About the Company:
Siddhika Coatings Limited is a strategic channel partner in India for SK Kaken Ltd. (‘SKK’) and an authorised importer of its products through SKK Singapore Pte. Ltd.
SKK is a renowned coatings and pigments manufacturer based in Japan. Having been associated with SKK for over 15 years, and have gained the reputation of being one of the well-known suppliers of their products in India.
Company also provides application services which include preparing and coating interior as well as exterior surfaces of civil structures using organic and inorganic architectural textured pigments and technical-grade functional coatings.
Currently, company is placed as one of the older marketers for SKK products and its specialist paint and application service providers in India.
Company’s head office is based in New Delhi, over the years, have set up various branch offices across the country to expand our reach to customers and have built a commendable service record with clients from various regions.
Company’s prestigious and frequent clients include various eminent architects, real estate developers as well as government and private entities in India.
Siddhika Coatings Ltd PAN India network of application specialists, enabled company to execute projects for big names across various industries over the past decade.
Company’s Collabration with SK Kaken Ltd., Japan.:
Siddhika Coatings is a strategic channel partner in India and an authorized importer of SKK’s (SK Kaken Ltd., Japan) products and receives support in the form of inbound leads for customers, marketing support and training from SKK.
Company has not given any performance guarantees to SK Kaken Ltd., Japan.
The application team manages approximately 250,000 sq. mtrs. of application contracts, annually. This team includes experienced applicators and supervisors who are thoroughly trained in skillful application of SKK’s products.
The management is strictly committed towards the promotion and usage of only SKK’s products and have thus become extremely in tune with its application, methods, instructions and usage.
Description about Company’s Products:
High Build Designer Stone Textures:
Stone Finish Textures are made from natural stone chips with high build resin and are used to create stone like effect with similar feel, look & strength. Texture coating products come with a package of double component hardener and a double component polyurethane topcoat.
The colors and panel sizes can be customized as per client requirement. This makes the building façade look like natural stone without involvement of artificial pigments and the hassles of installing heavy stone slabs or tiles.
Elastomeric Textures & Texture Coatings:
Elastomeric Textures represent the next generation texture paint. The elastomeric nature ensures non-crack coating and covers upto 1.5 mm cracks in substrate. Elastomeric textures are generally a dominant product in developed markets and very useful in locations with temperature variations, like North India.
Company also deals in texture coatings which consists of a special primer and colored topcoats. These textures are not only aesthetically appealing but also durable.
Thermal Insulation Coatings and Paints:
Thermal Insulation Coatings and Paints are the need of hour with the growing global awareness on energy conservation.
These coatings help the building balance internal temperatures according to prevailing external temperatures, hence reducing energy consumption on air conditioning and also making it a cost efficient investment.
It is also preferred in industries and warehouses where air conditioning facilities cannot be installed and helps maintain the temperature at comfortable levels within the facility.
Anti-bacterial paints and low VOC paints:
Anti-Bacterial Paints are used in operation theaters and common areas of hospitals. Over the years, in addition to hospitals, these products are also now seeing use for interiors of hotels, offices and even households.
These paints are generally used in schools, ecologically sound buildings and construction projects seeking higher points for LEED (Leadership in Energy and Environmental Design) Certification.
Other Services provided by the Company:
Apart from standard products company also offers jet wash services, special repainting systems, polyurethane external grade coatings, customized paint solutions for those clients requesting such services and have such additional project requirements.
Competition in the Business:
Company faces local competition from various small paint applicator businesses that have a limited regional presence providing decorative paint application services as well as a few organized entities with a PAN India presence but no exact listed peers.
- Mr. Charitra Maheshwari (Designation: Managing Director)
- Mr. Gaurav Agarwal (Designation: Director (Executive)
Objectives of the Issue:
Fresh Issue: (Rs. 4.69 cr )
- To part finance the Working Capital Requirements.
- General Corporate Purposes.
- To meet Issue Expenses.
Peer Group Comparison:
There are no comparable peer which is listed companies in India and which are engaged in the same line of business as Siddhika Coatings Ltd, hence comparison with industry peers are not applicable.
Positives for the Company:
Good Track Record of completing projects.
- Company has been able to achieve a good track record by completing over 160 projects across 11 states in India over the last three calendar years, without compromising on quality or efficiency.
Unique Brand Positioning.
- Company believes that its association with “SK Kaken Ltd.”, a brand known for its high-quality paints and coatings, has positioned us well in this competitive market.
- Company been able to enhance the brand recognition and improve brand recall through a variety of means such as our strong contract performance, PAN India network, quality workmanship, comprehensive solutions, modern techniques, integrated systems and processes, and targeted marketing.
- Company’s brand recognition has been instrumental in increasing the client count through a high referral rate and high client retention rate.
Geographical Presence & efficient network management.
- Company is gradually expanding its presence to various cities in India. Currently it has branch offices across 11 states, including Delhi, Haryana, Uttar Pradesh, Rajasthan, Himachal Pradesh, Karnataka, Tamil Nadu, Telangana, West Bengal, Gujarat and Maharashtra.
Financials of the Company:
|(in Crores)||FY 18||FY 19||FY 20||30th Sept 20|
|Issue Opens on||24th March 2021|
|Issue Closes on:.||26th March 2021|
|Minimum Lot||2000 Shares|
|Issue Size||Rs.4.69 cr|
|Market Cap||Rs.17.61 cr|
|Listing at||NSE SME|
|Equity Shares Offered (Fresh)||8,24,000|
|Equity Shares Prior to the Issue||22,65,500|
|Equity Shares after the Issue||30,89,500|
Also Read : List of Upcoming IPO’s in India.
IPO Valuation Parameters:
|Earnings Per Share (EPS)||Post Issue PE||Return on Net Worth (RoNW)||Net Asset Value (NAV)|
|Company Contact Info:|
|Siddhika Coatings Limited
L-9, Lower Ground Floor Kalkaji,
New Delhi, South Delhi, Delhi 110019
Tel. No. +91-011- 41601441
|IPO Registrar Info:|
|SKYLINE FINANCIAL SERVICES PRIVATE LIMITED
D-153A, 1st Floor, Okhla Industrial Area Phase-I,
New Delhi – 110020, India
Telephone: 011 40450193-97
Facsimile: 011 26812682
|Lead Manager to the Issue:|
|UNISTONE CAPITAL PRIVATE LIMITED
12, Floor no – 2, Shashank CHS LTD,
Manmala Tank Road, Near Starcity Cinema,
Mahim, Mumbai- 400016, India.
Telephone: +91 9322997964