Jay Bee Laminations IPO

Jay Bee Laminations Limited, established in 1988, specialises in the supply of Cold-Rolled Grain-Oriented (CRGO) and Cold-Rolled Non-Grain-Oriented (CRNGO) Silicon Steel Cores. The company offers a wide range of products, including electrical laminations, slotted coils, and assembled cores made from CRGO and CRNGO steel. These products are primarily used in transformers, UPS systems, and inverters within the power industry.

Jay Bee Laminations operates state-of-the-art production facilities spread over 10,878 square meters, equipped with proprietary equipment for cutting, slitting, assembling, and testing CRGO and CRNGO electrical steel cores. The company also maintains an in-house laboratory for rigorous testing of raw materials and finished products and a dedicated tooling department for blade sharpening.

These advanced facilities enable Jay Bee Laminations to efficiently cater to customers manufacturing transformers up to the 220 kV class. The company has a diverse customer base, including manufacturers of power and distribution transformers ranging from 11 kV to 220 kV. As of December 31, 2023, Jay Bee Laminations had utilised 84% of its installed production capacity, reflecting strong operational efficiency.

As of March 31, 2024, the company employed 277 people, underscoring its commitment to maintaining a skilled workforce to support its operations.

Jay Bee Laminations IPO Strengths

• Established brand with targeted sales and marketing initiatives.
• Strong financial growth with ₹30,290.97 Lakhs revenue in FY2024.
• Experienced promoters with over 30 years in CRGO steel.
• Long-standing client relationships with 57.27% revenue from top 10 clients.
• ISO 9001:2015 certified, robust quality assurance systems implemented.
• Low rejection rates, maintaining under 0.72% sales returns in FY2023.

Jay Bee Laminations IPO Risks

• Net loss in FY2021 of ₹198.37 Lakhs due to COVID-19.
• Potential increased expenses post-listing, impacting profitability and cash flow.
• No long-term agreements with customers or raw material suppliers.
• Operating risks from equipment malfunctions affecting production continuity.
• Dependency on key customers with 57.27% revenue from the top 10.
• Challenges in sustaining revenue growth amidst rising operational costs.