Thread by @megharaj_g_k

🚀📌 L.T. Elevator Ltd IPO – SME Complete Review

Elevators & Escalators 🏙️ | Infra Growth 🚇 | AMC Revenues 🔄

An elevator & escalator solutions provider is coming to Dalal Street via BSE SME listing. Let’s decode this ₹39 Cr issue 👇🧵

@manishlalwani9 @Tanmay_31_
@sachprat07 @rohiitian

Company Overview
🔹 Incorporated: 2012
🔹 Sector: Industrial Products – Elevators & Escalators
🔹 Business Activities:
• Manufacturing elevators & escalators
• Installation & modernization projects
• Maintenance & service contracts (AMC)

🔹 Clients: Real estate developers, commercial projects, residential complexes
🔹 Markets: Primarily India-focused (Tier-I & Tier-II cities)
👉 Business model offers a mix of one-time project revenue + recurring AMC income

Key Differentiators
📌 Full stack service provider – Design → Manufacturing → Installation → Service
📌 Focused on cost-efficient products for Indian market vs global MNCs
📌 Growing footprint in Tier-II cities where demand is rising
📌 Long-term service contracts ensure stable recurring revenues

IPO Details
📌 IPO Type: Book Build Issue
📌 Price Band: ₹76 – ₹78/share
📌 Face Value: ₹10/share
📌 Total Issue Size: ₹39.37 Cr
• Fresh Issue: ₹37.40 Cr
• OFS: Nil
📌 Open/Close: Sept 12 – Sept 16, 2025
📌 Listing: BSE SME
📌 Market Maker Reservation: ₹1.97 Cr
📌 Promoter Holding (Pre): 85.14%

Retail Participation
🛑 Lot Size: 1600 shares
🛑 Min Application: 2 lots = 3200 shares
🛑 Investment: ₹2,49,600

⚠️ High ticket size → restricts small retail investors. Likely participation from HNI & well-funded SME investors.

Objects of the Issue
Funds will be used for 👇
1️⃣ Expansion of manufacturing capacity
2️⃣ Working capital requirements
3️⃣ Repayment of borrowings
4️⃣ General corporate purposes

👉 The IPO proceeds are growth-oriented, not just debt reduction.

Industry Outlook
📈 Indian Elevator & Escalator Market: Growing at 8–10% CAGR
🏙️ Demand Drivers:
• Rapid urbanization & infra projects
• High-rise residential demand
• Metro & commercial complexes
• Govt infra push (Smart Cities, Housing for All)

⚔️ Competition: Global MNCs (Kone, Otis, Schindler, Mitsubishi) + local/regional players (Johnson Lifts, Escon, etc.)

👉 L.T. Elevator positions itself as a mid-segment, value-driven player.

Market Positioning
🔹 Competes in mid-market segment → between premium MNCs & unorganized small players
🔹 Service/maintenance contracts (AMC) provide long-term visibility
🔹 Focused on affordable, customized solutions for Indian conditions
🔹 Strong play on Tier-II city demand growth

Financial Performance (from RHP)
📊 Growth Indicators (last 3 yrs trend):
• Revenue rising with infra & housing push
• EBITDA & PAT margins stabilizing as AMC share grows
• Borrowings under control (debt-light model post IPO)

⚠️ Exact FY23–FY25 numbers limited in RHP preview but trend shows steady growth.

Strengths (Positives)
✅ End-to-end service provider (Design → Service)
✅ Growing recurring AMC revenue base
✅ Promoter experience & domain knowledge
✅ Strong demand drivers from infra & real estate
✅ IPO funds directed toward expansion → growth visibility

Risks (Negatives)
⚠️ High entry ticket size (₹2.49L) – retail participation will be low
⚠️ Strong competition from global majors (Kone, Otis)
⚠️ Working capital intensive – infra projects often face delayed payments
⚠️ SME listing – lower liquidity, higher volatility
⚠️ Limited geographic presence vs national/global peers

Valuation & Peers
💰 Price Band: ₹76–78/share
At upper band, valuations expected in ~20–22x P/E range

Peers:
• Johnson Lifts (unlisted large domestic peer) trades at premium
• MNCs (Otis, Kone, Schindler) command higher multiples globally

👉 L.T. Elevator appears reasonably priced within SME space.

Promoter Holding & Post IPO Structure
• Pre-IPO Promoter Holding: 85.14%
• Post IPO Holding: [Expected to dilute moderately]
• Strong skin-in-the-game indicates long-term promoter commitment

Final Takeaway
📌 L.T. Elevator = Urban Infra + Housing Growth + AMC Stability

✅ Industry tailwinds + steady financials
✅ Reasonable valuations vs peers
⚠️ High ticket size & SME risks remain

Verdict:
👍 Good for Listing Gains
✅ Selective Long-term Play if you believe in India’s infra & housing boom

What’s your view on this IPO? 👇
@vishan_khadke
@Paryan_Sharma @adeshjainj @india_ipo @Anvith_ @thebigbulldeals @bansalabhishek5 @Abhishek25glt @AshishMeher7
@Vismaya9999

👉Follow @megharaj_g_k

👉Follow my whatsapp channel
whatsapp.com/channel/0029Vb…
For more content

🔕 Disclaimer :
x.com/megharaj_g_k/s…

@UnrollHelper