Incorporated in 2010, Megatherm Induction Limited manufactures induction heating and melting products using electrical induction such as induction melting furnaces and induction heating equipment. Megatherm Induction is a subsidiary of Megatherm Electronics Private Limited.

The company also manufactures upstream and downstream equipment and machinery for steelworks, such as transformers, ladle refining furnaces, continuous casting machines, fume extraction systems, etc., as well as electric arc furnaces for the alloy and special steel industry.

The company also offers turnkey solutions for steel plants, which include the planning, engineering, delivery, assembly and commissioning of steel plants with its own or outsourced systems and machines, as well as customer service with maintenance contracts and spare parts business.

Megatherm’s key market segments are Secondary steel producers that recycle scrap, primary steel producers that convert iron ore into sponge iron and then convert it into steel through induction melting, automotive suppliers, Ordnance factories and railroads, DI pipe manufacturers, and various engineering industries that produce critical parts in their own casting, forging and metal processing facilities.

Megatherm Induction’s manufacturing unit is located in Kharagpur and has a production capacity of around 300 furnaces and transformers (as of March 31, 2023).

The company exports products to South America, Africa, the Gulf region, Europe, SAARC and Southeast Asia.

As at July 31, 2023, the company had 285 permanent employees.

Megatherm Induction IPO Details

IPO Date January 25, 2024 to January 30, 2024
Listing Date [.]
Face Value ₹10 per share
Price Band ₹100 to ₹108 per share
Lot Size 1200 Shares
Total Issue Size 4,992,000 shares
(aggregating up to ₹53.91 Cr)
Fresh Issue 4,992,000 shares
(aggregating up to ₹53.91 Cr)
Issue Type Book Built Issue IPO
Listing At NSE SME
Share holding pre issue 13,848,729
Share holding post issue 18,840,729
Market Maker portion 250,800 shares


Megatherm Induction IPO Reservation

Investor Category Shares Offered
QIB Shares Offered Not more than 50.00% of the Net offer
Retail Shares Offered Not less than 35.00% of the Offer
NII (HNI) Shares Offered Not less than 15.00% of the Offer


Megatherm Induction IPO Timeline (Tentative Schedule)

Megatherm Induction IPO opens on January 25, 2024, and closes on January 30, 2024.

IPO Open Date Thursday, January 25, 2024
IPO Close Date Tuesday, January 30, 2024
Basis of Allotment Wednesday, January 31, 2024
Initiation of Refunds Thursday, February 1, 2024
Credit of Shares to Demat Thursday, February 1, 2024
Listing Date Friday, February 2, 2024
Cut-off time for UPI mandate confirmation 5 PM on January 30, 2024


Megatherm Induction IPO Lot Size

Investors can bid for a minimum of 1200 shares and in multiples thereof. The below table depicts the minimum and maximum investment by retail investors and HNI in terms of shares and amount.

Application Lots Shares Amount
Retail (Min) 1 1200 ₹129,600
Retail (Max) 1 1200 ₹129,600
HNI (Min) 2 2,400 ₹259,200


Megatherm Induction IPO Promoter Holding

Shesadri Bhusan Chanda, Satadri Chanda and Megatherm Electronics Private Limited are the promoters of the company.

Share Holding Pre Issue 98.92%
Share Holding Post Issue


Megatherm Induction Limited Financial Information (Restated)

Megatherm Induction Limited’s revenue increased by 41.37% and profit after tax (PAT) rose by 1171.94% between the financial year ending with March 31, 2023 and March 31, 2022.

Period Ended 31 Mar 2023 31 Mar 2022 31 Mar 2021
Assets 19,197.87 17,262.76 14,645.06
Revenue 26,643.84 18,846.92 10,927.03
Profit After Tax 1,400.41 110.10 309.12
Net Worth 5,062.64 3,662.23 3,512.13
Reserves and Surplus 4,139.39 2,738.98 2,598.88
Total Borrowing 4,282.04 4,038.80 4,327.04
Amount in ₹ Lakhs


Key Performance Indicator

The market capitalization of Megatherm Induction IPO is Rs 203.48 Cr.

KPI Values
ROCE 27.47%
RoNW 27.66%
P/BV 0


Objects of the Issue (Megatherm Induction IPO Objectives)

The company intends to utilize the proceeds of the Issue to meet the following objects:

  1. Funding capital expenditure towards the construction of factory shed and installation of additional plant and machinery.
  2. To meet Working Capital requirements.
  3. General Corporate Purpose.