be useful.

In This Video

✅ IC Electricals Business Model
✅ Management Vision
✅ Future Growth Strategy
✅ Industry Opportunities
✅ Risk Factors
✅ IPO Valuation Discussion
✅ Long-Term Investment View
✅ SME IPO Analysis
✅ Listing Gain Expectations (Generic Discussion)

IC Electricals' IPO is an SME book-built issue of approximately ₹47.9 crore, and the company operates in the field of manufacturing electronic components for railway applications. According to publicly available information, the primary use of the funds raised is proposed for working capital and general corporate purposes.

⚠️ Disclaimer: This video is for educational purposes only. Please consult the DRHP/RHP and your financial advisor before investing in an IPO.

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Transcript
00:00Hello, I am Raji and today I am joined by Sunil Verma who is the MD of IC Electricals.
00:07The company NC Emerge, which is part of NC
00:25In the market also, there is a lot of excitement about the business of IC Electricals.
00:31We will try to understand what are the future plans of Sunil Verma ji.
00:36A very welcome to all of you
00:43If I remember correctly, you had a common cause in the Dodger Five, and that was probably
00:49There was a company in Agra which you acquired. Our journey of IC Electricals started from Dozar Pans.
00:56jamne agra sick camp
01:13We were a single product company and today we have become a multi product multi divisional company.
01:20It manufactures IC electricals and operates in three divisions, one division is power electronics and the other is
01:31Rodit
01:42We manufacture such devices as battery charger, electronic controller, passenger information system, vigilance control device at loco site,
01:53Fal dagon system, then coach lighting system in such productions for railways
02:12Jati manufactures galowatt, manufactures auxiliary machine with blower, traction motor, traction motor up to 760 kW,
02:23In the contracting division, we firstly take EMC for our property, EMC is for maintenance.
02:33Contracts and secondly we do EPC contracts and all the supply action commissioning that is useful for you.
02:46Meaning, you are connected with railway coaches and transmission lines, work related to tract is not yours.
02:54Is
02:54Who subscribes to this Sarvabharas Nascribe, whatever is the complete thread that is used for this purpose, what is it for?
03:15Those who are subscribed to the war have three meanings, one is the people's third is this Kochis si dudede cheer,
03:32There has been a lot of focus on all the diesel-powered vehicles.
03:37As they shifted towards electric, how much further do you see in that direction, that is, railways.
03:44with what your
03:58If you have subscribed then our growth with this department
04:22There will be consistency and the Government of India will invest around Rs 3 lakh crore every year in the infrastructure of Indian Railways.
04:31I am doing it and we are connected with it, hence our growth will be extraordinarily well and
04:37
04:44So I was looking at your statistics of the last two-three years and I saw good progress in it.
04:50There is a visible increase because in 2324 you showed a profit of about Rs 100 crore.
04:55The next year it increased to Rs 122 crore.
04:58It has become around Rs. 144 crores in the last 52 months and your profit too which
05:05It seems that it has grown very rapidly in the last three years, so this profit which is quite
05:12What is the reason behind this rapid increase?
05:28You have entered some new, more popular segments, that has an impact on how you will see it, as I told you.
05:38That we work on vertical locos and coaches and contract locos and coaches.
05:49Our producers in
05:52In the past, our coach business had come to a complete standstill. We were losing our revenue from the Loco Motive and Contract Divisions.
06:02I was able to grow the top line but there was no growth in profits in the bottom line.
06:09And after 2023, the railway's
06:22Our margins are better, due to which profitability has started growing and in Fort we are able to increase our product and
06:31We will keep our properties on a similar line so that our profits keep increasing at the same rate and that too
06:48The plan is to start new products as well, so what is the status of you and the box right now and as you
06:58Now, compare the annual sales of around one hundred rupees with what you have shown last year.
07:04If I look at your other books, where are they?
07:09As of today my order book is more than 180 crores and this is my total projected revenue.
07:17It covers the entire range given between 100 to 200 crores today.
07:23Till today we have generated revenue of 27 crores.
07:28And one hundred more than 180 kroons of odd boxes, as of today, we are here this year.
07:35The revenue is already shown and now you will get the work for next year and other books.
07:42We have to collect it for which we should participate in the tent, right now we are outside the hoop.
08:10Now from here on out, are you going to add some new products, some new things to your basket?
