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Maruti Interior BSE SME IPO review (May apply)

Review By Dilip Davda on January 29, 2022

•    MIPL is in manufacturing and marketing of modular kitchen storage systems, wardrobes etc.
•    It has posted an average financial performance so far. 
•    The issue is fully priced based on its FY22 earnings. 
•    The company is in a highly competitive and fragmented segment. 
•    Cash surplus investors may consider investment for the long term. 

Maruti Interior Products Ltd. (MIPL) is into manufacturing and Domestic sale & Export of modular kitchen storage system, Aluminium long wardrobe handle & profile handle. It has a wide range of product offerings for different customer segments. MIPL's Brand Everyday Kitchen is focused on economic range and another brand Spitze by Everyday is offering premium products. It also manufactures products for other companies on an OEM basis. The company was originally incorporated as Ravi Bearings Pvt. Ltd. and subsequently, it changed its name and business. 

The company has an in-house team of designers who look after product development and quality control. All products manufactured by MIPL are designed in-house and tested to maintain product quality standards. The company is also going to introduce wardrobe hardware like sliding door fittings and also planning to enter into the kitchen appliances segment. It will be starting with small appliances like Hand blenders, Blenders, Electric Grills, Toasters, Air Fryers, induction cookers, coffee makers, electric kettles, personal grooming products like trimmers, shapers, hair during, hair straightener, hair cutting equipment etc. 

Gradually it will also introduce big appliances like Chimneys, In-built ovens, dishwashers, cooktops, induction tops, etc. Apart from the kitchen and wardrobe field, it is also planning to launch a premium brand in the segment of DENIM & Eye Wear Products (Garment & Fashion Industry). It will be launched within 2-3 months. That will be 100% online selling with online brand building. With all these products and projects, MIPL will achieve a turnover of around Rs. 100 cr. within next 5-6 years. The company employed 89 employees as of November 30, 2021.

To part finance its needs for setting up of Nickel/Chrome plating plant/Powder coating plant with related machinery (Rs. 6.65 cr.), working capital (Rs. 2.85 cr.) and general corporate purpose (Rs. 0.90 cr.), MIPL is coming out with a maiden IPO of 2000000 equity shares of Rs. 10 each at a fixed price of Rs. 55 per share to mobilize Rs. 11.00 cr. Minimum application is to be made for 2000 shares and in multiples thereon, thereafter. The issue opens for subscription on February 03, 2022, and will close on February 08, 2022. Post allotment, shares will be listed on BSE SME. The issue constitutes 26.49% of the post issue paid-up capital of the company. MIPL is spending Rs. 0.60 cr. for this IPO process.

The issue is solely lead managed by ISK Advisors Pvt. Ltd. and Bigshare Services Pvt. Ltd. is the registrar to the issue. Sunflower Broking Pvt. Ltd. is the market maker for this company. 

So far the company has issued entire equity capital at par and has also issued bonus shares in the ratio of 36 for 1 in September 2021. The average cost of acquisition of shares by the promoters is Rs. 0.24 and Rs. 10.23 per share. 

Post-IPO, MIPL's current paid-up equity capital of Rs. 5.50 cr. will stand enhanced to Rs. 7.55 cr. Based on the IPO pricing, the company is looking for a market cap of Rs. 41.53 cr. 

On the financial performance front, for the last three fiscals, MIPL has posted turnover/net profits of Rs. 11.85 cr. / Rs. 0.98 cr. (FY19), Rs. 18.19 cr. / Rs. 2.29 cr. (FY20) and Rs. 15.23 cr. / Rs. 1.55 cr. (FY21). For H1 of FY22 ended on September 30, 2021, it has earned a net profit of Rs. 1.65 cr. on a turnover of Rs. 11.48 cr. According to management, more diversified and premium range product launch has attributed to higher margins for the first half and these trends will continue. 

For the last three fiscals, the company has posted an average EPS of Rs. 3.05 and an average RoNW of 19.12%. The issue is priced at a P/BV of 2.60 based on its NAV of Rs. 21.19 as of September 30, 2021, and at a P/BV of 1.82 based on its post-IPO NAV of Rs. 30.15.

If we annualize FY22 earnings and attribute it on a fully diluted post IPO equity base, then the asking price is at a P/E of around 12.59 thus making it a fully priced bet. 

As per offer documents, MIPL has no listed peers to compare with. 

The company has paid a dividend of 10% (on a pre-bonus equity base) for FY21. It will adopt a prudent dividend policy post listing based on its financial performance and future prospects. 

This is the 2nd mandate from ISK Advisors Pvt. Ltd. in the last two fiscals (including the ongoing one). The only listing that took place so far opened at a premium of 1.86% on the day of listing.

Conclusion / Investment Strategy

MIPL is operating in a highly competitive and fragmented segment. It has posted an average financial performance so far. With the new product launch, it has bright prospects going forward. Based on FY22 earnings, the issue is fully priced. Cash surplus investors may consider investment with a long term perspective.

Review By Dilip Davda on January 29, 2022

Review Author

DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. My reviews do not cover GMP market and operators game plans. Readers must consult a qualified financial advisor before making any actual investment decisions, based the on information published here. With entry barriers, SEBI wants only well-informed investors to participate in such offers. With crazy listings in the recent past, SME IPOs drew the attention of investors across the board and lead to seer madness. However, as SME issues have entry barriers and continued low preference from the broking community, any reader taking decisions based on any information published here does so entirely at their own risk. The above information is based on information available as of date coupled with market perceptions. The Author has no plans to invest in this offer.

About Dilip Davda

Dilip Davda

Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.

Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detail fundamental and financial analysis of companies coming up with IPO helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.

(Dilip Davda -SEBI registered Research Analyst-Mumbai,

Registration no. INH000003127 (Perpetual)

Email id: ).

Maruti Interior IPO FAQs

  1. 1. Why Maruti Interior IPO?

    The initial public offer (IPO) of Maruti Interior Products Limited offers an early investment opportunity in Maruti Interior Products Limited. A stock market investor can buy Maruti Interior IPO shares by applying in IPO before Maruti Interior Products Limited shares get listed at the stock exchanges. An investor could invest in Maruti Interior IPO for short term listing gain or a long term.

  2. 2. How is Maruti Interior IPO?

    Read the Maruti Interior IPO recommendations by the leading analyst and leading stock brokers.

  3. 3. Maruti Interior IPO what should investors do?

    Maruti Interior IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Maruti Interior IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts in the above answer.

  4. 4. Is Maruti Interior IPO good?

    Our recommendation for Maruti Interior IPO is to subscribe for long term.

  5. 5. Is Maruti Interior IPO worth Investing?

    As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe for long term to the Maruti Interior IPO.

  6. 6. When will Maruti Interior IPO allotment status?

    The Maruti Interior IPO allotment status will be available on or around February 11, 2022. The allotted shares will be credited in demat account by February 15, 2022. Visit Maruti Interior IPO allotment status to check.

  7. 7. When will Maruti Interior IPO list?

    The Maruti Interior IPO will list on Wednesday, February 16, 2022, at BSE SME.


2. pankaj     Link|February 2, 2022 11:12:16 PM
Sir apply kha se kru, mujhe BSE SME wala koi bhi IPO khi bhi show nhi kr rha h
2.1. IpoRetailer     Link|February 4, 2022 4:27:12 PM
You can apply here:

No need to create an account, apply as a Guest and fill you Demat account details held with any broker.
1. Deep     Link|January 31, 2022 10:55:16 PM
Can apply this ipo??