Gemini Engi-Fab IPO Review

A new IPO or initial public offering is set to hit the Indian Stock Markets very soon. The IPO belongs to Gemini Engi-Fab - Gemini Engi-Fab Limited envisions future with the spectrum and synthesis of life and existence to reckon with engineering, procurement and fabrication.

How many shares will be sold through the Gemini Engi-Fab IPO ?
A total of 55,00,000 equity shares will be sold through the Gemini Engi-Fab IPO.

What is the price per share of Gemini Engi-Fab IPO
The share price of Gemini Engi-Fab IPO shares will be determined through a 100% book building process. The face value of each share of Gemini Engi-Fab is standard Rs. 10 per share.

Is there any rating or grading assigned to Gemini Engi-Fab IPO?
Yes. CARE has assigned a rating of 2 out of 5 to Gemini Engi-Fab IPO, which indicates below average fundamentals. The grading factors in promoters' experience in fabrication and engineering industry, long track record in operations, favourable industry scenario for fabrication and salvaging of equipment, multi-product capability of company, strong growth in order book, good profitability margins in past financial years, sanctioning of term loan by the bankers for the proposed expansion project and expected improvement in technical capabilities of the company post expansion.

However, the grading is constrained by Gemini Engi-Fab's relatively small size of operations, dependence on IPO proceeds for the proposed project completion, unorganized and highly competitive industry in which the company operates, moderate corporate governance practices, low entry barriers, dependence on few customers and limited experience of management in executing large projects. The grading is also constrained by risks associated with proposed deployment of funds from the IPO in setting up new manufacturing units.

What are the business and products of Gemini Engi-Fab IPO?
The Gemini Engi-Fab company is in the business of manufacturing and salvaging of process equipment through fabrication for various process industries. Gemini Engi-Fab manufactures spares, channel heads, tube sheets and tube bundles for refineries. It also manufactures heat exchangers for refineries and dairy plants, pressure vessels, storage vessels, tanks, heat exchangers, distillation and absorption columns.

Where will the fund raised from Gemini Engi-Fab IPO be used?
The fund raised from Gemini Engi-Fab IPO will be used for setting up a new manufacturing workshop at Umbergaon, meeting working capital requirements, general corporate purposes and issue expenses.