About the Company:
S K S Textiles Limited is an ISO 9000:2015 certified Company engaged in the business of Textile Manufacturing and Trading.
Company is engaged in the manufacture of grey fabrics and finished fabrics for shirting, suiting, and other accessories for its own brand and also on outsourcing basis for other fabric / garment companies.
They manufacture various fabrics like 100% Cotton – Lycra and Non-Lycra, Blended Cotton Suiting – Chief Value Cotton, Polyester Cotton, 100% Cotton Yarn Dyed , Polyester Viscose, Terry Rayon Suiting and Mock Linen under own brand names – Pierricarrlo, Cotbbelly’s and Earthen Belly.
Company also undertakes corporate orders for Finished Fabrics and Grey Fabrics for corporate brands such as Raymond, Arvind, Siyaram’s, Digjam Limited, etc.
Company has an installed capacity of 3,25,000 mtrs / month for manufacture of various fabrics from natural and man-made fibres specializing in 100% cotton, Giza, Supima, cotton blended fabrics, polyester viscose and polyester cotton.
Company also procures Yarn and process it into Grey Fabric and further processes it into finished fabric as per the client’s requirement.
Company’s manufacturing unit is located at Sonale, Bhiwandi in Maharashtra, they also have a Packing and Storage unit at Kalher, Bhiwandi in Maharashtra.
Company’s Own Brands are as Follows:
Management Team:
- Mr. Sukanraj Shah (Designation: Chairman, Whole Time Director)
- Mr. Vicky Shah (Designation: Managing Director and Chief Financial Officer)
- Mr. Sahil Shah (Designation: Whole Time Director)
Promoters Average Acquisition Cost:
| Name of the Promoter | No. of Shares held | Average Acquisition Cost (in Rs.) |
|---|---|---|
| Sukanraj Shah | 1,91,950 | 33.51 |
| Vicky Shah | 3,78,956 | 4.21 |
| Sahil Shah | 2,04,531 | 6.63 |
| Sukanraj Bhabhutmal Shah HUF | 5,94,000 | 42.36 |
Promoters Stake Pre & Post Issue:
| Shareholder Name | Pre Issue Stake (%) | Post Issue Stake |
|---|---|---|
| Promoter | ||
| Mr. Sukanraj Shah | 6.80% | 4.23% |
| Mr. Vicky Shah | 13.43% | 9.23% |
| Mr. Sahil Shah | 7.24% | 5.72% |
| M/s. Sukanraj Bhabhutmal Shah HUF | 21.05% | 14.73% |
| Promoter Group Entities | 51.46% | 38.84% |
| Total | 100% | 72.76% |
Objectives of the Issue:
Offer for Sale: (OFS) (Around Rs.6.75 cr)
- Company will not receive any proceeds of the Offer for Sale by the Selling Shareholders.
Fresh Issue: (Around Rs.6.57 cr )
- Funding Long Term Working Capital Requirement.
- Funding expenditure for General Corporate Purposes.
Fund Utilization:
| Particulars | Amount (Rs. in Crores) |
|---|---|
| Funding Long Term Working Capital Requirement | 5.28 |
| Expenditure for General Corporate Purposes | 0.93 |
| Issue Related Expenses | 0.35 |
| Net Proceeds | 6.57 cr |
Financials of the Company:
| (in Crores) | FY 13 | FY 14 | FY 15 | FY 16 | FY 17 | 30th Sept 17 |
|---|---|---|---|---|---|---|
| Revenue | 112.87 | 120.42 | 131.75 | 147.81 | 157.75 | 75.16 |
| Net Profit | 0.82 | 1.087 | 1.086 | 1.45 | 1.60 | 1.12 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| SKS Textiles Ltd | 10 | 5.71 | 26.27 | 5.46% | 287.33 |
| Donear Industries Ltd | 2 | 2.09 | 37.73 | 12.47% | 16.78 |
| Titaanium Ten Enterprises Ltd | 10 | 0.63 | 26.44 | 4.14% | 15.13 |
| Dhanlaxmi Fabrics Ltd | 10 | 2.94 | 12.59 | 6.00% | 48.85 |
| VTM Limited | 1 | 2.49 | 12.45 | 7.46% | 33.40 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 9th January 2018 |
| Issue Closes on:. | 11th January 2018 |
| Issue Price | Rs.150 |
| Face Value | Rs.10 |
| Minimum Lot | 1000 |
| Minimum Investment | Rs.1,50,000 |
| Issue Constitutes | 27.24% |
| Issue Size | Rs.13.32 cr |
| Market Cap | Rs.48.89 cr |
| Listing at | NSE SME |
| Equity Shares Offered (OFS) | 4,50,000 |
| Equity Shares Offered (Fresh) | 4,38,000 |
| Total Equity Shares Offered (OFS + Fresh) | 8,88,000 |
| Equity Shares Prior | 28,21,437 |
| Equity Shares after the issue | 32,59,437 |
Important Dates:
| Finalization of Basis of Alottment | on or Before 16th January 2018 |
| Initiation of Refunds | on or Before 18th January 2018 |
| Credit of Equity Shares: | on or Before 18th January 2018 |
| Listing Date: | on or Before 19th January 2018 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 5.71 | 26.27 | 5.46% | 287.33 |
Markets Guruji Opinion:
| IPO View | Apply For: | Expected listing Gain: |
|---|---|---|
| Subscribe | 15% | Long Term |
| Company Contact Info: |
|---|
| SKS Textiles Ltd Gala No. 431, Kewal Industrial Estate, 4th Floor,Senapati Bapat Marg, Lower Parel (West), Mumbai – 400 013 Tel No: +91 – 22 – 6120 6222 Fax No: +91 – 22 – 6120 6200 Email: info@groupsks.com Website: www.groupsks.com |
| IPO Registrar Info: |
|---|
| SHAREX DYNAMIC (I) PRIVATE LIMITED Unit No 1, Luthra Ind. Premises, 1st Floor, 44 – E, M. Vasanji Marg, Andheri Kurla Road, Safed Pool, Andheri (E), Mumbai – 400 072 Tel: +91 – 22 – 2851 5606 Fax: +91 – 22 – 2851 2885 Email: sharexindia@vsnl.com; Website: www.sharexindia.com |
| Lead Manager to the Issue: |
|---|
| ARYAMAN FINANCIAL SERVICES LIMITED 60, Khatau Building, Ground Floor, Alkesh Dinesh Modi Marg, Fort, Mumbai – 400 001 Tel No.: +91 – 22 – 6216 6999 Fax No.: +91 – 22 – 2263 0434 Email: ipo@afsl.co.in Website: www.afsl.co.in |
