Shera Energy Limited · NSE:SHERA
Shera Energy — IPO Roadshow (February 2023)
30 slides from Shera Energy's IPO roadshow presentation, February 2023
Slide 1: Shera Energy Limited Investor Presentation
Shera Energy Limited Investor Presentation Book Running Lead Manager To The Issue WHERE POWER Empowers THE INNOVATION
Slide 2: Disclaimer
Disclaimer This presentation or any other documentation or information (or any part thereof) delivered or supplied should not be deemed to constitute prospectus or placement memorandum or an offer to acquire any securities. No representation or warranty, express or implied is made as to, and no relia
Slide 3: About Shera Energy Limited
About Shera Energy Limited Shera Energy Ltd, incorporated in 2009, is in the business of manufacturing winding wires and strips made of non-ferrous metals primarily Copper and Aluminum. Product range of company includes paper covered wires, enamel and fibre covered wires, round wires, rectangular wi
Slide 4: Our Journey
Our Journey 2022 Incorporated under the 2015 2003 Companies Act, 1956 as a Pvt. Ltd. company Vendor Approval pursuant to a takeover Validation from Power Grid of the all the business Corporation of India, a GoI The company was activities and movable Enterprise, for Enamelled, converted to public ass
Slide 5: Key Facts & Figures
Key Facts & Figures Standalone 2 Manufacturing Manufacturing 19+ years Plants of Company of Excellence Installed Capacity facilities Spread Across 300+ & 15,600 MT 2 Manufacturing 8,00,000 Sq. Ft. Employees Plants of Subsidiaries Certifications FY22 FY22 3 Years CAGR Export in 15+ ISO 9001:2015 ₹ 52
Slide 6: Business Strategies
Business Strategies Expanding our Invest in infrastructure customer base and technology Focus on quality Focus on increasing Enhancing existing Focus on backward operational efficiencies products base and and forward to improve returns product quality integration Investors Presentation 6
Slide 7: Competitive Strength
Competitive Strength Backward integration Strong product to ensure smooth portfolio supply of raw Strong experience of Established clientele; management over a top 10 customers decade contribute 43.17% of sales Investors Presentation 7
Slide 8: State Of The Art Manufacturing Facilities
State Of The Art Manufacturing Facilities RAJPUTANA INDUSTRIES PRIVATE LTD SHERA METAL PRIVATE LTD SHERA ENERGY LTD Investors Presentation 8
Slide 9: Capacity Utilization
Capacity Utilization Year-wise Installed Capacity of Production and its Production on Stand Alone Basis of Shera Energy Limited UNIT MEASUREMENT OF INSTALLED ACTUAL CAPACITY UTILIZATION S.NO PERIOD LOCATION NAME OF PRODUCT PRODUCTION CAPACITY PRODUCTION IN % All types of alu winding wire/strip MT 5,
Slide 10: Subsidiaries Details
Subsidiaries Details RAJPUTANA INDUSTRIES PRIVATE LTD SHERA METAL PRIVATE LIMITED SHERA INFRAPOWER PRIVATE LIMITED o Rajputana Industries Pvt Ltd. is in the o Shera Metal Private Limited in o Shera Infrapower Private Limited business of recycling. manufacturing of bus bar, round, flats, having Indus
Slide 11: Highly Focus On Sustainable Environment
