About the Company:
Latteys Industries is engaged in the business of manufacturing of pumping solutions for homes, agriculture & industrial sectors. Pumps includes Submersible, Self- Priming, Centrifugal, Shallow and Horizontal Pumps.
Company manufactures more than 700 models of pumps as its portfolio. These pumps are widely used by Domestic and Industrial sectors.The pumps are manufactured and sold wholly in India.
The Company is an ISO 9001:2015 and IS 14220:1994 certified company certifying the quality of the product our Company manufactures.
Company currently has an installed production capacity of 1,59,500 pumps per annum.
Company sells their products through dealers having more than 500 dealers across India.
Geographical Sales for the year Ended 31st March, 2017.
Top 5 Customers of the Company:
Projected Installed Capacity:
Key Facts about the Indian Pump Industry.
- The Indian pump market was worth over US$ 1.5 billion.
- India has over 800 pump manufacturers
- India manufactures more than 4.5 million pumps every year.
- Indian Pumps are exported to more than 100 countries
- 16% of India’s pump manufacturing capacity is geared for exports (and growing)
Management Team:
- Mr. Kapoor Chand Garg (Designation: Chairman & Managing Director)
- Mr. Pawan Garg (Designation: Whole Time Director)
- Ms. Saroj Garg (Designation: Non-Executive Director)
Promoters Average Acquisition Cost:
| Name of the Promoter | No. of Shares held | Average Acquisition Cost (in Rs.) |
|---|---|---|
| Kapoor Chand Garg | 29,16,090 | 6.29 |
| Pawan Garg | 1,87,670 | 6.23 |
Promoters Stake Pre & Post Issue:
| Shareholder Name | Pre Issue Stake (%) | Post Issue Stake |
|---|---|---|
| Promoters | ||
| Kapoor Chand Garg | 86.33% | 63.40% |
| Pawan Garg | 5.56% | 4.08% |
| Promoter Group Entities | 8.11% | 5.95% |
| Total | 100% | 73.43% |
Objectives of the Issue:
- Funding the working Capital Requirements of the Company
- General corporate purposes.
Fund Utilization:
| Particulars | Amount (Rs. in Crores) |
|---|---|
| Working Capital requirements | 7.46 |
| General Corporate Expenses | 0.10 |
| Net Proceeds | 7.56 |
Positives for the Company:
Wide Range of Products.
Company manufactures pumps of various types which caters to the needs of both domestic, agricultural and industrial purposes. Products differs in terms of sizes, horsepower, structures, shapes, etc.
Company manufactures more than 700 different types of models under its range of products. With the range of products manufactured, it helps Company to tap varied customers and markets.
Focus on Domestic Sales.
Company has a network of more than 500 dealers across India which marks their strong presence.
Due to the extensive reach of the dealership network, Company has been able to increase the revenue by selling more number of pumps every year.
Further, they plan to increase their dealership network in few other states like, Gujarat, Rajasthan and Madhya Pradesh making their brand even more popular.
Banking on Solar Pumps.
Company acknowledges the fact that solar pumps are changing the industry in a fast pace and to capitalise on the same they plan to cater to the solar pumps also.
Markets for solar pumps include Rajasthan, Chhattisgarh, Gujarat and Haryana. Company has plans to actively participate in Energy Efficient Services Ltd (EESL) orders which signify high growth potential going forward.
Focussing on solar pumps would lead to an organic increase in their business operations.
Capacity Expansion.
Company has been witnessing growth in number of pumps being sold every year and we believe this trend is to continue in coming years and to capitalise on the same they intend to increase their manufacturing capacity gradually.
For this, Company will look for buying additional land and also to set up new line for manufacturing within our current facility.
Negatives for the Company: (High Debt Equity Ratio)
| 2015 | 2016 | 2017 | 31st Dec 2017 |
|---|---|---|---|
| 5.22 | 3.29 | 3.18 | 3.41 |
Financials of the Company:
| (in Crores) | FY 14 | FY 15 | FY 16 | FY 17 | 31st Dec 17 |
|---|---|---|---|---|---|
| Revenue | 18.55 | 21.53 | 26.05 | 35.77 | 22.88 |
| Net Profit | 0.14 | 0.13 | 0.31 | 0.55 | 0.43 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Latteys Industries ltd | 10 | 1.72 | 38.37 | 18.22 | 9.45 |
| Roto Pumps Ltd | 2 | 4.26 | 24.84 | 10.44 | 40.82 |
| Shakti Pumps (India) Limited |
10 | 11.71 | 59.95 | 9.62 | 120.60 |
| Kirloskar Brothers Ltd | 2 | 4.16 | 66.33 | 3.94 | 105.53 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 23rd May 2018 |
| Issue Closes on:. | 28th May 2018 |
| Issue Price | Rs.66 |
| Face Value | Rs.10 |
| Minimum Lot | 2000 |
| Minimum Investment | Rs.1,32,000 |
| Issue Constitutes | 26.57% |
| Issue Size | Rs.8.06 cr |
| Market Cap | Rs.30.35 cr |
| Listing at | NSE SME |
| Equity Shares Offered (Fresh) | 12,22,000 |
| Equity Shares Prior to the Issue | 33,77,666 |
| Equity Shares after the Issue | 45,99,666 |
Important Dates:
| Finalization of Basis of Allotment | on or Before 31st May 2018 |
| Initiation of Refunds | on or Before 1st June 2018 |
| Credit of Equity Shares: | on or Before 4th June 2018 |
| Listing Date: | on or Before 5th June 2018 |
Subscription Details: (Will be Updated)
| (Subscription-Category-Wise (no. of times) Till time : 06:00 PM) | Shares Offered | 23/5 | 24/5 | Day-3 | Day-4 |
|---|---|---|---|---|---|
| HNI | 5,80,000 | 0.58 | 0.58 | ||
| Retail | 5,80,000 | 0.34 | 0.22 | ||
| Others | 62,000 | 0.00 | 0.00 | ||
| Employee | ——— | —- | —– | ||
| TOTAL | 12,22,000 | 0.29 | 0.38 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 1.72 | 38.37 | 18.22% | 9.45 |
| Check IPO Allotment Status: |
|---|
Link InTime Website (Click on the below Link)https://linkintime.co.in/PublicIssue/ |
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Knowledge Corner: (Click on the Link)
| Company Contact Info: |
|---|
| Latteys Industries Limited Plot No. 16, Phase- 1/2, GIDC Estate, Naroda Ahmedabad Gujarat 382330 India Tel: 079-22823354/ 22822894 Email: info@latteysindustries.com Website: www.latteysindustries.com |
| IPO Registrar Info: |
|---|
| LINK INTIME INDIA PRIVATE LIMITED C-101, 247 Park, L.B.S. Marg, Vikhroli (West), Mumbai- 400 083 India Tel: 022-49186200 Investor Grievance Id: latteys.ipo@linkintime.co.in Website: www.linkintime.co.in |
| Lead Manager to the Issue: |
|---|
| PANTOMATH CAPITAL ADVISORS PRIVATE LIMITED 406-408, Keshava Premises, Behind Family Court, Bandra Kurla Complex, Bandra (East), Mumbai – 400051, Maharashtra, Ind ia Tel: +91-22 61946700 Investor Grievance Id: ipo@pantomathgroup.com Website: www.pantomathgroup.com |
