About the Company:
Ambani Organics Limited is a manufacturer, processor, importer, supplier and exporter of water based speciality chemicals used in Paper Industry, Paint Industry, Textile Industry, Carpet Industry, Adhesive Industry, etc.
Company was incorporated in the year 1985 and is engaged in the business of specialty chemicals for more than 3 (three) decades.
Company is an “ISO 9001:2015 – Quality Management System” certified company and they have also obtained GOTS (Global Organic Textiles Standards) certification for some of their textile industries chemicals.
Company earns revenue from manufacturing varied speciality chemicals catering to various industries. Company is engaged in manufacturing of chemicals such as Textile Auxiliaries, Acrylic Polymers, Binders and Paint Driers.
Company has 2 (two) manufacturing facilities in Maharashtra located adjacent to each other with one at Plot No. N-44, MIDC, Tarapur Boisar, Thane, Maharashtra – 401506 and the second manufacturing facility at Plot No. N-43, MIDC, Tarapur Boisar, Thane, Maharashtra – 401506.
Company has a dedicated in-house Research & Development and Quality Assurance/Quality Control Team which undertakes rigorous testing and quality management. Company’s R&D Centre is located at Plot No. N-55, MIDC Tarapur Boisar, Thane, Maharashtra.
Company’s Overview:
Company’s Proposed Capacity Utilization:
Management Team:
- Mrs. Apooni Shah (Designation: Chairman and Whole Time Director)
- Mr. Rakesh Shah (Designation: Managing Director)
- Mr. Sharad Kothari (Designation: Non-Executive Non-Independent Director)
Promoters Average Acquisition Cost:
| Name of the Promoter | No. of Shares held | Average Acquisition Cost (in Rs.) |
|---|---|---|
| Mr. Rakesh Shah | 34,64,721 | 10.72 |
| Mrs. Apooni Shah | 3,14,738 | 10.51 |
Positives for the Company:
Diversified Product Portfolio Catering to Customers from Varied Industries.
Company offers a range of over 100 speciality chemicals under the “AOPL” brand, which are used in various industries and for various applications.
Some of the industries they cater to are (a) Paper industry, (b) Textile Industry, (c) Adhesive Industry, (d) Paint and Construction Industry and (d) Carpet Industry.
Company’s products include binders, PVP Emulsions, Acrylic Emulsions, Textile Auxiliaries, Detergent formulation, Acrylic Polymers, Adhesives, Styrene Acrylic, Defoamer, Dispensers, Butyl Acrylate based Terypolymer, Thickeners, Paint Driers etc.
Objectives of the Issue:
Offer for Sale: (Around Rs. 0.66 cr)
Company will not receive any proceeds of the Offer for Sale by the Selling Shareholder.
Fresh Issue: (Around Rs. 8.37 cr)
Funding Long Term Working Capital Requirement.
Funding expenditure for General Corporate Purposes.
Fund Utilization:
| Particulars | Amount (Rs. in Crores) |
|---|---|
| Working Capital requirements | 7.24 |
| General Corporate Expenses | 0.58 |
| Net Proceeds | 7.83 cr |
Financials of the Company:
| (in Crores) | FY 14 | FY 15 | FY 16 | FY 17 | FY 18 |
|---|---|---|---|---|---|
| Revenue | 34.19 | 37.65 | 32.91 | 52.89 | 65.58 |
| Net Profit | 0.32 | (-2.43) | (-0.38) | 0.79 | 1.91 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Ambani Organics Limited | 10 | 5.02 | 13.15 | 32.05% | 15.45 |
| Nikhil Adhesives Limited | 10 | 7.15 | 30.07 | 8.15% | 76.08 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 6th July 2018 |
| Issue Closes on:. | 10th July 2018 |
| Issue Price | Rs.66 |
| Face Value | Rs.10 |
| Minimum Lot | 2000 |
| Minimum Investment | Rs.1,32,000 |
| Issue Constitutes | 32.50% |
| Issue Size | Rs.9.03 cr |
| Market Cap | Rs.33.52 cr |
| Listing at | NSE SME |
| Equity Shares Offered (OFS) | 1,00,000 |
| Equity Shares Offered (Fresh) | 12,68,000 |
| Total Equity Shares Offered | 13,68,000 |
| Equity Shares Prior to the Issue | 38,10,659 |
| Equity Shares after the Issue | 50,78,659 |
Important Dates:
| Finalization of Basis of Allotment | on or Before 13th July 2018 |
| Initiation of Refunds | on or Before 16th July 2018 |
| Credit of Equity Shares: | on or Before 17th July 2018 |
| Listing Date: | on or Before 18th July 2018 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 5.02 | 13.15 | 32.50% | 15.45 |
Knowledge Corner: (Click on the Link)
| Company Contact Info: |
|---|
| Ambani Organics Ltd N 44, MIDC, Tarapiur, Boisar, Thane Maharashtra 401506. Tel No: +91 – 22 – 2683 3778 Fax No: +91 – 22 – 2683 3778 Email: info@ambaniorganics.com Website: http://www.ambaniorganics.com |
| IPO Registrar Info: |
|---|
| UNIVERSAL CAPITAL SECURITIES PRIVATE LIMITED 21, 25, 33, Shakil Niwas, Opposite Satya Sai Baba Mandir, Mahakali Caves Road, Seepz, Andheri (East), Mumbai- 400093, Maharashtra Tel No.: +91 – 22 – 2820 7203 / 04 / 05; Fax No.: +91 – 22 – 2820 7207; Email: info@unisec.in Website: www.unisec.in |
| Lead Manager to the Issue: |
|---|
| ARYAMAN FINANCIAL SERVICES LIMITED 60, Khatau Building, Ground Floor, Alkesh Dinesh Modi Marg, Fort, Mumbai – 400 001, Maharashtra Tel No.: +91 – 22 – 6216 6999 Fax No.: +91 – 22 – 2263 0434 Email: ipo@afsl.co.in Website: www.afsl.co.in |
