Action Construction Equipment IPO
Action Construction Equipment IPO — date, price band, lot size & details 2006
Action Construction Equipment listed on 26 Sep 2006 at ₹180, 38.5% above the ₹130 issue price.
Action Construction Equipment makes hydraulic mobile cranes, mobile tower cranes and other construction equipment under the ACE brand at Faridabad. Its total income was Rs 200.00 crore in FY2006.
Stock price
Action Construction Equipment is listed — here is the live share price.
Researched & reviewed by
Abhishek Vohera,
Founder, IPO Guru
Last updated
Figures sourced from the RHP, BSE & NSE
Timetable
Key dates from opening to listing. Today is 12 November.
- Open 01 Sep 2006
- Close 07 Sep 2006
- Allotment TBA
- Refund/credit TBA
- Listing 26 Sep 2006
Issue summary
The terms of the offer, as filed.
| IPO Dates | 1 to 7 Sep, 2006 |
|---|---|
| Price Band | ₹110 – ₹130 |
| Face Value | ₹10 |
| Lot Size | 20 Shares |
| Issue Size | ₹59.8 Cr |
| Sale Type | Fresh capital only |
| Listing On | BSE, NSE |
| Registrar | KFin Technologies Limited |
| Min Investment | ₹ 2,600 |
Share of the offer set aside for each investor category, as stated in the offer document.
What will it cost me?
Bidding is in multiples of 20 shares at the ₹130 cut-off. Drag to size your application.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 20 | ₹2,600 |
| Retail (max) | 76 | 1,520 | ₹1,97,600 |
| S-HNI (min) | 77 | 1,540 | ₹2,00,200 |
| S-HNI (max) | 384 | 7,680 | ₹9,98,400 |
| B-HNI (min) | 385 | 7,700 | ₹10,01,000 |
Strengths & risks
Drawn from the offer document — the case for and against, side by side.
Strengths · 4
- 01Total income nearly doubled from Rs 106.23 crore in FY2005 to Rs 200.00 crore in FY2006.
- 02Profit after tax rose from Rs 4.38 crore in FY2005 to Rs 12.93 crore in FY2006.
- 03Net worth rose from Rs 9.22 crore in FY2005 to Rs 43.10 crore on 30 June 2006.
- 04Its plant ran at full capacity of 200 machines a month, and Rs 23.40 crore of the issue was for a new plant.
Risks · 5
- 01Crane demand follows construction and infrastructure spending; total income was Rs 56.51 crore in the June 2006 quarter.
- 02The issue spread money over 9 uses, including Rs 7.00 crore for acquisitions or investments not yet named.
- 03Rs 6.60 crore was for a joint venture with Tigieffe of Italy, a new partner.
- 04Steel is its main raw material and its price can swing; total assets were Rs 83.87 crore.
- 05Promoter holding fell from 87.56% before the issue to 65.16% after it.
Three years of numbers
All figures in ₹ crore, as reported in the Action Construction Equipment offer document.
| Metric | 30 Jun 2006 | 31 Mar 2006 | 31 Mar 2005 |
|---|---|---|---|
| Assets | 83.87 | 68.98 | 21.17 |
| Total Income | 56.51 | 200.00 | 106.23 |
| Profit After Tax | 3.95 | 12.93 | 4.38 |
| NET Worth | 43.10 | 39.14 | 9.22 |
| Reserves and Surplus | 31.50 | 27.54 | 8.99 |
See how this IPO compares — view listing performance of all mainboard IPOs.
Valuation & key ratios
Ratios are for the latest full financial year reported in the Action Construction Equipment RHP. EPS and P/E are post-issue — the table below carries the pre-issue comparison.
Action Construction Equipment IPO Valuation
How the issue prices the company before and after the fresh shares are created.
| Valuation Metric | Pre-Issue | Post-Issue |
|---|---|---|
| EPS (₹) | ₹92.18 | ₹17.32 |
| P/E Ratio (x) | 1.41 | 7.51 |
| Market Cap at Offer Price (₹ Cr) | ₹5.57 | ₹29.65 |
Pre-issue figures use the shareholding reported in the RHP; post-issue figures use the shareholding once the fresh issue has created new shares. The two differ because of that dilution and because post-issue earnings per share are often annualised, so the change can run in either direction. Market capitalisation is calculated at the ₹130 offer price. Compare the post-issue P/E against listed peers before deciding — a premium there is growth you are paying for in advance.
Where the money goes
₹83.29 Cr of the issue is earmarked to named objects.
About the company
It began by making hydraulic mobile cranes of different capacities under the ACE brand at Faridabad, and later added mobile tower cranes and other construction equipment.
Its plant at Ballabgarh in Faridabad district, Haryana, could make 200 machines a month and was running at full capacity, with 184 employees making cranes. A new plant at Dudhaula and an assembly unit at Bazpur in Uttaranchal were planned.
The IPO was Rs 59.80 crore and was entirely a fresh issue at Rs 130, the top of the Rs 110 to Rs 130 band. The money was for a new plant for loaders and tower cranes, expansion, a joint venture with Tigieffe of Italy, a corporate office and R&D centre, and working capital.
Interested in this IPO? Check the live subscription status or browse all upcoming mainboard IPOs.
The bankers & the filings
Who is running the book, and the documents this page is built from.
Action Construction Equipment IPO Documents
Read the filings this page is built from.
Lead Manager Track Record
How the book-running lead managers on this issue have priced their past IPOs, measured on listing day.
Karvy Investor Services Ltd
31 issues handledBest listing: Ramkrishna Forgings (+92.3%). Weakest: Astral Poly Technik (-10.4%).
Standard Chartered Securities (India) Ltd
24 issues handledBest listing: Vivimed Labs (+87.1%). Weakest: Abhishek Mills (-14.9%).
Listing gain compares the listing-day opening price with the issue price, using the IPOs on IPO Guru that this lead manager has taken to market. A strong record reflects how the banker has priced past issues — it is not a forecast for this one. See every issue they have handled on the lead managers page.
Company contact
Frequently asked
What is the GMP of Action Construction Equipment?
The current Grey Market Premium is ₹0.
What is the Action Construction Equipment IPO price band?
₹110 to ₹130, on a face value of ₹10.
When is the allotment?
The basis of allotment is TBA, with listing on 26 September 2006.
How do I check allotment status?
On the IPO Guru allotment page or on the registrar's site — KFin Technologies Limited.
Every number here traces back to a filing.
IPO Guru tracks GMP, subscription and allotment for every Mainboard and SME issue. Every number on this page is sourced from the RHP, BSE & NSE.
Not investment advice. Grey market premium is an unofficial, unregulated indicator and is not a forecast.
