About the Company:
Company was incorporated as AKM Lace and Embrotex Private Limited, a private limited company under the provisions of Companies Act, 1956 on November 26, 2009.Company is engaged in the business of trading of textile products primarily fabrics as well as supply of customised lace and embroidered work items which they manufacture/process through established job work arrangements.
Company’s business model is divided into two parts, i.e. sale of traded goods, which comprises of cotton fabrics, grey cloth, etc and sale of manufactured/processed goods, which comprises of knitted fabrics primarily lace based.
For the year ended March 31, 2017 company traded and manufactured goods constituted 73.08% and 26.92% respectively of the total revenue from operations.
Company’s products are mostly used in the manufacture of apparels such as sarees, shirting’s, suiting’s, and upholstery such as curtains amongst others.Company purchases the traded goods from the local suppliers and manufacturers / sells the same to small scale traders.
Further for knitted products (i.e. lace and embroidered fabric), company purchases the raw materials and supplies the same to the local job workers with whom company has established relations for carrying out the manufacturing / customisation operations on behalf of the Company.
Objectives of the Issue:
- Working Capital Requirement;
- General Corporate Purposes, and
- Issue Related Expenses.
- Listing Benefits.
TOP 10 Shareholders:
|Sr.No.||Shareholder Name||Number of Equity Shares held||Percentage of Equity Share Capital %|
|1.||Mr. Anoop Kumar Mangal||2,89,575||26.08%|
|2.||Anoop Kumar Mangal & Sons HUF||1,79,300||16.15%|
|3.||Mr. Shambhu Dayal Mangal||1,48,500||13.38%|
|4.||Mrs. Purva Mangal||1,21,000||10.90%|
|5.||Mrs. Manju Lata Mangal||1,17,700||10.60%|
|6.||Mr. Puneet Bansal||1,06,700||9.61%|
|7.||Arun Kumar Mangal HUF||62,425||5.62%|
|8.||Shambhu Dayal Mangal & Sons HUF||73,975||1.62%|
|9.||Mr. Arun Kumar Mangal||11,000||0.99%|
- Mr. Anoop Kumar Mangal (Designation : Managing Director)
- Mrs. Purva Mangal (Designation : Whole Time Director)
- Mr. Shambhu Dayal Mangal (Designation: Non Executive Non Independent Director)
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Negatives for the Company:
- In FY 16 Company did revenue of Rs.1 crore & Net Profit was Rs..62,000 and in FY 17 revenue has increased to Rs.11.31 crore / Net Profit was Rs.13 Lakh (Massive increase in revenue & Net profit Just before the IPO!!! I am not convinced with this result)
- Promoters are divesting around 63% stake, and after the issue promoters will own only 33%.(Seems promoters are not optimistic about the future of the company.
Financials of the Company:
|(in Crores)||FY 14||FY 15||FY 16||FY 17|
|Issue Opens on||20th September 2017|
|Isue Closes on:.||22nd September 2017|
|Issue Size||Rs.4.75 cr|
|Market Cap||Rs.7.53 cr|
|Listing at||BSE SME|
|Equity Shares Offered||19,02,000|
|Equity Shares Prior||11,01,175|
|Equity Shares after the issue||30,12,175|
|Finalization of Basis of Alottment||on or Before 27th September 2017|
|Initiation of Refunds||on or Before 28th September 2017|
|Credit of Equity Shares:||on or Before 29th September 2017|
|Listing Date:||on or Before 3rd October 2017|
IPO Valuation parameters:
|Earnings Per Share (EPS)||Price To Earnings ratio (PE)||Return on Net Worth (RoNW)||Net Asset Value (NAV)|
Markets Guruji Opinion:
|IPO View||Apply For:||Expected listing Gain:|