About the Company:
Sirca paints India Ltd (Incorporated in 2006) is engaged in marketing and trading/distributor of paints and allied products.
Company had Initially started by importing Polyurethane Polish (PU) products from Italy and wall paints & Abrasives from Korea and selling them in India.
Company procures the products majorly from SIRCA SPA ITALY through Import and selling them in India through its Distributors.
Company also procure the products (Thinner, Abresives and Buffing Cream) from other suppliers based in India. Except Thinner and Abresives which are purchased from
domestic suppliers, all other 100% Purchases are made from Outside India.
Company has recently started exporting of products pursuant to Exclusive Distributorship Agreement entered with SIRCA SPA for exporting in Sri Lanka, Bangladesh and
Nepal.
Sirca paints is the first Company to launch wood filler in India and opened its wholly owned branches in Mumbai and Chennai.
Company’s Distributorship Contract with SIRCA SPA ITALY:
Company has entered into a Distributorship Contract dated 1st January, 2018 with SIRCA SPA ITALY wherein Company got the Exclusive Right to promote the sale of PU & Metal Coating under trademark SIRCA in the territory of India, Sri Lanka, Bangladesh and Nepal.
Company has also entered into a Manufacturing License Agreement dated 16th February, 2018 with SIRCA S.P.A. Italy for manufacturing the following products that the Company is currently distributing under the Product Distribution Agreement.
- Paints NC (Nitrocellulose Paint)
- Paints AC (Acrylic Paint)
- Thinner.
- Polyurethane Products.
Company’s Portfolio:
Proposed Production Capacity of Products per Annum:
Company expects the production capacity of the Manufactured unit to be:
3000 Tonnes of PU Thinner and
3600 Tonnes of NC Lacquers
3600 Tonnesof melamine
2000 Tonnesof Polyurethane products (Note: Capacity is likely to be increased in the subsequent years)
Actual utilization is expected to be 25 % in Ist year, 40 % in IInd year, 60 % in IIIrd year and approx 75% and above in further years.
Management Team:
- Mr. Sanjay Agarwal (Designation: Managing Director)
- Mr. Apoorv Agarwal (Designation: Jt Managing Director)
- Mr. Gurjit Singh Bains (Designation: Non Executive Non Independent Director)
Promoters Average Acquisition Cost:
| Name of the Promoter | No. of Shares held | Average Acquisition Cost (in Rs.) |
|---|---|---|
| Sanjay Agarwal | 58,79,646 | 0.96 |
| Apoorv Agarwal | 3,69,000 | 0.33 |
| Gurjit Singh Bains | 25,77,465 | 0.89 |
Promoters Stake Pre & Post Issue:
| Shareholder Name | Pre Issue Stake (%) | Post Issue Stake |
|---|---|---|
| Promoters | ||
| Sanjay Agarwal | 43.88 | 32.18 |
| Apoorv Agarwal | 2.75 | 2.02 |
| Gurjit Singh Bains | 19.24 | 14.11 |
| Promoter Group Entities: | 25.92 | 19.02 |
| Total | 91.79% | 67.32% |
Objectives of the Issue:
- To finance the expenditure of Site/Plant Development and Purchase of Plant and Machinery.
- To part finance incremental working capital requirements of the Company.
- To meet General Corporate Purposes.
- To meet the expenses of the Issue.
Positives for the Company:
Established Brand Name.
Company is engaged in providing services to their clients and over the years, Company has established themselves as a reliable brand in India as well as outside India.
Agreements with Renowned Brands:
Company has signed an Exclusive Distributorship Agreement with SIRCA SPA ITALY for selling its product in India, Sri Lanka, Bangladesh and Nepal.
Expansion Plan and Diversification (SETTING UP OF MANUFACTURING PLANT).
Company has planned the expansion by way of manufacturing of Paints NC, Paints AC, Thinner, Polyurethane Products by setting up a manufacturing Unit pursuant to Manufacturing License Agreement dated 16th February, 2018 entered with SIRCA S.P.A. Italy in District Sonepat, India.
Financials of the Company:
| (in Crores) | FY 13 | FY 14 | FY 15 | FY 16 | FY 17 | 31st Dec 17 |
|---|---|---|---|---|---|---|
| Revenue | 34.02 | 54.08 | 69.77 | 72.66 | 84.34 | 64.70 |
| Net Profit | 0.50 | 1.97 | 6.17 | 7.27 | 13.70 | 14.59 |
Valuation of Peer Group Companies:
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 16th May 2018 |
| Issue Closes on:. | 22nd May 2018 |
| Issue Price | Rs.151 – 160 |
| Face Value | Rs.10 |
| Minimum Lot | 800 |
| Minimum Investment | Rs.1,28,000 |
| Issue Constitutes | 26.65% |
| Issue Size | Rs.77.91 cr |
| Market Cap | Rs.292.3 cr |
| Listing at | NSE SME |
| Total Equity Shares Offered (Fresh) | 48,69,600 |
| Equity Shares Prior to the Issue | 1,34,00,000 |
| Equity Shares after the Issue | 1,82,69,000 |
Important Dates:
| Finalization of Basis of Allotment | on or Before 25th May 2018 |
| Initiation of Refunds | on or Before 28th May 2018 |
| Credit of Equity Shares: | on or Before 29th May 2018 |
| Listing Date: | on or Before 30th May 2018 |
| Check IPO Allotment Status: |
|---|
Karvy Website (Click on the below Link)http://kosmic.karvy.com:81/ipotrack/ |
Reviews of Current & Upcoming IPOs: (Click on the Link)
Knowledge Corner: (Click on the Link)
| Company Contact Info: |
|---|
| Sirca paints India Ltd 504, NDM 2, Netaji Subhash Place Wazirpur, Pitampura, Delhi-110034 Tel: + 91-11-42083083, 47533213 Email: admin@sircapaints.com Website: www.sircapaints.com |
| IPO Registrar Info: |
|---|
| KARVY COMPUTERSHARE PRIVATE LIMITED Karvy Selenium Tower B, Plot 31-32, Gachibowli, Financial District, Nanakramguda, Hyderabad 500 032 Tel : +91 40 6716 2222; Investor E-mail: sircapaints.ipo@karvy.com Website: www.karisma.karvy.com |
| Lead Manager to the Issue: |
|---|
| NAVIGANT CORPORATE ADVISORS LIMITED 423, A Wing, Bonanza, Sahar Plaza Complex, J B Nagar, Andheri Kurla Road, Andheri East, Mumbai-400 059 Tel No. +91-22-41204837 / 49735078 Email Id- navigant@navigantcorp.com Investor Grievance Email: info@navigantcorp.com Website: www.navigantcorp.com |
