About the company:
Lorenzini Apparels is engaged into the business of manufacturing, designing and marketing of readymade garments offering diverse range of formal, semi-formal and casual wear for men and casual wear for women.They serve their customers through the channels of retail and e-commerce.
The products are sold under company’s own brand name “Monteil & Munero” and “Monteil” “Calgari” through their exclusive stores/oulets located at several places of Delhi and Haryana.
Company’s wide of products includes jeans, shirts, jackets, T-shirts, trousers, sweatshirts, sweaters, blazers, waistcoats, shorts, capris etc.
They have 18 stores/outlets spread across various places in Delhi and Haryana, UP.They have also entered into supply agreement with some of the e-commerce platform including Myntra, Limeroad, flipkart, jabong, amazon, paytm etc.
They also have franchise model wherein they have entered into agreement with the franchisee with varied date of commencement to sell products at their showrooms.
Apart from own manufacturing they also outsource the garments manufacturing on job work basis from third party contractors from time to time and provides the technical specifications such as designs, pattern, quality, fabric etc. to them who, based on their specifications, procure the requisite raw materials at their own costs and begin the manufacturing process.
Capacity Utilization:
Management Team:
- Mr.Sandeep Jain (Designation:Managing Director)
- Mrs.Deepika Jain (Designation: Whole-time Director)
- Mr.Rajit Sehgal (Designation: Non-Executive Director)
Promoters Average Acquisition Cost:
| Name of the Promoter | No. of Shares held | Average Acquisition Cost (in Rs.) |
|---|---|---|
| Sandeep Jain | 50,58,761 | 10.38 |
| Deepika Jain | 6,09,505 | 1.56 |
Promoters Stake Pre & Post Issue:
| Shareholder Name | Pre Issue Stake (%) | Post Issue Stake |
|---|---|---|
| Promoters | ||
| Sandeep Jain | 89.24% | 49.89% |
| Deepika Jain | 10.75% | 6.01% |
| Promoter Group Entities | Negligible | Negligible |
| Total | 99.99% | 55.91% |
Objectives of the Issue:
- Funding of working capital requirements of the Company.
- Issue Expenses.
Fund Utilization:
| Particulars | Amount (Rs. in Crores) |
|---|---|
| Working Capital requirements | 4.17 |
| General Corporate Expenses | 0.30 |
| Net Proceeds | 4.47 cr |
Financials of the Company:
| (in Crores) | FY 13 | FY 14 | FY 15 | FY 16 | FY 17 | 31st July 17 |
|---|---|---|---|---|---|---|
| Revenue | 13.16 | 11.60 | 14.16 | 12.10 | 16.44 | 6.63 |
| Net Profit | (-0.047) | 0.12 | 0.05 | (-0.03) | 0.14 | 0.27 |
Valuation of Peer Group Companies: (* Weighted Average )
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Lorenzini Apparels Ltd. | 10 | 3.28 (0.79)* | 3.05 (12.66)* | 4.85% | 13.34 |
| Cantabil Retail India Ltd. | 10 | 2.99 | 23.65 | 5.92 | 50.44 |
| Monte Carlo Fashions Ltd. | 10 | 19.47 | 24.80 | 8.66 | 224.79 |
| Mandhana Retail Ventures Ltd. | 10 | 9.07 | 15.81 | 23.93 | 37.88 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 31st January 2018 |
| Issue Closes on:. | 6th February 2018 |
| Issue Price | Rs.10 |
| Face Value | Rs.10 |
| Minimum Lot | 10,000 |
| Minimum Investment | Rs.1,00,000 |
| Issue Constitutes | 44.09% |
| Issue Size | Rs.4.47 cr |
| Market Cap | Rs.10.13 cr |
| Listing at | BSE SME |
| Total Equity Shares Offered (fresh) | 44,70,000 |
| Equity Shares Prior to the Issue | 56,68,916 |
| Equity Shares after the Issue | 1,01,38,916 |
IPO Valuation Parameters: (* Weighted Average )
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 3.28 (0.79)* | 3.05 (12.66)* | 4.85% | 13.34 |
Markets Guruji Opinion:
| IPO View | Apply For: | Expected listing Gain: |
|---|---|---|
| Subscribe | Long Term | 20% |
| Company Contact Info: |
|---|
| Lorenzini Apparels Limited TA 168 & 187 Ground Floor, Street No. 2, Tuglakabad Extn, New Delhi-110019, India. Tel: 011-40504731; E-mail: info@monteil.co.in Website: www.mymonteil.com |
| IPO Registrar Info: |
|---|
| SKYLINE FINANCIAL SERVICES PRIVATE LIMITED 4A9, Gundecha Onclave, Kherani Road, Sakinaka, Mumbai-400 072 Tel. No.: +91-22-28511022/62215779 E-mail: virenr@skylinerta.com Grievance email: grievances@skylinerta.com Website: www.skylinerta.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 Fax: +91-33-3001 5531 Email:gcapl@guinessgroup.net Grievance Email: gcapl.mbd@guinessgroup.net Website: www.guinessonline.net |
