Subscribe to Innoventive Industries IPO: Anand Rathi

MUMBAI: Anand Rathi has advised investors to ‘Subscribe’ to the initial public offering of Innoventive Industries. The company is a multi product engineering company engaged in the manufacturing and sale of precision steel tubes, tubular components, auto components, machined components and other steel products.

Innoventive Industries has entered the capital market to raise around Rs 220 crores by issuing shares in the price band of Rs 117-120 per share.

“The company has grown CAGR 35.2% in total sales, 66.8% on EBITDA and 28.9% on PAT level for last five years. With its combination of low cost inorganic growth strategy and indigenously developed state of art technology has a significant advantage over other players. Also despite its high interest cost expenses its earnings have been increasing continuously. Also comparing to its peers it looks attractively placed, therefore we recommend SUBSCRIBE to the issue,” the report said.

It plans to use the proceeds in increase capacity expansion of manufacturing facility and repayment of term loan.

The issue closes Friday.