Highly Focus On Sustainable Environment Shera Energy - Shera Energy understands its responsibility towards sustainable energy and ensured maximum consideration of the environment by implementing various assets to conserve resources. Steps taken by the company 1. Non Ferrous Metals recycling o Rajput
Slide 12: Products Portfolio
Products Portfolio ALL TYPES OF COPPER RODS, WIRES & A WINDING WIRES / STRIPS C TUBES OF BRASS All TYPES OF ALUMNIUM RODS, WIRES & B WINDING WIRES AND STRIPS TUBES OF COPPER D Investors Presentation 12
Slide 13: Products Portfolio
Products Portfolio (A) ALL TYPES OF COPPER (B) All TYPES OF ALUMNIUM WINDING WIRES AND STRIPS WINDING WIRES / STRIPS 1 2 1 2 3 4 Paper Covered Round & Enamel and Fiber Paper Covered Enamel Covered Fiber Covered Rectangular Wires, Covered Round & Round & Round & Round & Wires Bunched Wires Rectangula
Slide 14: Products Portfolio
Products Portfolio (D) RODS, WIRES & TUBES OF (C) RODS, WIRES & TUBES OF BRASS COPPER 1 2 3 Rods & Profiles of Brass Brass wire Brass Tubes Investors Presentation 14
Slide 15: Revenue Breakup Domestic And Export
Revenue Breakup Domestic And Export In % FY20 FY21 Revenue From Customers 8.90 5.10 91.10 94.90 69.61 Domestic Exports Domestic Exports FY22 H1FY23 118.33 9.30 9.90 90.70 90.10 Domestic Exports Domestic Exports Top 5 Top 10 Investors Presentation 15
Slide 16: Management Supported By Well Experienced Professional Team
Management Supported By Well Experienced Professional Team Empolyee Benefit Cost No. of Employees 803.67 382 679.60 329 302 566.70 271 390.97 H1 FY23 FY22 FY21 FY20 H1 FY23 FY22 FY21 FY20 Empolyee Benefit Cost No. of Employees Employee cost is just 1.3% of revenues and comes Rs 2,25,000 per employee
Slide 17: Board Of Directors
Board Of Directors SHEIKH NASEEM SHIVANI SHEIKH (Chairman and Managing Director) (Wholetime Director) EDUCATION: EDUCATION: Bachelor’s of Engineering (Hons.), Electrical. Bachelor’s of Engineering, Electrical o Sheikh Naseem having experience of 23 years in various sectors o Shivani Sheikh having ex
Slide 18: Board Of Directors
Board Of Directors Mr. Piyush Sharma Mr. Vineet Gupta Mr. Arpit Kumar Dotasra Non-Executive Director Independent Director Independent Director EDUCATION EDUCATION EDUCATION Management in Business Mechanical Engineering Gold Medalist in B.A. L.L.B. Administration Graduate o He has been associated wit
Slide 19: Board Of Directors
Board Of Directors Mr. Vekas Kumar Garg Mr. Kuldeep Kumar Gupta Mr. Batakrushna Panigrahi Independent Director Independent Director Nominee Director EDUCATION EDUCATION EDUCATION MCOM and Company BCOM, Chartered Accountant, M.Sc (Agriculture) Secretary DISA, ICWAI o He is a practicing Company Secret
Slide 20: Industry Overview
Industry Overview The sector is highly unorganized with many small scale industries with fragmented capacity. Winding wires are extensively used in the electrical and electronic equipment’s comprising of Motors, Transformers, Pumpset Switchgears, Fans, Hand Tools, Domestic Appliances, etc. However,
Slide 21: Industry Overview
