About the Company:
Astron Paper and Board Mills Limited (Incorporated in 2010) is engaged in manufacturing of kraft paper.
Within a short span of time,Company has developed a name for itself in kraft paper industry and they have been able to establish a brand associated with qualitative and comprehensive range of kraft papers.
They mainly cater to packaging industry and have been able to develop a loyal clientele network consisting of various packaging companies and MNCs.
Currently they are operating in domestic markets with their products being supplied on pan India basis.
Company is one of the major kraft paper manufacturers in Gujarat with manufacturing facility having an installed capacity of 96,000 mt tonnes per annum.
Company’s manufacturing facility is situated at Halvad, Gujarat and is well equipped with requisite plant and machineries and other facilities.
Company’s manufacturing and dispatch process has been assessed and certified as meeting the requirements of ISO 9001: 2008 and ISO 14001: 12004 by an international organisation viz. SGS United Kingdom Ltd. Systems & Services Certification.
Kraft Paper manufactured by them is mainly used in manufacturing corrugated boxes which is used by all industrial and commercial packaging units
Kraft paper is used by packaging industry for manufacturing corrugated boxes and liners,corrugated sacks and composite containers.
Capacity Utilization Levels & Installed Capacity:
About Promoter Group:
- Company is promoted by Kirit G. Patel,Ramakant Patel, Karshanbhai Patel and Asian Granito (India) Limited.
- Asian Granito (India) Limited is Listed on NSE & BSE.
Management Team:
- Mr.Kirit G.Patel (Designation : Chairman and Managing Director)
- Mr.Ramakant Patel (Designation : Executive Director)
- Mr.Karshanbhai Patel (Designation : Executive Director)
Promoters Average Acquisition Cost:
| Name of the Promoter | No. of Shares held | Average Acquisition Cost (in Rs.) |
|---|---|---|
| Kirit Patel | 66,99,650 | 4.24 |
| Karsanbhai Patel | 35,75,000 | 2.77 |
| Ramakant Patel | 11,82,900 | 9.10 |
| Asian Granito India Limited | 87,75,000 | 8.95 |
Promoters Stake Pre & Post Issue:
| Shareholder Name | Pre Issue Stake (%) | Post Issue Stake (%) |
|---|---|---|
| Promoters | ||
|
Kirit G. Patel
|
20.61% | 14.40% |
| Ramakant Patel | 3.64% | 2.54% |
| Karshanbhai Patel | 11.00% | 7.68% |
|
Asian Granito India
Limited
|
27.00% | 18.87% |
|
Promoter Group Entities
|
0.38% | 0.26% |
| Total | 62.64% | 43.77% |
Objectives of the Issue:
- Setting up of additional facility for manufacturing of lower GSM and lower B.F Kraft Paper.
- Part repayment of unsecured loan availed by our Company.
- Funding the working capital requirements of the Company.
- General corporate purposes.
Fund Utilization:
| Particulars | Amount (Rs. in Crores) |
|---|---|
|
Setting up of additional facility for manufacturing of lower GSM and lower B.F Kraft Paper
|
23.0 |
| Part Repayment of unsecured loan availed by the Company | 8.1 |
| Funding the working capital requirements of the Company | 23.9 |
| General corporate purposes | 15.0 |
| Net Proceeds | 70 cr |
Future Growth Strategies:
- They are setting up additional manufacturing facility to manufacture lower GSM and lower B.F Kraft paper .This facility will complement their existing capacity as the Kraft paper used in inner layer of corrugated boxes is generally of lower GSM and lower B.F which was not manufactured by them till now.
- To expand their business,they intend to aggressively penetrate in the domestic markets and expand their domestic market presence by expanding the sales and distribution network.
- Since the raw material for corrugated box is Kraft paper they also have plans enter into packaging industry ie. manufacturing of corrugated boxes and thereby expanding the business.
Also watch this In Depth Details about the Company:
Positives for the Company:
- Company proposes to enhance its installed capacity by setting up of additional manufacturing facility by way of addition to the installed capacity of 33,000 mt p.a which is proposed to commence in January,2018.
- Setting up of additional manufacturing facility which will increase their product range.
- As they are ISO Certified, therefore they are recognised vendor with large corporate houses and MNCs. Such MNCs require their corrugators to source the kraft paper for their corrugated boxes from their list of approved vendors only.
- With Expansion to other regions we should expect a very good growth in future.
