Tankup Engineers Ltd. is launching its SME IPO from April 23 to April 25, 2025, aiming to raise approximately ₹19.53 crores with a price band of ₹133 to ₹140 per share. Incorporated in December 2020, the company specializes in manufacturing custom vehicle superstructures such as mobile refuellers, water sprinklers, explosive vans, and tank trucks, serving industries like petroleum, mining, infrastructure, and defense. Its niche focus on complex mobility and storage solutions positions it well in specialized industrial sectors, offering potential for scalability and long-term growth.
₹5
₹140
₹175.00
Expert Opinions
The market sentiment around Tankup Engineers IPO is cautiously optimistic, driven by its niche focus on specialized vehicle superstructures for defense, infrastructure, and aviation sectors. The company’s strengths include a diversified revenue mix (51.9% from infrastructure, 11.85% from mining), a robust order book of ₹22.11 crore (including defense contracts), and scalable production capacity (54.33% utilization in FY2024). However, risks include depends on a limited client base, dependency on commercial vehicle OEMs for chassis, and negative operating cash flows.
For valuation analysis (FY2024), the Return on Equity (ROE) stands at 107.11%, Return on Capital Employed (ROCE) at approximately 46.49%, and Net Asset Value (NAV) of ₹13.39 per share. From a long-term perspective, Tankup’s strategic positioning in high-growth sectors and institutional trust (e.g., Ministry of Defence orders) offer potential upside. However, investors must weigh risks like client concentration and operational scalability against its niche market advantages.
Investor Considerations
Investors evaluating Tankup Engineers’s IPO should note its company performance reflects rapid growth, with revenue surging from ₹1.40 crore in FY2022 to ₹19.54 crore in FY2024, alongside PAT rising to ₹2.57 crore (13.23% margin). The sector outlook is buoyed by demand for custom vehicle superstructures in defense, infrastructure, and petroleum sectors, driven by remote project needs. The IPO valuation for FY2024 shows a Price to Book Value of 10.46x, with a debt-to-equity ratio of 1.00, signaling aggressive pricing but improved leverage.
Growth prospects are supported by a ₹22.11 crore order book (including defense contracts) and scalable production capacity (54.33% utilization). However, risk factors include client concentration, negative cash flows, and legal contingencies. For the investment horizon, short-term investors may face volatility typical of SME listings, while long-term investors could benefit from execution of strategic orders and sectoral tailwinds. Balancing growth potential against operational risks will be critical.
| Date | GMP | Trend |
|---|---|---|
| 29 Apr 2025 19.34 | ₹5 | Down |
| 28 Apr 2025 20.46 | ₹14 | Up |
| 27 Apr 2025 10.29 | ₹5 | Up |
| 23 Apr 2025 10.21 | ₹00 | --- |
| 22 Apr 2025 10.13 | ₹00 | --- |
| 21 Apr 2025 10.38 | ₹00 | --- |
| 19 Apr 2025 13.06 | ₹00 | --- |
FAQs
The Grey Market Premium showed poor accuracy in predicting Tankup Engineers’ listing performance. While the GMP of ₹5 predicted a modest premium of 3.57% over the issue price, the stock delivered a much stronger gain of 25%. With a substantial prediction error of 20.69%, the GMP significantly underestimated the magnitude of gains, though it correctly predicted the positive listing direction, demonstrating its limitations as a reliable price predictor in this case.
Tankup Engineers IPO Current GMP is ₹5.
Tankup Engineers IPO Expected Returns is 3.57%.
Tankup Engineers IPO estimated listing price is ₹145.