About the Company:
Ashoka Metcast Ltd is engaged in trading and manufacturing of structural steel products like TMT bars, angles, channels, MS Bars etc
company is part of Gujarat Based diversified business group currently promoted by Mr. Shalin Ashok Shah and Family.Company’s promoter group has business interests in various sectors including Oil and Gas, Steel, Infrastructure, Electronic Equipments and Real Estate.
Company’s flagship group company – Gujarat Natural resources Ltd. is engaged in the business of Oil & Gas exploration and production and currently has participating interests in 6 producing blocks in Cambay basin and is operator in four of these blocks.
Company plans to leverage its group and promoter networks in the real estate and infrastructure space as well as strong balance sheet situation to increase its presence in the structural steel market of Gujarat and Western India.
The company has commenced its trading operations in September 2017. The company is in the process of building a structural steel focused trading vertical as well as developing a strong team to cater to its proposed increased operational needs.
Further the company has recently acquired 100% stake in Shree Ghantakarna Rolling Mills Pvt. Ltd. (making it its wholly owned subsidiary company).
Company’s subsidiary company owns a rolling mill having aggregate installed capacity of 12,000 tons; however the same has been non-operational for 16 years due to internal financial constraints as well as market conditions.
Post acquisition they have begun the process of revamping as well as expanding its production facilities and intends to begin its production in April 2018 with an aggregate installed capacity of 18,000 tons per annum.
- Mr.Shalin Shah (Designation: Managing Director)
- Mr.Ashok Shah (Designation: Non-Executive Non-Independent Director)
- Ms.Chitra Thaker (Designation: Non-Executive Independent Director)
Promoters Average Acquisition Cost:
|Name of the Promoter||No. of Shares held||Average Acquisition Cost (in Rs.)|
|Mr. Shalin Shah||000||19.98|
|Shalin Shah (HUF)||000||20.00|
Promoters Stake Pre & Post Issue:
|Shareholder Name||Pre Issue Stake (%)||Post Issue Stake(%)|
|Mr. Shalin Shah||39.38%||17.32%|
|Shalin A. Shah (HUF)||38.11%||16.76%|
|Promoters Group Entities||22.51%||9.90%|
Objectives of the Issue:
- Investment in subsidiary company – SGRMPL for funding capital expenditure requirements in relation to revival and modernization of existing manufacturing facility at Kadi, Gujarat and working capital requirements.
- Repayment of loans.
- Funding expenditure for General Corporate Purposes.
|Particulars||Amount (Rs. in Crores)|
|Investment in subsidiary company||7.4|
|Repayment of loans||2.10|
|Funding expenditure for General Corporate Purposes||2.00|
|Net Proceeds||11.14 cr|
Financials of the Company:
|(in Lakhs)||FY 14||FY 15||FY 16||FY 17||15th Nov 17|
|Issue Opens on||23rd January 2018|
|Issue Closes on:.||25th January 2018|
|Issue Size||Rs.12 cr|
|Market Cap||Rs.21.42 cr|
|Listing at||BSE SME|
|Total Equity Shares Offered (Fresh)||60,00,000|
|Equity Shares Prior||47,10,000|
|Equity Shares after the issue||1,07,10,000|
Valuation of Peer Group Companies:
|Company Name||Face Value||EPS||PE Ratio||RoNW||NAV|
|Ashoka Metcast Limited||10||10.67||1.87||81.95%||286.78|
|Rathi Bars Limited||10||0.59||35.84||1.30%||36.10|
|Narayani steels Limited.||10||2.25||16.67||5.38%||35.62|
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:|
|Company Contact Info:|
|Ashoka Metcast Ltd
7th Floor, Ashoka Chambers,
Opp. HCG Hospital Mithkhali Six Roads,
Mithakhali Ahmedabad- 380006, Gujarat, India.
Tel No.: +91- 79- 2646 3226
|IPO Registrar Info:|
|ACCURATE SECURITIES & REGISTRY PRIVATE LIMITED
23, 3rd Floor, Sarthik Complex,
Near Fun Republic Iscon Cross Road,
Satelliate Ahmedabad – 380055, Gujarat
Tel No.: +91 – 79- 6943 0070 / 76
Grievance Email: email@example.com
|Lead Manager to the Issue:|
|ARYAMAN FINANCIAL SERVICES LIMITED
60, Khatau Building, Ground Floor,
Alkesh Dinesh Modi Marg,
Fort, Mumbai – 400 001
Tel No.: +91 – 22 – 6216 6999
Fax No.: +91 – 22 – 2263 0434