About the Company:
Bhatia Communications & Retail Ltd engaged into retail and wholesale distribution business of mobile handsets, tablets, data-cards, mobile accessories, mobile related products etc.
They sell smart mobile handsets of all the brands including Apple I-Phone, Samsung, OPPO, GIONEE, VIVO etc, mobile related products, tablets, data cards, accessories under one roof through company owned 72 retail outlets chain located all over the South Gujarat region including Surat, Vapi, Valsad, Navsari, Vyara etc.
They also sell cellular mobile devices and accessories of all brand through their 24 franchisee retail chain dealers located in the South Gujarat region.
Company’s existing business was started back in 2008 with a single shop by taking over the running business of partnership firm M/s. Bhatia Watch & Gift and at present under the Brand name of Bhatia Communication/Bhatia Mobile – “The Mobile One stop Shop” the same has expanded its space to more than 96 shops in South Gujarat
including franchisees.
They also provide after sale services related to mobile handsets and tablets in their own retail and franchisee outlets.
Company Sells the following range of Products:
Management Team:
- Mr.Sanjeev Bhatia (Designation: Managing Director)
- Mr.Nikhil Bhatia (Designation: Whole Time Director)
- Mr.Harbanslal Bhatia (Designation: Whole Time Director)
Promoters Average Acquisition Cost:
| Name of the Promoter | No. of Shares held | Average Acquisition Cost (in Rs.) |
|---|---|---|
| Sanjeev Bhatia | 23,80,000 | 0.021 |
| Harbanslal Bhatia | 23,80,000 | 0.021 |
| Nikhil Bhatia | 36,427 | 30.45 |
Promoters Stake Pre & Post Issue:
| Shareholder Name | Pre Issue Stake (%) | Post Issue Stake (%) |
|---|---|---|
| Promoter: | ||
| Sanjeev Bhatia | 49.00 | 34.04 |
| Harbanslal Bhatia | 49.00 | 38.03 |
| Nikhil Bhatia | 0.75 | 0.58 |
| Promoter Group Entities: | 1.25 | 0.98 |
| Total | 100% | 73.63% |
Objectives of the Issue:
Offer for Sale (Around Rs. 3.75 cr)
- Company will not receive any proceeds from the Offer for Sale.
Fresh issue (Around Rs.21 cr )
- Long term Working capital requirement
- General Corporate Purpose,
- Meeting Public Issue Expenses.
Fund Utilization:
| Particulars | Amount (Rs. in Crores) |
|---|---|
| Long term Working capital Requirements | 15.50 |
| General Corporate Expenses | 5.0 |
| Public Issue Expenses | 0.50 |
| Net Proceeds | 21.00 cr |
Financials of the Company:
| (in Crores) | FY 13 | FY 14 | FY 15 | FY 16 | FY 17 | 30th Nov 17 |
|---|---|---|---|---|---|---|
| Revenue | 74.29 | 104.11 | 110.57 | 96.08 | 133.49 | 85.23 |
| Net Profit | 0.20 | 0.35 | 0.34 | 0.31 | 0.48 | 1.31 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Bhatia Communications & Retail Ltd |
10 | 9.27 | 17.36 | 13.46 | 68.90 |
| Vmart Limited | 10 | 21.88 | 74.99 | 14.62 | 149.62 |
| V2 Retail Limited | 10 | 5.21 | 89.62 | 3.69 | 122.03 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 8th February 2018 |
| Issue Closes on:. | 12th February 2018 |
| Issue Price | Rs.150 |
| Face Value | Rs.10 |
| Minimum Lot | 1000 |
| Minimum Investment | Rs.1,50,000 |
| Issue Constitutes | 26.37% |
| Issue Size | Rs.24.75 cr |
| Market Cap | Rs.94.13 cr |
| Listing at | BSE SME |
| Equity Shares Offered (Fresh) | 14,00,000 |
| Equity Shares Offered (OFS) | 2,50,,000 |
| Total Equity Shares Offered (Fresh + OFS) | 16,50,000 |
| Equity Shares Prior to the Issue | 48,57,600 |
| Equity Shares after the Issue | 62,75,600 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 9.27 | 16.18 | 13.46% | 68.90 |
Grey Market Premium :
| Date | IPO | Price Band | Grey Market premium |
|---|---|---|---|
| 13/02/18 | Bhatia Communications & Retail Ltd | 150 | 05 – 07 |
Subscription Details:
| (Subscription-Category-Wise (no. of times) Till time : 05:45 PM) | Shares Offered | Day-1 | Day-2 | Day-3 |
|---|---|---|---|---|
| HNI | 7,83,000 | 0.37 | 1.48 | 1.98 |
| Retail | 7,83,000 | 0.01 | 0.06 | 0.73 |
| Others | 84,000 | 0.047 | 0.047 | 0.047 |
| TOTAL | 16,50,000 | 0.41 | 0.73 | 1.29 |
Markets Guruji Opinion:
| IPO View | Apply For: | Expected listing Gain: |
|---|---|---|
| Neutral | NA | NA |
| Company Contact Info: |
|---|
| Bhatia Communications & Retail (India) Ltd 132, Dr. Ambedkar Shopping Centre, Ring Road, Surat, Guajrat -395 002. Tel: 0261-2349892 Email: info@bhatiamobile.com Website: www.bhatiamobile.com |
| IPO Registrar Info: |
|---|
| PURVA SHAREGISTRY (INDIA) PRIVATE LIMITED Address: Unit no. 9, Shiv Shakti Ind. Est. J.R. BorichaMarg, Lower Parel, (E), Mumbai – 400011 Tel No: +91-022-23016761/8261 Email Id: busicomp@vsnl.com Website: www.purvashare.com |
| Lead Manager to the Issue: |
|---|
| GUINESS CORPORATE ADVISORS PRIVATE LIMITED 18 Deshapriya Park Road, Kolkata – 700 026, West Bengal, India Tel: +91 – 33 – 3001 5555 Email:gcapl@guinessgroup.net Investor Email: gcapl.mbd@guinessgroup.net Website: www.guinessonline.net |
