Tankup Engineers Ltd. IPO Opens for Subscription: All You Need to Know
Tankup Engineers Ltd., a specialized manufacturer of vehicle superstructures, has opened its Initial Public Offering (IPO) for public subscription starting April 23, 2025. This IPO has generated considerable interest due to the company’s rapid financial growth and its role in supplying complex mobility solutions to sectors like defense, aviation, logistics, and infrastructure. Here’s a complete overview of the IPO, its financials, subscription details, and more.
About the Company
Established in 2020, Tankup Engineers Ltd. focuses on manufacturing tailor-made vehicle superstructures and storage systems. Its product portfolio includes self-bunded fuel tanks, mobile diesel bowsers, aircraft refuelers, fire tenders, and ground support equipment. The company serves a wide variety of sectors, such as agriculture, construction, mining, defense, and aviation.
Tankup’s manufacturing facility is located in Lucknow, Uttar Pradesh, and spans 2,665 square meters. The facility is certified by ISO, PESO, and MSME ZED, ensuring compliance with industrial safety and environmental standards.
IPO Highlights
- IPO Opening Date: April 23, 2025
- IPO Closing Date: April 25, 2025
- Price Band: ₹133 – ₹140 per share
- Face Value: ₹10 per share
- Lot Size: 1,000 shares (₹1,40,000 minimum investment for retail investors)
- Issue Type: Book-built
- Shares Offered: 13,95,000 equity shares
- Total Issue Size: ₹19.53 crore
- Tentative Listing Date: April 30, 2025
- Listing Exchanges: NSE and SME platform
- Registrar: Bigshare Services Private Limited
- Lead Manager: Hem Securities Limited
Objectives of the IPO
Tankup Engineers aims to raise ₹19.53 crore through the IPO. The net proceeds will be used for:
- Repayment of certain borrowings (₹3.5 crore)
- Meeting working capital requirements (₹10 crore)
- General corporate purposes (₹4.88 crore)
This capital infusion is expected to help the company reduce debt, increase liquidity, and support expansion initiatives.
Financial Performance Snapshot
Tankup Engineers has shown a strong financial trajectory over the last few years:
- Revenue increased from ₹11.85 crore in FY23 to ₹19.54 crore in FY24—a 64.89% jump.
- Profit After Tax (PAT) surged from ₹0.79 crore in FY23 to ₹2.57 crore in FY24—up by 225.31%.
- Total Assets grew from ₹8.68 crore in FY23 to ₹17.67 crore as of November 2024.
- Debt increased modestly from ₹1.11 crore to ₹6.17 crore, indicating the need for debt restructuring.
These figures reflect robust revenue growth, improved profit margins, and a solid expansion trajectory.
Key Technical Metrics
- PE Ratio (Post-IPO): 52.19
- Earnings Per Share (Post-IPO): ₹2.68
- Return on Net Worth (RoNW): 69.75%
- Return on Equity (ROE): 107.11%
- Return on Capital Employed (ROCE): 46.49%
- PAT Margin: 13.23%
- Market Capitalisation: ₹74.13 crore (Post IPO)
The technical indicators suggest that while the IPO may be priced aggressively, the return ratios are strong and could support long-term value creation.
Shareholding Pattern
- Promoters Pre-Issue Holding: 100%
- Promoters Post-Issue Holding: 73.65%
The dilution in promoter holdings reflects the company’s shift toward a more public ownership model, enabling greater transparency and broader investor participation.
Subscription Status
As of the first day of bidding:
- Retail Category: Subscribed 0.06 times
- Qualified Institutional Buyers (QIBs): No bids reported
- Non-Institutional Investors (NIIs): Subscribed 0.01 times
- Total Subscription: 0.03 times
While the early subscription numbers are modest, more traction is expected in the final hours of bidding, which is typical for SME IPOs.
Grey Market Premium (GMP) Insights
As of April 23, 2025, the GMP for Tankup Engineers Ltd. IPO stands at ₹0. This implies a flat listing is anticipated at the upper price band of ₹140 per share. A zero GMP can indicate a cautious or uncertain market sentiment regarding short-term listing gains.
Strengths and Challenges
Pros:
- Strong revenue and PAT growth
- Wide sectoral reach and product customisation
- Positive analyst sentiment for long-term value
Cons:
- Operates in a highly fragmented and competitive market
- High lot size limits retail investor accessibility
- No listed peer comparison makes benchmarking difficult
Expert Review
Analysts describe Tankup Engineers Ltd. as a company with a niche yet promising business model. However, they note that the IPO is priced aggressively relative to its earnings, suggesting that it may suit long-term investors rather than those seeking immediate listing gains. The order book value of ₹22.11 crore as of March 2025 adds strength to the company’s future prospects.
How to Apply
To apply for the IPO:
- Research the GMP, price band, financials, and subscription data.
- Use a demat account to place your bid through your trading platform or mobile app.
- Bid for one lot (1,000 shares) or more, based on your eligibility and capital.
- Approve the UPI mandate to confirm your bid.
- Wait for allotment results, which will be finalized on April 28, 2025.
You can also use more than one demat account to improve allotment chances.
Final Thoughts
Tankup Engineers Ltd.’s IPO offers investors a chance to tap into a high-growth manufacturing company with an expanding footprint in multiple industrial sectors. While the high valuation and market fragmentation pose challenges, the company’s rapid growth and strong financials make it a contender worth watching.
For investors with a higher risk appetite and a long-term outlook, this IPO may present an opportunity to ride the company’s growth wave as it scales operations and enhances product offerings. However, conservative investors may prefer to wait for listing and post-IPO performance before committing funds.
ALSO READ: PhonePe Transforms into Public Company Ahead of Mega IPO
