About the company:
Hindcon Chemicals (Incorporated in 1998) is primarily engaged in manufacturing of chemicals particularly for construction industry.They offer a wide range of chemical products which finds variety of applications in the construction sector.Company derives majority of the revenue from the sale of sodium silicate.
Company’s manufacturing facility is located at Howrah, West Bengal which has an existing installed capacity of 30,000 MT per year.
Company’s product portfolio consists of over 100 products which are used in the Construction industry.They also undertake waterproofing and rehabilitation jobs on works contract basis.
Company’s products namely, Hind Anti Rust, Hind Block Fix, Hind Crete Plus – WPM, Hind Fix TA, Hind Hydraproof Ceramic, Hind Plasto Guard and Hind Sealant PS meets the required standards of GreenPro certification and qualifies as “Green Product” as certified by CII- Green Products and Services Council.
In F.Y. 2016-17, Company’s net revenue of operations comprised of Rs. 33.94 crores of which 32.14% comprises of export sales to Nepal, Bhutan and Bangladesh.
Some of the esteemed customers includes Larsen & Toubro Ltd., Gammon India Ltd., BGR Energy Systems Ltd., Hindustan Construction Company Ltd., Jaiprakash Associates Ltd., Patel Engineering Ltd, SEW Infrastructure Ltd.
Company’s Major Customers include:
Revenue From Exports & Domestic sales: (in lakhs)
Company’s portfolio consists of over 100 products which can be broadly classified into following categories:-
- Waterproofing additives for R.C.C. Structures, roof, basement, underground and overhead reservoirs etc.
- Plasticisers and Super Plasticisers which are used in Concrete & Mortar mixtures for improving their workability.
- Concreting Aids which are admixtures/chemicals that provide special properties to concrete like Curing, Strength, Shutter Release, Corrosion prevention etc.
- Sodium Silicate which finds its application in various commodities such as soap, cements, card board, electrodes, textiles, pharmaceuticals, building materials etc.
- Protective and Waterproofing Coatings for walls, roofs, swimming pool, water tanks etc.
- Grouts & Repairing Mortar Admixtures which are used in grouting of underground structures, bolt packets, base plates etc.
- Shot Crete Aids which are used as accelerating admixtures for dry/wet shotcreting in tunnels, galleries, swimming pool, concrete repair works etc.
- Floor Topping products which are used in making floors more concrete or anti-skid or stain resistant or chemical resistant etc.
- Sealant Products which are used for sealing of cracks in structural members, tile joints, metal joints, expansion joints holes etc.
- Tile Adhesives which are used for fixing of ceramic & mosaic tiles on wall and floor.
- Epoxy Grout & Mortar which are used for pressure injection into concrete for structural repair.
- Foundry Aid which consists of sodium ligno based foundry grade compound for concrete admixtures, pesticides, foundries, leather tanning, drilling fluid etc.
- Coating/Impregnation Product for exposed aggregate finish on surface.
- Cleaning Compound chemicals for removing rust from steel reinforcement, cleaning of tiles, floors etc.
- Expansion and Contraction Joint System Products which consist of injection hose to prevent passage of water through construction joints and joint sealant for construction joints and cold joints.
Capacity Utilization:
Company’s Product Categories include:
- Water Proofing Compounds.
- Concrete & Mortar Admixtures.
- Concreting Aids.
- Sodium Silicate.
- Protective & Waterproofing Coating / Sheeting.
- Grouts & Repairing Mortars.
- Shot Crete Aids.
- Floor Toppings.
- Sealants.
- Tile Adhesives.
- Epoxy Grout & mortar.
- Foundry Aid.
- Remover / Cleaning Compounds.
- Expansion & Contraction Joint System.
