About the Company:
Mahickra Chemicals Ltd is one of the leaders among manufacturers and suppliers & exporter of Dyestuffs.
company is an ISO 9001:2015, ISO 14001:2015 and GOTS certified company certifying the quality of the product company manufactures.
They manufactures 40 various types of Reactive Dyes. The product of the company caters to textiles & garments manufacturers.
Company manufactures dyes of various concentrations which is the deciding factor for the pricing of the product. They procure quality raw materials from Chemical industries like Bodal Chemicals Ltd. and Kiri Chemicals Ltd.
Company’s main focus is on Black Dyes, because of which they have become a specialised player in that particular segment.
Beside manufacturing of numerous types of Black Reactive Dyes products , they also offer specialty performance chemicals to the Leather& Agrochemicals industry.Company is also trading in some other products like Food Colours, Pigment Powder, Paste Acids and Direct Dyes.
Company generates most of its revenue from export operations and products of the company are exported to countries like, Turkey, Egypt, Bangladesh, etc.
Company has a production capacity of approx. 900 tons per annum. The manufacturing facility of the company is situated at Vatva GIDC in Gujarat.
Revenue Breakup of Export & Domestic Sales: (in Lakhs)
Capacity Utilization:
Management Team:
- Mr.Miteshkumar Champaklal Gandhi (Designation: Chairman & Managing Director)
- Mr. Ashishkumar Champaklal Gandhi (Designation: Whole-time Director)
- Mr.Komal Mitesh Gandhi (Designation:Whole -time Director)
Promoters Average Acquisition Cost:
| Name of the Promoter | No. of Shares held | Average Acquisition Cost (in Rs.) |
|---|---|---|
| Miteshkumar Champaklal Gandhi | 5,29,528 | 10.00 |
| Ashishkumar Champaklal Gandhi | 17,46,623 | 11.33 |
| Komal Mitesh Gandhi | 8,54,113 | 10.00 |
Promoters Stake Pre & Post Issue:
| Shareholder Name | Pre Issue Stake (%) | Post Issue Stake(%) |
|---|---|---|
| Promoters | ||
| Miteshkumar Champaklal Gandhi |
10.31% | 7.32% |
| Ashishkumar Champaklal Gandhi |
34.02% | 24.14% |
| Komal Mitesh Gandhi | 16.64% | 11.81% |
| Promoters Group Entities | 6.77% | 4.80% |
| Total | 67.74% | 48.07% |
Objectives of the Issue:
- Working Capital requirements of the Company.
- General Corporate Purposes.
Fund Utilization:
| Particulars | Amount (Rs. in Lakhs/Crores) |
|---|---|
| Working Capital requirements | 4.86 |
| General Corporate Expenses | 0.39 |
| Net Proceeds | 5.25 cr |
Positives for the Company:
Expanding Customer Base:
Dye manufacturing is done only in India, China and Indonesia.But most of the global demand is met by India and China, hence the market for us is huge.
Company’s product is currently marketed majorly in Middle East region. Going forward Company intends to cater the market of other international locations like Vietnam,Mexico,Brazil,Africa, USA and Europe.
The demand for dye is ever increasing even in India where catering to newer customer will be comparatively an easier task.
Expanding Production Capacity:
Company plans to increase their production capacity from current 900 MT per annum to 1,500 MT per annum which will enable them to enter into new phase of growth.
Consolidation in the Dye Business:
Indian Dyes and Dyestuff market is highly fragmented, with 40-50% of the market being unorganised.
The recent events including GST, stricter environment norms, rising compliance needs from global clients could eventually lead to a need to consolidate, large and efficient players growing higher than the industry and smaller units closing or consolidating with large players.
Decreasing Competition from China & Increasing demand for Dyes:
Dye industry has only 2 major players across the globe, India and China. With increasing environmental norms and strict government regulations w.r.t operting a chemical industry, the competition which was being faced by China is slowly eroding.
There have been many shutdowns in China posirtively impacting the dye industry in India which has also witnessed growth in Dye prices. There have been a rapid increase in labour cost of late which has given the India a competitive advantage over China.
With decrease in total supply, dye manufacturers have huge opportunity both in terms of volume and value.
Financials of the Company:
| (in Crores) | FY 13 | FY 14 | FY 15 | FY 16 | FY 17 | 31st Dec 17 |
|---|---|---|---|---|---|---|
| Revenue | 19.32 | 43.55 | 42.75 | 34.78 | 42.25 | 40.89 |
| Net Profit | 0.09 | 0.17 | 0.086 | 0.15 | 0.35 | 0.35 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Mahickra Chemicals Limited |
10 | 1.07 | 23.36 | 14.86 | 7.19 |
| Aksharchem (India) Limited |
10 | 71.00 | 8.74 | 38.79 | 183.03 |
| Kiri Industries Limited | 10 | 34.20 | 15.02 | 35.33 | 96.81 |
| Camex Limited | 10 | 1.59 | 25.38 | 6.70 | 23.77 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 16th April 2018 |
| Issue Closes on:. | 18th April 2018 |
| Issue Price | Rs.24 – 25 |
| Face Value | Rs.10 |
| Minimum Lot | 6000 |
| Minimum Investment | Rs.1,50,000 |
| Issue Constitutes | 29.02% |
| Issue Size | Rs.5.25 cr |
| Market Cap | Rs.18.08 cr |
| Listing at | NSE SME |
| Total Equity Shares Offered (Fresh) | 21,00,000 |
| Equity Shares Prior to the Issue | 51,34,160 |
| Equity Shares after the Issue | 72,34,160 |
Important Dates:
| Finalization of Basis of Allotment | on or Before 23rd April 2018 |
| Initiation of Refunds | on or Before 24th April 2018 |
| Credit of Equity Shares: | on or Before 25th April 2018 |
| Listing Date: | on or Before 26th April 2018 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 1.07 | 23.36 | 14.86% | 7.19 |
Markets Guruji Opinion:
| IPO View | Apply For: | Expected listing Gain: |
|---|---|---|
| Subscribe | Long Term | 5% |
| Check IPO Allotment Status: |
|---|
Bigshare Website (Click on the below Link)http://www.bigshareonline.com/bssipoapplicationstatus.aspx |
| Company Contact Info: |
|---|
| Mahickra Chemicals Limited Plot No. 1209, Phase- 3, GIDC Vatva, Ahmedabad, Gujarat- 382445, India Tel: 079-25890811/25832692 Email: info@mahickra.com Website: www.mahickra.com |
| IPO Registrar Info: |
|---|
| BIGSHARE SERVICES PRIVATE LIMITED 1st Floor, Bharat Tin Works Building, Opp. Vasant Oasis, Makwana Road, Marol, Andheri East, Mumbai 400059, Maharashtra, India Tel: +91 22 62638200 Fax: +91 22 62638299 Email: ipo@bigshareonline.com Website: www.bigshareonline.com |
| Lead Manager to the Issue: |
|---|
| PANTOMATH CAPITAL ADVISORS PRIVATE LIMITED 406-408, Keshva Premises, Behind Family Court, Bandra Kurla Complex, Bandra (East), Mumbai – 400051, Maharashtra, India Tel: +91-22 6194 6700 Email: ipo@pantomathgroup.com Website: www.pantomathgroup.com |
