About the Company:
Sonam Clock Ltd (Incorporated in 2001) is a clock manufacturing Company situated in Morbi, Gujarat. They offer a wide range of table and wall clocks at various price points across budget, mid-level and premium styles.
Company is offering clocks from a price range of Rs.100 to Rs.1800 which includes LED digital clocks, LCD clocks, light sensor clocks, pendulum clocks, musical clocks, rotating pendulum musical clocks, sweep clocks, office clocks, designer clocks, alarm clocks, table clocks and regular clocks.
Company also offers customized corporate clocks in bulk quantities for corporate gifting purpose.
Company’s products are sold mainly to clock dealers, retailers, corporates, gifts and novelties stores, through which it reaches to end consumers. Company’s products are sold under the brand name of Sonam, ampm and Lotus.
In FY 17, Company’s net revenue from operations comprised of Rs. 37.92 cr of which approximately 40% comprised of export sales to Middle – East countries such as
Dubai and Iraq.
Our Manufacturing facility is located in Morbi, Gujarat and has present installed production capacity of approximately 72 lakhs p.a. for clocks and 240 lakhs p.a. for clock movements. (Note: A Clock movement is also known as caliber, is an internal mechanical part of the clock, which drives hour, minute and second hands of clock in motion.)
Company is also engaged in sale of clock parts which includes clock movements, clock cases etc.
Major Competitors for the Company:
- Ajanta Manufacturing Private Limited.
- Ajanta Private Limited.
- Solar Quartz.
- Opal Luxury Time Products Limited
- Rickon Clocks Manufacturing Co.
Company’s Major Customers:
Management Team:
- Mr. Jayeshbhai Chhabildas Shah (Designation: Chairman and Managing Director)
- Mrs. Deepaben Jayeshbhai Shah (Designation: Whole Time Director)
- Ms. Rutvi Jayeshbhai Shah (Designation: Non-Executive Director)
Promoters Average Acquisition Cost:
| Name of the Promoter | No. of Shares held | Average Acquisition Cost (in Rs.) |
|---|---|---|
| Mr. Jayeshbhai Chhabildas Shah | 62,39,200 | 2.43 |
| Mrs. Deepaben Jayeshbhai Shah | 4,80,000 | 2.50 |
Promoters Stake Pre & Post Issue:
| Shareholder Name | Pre Issue Stake (%) | Post Issue Stake (%) |
|---|---|---|
| Promoters | ||
| Mr. Jayeshbhai Chhabildas Shah | 86.66 | 62.34 |
| Mrs. Deepaben Jayeshbhai Shah | 6.67 | 4.80 |
| Promoter Group Entities | 6.67 | 4.80 |
| Total | 100% | 71.94% |
Objectives of the Issue:
- Funding the Working Capital Requirements of the Company.
- Repayment of Unsecured Loan availed by the Company.
- General Corporate Expenses.
- Issue Expenses.
Fund Utilization:
| Particulars | Amount (Rs. in Crores) |
|---|---|
| Working Capital requirements | 5.10 |
| Repayment of Unsecured Loan | 2.0 |
| General Corporate Expenses | 2.32 |
| Issue Expenses | 0.68 |
| Net Proceeds | 10.10 cr |
Financials of the Company:
| (in Crores) | FY 13 | FY 14 | FY 15 | FY 16 | FY 17 | 31st Dec 17 |
|---|---|---|---|---|---|---|
| Revenue | 33.71 | 33.55 | 34.05 | 36.82 | 39.03 | 38.61 |
| Net Profit | 0.45 | 0.57 | 0.40 | 2.68 | 0.80 | 2.25 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Sonam Clock Limited | 10 | 1.12 | 32.12 | 8.63% | 12.98 |
| Opal Luxury Time Products Ltd | 1 | (10.17) | —– | (12.72) | 74.97 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 1st June 2018 |
| Issue Closes on:. | 6th June 2018 |
| Issue Price | Rs.36 |
| Face Value | Rs.10 |
| Minimum Lot | 3000 |
| Minimum Investment | Rs.1,08,000 |
| Issue Constitutes | 28.06% |
| Issue Size | Rs.10.10 cr |
| Market Cap | Rs.36.02 cr |
| Listing at | NSE SME |
| Equity Shares Offered (Fresh) | 28,08,000 |
| Equity Shares Prior to the Issue | 72,00,000 |
| Equity Shares after the Issue | 1,00,08,000 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 1.12 | 32.12 | 8.63 | 12.98 |
| Check IPO Allotment Status: |
|---|
Bigshare Website (Click on the below Link)http://www.bigshareonline.com/bssipoapplicationstatus.aspx |
| Company Contact Info: |
|---|
| Sonam Clock Limited Survey No. 337/p, Morbi Rajkot Highway, Village Lajai, Taluka Tankara, District Morbi – Gujarat – 363641, India Tel. No. +91-2822-285017 Fax No. +91-2822-285987 E-mail: info@sonamquartz.com Website: www.sonamquartz.com |
| IPO Registrar Info: |
|---|
| BIGSHARE SERVICES PRIVATE LIMITED 1st Floor, Bharat Tin Works Building Opp. Vasant Oasis, Makwana Road Marol, Andheri (East), Mumbai 400059, India Tel No.: +91-022-62638200 Fax No.: +91-022-62638299 Email: ipo@bigshareonline.com Investor Email: investor@bigshareonline.com Website: www.bighareonline.com |
| Lead Manager to the Issue: |
|---|
| HEM SECURITIES LIMITED 904, A Wing, Naman Midtown, Senapati Bapat Marg, Elphinstone Road, Lower Parel, Mumbai-400013, Maharashtra, India Tel. No.: +91- 022- 4906 0000 Fax No.: +91- 022- 2262 5991 Investor Email: redressal@hemsecurities.com Website: www.hemsecurities.com |
