About the Company:
Company (Incorporated in 2007) is engaged in manufacturing of Hi Pressure decorative laminates. Company manufactures high quality products with wide range of designs.
Company’s manufacturing facilities are equipped with adequate machinery and handling equipment to facilitate smooth manufacturing process.
Company is accredited with ISO 9001:2008 for quality assurance of international level.
Company’s manufacturing facilities are equipped with german technology machineries.
Company has distribution network and operates through more than 70 distributors and 4 stock points at Bangalore, Mumbai & Kolkata .
They have an established customer base in Gujarat, Madhya Pradesh, Rajasthan, Chhattisgarh,Haryana, Punjab, Uttar Pradesh, Maharashtra, Tamilnadu, Jammu & Kashmir, Himachal Pradesh,Chandigarh, Delhi, West Bengal, Odisha, Jharkhand, Kerala, Goa, Andhra Pradesh and (Telangana) & Karnataka.
Company also export laminate products to various countries including the UAE, Syria,Kuwait, Bangladesh, Dubai, Singapore, Iran, etc.
Company’s marketing team comprising of more than 80 employees across 20 states in India while distribution network comprises of more than 70 distributors and dealers through whom they have access to sub-dealers and retailers.
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Management Team:
- Mr.Pravinbhai N. Patel (Designation: Chairman & Managing Director)
- Mr.Sureshbhai Patel (Designation: Whole-time Director)
- Mr.Pravinbhai A. Patel (Designation: Non-Executive Director)
Objectives of the Issue:
- Working capital requirements of the Company.
- General Corporate Purpose.
- Listing Benefits
Strengths of the Company:
Experienced Management & Dedicated Team:
We have an experienced management team with our Managing Director having experience of more than 8 years in Laminate industry.
Diversified Products Portfolio:
They have a comprehensive portfolio of Designs and products Range with different brand name covering Classico, Airolam, I-Lam, Airolite, Airoline, I-Lite, Premium Airodoor, Airodoor, Airo Flexi, Airo xterior, Airo Digilam etc.
Their comprehensive range of products enables them to capitalize on growth opportunities and demand in the Decorative Laminate industry.
Wide Distribution and Marketing Network:
At present,their distribution model is based on marketing and distributorship and have around 70 distributors and 4 stock points across the country.
Such distribution model help us achieve many competitive advantages such as wider reach to consumers, reduced overheads with lower logistics costs, elimination of dealer margins, increased brand recognition, etc.
Financials of the Company:
| (in Crores) | FY 13 | FY 14 | FY 15 | FY 16 | FY 17 |
|---|---|---|---|---|---|
| Revenue | 55.18 | 64.16 | 67.22 | 64.06 | 71.46 |
| Net Profit | 1.42 | 1.48 | 1.60 | 1.67 | 1.89 |
Should you invest in this IPO?
Since the company is in the business of manufacturing and selling Decorative laminates, which are always in demand so the sector in which they are operating is very good and there is constant demand in the market for such products.
Company manufactures “Quality Products” and there is no compromise on Quality(for quality they have received ISO Certification), and what i have noticed over the years is that whichever company focuses and sells quality products they are bound to grow by leaps and bounds and i see that potential in this company.
I would like to share one most important point that i noticed in the investor presentation report is that the promoters of the company are very passionate and dedicated in running the business,what i mean to say is that the way they have created a brand name for the products in the market for which they had done many advertising campaigns for promoting the brand and also the way they have scaled up the business in commendable.
And from a shareholders point of view I would like to add one more point that the companies which are operating in this particular segment has proved to be multibaggers. Now its upto you to decide whether to apply or skip the ipo.
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 25th September 2017 |
| Issue Closes on:. | 27th September 2017 |
| Issue Price | Rs.36 – 38 |
| Face Value | Rs.10 |
| Minimum Lot | 3000 |
| Minimum Investment | Rs.1,14,000 |
| Issue Constitutes | 26.67% |
| Issue Size | Rs.15.2 cr |
| Market Cap | Rs.57 cr |
| Listing at | NSE SME |
| Equity Shares Offered | 40,00,000 |
| Equity Shares Prior | 1,10,00,000 |
| Equity Shares after the issue | 1,50,00,000 |
Important Dates:
| Finalization of Basis of Alottment | on or Before 3rd October 2017 |
| Initiation of Refunds | on or Before 4th October 2017 |
| Credit of Equity Shares: | on or Before 4th October 2017 |
| Listing Date: | on or Before 6th October 2017 |
IPO Valuation parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 1.72 | 22.09 | 11.02% | 15.29 |
Markets Guruji Opinion:
| IPO View | Apply For: | Expected listing Gain: |
|---|---|---|
| Subscribe | Listing Gain | 15% |
