About the Company:
Angel Fibers Ltd (Incorporated in 2014) is primarily in the business of spinning of cotton yarn.They also trade in cotton waste which is by-product of manufactured product.
Manufacturing facility of Company is situated at Kalavad in Jamanagar district of Gujarat state which is close to the cotton growing areas of Maharashtra and Saurashtra (region) of Gujarat.
It is well equipped with all the modern and requisite machineries required in the production process. Further they have designed the factory in such a manner that most of the processes are automated to the extent possible.
Company has installed 19,584 spindles which can manufacture 4363 Metric Tonne cotton yarn per annum viz.,30s Ne Combed and 40s Ne Compact variety used to make products like bed sheets, socks, knitted fabrics, etc. and 40s Ne Compact Combed yarn used to make Shirtings, Sheeting, Bottom Weights etc
After creating niche in the domestic market for their products, they are aiming to produce yarn of export quality and entering the overseas market.Currently company is exporting their products to Bangladesh.
Company has a diversified customer base catering to various segments. In domestic they have created market in states viz. Delhi Gujarat, Haryana, Madhya Pradesh, Maharashtra, Punjab, Rajasthan and Tamil Nadu.
Product wise Sales of the Company: (in Lakhs)
Positives for the Company:
Favourable Government Policies:
- Government of India through the Ministry of Textile, has formulated number of policies for extending assistance in the form of grant, subsidy and soft loan to Textile industries. In order to give impetus to promotion of all micro textile Industries several incentives and subsidies have been granted.
- Since their core business adds value to the supply chain of agro produce and empowers farmers/traders to be able to get good prices for their produce, this sector shall continue to get support and encouragement from the government going forward. The unit is registered under EPCG scheme wherein the unit is eligible for 100% Excise/custom Duty Exemption and 2% Interest Subsidy on Term Loan from Ministry of Textiles as well as 7% Interest Subsidy from State Government.
- Also it is eligible for electricity subsidy of Re 1 per unit in electricity charges from State Government and Vat/GST Exemption on capital cost of Project.
Management Team:
- Mr.Ashok Dudhagara (Designation: Chairman & Managing Director)
- Mr.Prafulaben Dudhagara (Designation: Executive Director)
- Mr. Nirav Bhupatbhai Baldha (Designation: Non Executive and Independent Director)
Promoters Average Acquisition Cost:
| Name of the Promoter | No. of Shares held | Average Acquisition Cost (in Rs.) |
|---|---|---|
| Ashok Dudhagara | 1,70,12,320 | 10.00 |
| Prafulaben Dudhagara | 38,54,360 | 10.00 |
Promoters Stake Pre & Post Issue:
| Shareholder Name | Pre Issue Stake (%) | Post Issue Stake |
|---|---|---|
| Promoters | ||
| Ashok Dudhagara | 68.05% | 45.85% |
| Prafulaben Dudhagara | 15.42% | 10.63% |
| Promoter Group Entities | 16.53% | 16.53% |
| Total | 100% | 73.01% |
Financials of the Company:
| (in Crores) | FY 16 | FY 17 | 30th Sept 17 |
|---|---|---|---|
| Revenue | 51.01 | 88.73 | 46.07 |
| Net Profit | (-5.65) | 3.11 | 2.59 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Angel Fibers Ltd | 10 | 1.24 | 21.77 | 13.85 | 8.98 |
| Ginni Filaments Ltd | 10 | 2.46 | 14.57 | 10.76 | 23.62 |
| Nagreeka Export Ltd | 5 | 0.83 | 44.65 | 1.01 | 81.84 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 20th February 2018 |
| Issue Closes on:. | 23rd February 2018 |
| Issue Price | Rs.27 |
| Face Value | Rs.10 |
| Minimum Lot | 4000 |
| Minimum Investment | Rs.1,08,000 |
| Issue Constitutes | 26.99% |
| Issue Size | Rs.18.22 cr |
| Market Cap | Rs.67.5 cr |
| Listing at | BSE SME |
| Total Equity Shares Offered (OFS) | 67,48,000 |
| Equity Shares Prior to the issue | 2,50,00,000 |
| Equity Shares after the issue | 2,50,00,000 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 1.24 | 21.77 | 13.85% | 8.98 |
Markets Guruji Opinion:
| IPO View | Apply For: | Expected listing Gain: |
|---|---|---|
| Subscribe | Long Term | 5% |
Grey Market Premium :
| Date | IPO | Price Band | Grey Market premium |
|---|---|---|---|
| 17/02/18 | Angel Fibers Ltd | Rs.27 | NA |
Subscription Details: (20/21/22/23 February 2018)
| (Subscription-Category-Wise (no. of times) Till time : 06:00 PM) | Shares Offered | Day-1 | Day-2 | Day-3 | Day-4 |
|---|---|---|---|---|---|
| HNI | 32,04,000 | 0.11 | 0.17 | 1.09 | 1.61 |
| Retail | 32,04,000 | 0.35 | 1.01 | 2.29 | 6.1 |
| Others | 3,40,000 | 0.00 | 0.00 | 0.00 | 0.00 |
| Employee | ——— | —– | —– | —- | —– |
| TOTAL | 67,48,000 | 0.21 | 0.56 | 1.61 | 3.86 |
| Company Contact Info: |
|---|
| Angel Fibers Ltd Shivalik-2, Shop No.6, Nr. Pushkardham Temple, University Road, Rajkot – 360005, Gujarat, India Tel: + 91-94267 85557 E-mail: info@angelfibers.com Website: www.angelfibers.com |
| IPO Registrar Info: |
|---|
| BIGSHARE SERVICES PRIVATE LIMITED 1st Floor, Bharat Tin works Building, Opp vasant Oasis, Makwana Road,Marol, Andheri East, Mumbai-400059 Tel : +91 022-62638200 E-Mail: ipo@bigshareonline.com Website: www.bigshareonline.com |
| Lead Manager to the Issue: |
|---|
| GUINESS CORPORATE ADVISORS PRIVATE LIMITED 18 Deshapriya Park Road, Kolkata – 700 026, West Bengal, India Tel: +91 – 33 – 4057 5555 Email:gcapl@guinessgroup.net Website: www.guinessonline.net |