Product wise Revenue Contribution: (in Lakhs)
Management Team:
- Mr. Sanjay Goenka (Designation: Managing Director)
- Mrs. Nilima Goenka (Designation: Executive Director)
- Mr. Ramsanatan Banerjee (Designation: Whole Time Director)
Promoters Average Acquisition Cost:
| Name of the Promoter | No. of Shares held | Average Acquisition Cost (in Rs.) |
|---|---|---|
| Mr. Sanjay Goenka | 15,22,500 | 2.69 |
| Mrs. Nilima Goenka | 13,28,500 | 0.97 |
Promoters Stake Pre & Post Issue:
| Shareholder Name | Pre Issue Stake (%) | Post Issue Stake |
|---|---|---|
| Promoters | ||
| Mr. Sanjay Goenka | 20.36% | 14.87% |
| Mrs. Nilima Goenka | 17.77% | 12.98% |
| Promoter Group Entities | 47.01% | 34.33% |
| Total | 85.13% | 62.18% |
Objectives of the Issue:
- To Meet Working Capital Requirement
- To meet General Corporate Expenses
- To meet Issue Expenses
Fund Utilization:
| Particulars | Amount (Rs. in Crores) |
|---|---|
| Working Capital requirements | 5.38 |
| General Corporate Expenses | 1.60 |
| Net Proceeds | 6.98 cr |
Financials of the Company:
| (in Crores) | FY 13 | FY 14 | FY 15 | FY 16 | FY 17 | 30th Sept 17 |
|---|---|---|---|---|---|---|
| Revenue | 30.87 | 30.92 | 34.96 | 33.45 | 34.25 | 18.12 |
| Net Profit | 0.27 | 0.34 | 0.33 | 0.84 | 2.05 | 2.13 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Hindcon Chemicals Limited | 10 | 5.46 | 10.17 | 13.76 | 176.63 |
| Gillanders Arbuthnot & Company Ltd | 10 | 2.36 | 31.78 | 0.33 | 143.91 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 26th February 2018 |
| Issue Closes on:. | 28th February 2018 |
| Issue Price | Rs.28 |
| Face Value | Rs.10 |
| Minimum Lot | 4000 |
| Minimum Investment | Rs.1,12,000 |
| Issue Constitutes | 26.96% |
| Issue Size | Rs.7.73 cr |
| Market Cap | Rs.28.66 cr |
| Listing at | NSE SME |
| Total Equity Shares Offered (Fresh) | 27,60,000 |
| Equity Shares Prior | 74,78,125 |
| Equity Shares after the issue | 1,02,38,125 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 5.46 | 10.17 | 13.76% | 176.63 |
Markets Guruji Opinion:
| IPO View | Apply For: | Expected listing Gain: |
|---|---|---|
| Subscribe | Long Term | 10% |
Subscription Details:
| (Subscription-Category-Wise (no. of times) Till time : 05:30 PM) | Shares Offered | Day-1 | Day-2 | Day-3 |
|---|---|---|---|---|
| HNI | 13,08,000 | 2.52 | 4.04 | 154.80 |
| Retail | 13,08,000 | 4.15 | 27.77 | 123.9 |
| Others | 1,44,000 | 0.00 | 0.00 | 1.38 |
| Employee | ——- | —– | —– | —- |
| TOTAL | 27,60,000 | 3.16 | 15.07 | 132.19 |
Grey Market Premium :
| Date | IPO | Price Band | Grey Market premium |
|---|---|---|---|
| 21/02/18 | Hindcon Chemicals Ltd | Rs.28 | 3 – 4 |
| Check IPO Allotment Status: |
|---|
Link InTime Website (Click on the below Link)https://linkintime.co.in/PublicIssue/ |
| Company Contact Info: |
|---|
| Hindcon Chemicals Ltd 62/B, Braunfeld Row, 1st Floor, Kolkata, West Bengal, India- 700027 Tel. No. .+91-33-24490835/39 Fax: +91-33-24490849 E-mail: contactus@hindcon.com Website: www.hindcon.com |
| IPO Registrar Info: |
|---|
| LINK INTIME INDIA PRIVATE LIMITED Address: C-101, 247 Park, LBS Marg, Vikhroli (West), Mumbai-400083, Maharashtra, India Tel No.:+91-022-49186200; Email: hindcon.ipo@linkintime.co.in Grievance Email: hindcon.ipo@linkintime.co.in Website: www.linkintime.co.in |
| Lead Manager to the Issue: |
|---|
| HEM SECURITIES LIMITED 904, A Wing, Naman Midtown, Senapati Bapat Marg,Elphinstone Road, Lower Parel, Mumbai-400013, Maharashtra, Email: ib@hemsecurities.com Grievance Email: redressal@hemsecurities.com Website: www.hemsecurities.com |
