Precision Metaliks LTD.

Intro Line- 6 out of every 10 cars wears the wheel manufactured by

Precision Metaliks LTD.

Basics of the IPO -

Name Precision Metaliks LTD
Issue Open 19 January, 2022
Issue Close 24 January, 2022
Issue Size ₹ 21.50 Crores
Price Band ₹ 51/ equity share
Industry Automobile & Steel
MUST APPLY
Advice For Long Term & Listing Gains

1) This is a fresh issue of Equity Shares. Public issue of 43,00,000

equity shares of face value of ₹10.00 each of Precision Metaliks
Limited for cash at a price of ₹50 per equity share (including a
share premium of ₹40 per equity share) aggregating to ₹21.50
Crores
2) PRECISION METALIKS LIMITED is a manufacturer & merchant
wholesaler in the motor vehicle and motor vehicle parts and
supplies industry (Mainly International). There are 7 companies
under the name PRECISION METALIKS LIMITED & STELLAR
WHEELS LIMITED is one of them. STELLAR WHEELS LIMITED is
located in Hyderabad, Telangana, India, and is part of the
Alumina and Aluminum Production and Processing Industry.
3) Our Company PML, manufactures & converts semi-finished/raw
wheels to finished wheels by carrying our value-added services such
as Polishing, Buffing, Testing and Packing for Synergies Castings
Limited, Visakhapatnam. The Company is also offering these services
to the USA market through Silver MetalX INC, USA by way of
supplying finished Alloy Wheels with accessories to cater to the
aftermarket. Currently, SYNERGIES is a globally approved alloy
wheels supplier for GM-NAO, Ford-USA, and Chrysler-USA; and in
India, for automobile majors like Ford, Toyota, GM, TATA Motors,
 Mahindra & Mahindra, Hyundai, Fiat, Honda, BMW, Nissan, and VW,
amongst others.
4) In Union Budget 2021-22, the government introduced the voluntary
vehicle scrappage policy, which is likely to boost demand for new
vehicles after removing old unfit vehicles currently playing on the
Indian roads.
5) They are currently working on a next generation Fuel efficient alloy
wheels which will be able to support all types of tyres & still give
30-35% more fuel efficient drive. The testing has shown great results
and many global automakers are willing to invest in Precision
metalik`s Fuel efficient alloy wheel.
6) Major Customers:
● Silver MetalX INC, USA
● O E Wheels Distributors, USA
● Synergies Castings LLC, Oman
● Synergies Castings Limited along with General Motors, Ford,
Chrysler, Toyota, Hyundai, Fiat, Volkswagen, Honda, Tata
Motors and Mahindra & Mahindra, among others.
● Gayatri Automobile Private Limited – Based in India, engaged in
the Domestic Replacement Market. As Global Automotive OEMs.
7) Order Book till 2026 - Advance Payment Made to PML
(This assures that the company is all set to stay profitable
till 2026 no matter what)
(Figures in crores)

Name of the 2021-22 2022-23 2023-24 2024-25 2025-26

Customer

Exports

Silver MetalX 50 75 125 200 250

INC

Synergies 10 25 40 50 75
Castings LLC,
Oman

Replacement 25 50 50 75 75
Market - USA

Total (Exports) 85 150 215 325 400

Domestic

Synergies 125 200 225 250 300

Castings
 Limited

Replacement - - 20 25 50
Market - India

Total 125 200 245 275 350

(Domestic)

Total Order 210 350 460 600 750

Book

8)

9)
10) The IPO of PML is priced perfectly and looks promising from the listing gain
as well as long term hold point of view. The company has locked profits
from the advance paid order book of 750cr+ till 2026. Overall a good
company to invest in considering their business model, Global Clients &
Dominance in their niche.