Tankup Engineers Ltd. IPO: Key Details

Tankup Engineers

• Tankup Engineers is coming out with an initial public offering (IPO) of 13,95,000 equity shares in a price band Rs 133-140 per equity share.
• The issue will open on April 23, 2025 and will close on April 25, 2025.
• The shares will be listed on SME Platform of NSE.
• The face value of the share is Rs 10 and is priced 13.30 times of its face value on the lower side and 14.00 times on the higher side.
• Book running lead manager to the issue is HEM Securities.
• Compliance Officer for the issue is Rajat Srivastava. 

Profile of the company

Tankup Engineers is engaged in the business of manufacturing specialised vehicle superstructure for complex mobility and storage solutions of various capacities. This involves manufacturing large containers or tank like solutions used for transporting/ storing various materials, which could include liquids, gases or solids, depending on customer product range. These tanks may be custom-built to meet specific client requirements regarding size, material, capacity, and features. It caters to a broad spectrum of end-use industries like: Petroleum, Mining, Infrastructure, Defence etc. The company’s manufacturing activity involves focus on fabrication of tanks dedicated to delivering mobile solutions that may be deployed for a wide range of commercial use. For example, the company manufactures various types of tanks like: Mobile Refueller, Water Sprinkler, Mobile Service Van, Explosive Van, Tank Truck, Blasting Shelter etc. Its diversified range of product applications has helped it to evolve as manufacturer of special purpose vehicle with superstructures to address complex mobility and storage solutions required by its customers.

The company’s focus on mobile solutions is intended to provide convenient solutions for transporting and dispensing goods like: fuel, water, other consumables in complex applications. These mobile tanks facilitate transportation from a storage facility to a remote site. Its tanks are mainly designed to cater to locations where access to products like: fuel, water, explosives is limited, such as construction sites, mining operations or remote industrial facilities. They serve as a backup during emergencies or in areas prone to power outages or disruptions in supply, ensuring continuity of operations. It manufactures these tanks in various sizes and configurations to suit different needs of customers, from smaller units mounted on trailers or skids to larger capacities for heavy-duty applications.

Addressing the specific logistical challenges of industries and operations that rely on diesel fuel, the Refueller manufactured by it is equipped with IoT monitored hardware modules where it has Components like: Dispensing Unit, GPS and Lock attached to it. It allows for the controlled dispensing of diesel fuel directly into machinery, vehicles, or storage tanks, ensuring that fuel is delivered where it's needed without the need for a fixed fuelling station.

Proceed is being used for:

• Repayment in full or in part, of certain of its outstanding borrowings
• Funding to meet working capital requirements
• General corporate purpose

Industry Overview

The Mobility Solutions sector is undergoing a transformative shift driven by urbanization, environmental concerns, and technological advancements. This sector encompasses a wide array of innovations including electric vehicles (EVs), shared mobility, autonomous driving, and Mobility-as-a-Service (MaaS) platforms, all aimed at making transportation more efficient, sustainable, and accessible. Governments worldwide are pushing for cleaner alternatives through subsidies and regulations, while private players are investing heavily in R&D and infrastructure. Key trends include the rise of EV adoption, integration of AI and IoT in traffic systems, and growing consumer preference for flexible, on-demand mobility. 

Moreover, the manufacturing of vehicle superstructures for the complex mobility segment includes electric buses, ambulances, military vehicles, high-end transport vans, and customized logistics platforms. It is a growing niche within the broader mobility industry. These superstructures are specialized frameworks mounted on base chassis to serve sector-specific needs such as passenger safety, ergonomic design, cargo optimization, or equipment integration. The segment demands high precision engineering, advanced lightweight materials (like aluminum alloys, composites), and modular design flexibility to accommodate a variety of use cases and regulations. With the shift toward electric and autonomous mobility, there is an increased emphasis on aerodynamics, weight reduction, thermal management, and electronics integration. 

Key growth drivers include urban public transport reforms, defense modernization, last-mile delivery demands, and healthcare infrastructure expansion. The sector is increasingly adopting CAD/CAM, 3D prototyping, and AI-based design validation to meet evolving standards. Challenges include compliance with diverse homologation norms, high initial investment, and managing supply chain complexity for low-volume, high-customization production. Nonetheless, strategic collaborations with OEMs, government support, and the push for sustainable mobility position this sector for steady growth.

Pros and strengths

Diverse range of product portfolio: Over the years the company has evolved as specialised vehicle superstructure solutions company. It has a diverse range of product portfolio finding applications across multiple industry such as Petroleum, Mining, Infrastructure, Defence and Aviation. Its diversification of revenue across multiple verticals allow it to prevent any possible industry concentration in any of its product categories. Its diverse portfolio limits its exposure to downturns associated with a particular vertical. It also ensures that its revenues are consistent across periods on account of its customers serving different industry verticals with different business or industry cycles. Its experience and exposure to sell its products to such diversified industries allows it to explore its capabilities across other industry applications and to cross sell them.