- As they plan to start manufacturing of corrugated boxes,it will further increase the business.
- With each passing year the demand for corrugated boxes for packaging is increasing steadily.
- Company is also in the process of exploring export markets.
Financials of the Company:
| (in Crores) | FY 13 | FY 14 | FY 15 | FY 16 | FY 17 |
|---|---|---|---|---|---|
| Revenue | 26.72 | 106.19 | 152.13 | 157.85 | 184.58 |
| Net Profit | (-4.14) | (-3.02) | 4.12 | 6.08 | 9.96 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
|
Astron Paper & Board Mills
Ltd
|
10 | 3.06 | 16.33 | 21.98% | 13.94 |
| Shree Ajit Pulp & Paper Ltd | 10 |
11.95
|
17.74 | 6.84% | 174.77 |
|
Genus Paper and
Board Limited
|
1 | 0.27 | 20.37 | 2.14% | 12.60 |
|
South India Paper
Mills Limited
|
10 | 8.41 | 12.25 | 9.21% | 91.33 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 15th December 2017 |
| Issue Closes on:. | 20th December 2017 |
| Issue Price | Rs.45 – 50 |
| Face Value | Rs.10 |
| Minimum Lot | 280 shares |
| Minimum Investment | Rs.14,000 |
| Retail Allocation | 35% |
| Issue Constitutes | 30.10% |
| Issue Size | Rs.70 crores |
| Market Cap | Rs.232 crores |
| Listing at | NSE & BSE |
| Total Equity Shares Offered (Fresh) | 1,40,00,000 |
| Equity Shares Prior | 3,25,00,000 |
| Equity Shares after the issue | 4,65,00,000 |
Important Dates:
| Finalization of Basis of Allotment | on or Before 26th December 2017 |
| Initiation of Refunds | on or Before 27th December 2017 |
| Credit of Equity Shares: | on or Before 28th December 2017 |
| Listing Date: | on or Before 29th December 2017 |
Subscription Details:
| (Subscription-Category-Wise (no. of times) Till time : 06:00 PM) | Shares Offered | Day-1 | Day-2 | Day-3 | Day-4 |
|---|---|---|---|---|---|
| QIB | 13,30,000 | 1.5 | 1.8 | 5.74 | 103.36 |
| NII | 73,15,000 | 0.04 | 0.45 | 1.16 | 396.9 |
| Retail | 46,55,000 | 1.96 | 14.07 | 33.57 | 73.36 |
| Employee | 7,00,000 | 0.04 | 0.58 | 1.59 | 2.7 |
| TOTAL | 1,40,00,000 | 0.721 | 5.11 | 12.39 | 241.7 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 3.06 | 16.33 | 21.98% | 13.94 |
Markets Guruji Opinion:
| IPO View | Apply For: | Expected listing Gain: |
|---|---|---|
| Subscribe | Long Term | 40% |
Grey Market Premium :
| Date | IPO | Price Band | Grey Market premium | Kostak Rates |
|---|---|---|---|---|
| 28/12/17 | Astron Paper & Board Mill Ltd | Rs.45 – 50 | 35- 37 | 1550- 1650 |
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| Check IPO Allotment Status: |
|---|
Link InTime Websitehttps://linkintime.co.in/PublicIssues/ |
| Company Contact Info: |
|---|
| Astron Paper and Board Mill Limited, D-702, Seventh Floor, Ganesh Meridian, S.G. Highway,Ahmedabad -380060, Gujarat, India. Tel No:+ 91-79-40081221 Fax No:+ 91-79-40081220 Email: cs@astronpaper.com Website: www.astronpaper.com |
| IPO Registrar Info: |
|---|
| INK INTIME INDIA PvT. LTD. C-101, 247 Park, 1st Floor, LBS Marg, Vikhroli (W), Mumbai-400083 Tel: 022 49186200 Fax:022 49186195 Email:astron.ipo@linkintime.co.in Grievance E-mail: astron.ipo@linkintime.co.in Website: www.linkintime.co.in |
| Lead Manager to the Issue: |
|---|
| PANTOMATH CAPITAL ADVISORS PRIVATE LIMITED 406-408, Keshava Premises, Bandra Kurla Complex, Bandra East, Mumbai – 400 051 Te l: +91 22 6194 6700 Fax: +91 22 2659 8690 Email:ipo@pantomathgroup.com Grievance Email:ipo@pantomathgroup.com Website: www.pantomathgroup.com |
