LAPL AUTOMOTIVE LIMITED IPO
Registrar: Maashitla Securities Private Limited · Lead: GYR Capital Advisors Private Limited · Listing on BSE SME
IPO Lot Size
1199 shares / lot · ₹94 upper bandInvestors can bid for a minimum of 1199 shares and in multiples thereof.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 2 | 2,398 | ₹2,25,412 |
| Retail (Max) | 2 | 2,398 | ₹2,25,412 |
| S-HNI (Min) | 3 | 3,597 | ₹3,38,118 |
| S-HNI (Max) | 8 | 9,592 | ₹9,01,648 |
| B-HNI (Min) | 9 | 10,791 | ₹10,14,354 |
About the company
LAPL Automotive Limited is an integrated automotive components manufacturer operating across Original Design Manufacturing (ODM) and Original Brand Manufacturing (OBM) models. The company offers a diversified product portfolio encompassing automotive lighting systems, mirrors, and plastic moulded components, catering to automobile OEMs across passenger vehicles, commercial vehicles, two-wheelers, and electric mobility segments. Their product range includes tail lamps, front and rear indicators, reflex reflectors, head lamps, stop lamps, position lamps, reverse lamps, roof lamps, starter motors, wiper motors, rotors, hoods, stators, small BLDC fans, and other accessories.
The company is IATF 16949:2016 certified, providing customized LED lighting solutions with in-house quality testing facilities that ensure compliance with AIS (Automotive Indian Standards) and other approved certifying agencies. This focus on innovation, strong client relationships, and responsive service enables LAPL Automotive to compete effectively and explore growth opportunities in the market.
Objectives of the issue
- To Fund Capital Expenditure requirements towards setting-up a new manufacturing facility at Plot No-68-1, Sector No.5, Auric City Shendra, Aurangabad, Maharashtra.
- To pay or repay, in full or in part, certain outstanding secured borrowings availed by our Company.
- To meet General Corporate Purposes.
Key strengths
- Integrated ODM and OBM Business Model for diversified revenue streams and flexibility.
- Strong In-House Design, Engineering and Manufacturing Capabilities for end-to-end solutions and consistent quality.
- Stable Customer Base and Strong Customer Relationships leading to repeat business.
- Well-positioned to capitalize on the growing Electric Vehicle (EV) opportunity with advanced LED lighting solutions.
- Strategically Located Manufacturing Facilities for operational efficiencies and proximity to automotive hubs.
- Experienced Promoter and Management Team with extensive industry expertise and long-standing relationships.
- Diversified Product Portfolio across lighting systems, rear-view mirrors, and plastic molded components.
- Focus on Quality and Customer-Specific Solutions ensuring compliance and customized products.
- Scalable and Flexible Operations to meet growing demand and adapt to industry requirements.
- Established Brand Recognition under “LAPL” for better margin potential and market visibility.
Key risks
- High dependence on Maharashtra region for sales, making operations vulnerable to regional adverse developments.
- Significant revenue derived from a few customers; loss of these customers or backward integration by them could adversely impact business.
- Primary dependence on a few key suppliers in a limited geographical location, with no long-term agreements, posing risks of supply disruption or price fluctuations.
- Manufacturing operations are subject to various operating risks beyond control, including fire, machinery breakdown, industrial accidents, and natural disasters.
- Potential conflicts of interest arising from Promoters, Directors, and related entities engaged in similar lines of business without non-compete agreements.
- Non-availability of certified historical filings with the Registrar of Companies may expose the company to regulatory or legal risks.
- Past related party transactions and future continuation may have an adverse effect on financial condition.
- Inability to accurately forecast order volumes or optimally schedule production may lead to under- or over-capacity utilization.
- Working capital intensive business with long implementation periods, requiring substantial financing, and indebtedness terms could adversely affect operations.
- Promoters' personal guarantees on debt facilities, if revoked, could require alternative guarantees or repayment, impacting financial condition and prospects.