Ishan International : bridging the business gap for engineering infrastructure from Southeast Asia is coming out with an IPO

Ishan International has been a certified star export house due to its 80% market share in Southeast Asian market as recognized by EEPC for the past 26 years

The Engineering Export Promotion Council (EEPC) promotes the export of Indian engineering goods, products, and services worldwide. Ishan International has been a certified star export house due to its 80% market share in Southeast Asian market as recognized by EEPC for the past 26 years. To do so, Ishan International has made significant contributions to India’s foreign trade.

Ishan International Limited is aiming to raise INR 18.24 crore by means of its initial public offering (IPO), which is set to open on the 9th of September and close on the 14th of September. The company has overseas offices in the Philippines, Indonesia, Hanoi (Vietnam), Ho Chi Minh City (Vietnam) and Kenya (in the process). Having an undisputed dominance of 80% market share in such developing nations means easy access to huge funds and endless business opportunities in the engineering infrastructure industry. Ishan International’s next targeted market is developing South African countries, which have the interests of major foreign investors like the UAE, US & China.

Ishan International Ltd. has been making quality engineering solutions in India & selling it to the developing Southeast Asian countries along with skilled manpower, which ultimately helped the company to create its dominance within a period of just two decades time. Considering that there are more than 30 underdeveloped nations in the near vicinity of Asia and South Africa, Ishan International plans to capture and monetize this new market in the next five years via the joint venture it planned from its IPO funding. This clearly proves how Ishan International Ltd. is effectively using its market dominance and supply chain to create a highly profitable environment for its investors.

By analyzing the company’s financials from the DRHP, the company’s net income increased by an astounding 87%, while its net worth increased by 20% in the first quarter of 2022. It has a lower P/E ratio and higher EPS than its competitors. Notably, there is no offer for sale because Ishan International is conducting only a fresh Initial Public Offering, which will be used to fund additional business activities and joint ventures. Ishan International Limited has planned a fixed-price equity offering at INR 80 per share, which is a reasonable price for the company with such financials. If an investor seeks companies with gradual but long-term growth potential in an evergreen industry such as engineering infrastructure, then Ishan International may be the ideal candidate.

India exported US$ 111.63 billion in engineering goods in FY22, up 45.51 percent year-over-year. Ishan International Ltd. has contributed almost 80% of Southeast Asian sales. International clients prefer Indian machinery because manufacturing costs are lower and the quality is better. Since 2004, Ishan Global has provided a wide range of engineering machinery on overseas projects, particularly in South-East Asia, to esteemed clients like the Government of the Philippines, Government of Indonesia, Government of Vietnam, Busco Sugar Milling Co. Inc, Universal Robina Corporation Group, First Farmer Holding Corporation, & the list can go on & on.

With a large clientele, the company’s order book is intense. As of January 31, 2022, Ishan had an order book worth nearly INR 30 crores+ executables in 6 months, indicating revenue growth. New contracts from sugar, renewable energy, pollution control, and pharma projects will give the company a competitive edge, leading to higher sales and profits. Existing and new markets will provide this new business. Exports drive the company’s overall growth & diversification protect the company from sector downturns and strengthen its order book.

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