Industry Overview KEY WINDING WIRE MARKET DRIVERS The expansion of The generation of The electric Winding wires are power generation electricity is generators used in used in inverters that and T&D network. increasing at a rapid hydroelectric, are placed in solar pace in countries thermal, and wind
Slide 22: Key Financial Highlight
Key Financial Highlight In ₹ Cr In ₹ Cr TOTAL INCOME PROFITABLITY 524.58 EBITDA PAT 426.19 422.72 33.38 34.37 339.54 30.08 5.03 7.00 3.61 FY20 FY21 FY22 H1 FY23 FY20 FY21 FY22 In % In ₹ Cr PROFIT MARGINS OPERATING CASH FLOW EBITDA PAT 7.90 29.70 7.06 6.55 5.88 15.76 17.18 10.89 0.85 1.19 1.33 1.26 F
Slide 23: Profit & Loss Statement
Profit & Loss Statement In ₹ Cr Particulars FY20 FY21 FY22 H1FY23 Revenues 425.33 421.97 523.82 338.72 Other Income 0.86 0.75 0.76 0.82 Total Income 426.19 422.72 524.58 339.54 Raw Material costs 372.01 370.02 466.58 305.46 Employee costs 8.04 5.67 6.80 3.91 Other expenses 16.06 13.65 16.83 10.20 To
Slide 24: Balance Sheet
Balance Sheet In ₹ Cr In ₹ Cr H1 Assets FY20 FY21 FY22 H1 FY23 Equities & Liabilities FY20 FY21 FY22 FY23 Non Current Assets Equity 19.94 19.94 19.94 19.94 Reserves 36.30 40.82 46.79 50.61 Fixed assets 89.54 87.57 85.10 84.12 Net Worth 56.24 60.76 66.73 70.55 Non-current investments 0.25 0.25 0.00 M
Slide 25: Key Financial Ratios
Key Financial Ratios In % In % RETURN ON EQUITY RETURN ON CAPITAL EMPLOYEED 12.14 32.24 10.48 26.46 27.40 26.78 8.28 6.42 FY20 FY21 FY22 H1 FY23 FY20 FY21 FY22 H1 FY23 In Times In Times DEBT TO EQUITY RATIO INTEREST COVERAGE RATIO 1.97 1.74 1.77 1.62 1.49 1.49 1.33 1.27 FY20 FY21 FY22 H1 FY23 FY20 F
Slide 26: Key Financial Ratios
Key Financial Ratios In ₹ In ₹ EARNING PER SHARE Book Value 3.51 33.46 35.28 28.20 30.47 2.52 2.15 1.81 FY20 FY21 FY22 H1 FY23 FY20 FY21 FY22 H1 FY23 In Times In Times CURRENT RATIO ASSET TURNOVER RATIO 8.06 1.20 1.19 1.17 6.16 4.75 4.82 1.12 FY20 FY21 FY22 H1 FY23 FY20 FY21 FY22 H1 FY23 Investors P
Slide 27: Healthy Working Capital Cycle
Healthy Working Capital Cycle In Days 91.00 83.00 77.00 71.00 68.00 59.00 61.00 57.00 55.00 50.00 52.0046.00 46.00 53.00 48.00 29.00 FY20 FY21 FY22 H1 FY23 Debtors Days 91.00 83.00 71.00 57.00 Inventory Days 29.00 46.00 50.00 46.00 Bills Payable 59.00 77.00 68.00 55.00 Net Working Capital Days 61.00
Slide 28: Peer Comparison
Peer Comparison 140 120 100 80 60 40 20 0 Precision Wires India Bhagyanagar India Shera Energy Limited* Rajnandini Metal Limited RamRatna Wires Limited Cubex Tubings Limited Limited Limited Face Value (₹) 10 1 10 5 10 2 EPS (₹) Basic & Diluted 3.51 5.45 5.43 11.06 1.69 1.37 NAV Per Share (₹) 33.47 3
Slide 29: Issue Highlights
Issue Highlights Issue Size Up To 61,76,000 Shares Fresh Issue Up To 10,48,000 Shares Offer For Sale Up To 51,28,000 Shares Issue Size ₹ Cr ₹ 35.20 Cr. Price Band ₹ 55 - ₹57 Anchor Bidding on February 6th, 2023 Issue Period IPO Opens on February 7th, 2023 IPO Closes on February 9th, 2023 Lot Size 20
Slide 30: Thank You
Thank You Book Running Lead Manager To The Issue SHERA ENERGY LIMITED HOLANI CONSULTANTS PRIVATE LIMITED F-269-B, Road No. 13, VKIA, 401 – 405 & 416 – 418, 4th Floor, Soni Paris Point, Jaipur Rajasthan 302013 India Jai Singh Highway, Bani Park, Jaipur – 302016. Phone: +91 9314434130 Phone: +91 0141