08:20We are trying to bring it into bouquets so that you can get the benefit of improved margins.
08:26to benefit and improve
08:29Here we are moving the loco motor, it has electrical units in it, speed indicating
08:38Energy meters are installed, our castor was running in it and the boat is in its final stage this year.
08:45Introduce this
08:46We were working on interactive battery charger and signaling system and this product will also be launched this year.
08:53It will be ready and launched, the revenue benefit of which will be nexus, now we were doing it.
09:02Three Face Trek
09:16We have to do it and we will get the benefit of that as well and we had also done collaboration with Korea, all three together.
09:24For which they have been given an advance of Rs 2 crore and on that they are doing VW Corials.
09:31How to sell their products in Indian
09:35It should be launched perfectly, that scheme has been subscribed, this product of ours will also be launched soon.
09:44This gives us growth potential, meaning whatever we are projecting, it will be amazing.
09:54If you find it, you will
10:09Be subscribed
10:12And we are a technology divan company, so we have all these inoust design doubles.
10:21In this technology, in which qualifying qualified trial, even pass exception should be given for that, for that you have to
10:29We have done it and on that basis we will launch it, we take it from outside especially steel enclosures etc.
10:39Because that is not our expertise and it is fresh in the market right now from all the front vendors in India.
10:54If you have subbed your distributors then it is available through them in India only, so whatever else you have now
11:03It is almost a book
11:05Year 7 year review projects of the artpus that would like to connect with the neushak would like to invest your money
11:13He would like to understand a little about how the company's gross growth is going to be in the next 3-5 years.
11:26Subscribers should know how their speed will be, I just said that in a year
11:47Subscribe and everything is planned for that and new products as well as our existing business.
11:56Even at a growth rate of , we will be able to achieve a turnover of Rs 270 crore
12:08So all your work is directly done by your department of Railways, which means your client is directly the Railways.
12:18Or you can give your stuff to another company for further railway use.
12:22That around 80% of our billing is done directly to the Railways for some items.
12:31We also give our products to some third party vendor who uses them in their products and then supplies them to the Railways.
12:37or some APC
12:51I mean, we are also doing this kind of work, absolutely mango and paint cycle, which of yours
13:00It is like this because it is a government job, so the first question that comes to anyone's mind is
13:05Good money
13:10The money that is available in the railway cycle for one hundred and twenty to fifty days and in our history
13:16Till date I have never been able to depart with the train, I have to carry the payment.
13:35If you are following their system then your bill will never be routed, you will pay as per the rules.
13:41go away
13:43Now what are you going to use the Rs 48 crore that you are investing in these IPs for?
13:49in a way to him
13:50We will use it to take our company forward. Firstly, we have done some things to expand our business.
13:58I had given it to Unsecured, it has to be repaired by VFC, it is worth around eight crores and
14:05Some IPs will go into extremities.
14:20He took his time and explained his company's business in detail to anyone who was interested in the investment negotiations.
14:26Those listening should note that the listing of these IPs is going to happen on NSE Emerge.
14:31What is happening is such a platform and
14:39So here the lot size will be 1200 shares, you will be able to apply only in that and always
14:48It is said that when you invest in an SME IPO, you get a little more in it.
14:54You should make any investment after careful consideration.
14:57You should do it after reading and gathering all the information, but in an SME IPO you definitely need more
15:03There is a need to study but the way Sunil ji explained it means doing a good job.
15:09Today, especially, the entire focus is on the railways.
15:25I wanted to tell you something, Indian Railways is a department and it has 21 zonal railways.
15:37I have a manufacturing unit with me, all are independent customers, so I mean not just one customer but my railway business, railway.
15:47And one thing in Railways is that except Covid, we have never seen recession, recession has come in all the industries, only Railways.
15:58I did not come because the Railways has its own clients and those clients should keep increasing and not decreasing.
16:05also
16:18J, thank you Sunil ji, hope to hear from you soon, whenever you bring your results etc.
16:26I'll try to talk to you about that, thank you now, hello, hello,
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