About the Company:
Jainam Ferro Alloys Ltd is engaged in manufacturing two types of Ferro Alloys namely, Ferro Manganese (FeMn) and Silico-manganese (SiMn).
Both the alloys are largely used in Steel industry. Ferro-manganese adds strength, toughness and other properties to steel. Silico manganese provides additional silicon which is a stronger De-oxidant in manufacturing steel.
The major raw materials required for manufacturing of Ferromanganese and silicomanganese is manganese ore, which is sourced from Karnataka, Maharashtra etc. company also imports managanese ore from the mines of South Africa.
The products manufactured by the Company are primarily used in manufacturing of steel and in foundry activities.
Company also generates revenue from its trading activities of manganese ore, used as a raw material in manufacturing Ferro alloys.
Company sells the products in many states but the main area of sales are Gujarat, Maharashtra, Haryana, Orissa.
Company’s Products:
- HIGH CARBON FERRO MANGANESE.
- HIGH CARBON SILICO MANGANESE.
Revenue from Operations from different products:
Strategic location of Manufacturing unit.
Company’s manufacturing facility is located in Urla Industrial Area, Raipur. Being strategically located, company gets easy access to labors having experience in ferro alloy industry as well as local raw material supplies.
Company’s Plant has good connectivity to roads which facilitates ease transportation of raw material and finished goods.
Due to aforesaid reasons, company believes that the location of manufacturing unit brings cost efficiencies in procurement of manpower and raw material and also reduce logistic cost which helps company to achieve economies of scale.
Capacity and Capacity Utilization:
Competitors in the Business:
Some of Jainam Ferro Alloys major competitors are, Deepak Ferro Alloys, Hira Ferro Alloys, Hira Power and Steel, Shree Girija Smelters, Shri Bajrang Power and Ispat, Maithan Alloys , Sarda Energy & Minerals etc
Management Team:
- Mr. Archit Parakh (Designation: Chairman and Managing Director)
- Mr. Arpit Parakh (Designation: Whole Time Director)
Objectives of the Issue:
Offer for Sale: (Rs. 10.5 cr)
- Company will not receive any proceeds of the Offer for Sale by the Selling Shareholders. Each of the selling Shareholders will be entitled to the respective proportion of the proceeds of the Offer for Sale.
Fresh Issue: (Rs.9.1 cr)
- To meet Working Capital requirements.
- General Corporate Purpose.
- To meet offer related expenses.
Financials of the Company:
| (in Crores) | FY 19 | FY 20 | FY 21 |
|---|---|---|---|
| Revenue | 132.39 | 122.3 | 102.51 |
| Net Profit | 2.88 | 0.86 | 3.11 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Jainam Ferro Alloys (I) Ltd | 10 | 3.37 | 20.77 | 13.05% | 25.81 |
| Maithan Alloys Ltd | 10 | 79.02 | 11.64 | 15.12% | 522.59 |
| Shyam Century Ferrous Ltd | 1 | 0.13 | 95.00 | 2.37% | 5.31 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 28th September 2021 |
| Issue Closes on:. | 30th September 2021 |
| Issue Price | Rs.70 |
| Face Value | Rs.10 |
| Minimum Lot | 2000 |
| Minimum Investment | Rs.1,40,000 |
| Issue Constitutes | 26.53% |
| Issue Size | Rs.19.6 cr |
| Market Cap | Rs.73.92 cr |
| Listing at | NSE SME |
| Equity Shares Offered (Fresh) | 13,02,000 |
| Equity Shares Offered (OFS) | 15,00,000 |
| Total Equity Shares Offered (Fresh + OFS) | 28,02,000 |
| Equity Shares Prior to the Issue | 92,59,200 |
| Equity Shares after the Issue | 1,05,61,200 |
Also Read : List of Upcoming IPO’s in India.
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 3.37 | 20.77 | 13.05% | 25.81 |
| Check IPO Allotment Status: |
|---|
Bigshare: http://www.bigshareonline.com/IPO/AllotmentBSE IPO Website: https://www.bseindia.com/IPO/Allotment |
| Company Contact Info: |
|---|
| Jainam Ferro Alloys (I) Limited Plot No. 103 to 113 & 130 to 136/A & 137, Sector-C, Urla Industrial Area, Raipur, Chhattisgarh – 492003, India. Tel. No. +91 771 4700109 E-mail: info@jainamferro.com Website: www.jainamferro.com |
| IPO Registrar Info: |
|---|
| BIGSHARE SERVICES PRIVATE LIMITED Address:-1st Floor, Bharat Tin Works Building, Opp. Vasant Oasis, Makwana Road, Marol, Andheri East, Mumbai – 400059, Maharashtra, India Tel No.:+91-022-6263 8200 Email:ipo@bigshareonline.com Website: www.bigshareonline.com |
| Lead Manager to the Issue: |
|---|
| HEM SECURITIES LIMITED Address:- 904, A Wing, Naman Midtown, Senapati Bapat Marg, Elphinstone Road, Lower Parel, Mumbai-400013, Maharashtra, India Tel. No.: +91- 022- 49060000 Fax No.: +91- 022- 22625991 Email: ib@hemsecurities.com Website: www.hemsecurities.com |
