About the Company:
Arvee Laboratories (Incorporated on January 27, 2012) started its work by trading in specialty chemicals by getting manufacturing done on job work basis from Skylead Chemicals Limited and Skylink Chemicals Private Limited.
On April 20, 2013, Company bought land, building and machineries from Skylink Chemicals Private Limited who were engaged in manufacturing of specialty chemicals which fostered their growth and expansion. Since 2013 Arvee Laboratories has been making additions to its plant & machinery, expanding capacities and modernizing its building.
Company started its operations with an aim to become a leader & frontrunner in chemical industry by providing the best and innovative quality chemical products.
Company is mainly engaged in manufacturing of Polymer Modifiers, Contrast Media Intermediates and Drug Intermediates.Company’s product portfolio consists of wide range of specialty chemical products which differentiate them from other companies. With a wide product portfolio, company is able to cater to the demand of both domestic as well as international markets.
Company also aims at diversifying the activity of manufacturing specialty chemicals like Dimethyl 5-Nitroisphthalate, 2-Thiophene- Carboxaldehyde, 2-Acetyl Thiophene, Lithium Sulpho Isopthalic Acid-LiSIPA, etc that cater to the needs and demands of other businesses in India and overseas.
Major Events for the Company in the Year 2017:
Company’s plant was inspected and approved by an American X-ray contrast media manufacturer who has the largest market share in the world and started of pilot trials with the the company.
Received order for commercial trials of Nitro Derivatives of Isophthalic acid from the largest manufacturer of X-ray contrast media manufacturer in the world.
Major Domestic Clients & Revenue Contribution: (in Lakhs)
Geographic Revenue Details: (in Lakhs)
Management Team:
- Mr.Shalin Sudhakarbhai Patel (Designation: Managing Director)
- Mr.Shalin Bharat Chokshi (Designation: Whole- Time Director)
- Mr. Saumil Bharatbhai Chokshi (Designation: Non- Executive Director)
Promoters Average Acquisition Cost:
| Name of the Promoter | No. of Shares held | Average Acquisition Cost (in Rs.) |
|---|---|---|
| Mr. Shalin Sudhakarbhai Patel | 16,90,000 | 10.00 |
| Mr. Shalin Bharat Chokshi | 6,69,000 | 10.00 |
Promoters Stake Pre & Post Issue:
| Shareholder Name | Pre Issue Stake (%) | Post Issue Stake |
|---|---|---|
| Promoters | ||
| Shalin Sudhakarbhai Patel | 41.73% | 30.67% |
| Shalin Bharat Chokshi | 16.53% | 12.14% |
| Promoters Group Entities | 41.74% | 30.7% |
| Total | 100% | 73.50% |
Objectives of the Issue:
- Re-payment of Unsecured Loans of Promoters.
- Issue Expenses.
Fund Utilization:
| Particulars | Amount (Rs. in Crores) |
|---|---|
| Re-payment of Unsecured Loans of Promoters | 8.40 |
| Issue Expenses | 0.50 |
| Net Proceeds | 8.9 cr |
Financials of the Company:
| (in Crores) | FY 13 | FY 14 | FY 15 | FY 16 | FY 17 | 30th Sept 17 |
|---|---|---|---|---|---|---|
| Revenue | 3.55 | 11.84 | 13.05 | 26.92 | 34.94 | 19.80 |
| Net Profit | 0.043 | 0.018 | (-1.64) | 0.18 | 1.55 | 0.31 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio |
|---|---|---|---|
| Arvee Laboratories Ltd | 10 | 3.83 | 15.93 |
| Transpek Industry Limited | 10 | 50.90 | 21.37 |
| Thirumalai Chemicals Limited | 10 | 73.71 | 21.57 |
| Fineotex Chemical Limited | 2 | 1.43 | 19.97 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 9th February 2018 |
| Issue Closes on:. | 14th February 2018 |
| Issue Price | Rs.61 |
| Face Value | Rs.10 |
| Minimum Lot | 2000 |
| Minimum Investment | Rs.1,22,000 |
| Issue Constitutes | 26.50% |
| Issue Size | Rs.8.9 cr |
| Market Cap | Rs.33.61 cr |
| Listing at | NSE SME |
| Total Equity Shares Offered (fresh) | 14,60,000 |
| Equity Shares Prior to the Issue | 40,50,000 |
| Equity Shares after the issue | 55,10,000 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 3.83 | 15.93 | 37% | 10.36 |
Grey Market Premium :
| Date | IPO | Price Band | Grey Market premium |
|---|---|---|---|
| 13/02/18 | Arvee Laboratories Ltd | 61 | 5 – 7 |
Subscription Details: (9/12/14 February 2018)
| (Subscription-Category-Wise (no. of times) Till time : 06:00 PM) | Shares Offered | 9/2 | 12/2 | 14/2 |
|---|---|---|---|---|
| HNI | 6,92,000 | 0.00 | 1.91 | 2.17 |
| Retail | 6,92,000 | 1.39 | 1.63 | 3.61 |
| Others | 76,000 | 0.00 | 0.00 | 0.00 |
| TOTAL | 14,60,000 | 0.66 | 1.68 | 2.74 |
Markets Guruji Opinion:
| IPO View | Apply For: | Expected listing Gain: |
|---|---|---|
| Subscribe | Long Term | 20% |
| Check IPO Allotment Status: |
|---|
Bigshare Website (Click on the below link)http://www.bigshareonline.com/bssipoapplicationstatus.aspx |
| Company Contact Info: |
|---|
| ARVEE LABORATORIES (INDIA) LIMITED 49/3-B, Shyamal Row Houses, 100 Feet Road, Near Sanjay Tower, Satellite, Ahmedabad- 380015, Gujarat, India Tel: +91 79 26749036/37/38 Fax: +91 79 26742600 E-mail: shalin.patel@arveelabs.com Website: www.arveelabs.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 22 62638200 Fax: +91 22 62638299 E-mail: ipo@bigshareonline.com Website: www.bigshareonline.com |
| Lead Manager to the Issue: |
|---|
| SARTHI CAPITAL ADVISORS PRIVATE LIMITED Unit No. 411, Fourth Floor, Pratap Bhavan, 5 Bahadur Shah Zafar Marg, New Delhi-110002 Tel: +91 11 23739425-27 Fax: +91 11 23739424 Investor Grievance Email: ipo@sarthiwm.in Website: www.sarthi.in |
