Tankup Engineers Limited is a prominent manufacturer of self-bunded fuel tanks in India, catering to various industrial sectors such as agriculture, mining, construction, and logistics. The company has carved out a strong reputation for offering durable, innovative, and internationally compliant fuel storage solutions. With an emphasis on technological advancements and product reliability, Tankup Engineers continues to push boundaries in the Indian fuel tank industry.

IPO Structure and Key Dates

The Initial Public Offering (IPO) of Tankup Engineers is a Book Built Issue aggregating to ₹19.53 Crores. This consists entirely of a fresh issue of 13.95 lakh equity shares. The IPO opens on April 23, 2025, and closes on April 25, 2025. The allotment will be finalized around April 28, 2025, and shares are expected to list on the NSE SME platform on April 30, 2025.

The price band is set at ₹133 to ₹140 per equity share, with a lot size of 1,000 shares. For retail investors, the minimum investment amount is ₹1,40,000, while High-Net-Worth Individuals (HNIs) need to apply for at least 2 lots worth ₹2,80,000.

The book running lead manager (BRLM) for this IPO is HEM Securities Limited, and the registrar is BIGSHARE Services Private Limited. Hem Finlease Pvt Ltd acts as the Market Maker for this issue.

Grey Market Sentiment

As of now, the Grey Market Premium (GMP) of Tankup Engineers is ₹0, indicating no listing gains are expected. This reflects weak investor sentiment and a lack of enthusiasm in the unorganised grey market space. It’s important to note that grey market data is unofficial and unregulated, and often not a reliable indicator of actual performance on the listing day.

Anchor Investors

Tankup Engineers has successfully raised ₹5.39 Crores from Anchor Investors by allotting 3,85,000 equity shares at the upper end of the price band (₹140). This was done in consultation with the BRLM. Equity shares allotted to anchor investors are deducted from the Qualified Institutional Buyers (QIB) portion of the IPO.

IPO Objectives

The net proceeds from the IPO will be used for the following purposes:

1. ₹350 lakhs will be used to repay existing borrowings.

2. ₹1,000 lakhs will be allocated for working capital needs.

3. The rest will be used for general corporate purposes.

Financial Performance Overview

Tankup Engineers has shown a consistent growth trajectory over recent years. Below is a summary of its financial data:

• Revenue from Operations:

  • FY2022: ₹139.81 lakh

  • FY2023: ₹1,185.20 lakh

  • FY2024: ₹1,954.07 lakh

  • As of Nov 30, 2024: ₹1,247.51 lakh

• EBITDA:

  • FY2022: ₹8.66 lakh

  • FY2023: ₹131.92 lakh

  • FY2024: ₹360.77 lakh

  • As of Nov 30, 2024: ₹162.28 lakh

• Profit After Tax (PAT):

  • FY2022: ₹4.60 lakh

  • FY2023: ₹78.87 lakh

  • FY2024: ₹256.88 lakh

  • As of Nov 30, 2024: ₹94.70 lakh

These figures indicate a steady financial improvement, particularly over the last two fiscal years.

Valuation Metrics

The company has reported the following valuation parameters:

• Pre-issue EPS: ₹9.34

• Post-issue EPS: ₹4.85

• Pre-issue P/E ratio: 14.99x

• Post-issue P/E ratio: 28.86x

• Annualised EPS (latest): ₹4.36

• Annualised P/E: 32.07x

• ROCE (FY24): 46.49%

• ROE (FY24): 107.11%

• RoNW: 69.75%

Although the Return on Equity and ROCE figures look attractive, the high P/E ratio post-issue makes the IPO appear overvalued, especially when there is no GMP support in the market.

Subscription Status

As of 11:40 AM on April 23, 2025, the IPO has been subscribed only 0.03 times, indicating low investor interest. The lack of traction in subscription numbers could be due to several factors including valuation concerns and muted grey market sentiment.

Review and Investment Recommendation

Despite its robust growth in recent years, Tankup Engineers IPO does not appear attractive for listing gains or long-term investments at this time. The absence of a positive GMP, high valuations, and modest subscription status hint at a lukewarm investor response.

The IPO might still be considered by investors with high risk tolerance who believe in the company’s long-term industrial potential. However, conservative investors are advised to avoid the IPO, especially for short-term gains.

Conclusion

Tankup Engineers Limited offers a specialised product in a growing niche market, with decent financials and a visible upward growth path. However, the valuation metrics do not justify the premium pricing, especially with no active interest in the grey market.

Investors must weigh the strong fundamentals against the high valuation and market sentiment before subscribing. Given the data available and market perception, the recommendation is to avoid this IPO unless there is a significant change in demand during the remaining subscription period.

The Upcoming IPOs in this week and coming weeks are Ather Energy.

The Current active IPO are Tankup Engineers.

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