About the Company:
Company is engaged in manufacture and sale of Micro Irrigation System (MIS) consisting of Drip Irrigation System and Sprinkler Irrigation System ,its components, irrigation accessories and allied products.
Company’s business model can be categorised broadly into two categories –project markets and open market sales. Sales through open market secure receipt of a majority of the sale proceeds of MIS upfront from their channel partners.Company operates under the project market model in the states of Maharashtra Gujarat, Karnataka and Madhya Pradesh.
Company’s Founder and Promoter Mr. Vijaykumar Kshirsagar has more than two decades of experience in the field of marketing and manufacturing of drip irrigation systems, sprinkle irrigation systems and filters irrigation related products and has been being the chief moderator and dependable advisor of the Company since its inception.
Company’s Product Range includes wide variety of products HDPE Pipes, Pipes Fittings and Irrigation Equipment’s including Drip Irrigation Systems, Sprinkler Irrigation Systems, Disc Filters, Screen Filters, Hydro -Cyclone Filters, Sand (Gravel) Filters, Compression Fittings, Valves (Electric & Mechanical), Fertiliser Tanks, etc.
MIS (Micro Irrigation Systems) comprises of Drip Irrigation Systems and Sprinkler irrigation systems. Drip irrigation systems are used primarily for irrigating row crops such as vegetables, flowers, fruits, plantation crops, etc., while the sprinkler irrigation system is used primarily for irrigating broadcast crops such as cereals, oil seeds, etc.
Company has a manufacturing unit located at Gat No 475, Gonde Taluka, Sinnar, Nasik-422113 measuring around 10100 sq. mts. is well equipped with requisite plant and machinery and other facilities.
Apart from manufacturing and selling of irrigation products products, They also undertake supply and installation of micro irrigation systems and provision of agronomical services to farmers.Company has informal arrangements with dealers in Maharashtra Gujarat , Madhya Pradesh, and Karnataka.
Some of the major suppliers of raw materials to the company include Haldia Petrochemicals Ltd, West Bengal, Indian Oil Corporation Limited, Maharashtra, Indigo Chemicals Private Ltd, Maharashtra among others.
Company’s major competitors are as follows:
- EPC Industries Limited
- Captain Polyplast Limited
- Jain Irrigation Systems Limited
- Signet Industries Limited
TOP 10 Shareholders:
| Sr.No. | Shareholder Name | Number of Equity Shares held | Percentage of Equity Share Capital % |
|---|---|---|---|
| 1. | Vijaykumar Kshirsagar |
8,20,661
|
17.53
|
| 2. | Shyam Sundar Dash | 6,00,923 | 12.84 |
| 3. | Arjun Makani | 5,47,027 | 11.69 |
| 4. | Nivrutti Kedar | 5,47,027 | 11.69 |
| 5. | Shubhangi Kshirsagar | 5,43,738 | 11.62 |
| 6. |
Lilaben
Makani
|
2,70,104 | 5.77 |
| 7. | Surekha Kedar | 2,70,104 | 5.77 |
| 8. | Shivlal Makani | 2,70,104 | 5.77 |
| 9. | Vinod Makani | 2,70,104 | 5.77 |
| 10. | Anuja Kedar | 2,70,104 | 5.77 |
| 11. |
M/s Nivrutti Pandurang
Kedar (HUF)
|
2,70,104 | 5.77 |
| Total | 46,80,000 | 100% |
Future Growth Strategies:
Expand domestic geographical reach in line with demand through marketing network.
To expand the business,company intends to aggressively penetrate in the domestic markets and expand the domestic market presence by expanding the sales and distribution network
Improve and increase operational effeciencies.
Company will continue to focus on further increasing their operations and improving operational effectiveness at their production facilities.
Pursue international growth opportunities.
Management has plans to grow the business internationally. They intend to mainly focus on the institutional and retail customers in the future in these geographies to scale up the revenues
To increase brand visibility.
Company plans to increase the number of channel partners/dealers in order to broaden their reach.
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Objectives of the Issue:
- Working capital requirements of the Company
- General Corporate Purpose.
- Listing Benefits.
Management Team:
- Mr.Vijaykumar Kshirsagar (Designation: Chairman and Whole Time Director)
- Mr.Shyam Sundar Dash (Designation: Managing Director)
- Mr.Pandurang Kedar (Designation:Vice-Chairman & Executive Director)
Positives for the Company:
- Experience Promoters and management team.(two decades of experience)
- Wide consumers reach through presence in key states.
- Favourable Government Policies for our sector.
- Quality Assurance and Diversified Product Portfolio.
- Strong Marketing & Distribution Network.
Financials of the Company:
| (in Crores) | FY 13 | FY 14 | FY 15 | FY 16 | FY 17 |
|---|---|---|---|---|---|
| Revenue | 2.58 | 3.10 | 5.78 | 11.78 | 28.72 |
| Net Profit | 0.11 | 0.038 | 0.46 | 0.47 | 2.05 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 19th September 2017 |
| Isue Closes on:. | 25th September 2017 |
| Issue Price | Rs.53 – 57 |
| Face Value | Rs.10 |
| Minimum Lot | 2000 |
| Minimum Investment | Rs.1,14,000 |
| Issue Constitutes | 30.04% |
| Issue Size | Rs.11.46 cr |
| Market Cap | Rs.38.13 cr |
| Listing at | NSE SME |
| Equity Shares Offered | 20,10,000 |
| Equity Shares Prior | 46,80,000 |
| Equity Shares after the issue | 66,90,000 |
Important Dates:
| Finalization of Basis of Alottment | on or Before 28th September 2017 |
| Initiation of Refunds | on or Before 29th September 2017 |
| Credit of Equity Shares: | on or Before 29th September 2017 |
| Listing Date: | on or Before 4th October 2017 |
IPO Valuation parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 4.13 | 13.8 | 35.08% | 16.30 |
Markets Guruji Opinion:
| IPO View | Apply For: | Expected listing Gain: |
|---|---|---|
| Subscribe | Long Term | 20% |
