About the Company:
Shankar Lal Rampal Dye Chem Ltd (situated at Bhilwara (Rajasthan) is in the business of trading in Dyes and Chemicals.
The company mainly specializes in Hydrogen Peroxide, Sodium Bi Carbonate 99.5%, Sodium Meta Bi Sulphite 97%, Soda Ash Light, Linear Alkyl Benzene Sulphonic Acid 90% and many others chemicals.Company trades in all types of Sulphur Dyes.
The Dyes and Chemicals in which our Company deals in, mainly caters to Textiles &Garments manufacturing Industry, Food and Beverages Industries, Laboratory, Leather, Candel making industries, Plastic Industries, Agriculture, Water Treatment, Personal Care & Cosmetics Industries, Plywood Industry etc.
Company also trades in speciality performance chemicals used in Textile Dyeing and Printing Industry.
Management Team:
- Mr. Rampal Inani (Designation: Managing Director)
- Mr. Jagdish Chandra Inani (Designation: Whole Time Director)
- Mr. Dinesh Chandra Inani (Designation: Whole Time Director)
Objectives of the Issue:
- To meet the working requirement of the company.
- To meet the Issue Expenses.
Positives for the Company:
Wide Range of Products.
Company deals in large number of products and offers an entire range of specialty chemicals used in Textiles & Garments Processing namely the Pre-treatment, Printing, Dyeing and Finishing Process.
Company also offer specialty performance chemicals to the Leather & Agro chemicals industry. Company is also trading in some other products for comfort of their Buyers. Those products include Food Colour, Pigment Powder, Paste Acids and Direct Dyes.
Decreasing Competition from China.
Dye industry has only two major players across the globe, India and China. With increasing environmental norms and strict government regulations w.r.t operating a dye and chemical industry, the competition which was being faced by China is slowly eroding.
Introduction of GST.
With the Implementation of GST the organized players have tightened their grip over the market by maintaining a cost structure more efficient than that of any unorganized local manufacturers.
Indian Dyes and Chemical market is highly fragmented, with 40-50% of the market being unorganized. 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.
Debt-Equity Ratio.
Company has a very low level of debt equity ratio of 0.63:1 as on 31st March 2018. With such low debts in the books, it gives the company a cushion by which they can use prudent level of debt to foster a new growth phase in future.
Negatives for the Company:
Manufacturing Facility Not available.
Although the company is dealing in variety of colour shades in dyes, but as presently they don’t have manufacturing facility.
This restricts the company to cater wider category of customers and competition. However, going forward company would intend to expand its portfolio to develop and establish manufacturing plant in future.
Dependent on Third Party Suppliers.
Company deals in Dye and chemical intermediates from third party producers. It does not have its own manufacturing facility for producing intermediates and hence is largely dependent on third parties.
Increasing Competition.
Dye and chemical industry is highly competitive, facing stiff competition from both organized and unorganized player. Company faces tough competition from them in terms of pricing and customer base. Also, there are always the chances of new players entering this sector since barriers to entry are low.
Financials of the Company:
| (in Crores) | FY 14 | FY 15 | FY 16 | FY 17 | FY 18 |
|---|---|---|---|---|---|
| Revenue | 23.41 | 21.94 | 25.99 | 29.19 | 75.16 |
| Net Profit | 0.073 | 0.06 | 0.099 | 0.11 | 0.96 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Shankar Lal Rampal Dye Chem Ltd | 10 | 5.0 | 9 | 4.60% | 47.89 |
| Jaysynth Dyestuff (India) Ltd | 1 | 2.30 | 29.80 | 13.10% | 86.00 |
| Camex Limited | 10 | 2.90 | 11.90 | 5.30% | 26.80 |
| Bhageria Industries Ltd | 5 | 23.70 | 12.50 | 13.90% | 136.7 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 12th December 2018 |
| Issue Closes on:. | 14th December 2018 |
| Issue Price | Rs.45 |
| Face Value | Rs.10 |
| Minimum Lot | 3000 |
| Minimum Investment | Rs.1,35,000 |
| Issue Constitutes | 27% |
| Issue Size | Rs.7.29 cr |
| Market Cap | Rs.26.99 cr |
| Listing at | BSE SME |
| Equity Shares Offered (Fresh) | 16,20,000 |
| Equity Shares Prior to the Issue | 43,77,850 |
| Equity Shares after the Issue | 59,97,850 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 5.00 | 9 | 4.60% | 47.89 |
| Find the List of Upcoming IPOs in 2019: |
|---|
Upcoming IPOs in 2019 (Click on the below Link)www.UpcomingIPOs-in-India-2019 |
| Company Contact Info: |
|---|
| SHANKAR LAL RAMPAL DYE-CHEM Ltd SG-2730, Suwana, Bhilwara-311001, Rajasthan, India Tel No: 01482-220062 Email ID:info@srdyechem.com Website: www.srdyechem.com |
| IPO Registrar Info: |
|---|
| CAMEO CORPORATE SERVICES LIMITED “Subramanian Building”, #1, Club House Road, Chennai – 600 002, India Tel No: +91-44-40020700, 28460390 Email ID: investor@cameoindia.com Website: www.cameoindia.com |
| Lead Manager to the Issue: |
|---|
| FINSHORE MANAGEMENT SERVICES LIMITED Anandlok”, Block-A, 2nd Floor, Room No. 207, 227 A.J.C Bose Road, Kolkata-700020, West Bengal, India Tel No: +91 – 33 – 22895101 Investor Grievance Email ID: info@finshoregroup.com Website: www.finshoregroup.com |