In-house product fabrication capabilities: The company operates from its manufacturing facility situated in Lucknow, Uttar Pradesh. It has comprehensive in-house fabrication capabilities. Its operations involve Chassis Procurement wherein it sources or provide the chassis from trusted commercial vehicle manufacturers, ensuring compatibility and quality and superstructure manufacturing which is designed and built at its factory. All raw materials procured for its fabrication activities are sourced from trusted vendors and its quality control team applies stringent quality measurements at every stage to ensure low rejection rate such that its finished product confirms to the exact requirement of its customers and successfully passes all test, validations and quality checks.

Stringent quality control mechanism ensuring standardized product quality: The company maintains the standard quality for its product offerings. It is dedicated towards quality of its products to ensure Compact and Sturdy Design for enhanced strength and long life along with pilferage proof tanks to ensure optimum unitization of goods. It adheres to quality standards as prescribed by its customers and employ stringent quality control mechanism at each stage of fabrication process, which are required to ensure that its finished product conforms with the exact requirement of its customers and successfully passes all validations and quality checks. It accredited with ISO 9001:2015, ISO 14001:2015 and ISO 45001:2018 certification. The company is recognised as approved fabricator of Tank Trucks/Refueller for fabrication by Ministry of Commerce & Industry Petroleum & Explosives Safety Organisation (PESO).

Risks and concerns

Maximum revenue comes from few customers: The company is dependent on certain key customers for sale of its products. For the stub period ended on November 30, 2024 and fiscals 2024, 2023 and 2022, its top ten customer’s contributed to 67.71%, 63.80%, 82.42% and 99.96% of its revenue from operations. Further, the company’s sales to its group companies contributed to 13.07%, 18.83%, 34.20% and 38.69% respectively of its revenue from operations. The loss of these customers or a loss of revenue from sales to these customers may materially affect its business, financial condition, results of operations and cash flows. As a result, the volume of sales to its customers may vary due to changes in its customers’ sourcing strategies. It cannot assure that it will be able to significantly reduce customer concentration in the future. Most of its business comprises direct supply to its customers, for which it does not have long term agreements.

Limited operating history: The company was incorporated as a private limited company under the Companies Act, 2013, with the Registrar of Companies, as evidenced by its Certificate of Incorporation dated November 3, 2020. As a result, its operating history is limited, which may impact the ability to fully assess its business performance, future prospects, and overall viability. Its future business operation and financial position may not be comparable, difficult to estimate and could fluctuate significantly and as a result the price of its Equity Shares may remain volatile.

Geographical constrain: The company generates its major turnover from the State of Uttar Pradesh. For the stub period ended on November 30, 2024 and the financial year ended March 31, 2024, March 31, 2023 & March 31, 2022, it derived major portion of its revenue from the state of Uttar Pradesh i.e. 23.77%, 36.26%, 53.68% and 97.23% of total revenue from operations, respectively. Any adverse developments affecting its operations in these regions could have an adverse impact on its revenue and results of operations.

Outlook

Tankup Engineers is engaged in the manufacturing of vehicle superstructure for complex mobility and storage solutions. The company offers products including self-bunded fuel tanks, mobile diesel bowsers, aircraft refuelers, fire tenders, and ground support equipment. The company specializes in manufacturing custom-built tanks for transporting or storing liquids, gases, or solids, tailored to client specifications in size, material, capacity, and functional features. On the concern side, the company’s business is dependent on the sale of its products to certain key customers. The loss of any of these customers or loss of revenue from sales to these customers could have a material adverse effect on its business, financial condition, results of operations and cash flows. Also, the company derives a significant portion of its revenue from the sale of its key product i.e. Refuellers. Any decline in the sales of its key product could have an adverse effect on its business, results of operations and financial condition.

The company is coming out with a maiden IPO of 13,95,000 equity shares of Rs 10 each. The issue has been offered in a price band of Rs 133-140 per equity share. The aggregate size of the offer is around Rs 18.55 crore to Rs 19.53 crore based on lower and upper price band respectively. On performance front, total income of the company for the financial year 2023-24 stood at Rs 1,954.06 lakh whereas in Financial Year 2022-23 the same stood at Rs 1,185.20 lakh representing an increase of 64.87%. The main reason of increase was increase in the volume of business operations of the company. Moreover, the company’s profit after tax for the year increase by 225.69% from net profit of Rs 78.87 lakh in FY 2022-23 to net profit Rs 256.88 lakh in FY 2023-24.

The company is continuously approaching to different customers in the domestic market and endeavouring its efforts towards developing new products catering to new industry vertical. Recently, the company has initiated to expand its operations catering to defence and aerospace industry. The company has received order from Department of Defence Research & Development for supply of Mobile Refueller. Moreover, the company has also participated and successfully submitted the tender for supply of refuellers to be deployed at Kempegowda International Airport. With its experience in fabrication of various type of tank-like storage solutions with technical capabilities and standard quality, it will be able to successfully deliver new projects in new industry vertical.