About the Company:
South West Pinnacle Exploration Ltd (Incorporated in the year 2006) is an ISO 9001:2015 certified is providing end to end drilling, exploration and allied services to coal, ferrous, non ferrous, atomic and base metal mining industries and water & unconventional energy industries.
Presently they have 37 operational rigs and support equipment of different capacities to drill upto a depth of 2500 meters.They also provides consultancy for geological field services and allied services.
Company has completed more than 950,000 meters of drilling including 60 CBM exploratory and 166 CBM production wells for both Government and Private Sectors.
Company has an in-house team of geoscientists for providing integrated exploration services including geophysical logging, surface geophysical & topographic surveys.
Company has recently diversified into aquifer mapping for Hydro-geological organisations in India for determining the quantity and quality of groundwater in a particular area, viz., water level, productivity and concentration of various chemicals in groundwater.
Currently company has 10 running projects in different states of India.They mobilise and demobilise the rigs from one location to another depending upon the requirement to ongoing or newly awarded project.
Services Provided by the Company:
- Aquifer Mapping Services.
- CBM Exploration Services.
- CBM Production Services.
- Coal & Mineral Drilling Services.
- Geological & Geophysical Services.
- Workover Rig Services.
Key Clients of the Company:
- Rio Tinto Ltd
- Hindustan Zinc Ltd
- Sesa Goa Ltd
- Reliance Industries Ltd
- Oil India Ltd
- Coal India.
Sector wise Revenue Contribution:
Management Team:
- Mr.Vikas Jain (Designation: Chairman cum Managing Director)
- Mr.Piyush Jain (Designation: Joint Managing Director)
- Mr.Roger James Lord (Designation: Director)
Promoters Average Acquisition Cost:
| Name of the Promoter | No. of Shares held | Average Acquisition Cost (in Rs.) |
|---|---|---|
| Vikas Jain | 38,10,000 | 4.00 |
| Piyush Jain | 22,90,000 | 3.00 |
Promoters Stake Pre & Post Issue:
| Shareholder Name | Pre Issue Stake (%) | Post Issue Stake |
|---|---|---|
| Promoter | ||
| Vikas Jain | 40.73% | 27.30% |
| Piyush Jain | 24.48% | 16.41% |
| Promoter Group Entities | 34.21% | 22.93% |
| Total | 99.42% | 66.64% |
Objectives of the issue:
- Repayment/ Prepayment of certain Secured Borrowings availed by the company.
- Repayment/ Prepayment of certain Unsecured Borrowings availed by the company.
- Purchase of Machinery.
- Funding the working capital requirements of our Company.
- General Corporate Purposes.
Positives for the Company:
Presence across various domains of drilling:
- We believe that company’s expertise in Coal, Mineral & CBM exploration, CBM production drilling, & Aquifer mapping gives them an edge over their competitors to acquire projects in various domains of natural resources.
Pre-qualification Credentials:
- Pre-qualification is a basic requirement in Exploration industry. It is necessary that bidder should have requisite qualification in terms of technical expertise, adequate capital, infrastructure, experienced manpower, value of projects executed in the past etc.
- Company’s track record of over ten (10) years enables them to meet clients pre qualification requirement.
Project execution capabilities.
- Company has been in the drilling and exploration services for the last ten (10) years and has developed expertise in our line of operations which are characterized by our ability to minimize overheads, cost control and prevent overruns on project schedules.
- This has contributed towards securing multiple orders received from our clients who are government as well as private sectors.
Continue to expand & execute larger size of projects:
- Company intends to expand and enhance their operations in their existing business segments by purchasing more rigs out of internal accruals.
- Also they have developed good credentials in the past which enables them to participate in various tenders of State and Central Governments across different domains of drilling.
Focus on International Opportunities:
- As part of future growth strategies strategies, they seek to identify additional markets, through their 100% wholly owned subsidiary, South West international DWC LLC in Dubai, UAE.
- Company is focusing on investment and drilling operations in Middle East through this subsidiary. Middle East is mineral rich nations and most of the countries in middle east are now focusing on their mineral wealth, which means more exploration work.
Financials of the Company:
| (in Crores) | FY 13 | FY 14 | FY 15 | FY 16 | FY 17 | 30th Sept 17 |
|---|---|---|---|---|---|---|
| Revenue | 37.81 | 52.24 | 63.41 | 84.93 | 74.75 | 37.31 |
| Net Profit | 0.29 | 2.82 | 2.90 | 3.86 | 6.11 | 3.257 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW(%) | NAV |
|---|---|---|---|---|---|
| South West Pinnacle Exploration Limited |
10 | 6.57 | 11.87 | 20.67% | 31.80 |
| Selan Exploration Technology Limited |
10 | 5.28 | 41.85 | 3.07% | 172.08 |
| Deep Industries Limited | 10 | 24.66 | 8.53 | 19.57% | 118.21 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 6th February 2018 |
| Issue Closes on:. | 8th February 2018 |
| Issue Price | Rs.76 – 78 |
| Face Value | Rs.10 |
| Minimum Lot | 1600 |
| Minimum Investment | Rs.1,24,000 |
| Issue Constitutes | 32.94% |
| Issue Size | Rs.35.85 cr ($5.6 million) |
| Market Cap | Rs.108.81 cr ($17.3 million) |
| Listing at | NSE SME |
| Total Equity Shares Offered (Fresh) | 45,96,800 |
| Equity Shares Prior to the Issue | 93,54,400 |
| Equity Shares after the issue | 1,39,51,200 |
Important Dates:
| Finalization of Basis of Allotment | on or Before 14th February 2018 |
| Initiation of Refunds | on or Before 15th February 2018 |
| Credit of Equity Shares: | on or Before 16th February 2018 |
| Listing Date: | on or Before 20th February 2018 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) | Debt/Equity Ratio |
|---|---|---|---|---|
| 6.57 | 11.87 | 20.67% | 31.80 | 2.07 |
Grey Market Premium :
| Date | IPO | Price Band | Grey Market premium |
|---|---|---|---|
| 13/02/18 | South West Pinnacle Exploration Ltd | 76 – 78 | 18 – 20 |
Markets Guruji Opinion:
| IPO View | Apply For: | Expected listing Gain: |
|---|---|---|
| Subscribe | Long Term | 20% |
| Check IPO Allotment Status: |
|---|
Link InTime Website (Click on the below Link)https://linkintime.co.in/PublicIssues/ |
| Company Contact Info: |
|---|
| South West Pinnacle Exploration Limited Siddhartha House, 4th Floor, Plot No.6, Sector 44, Gurgaon – 122003 (Haryana) India Tel: +91 124 4235400 Fax: +91 124 4235402 Email: info@southwestpinnacle.com Website: www.southwestpinnacle.com |
| IPO Registrar Info: |
|---|
| LINK INTIME INDIA PRIVATE LIMITED C-101, 1st Floor, 247 Park, L.B.S. Marg, Vikhroli (West), Mumbai – 400 083, Maharashtra, India Tel: +91 22 4918 6200 Fax: +91 22 4918 6195 Email: swpel.ipo@linkintime.co.in Grievance Id: swpel.ipo@linkintime.co.in Website: www.linkintime.co.in |
| Lead Manager to the Issue: |
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| PANTOMATH CAPITAL ADVISORS PRIVATE LIMITED 406-408, Keshava Premises, Behind Family Court, Bandra Kurla Complex, Bandra East, Mumbai – 400 051, Maharashtra, India Tel: +91-22 6194 6720; Email: ipo@pantomathgroup.com Website: www.pantomathgroup.com |
