Liotech Industries Limited
Liotech Industries Limited is a Rajkot-based manufacturer of hardware structures and accessories, offering over 150 product specifications across hinges, locks, bolts, and related fittings. The company is launching a fixed-price SME IPO on BSE to raise approximately ₹36.02 crores through a combination of fresh issue and offer for sale.
Overview
About the Company
Liotech Industries Limited was incorporated in 2020 and is headquartered in Rajkot, Gujarat. The company is engaged in the manufacturing of hardware structures and accessories, producing items such as door kits, various types of hinges (cut & butt, parliament, W, Z, and duck hinges), gate hooks, aldrops, locks, handles, tower bolts, and shelf bottoms. It offers more than 150 distinct product specifications serving a diverse range of end-user industries including housing, infrastructure, agriculture, automotive, electricity, cement, mining, solar energy, and general engineering. The company operates on a business-to-business (B2B) model and also trades supplementary items such as door stoppers, magnets, table brackets, bed lifters, and bell magnets. Its manufacturing facility in Rajkot spans 12,632 square feet. As of July 31, 2024, the company employed 17 people.
Company Details
📋 Objects of Issue (Use of Proceeds)
- › Capital expenditure directed towards the acquisition of new machinery (₹7.50 crores).
- › Repayment of existing borrowings to reduce debt obligations (₹4.15 crores).
- › Meeting working capital requirements to support day-to-day business operations (₹7.00 crores).
- › Meeting issue-related expenses.
- › General corporate purposes.
✅ Strengths
- ✓ The company is led by an experienced and qualified management team with domain expertise in hardware manufacturing.
- ✓ Liotech Industries maintains consistent adherence to quality standards, ensuring reliability and uniformity in its products and services.
- ✓ The company offers a broad portfolio of over 150 distinct product specifications catering to a wide variety of industries, reducing dependence on any single segment.
⚠️ Risks
- ! The company is heavily reliant on a limited number of key customers and lacks long-term contracts with them; the loss of any major customer could significantly impact revenue, financial health, and operational results.
- ! Liotech depends on a continuous and uninterrupted supply of raw materials from its suppliers, with whom it has no long-term agreements. Price volatility or supply disruptions could adversely affect production and profitability.
- ! A significant portion of the company's business is concentrated in specific geographic regions, making it vulnerable to any adverse developments in those areas.
- ! The company has reported negative cash flows from certain operating and investing activities; if such trends persist, they could constrain future growth and business sustainability.