About the Company:
Inflame Appliances Limited is an IS 4246:2002 certified company and engaged in manufacturing of LPG Gas Stove/ Cooktops in various range like Gas Stove in Sheet Metal, Gas Stove with Toughed Glass (Optional Auto Ignition) with range of 4 Burners/ 3 Burners/ 2 Burners and Sheet Metal Components for captive consumption in the state of Himachal Pradesh.
Company is also manufacturing the Glass top LPG Stove in 2/3/4 burner in premium ranges for brands like “Hindware” and “Avaante”.
Additionally Company has Marketing agreements with Indian Oil Corporation Limited to market, sell, distribute, and promote of LPG Stoves through Indane Distributers to domestic Indane Customers. This arrangement can be renewed for a further period on mutual consent subject to Company achieving the expected milestones as referred under the Market agreement.
Company has also made marketing arrangement with HPCL and BPCL for selling the products to their distributers and customers.
Since the past years the focus of Inflame Appliances has been in developing innovative product range under the brand “Inflame”; entering into arrangements with distributors; tie-up with suppliers.
Company has also been part of PRIME MINISTER UJJWALA YOJANA (PMUY) launched by the Central Govt. of India for providing 5 Crore new gas connection to the people below poverty line in the country.
In addition to the above market arrangement,Company also markets and sells its products in its own brand “Inflame” in the domestic and overseas markets.
Capacity Utilization for the Company:
Note: Since the company has started its commercial production from 2015-16, hence the capacity utilization is shown from the year 2015-16.
- Mr. Aditya Kaushik (Designation: Chairman and Managing Director)
- Mr. Dinesh Kaushik (Designation: Whole Time Director)
- Mrs. Anita Kaushik (Designation: Whole Time Director)
Promoters Average Acquisition Cost:
|Name of the Promoter||No. of Shares held||Average Acquisition Cost (in Rs.)|
|Mr. Aditya Kaushik||2445600||11.40|
|Mr. Dinesh Kaushik||330400||8.24|
|Mr. Amit Kaushik||4800||6.25|
Promoters Stake Pre & Post Issue:
|Shareholder Name||Pre Issue Stake (%)||Post Issue Stake(%)|
|Mr. Aditya Kaushik||87.34%||61.14%|
|Mr. Dinesh Kaushik||11.80%||8.26%|
|Mr. Amit Kaushik||0.17%||0.12%|
|Promoter Group Entities||0.69%||0.48%|
Objectives of the Issue:
- To meet Working Capital requirements
- To meet Capital Expenditure
- General Corporate Expenses
- To meet Issue Expenses
|Particulars||Amount (Rs. in Crores)|
|Working Capital requirements||2.5|
|General Corporate Expenses||0.28|
|Public Issue Expenses||0.70|
|Net Proceeds||6.48 cr|
Positives for the Company:
Company plans to leverage its networks in manufacturing of Range Hoods (Chimneys) within the Country, which will cater the requirements of other big brands who import all the range hoods from overseas market.
Company also has plans to start manufacturing of Electrical Chimneys, Glass Cooktops, Glass Hobs and Cooking Ranges to increase its presence in the Cooking Appliances Market of Country.
Government has approved Rs. 8000 crore under the Pradhan Mantri Ujjwala Yojana (PMUY) for release of 5 crore deposit free new LPG connections to Women of BPL families over three years, i.e. FY 2016-17, 2017-18 and 2018-19.
Under the scheme, the Government of India provides deposit free LPG connection to BPL families, which includes security of one cylinder, pressure regulator, hose pipe, but the consumer has to purchase ISI standard gas stove.
PRIME MINISTER UJJWALA YOJANA has created a huge demand for LPG gas stoves which helped the company to achieve higher growth. The scheme is now being extended to other poor class of the country and name of the scheme is UJJAWALA PLUS, which would offer another 3 crore new connections.
All the above factors are a Big Positive for the Company & the stock is expected to give very good returns in the coming years.
Note: Inflame Appliances has given Multibagger Returns to the Investors.
Financials of the Company:
|(in Crores)||FY 16||FY 17||20th Jan 18|
Valuation of Peer Group Companies:
|Company Name||Face Value||EPS||PE Ratio||RoNW||NAV|
|Inflame Appliances Ltd||10||1.97||27.43||58.05%||3.39|
|IFB Industries Ltd||10||12.20||97.60||11.50%||115.20|
|TTK Prestige Limited||10||122.90||72.00||18.20%||740.10|
Note: Although there is a huge difference in the Scale of operations between these companies but still for the sake of comparison we are showing the above figures.
|Issue Opens on||6th March 2018|
|Issue Closes on:.||8th March 2018|
|Issue Size||Rs.6.48 cr|
|Market Cap||Rs.21.60 cr|
|Listing at||BSE SME|
|Total Equity Shares Offered (Fresh)||12,00,000|
|Equity Shares Prior to the issue||28,00,000|
|Equity Shares after the issue||40,00,000|
IPO Valuation Parameters:
|Earnings Per Share (EPS)||Price To Earnings ratio (PE)||Return on Net Worth (RoNW)||Net Asset Value (NAV)|
|(Subscription-Category-Wise (no. of times) Till time : 06:00 PM)||Shares Offered||Day-1||Day-2||Day-3|
|Company Contact Info:|
|Inflame Appliances Ltd
Khewat Khatoni No. 45/45,
Khasra No. 942/855/1,
Village Kalyanpur Tehsil-Baddi, Solan,
Himachal Pradesh, India.
Tel. No. +91-1795-246820
|IPO Registrar Info:|
|SKYLINE FINANCIAL SERVICES PRIVATE LIMITED
D-153A, 1st Floor, Okhla Industrial Area Phase-I,
New Delhi – 110020
Tel No.:+91 11 64732681-88
Fax No.:+91 11 26812682
Grievance Email: firstname.lastname@example.org
|Lead Manager to the Issue:|
|SWASTIKA INVESTMART LIMITED
305, Madhuban Building, Cochin Street,
S.B.S. Road, Fort, Mumbai, Maharashtra – 400 001.
Tel No.:+91–22–2265 5565
Fax No.:+91–22–664 4300
Grievance Email: email@example.com