About the Company:
Swaraj Suiting Ltd was set up in the year 2003 and was initially engaged in the manufacture of cotton/synthetic fabrics but later shifted to trading in synthetic fabrics in 2009 by selling off its Sulzer weaving looms to an associate concern, Swaraj Sulz Private Limited.
Company re-entered into manufacturing of Cotton and Synthetic fabrics in 2011 and commenced commercial operations in January 2013.
company is presently, primarily engaged in the Manufacturing of Grey Fabric involving Cotton and Synthetic, Trading of Yarn, Grey fabric and Finished fabric and Weaving on Job work basis.
Company’s existing manufacturing unit is located at Bhilwara, Rajasthan which is also our Registered Office.
Company’s infrastructure spans a large area involving 15036.38 sq. mtr. and segregated into various departments that includes Dyeing unit, Finishing unit, Storage unit, quality control lab, testing and packaging.
In this unit, company has installed 123 Airjet looms which translates into 1.50 million meters of cotton & synthetic fabric per month translating into 225 Lakh Meters Per Annum (LMPA).
Company has strategically planned the vertical integration of its operations to the next level of supply chain, aiming to lower production costs and increase the efficiency of the company.
Company operates under the following verticals:
- Manufacturing of Grey Fabric
- Weaving on Job Work basis
- Trading of Finished Fabric, Grey Fabric and Yarn.
Revenue from Top 10 Customers:
Company’s Customers:
Company is a major supplier of denim fabric to some known brands in the Industry.
Regular repeat orders from large textile companies highlights company’s adherence to international best practices for manufacturing and various compliances as well as consistency in quality and delivery of the products.
Company’s existing relationship with clients represents a competitive advantage in gaining new clients and growing the business.
Increasing Geographical Presence.
Currently, company is operating in 4 states viz. Rajasthan, Gujarat, Madhya Pradesh & Maharashtra through our Dealer Network. In future, company intend to enter and capture new market in Bangalore, Chennai, Ludhiana & Exports Markets which will increase our geographical presence thereby increasing the customer base.
Direct Selling to Brands.
Moving forward, company intend to tap new market and further sell directly to brands in addition to our authorized dealers. Direct Selling to India’s top brands will enhance company’s reputation as well as improve margins.
Company’s Capacity Utilization:
Proposed Manufacturing Facility at Neemuch, Madhya Pradesh.
Company has proposed installed capacity shall be 320 lac meters per annum, for which Consent to Establish has been obtained from M. P. Pollution Control Board.
Company’s Warehouse:
Company has a Warehouse of 40,000 sq. ft. (approx.) at manufacturing facility located at Bhilwara, Rajasthan and around 35,000 sq. ft. (approx.) is proposed at our manufacturing facility situated at Neemuch, Madhya Pradesh for storing of Raw Material as well as Finished Products.
Company’s Expansion Project:
Company is in advanced stages of setting up a project in the district of Neemuch, Madhya Pradesh (MP), which is both the backward and forward integration of its existing activity.
The commencement of commercial production shall be between March – April, 2022. This unit will manufacture premium quality denim fabric and tap new markets.
The new manufacturing unit in MP is a denim processing plant with annual capacity of converting approximately 21.75 million metric meters of denim fabric.
Total Cost of the project is Rs. 71.37 Crores, which is funded by Banks in the form of Term Loan to the extent of Rs. 43.00 Crores, Rs.18.82 crores will be sourced through Promoter’s contribution including internal accruals and unsecured loans and balance Rs.9.55 crores will be for Working Capital which will be funded by the issue proceeds.
Management Team:
- Mr. Mohammed Sabir Khan (Designation: Managing Director)
- Mrs. Samar Khan (Designation: Whole Time Director)
Objectives of the Issue:
Fresh Issue: (Rs. 10.68 cr )
- To meet the working capital requirements for our new expansion of production capacity at Neemuch, Madhya Pradesh.
- To meet the Issue Expenses.
- General Corporate Purposes.
Peer Group Comparison:
We believe that none of the listed companies in India offer products or services across the various business segments in which we operate. Hence a strict comparison is not possible.
Financials of the Company:
| (in Crores) | FY 19 | FY 20 | FY 21 | 30th Sept 21 |
|---|---|---|---|---|
| Revenue | 76.41 | 80.65 | 60.21 | 81.71 |
| Net Profit | 2.03 | 3.26 | 2.67 | 1.91 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 15th March 2022 |
| Issue Closes on:. | 17th March 2022 |
| Issue Price | Rs.56 |
| Face Value | Rs.10 |
| Minimum Lot | 2000 shares |
| Minimum Investment | Rs.1,12,000 |
| Issue Constitutes | 26.50% |
| Issue Size | Rs.10.68 cr |
| Market Cap | Rs.40.32 cr |
| Listing at | NSE SME |
| Equity Shares Offered (Fresh) | 19,08,000 |
| Equity Shares Prior to the Issue | 52,92,130 |
| Equity Shares after the issue | 72,00,130 |
Also Read : List of Upcoming IPO’s in India.
Also Read : List of Upcoming SME IPO’s in India.
Important Dates:
| Finalization of Basis of Allotment | on or Before 23rd March 2022 |
| Initiation of Refunds | on or Before 24th March 2022 |
| Credit of Equity Shares: | on or Before 25th March 2022 |
| Listing Date: | on or Before 28th March 2022 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 6.00 | 4.67 | 6.99% | 85.73 |
| Company Contact Info: |
|---|
| Swaraj Suiting Limited F-483 To F-487, RIICO Growth Centre Hamirgarh-311025, Bhilwara, Rajasthan, India Contact Person: Mr. Rahul Kumar Verma Contact No: +91 96606 30663 Email ID: cs@swarajsuiting.com Website: www.swarajsuiting.com |
| IPO Registrar Info: |
|---|
| BIGSHARE SERVICES PRIVATE LIMITED 1st Floor, Bharat Tin Works Building, Opp. Vasant Oasis, Makwana Road, Marol, Andheri East, Mumbai-400059 Tel. No: 022-62638200; Fax No: 022-62638280; E-mail: ipo@bigshareonline.com; Website: www.bigshareonline.com; |
| Lead Manager to the Issue: |
|---|
| FINSHORE MANAGEMENT SERVICES LIMITED Anandlok Building, Block-A, 2nd Floor, Room No. 207, 227 A.J.C Bose Road, Kolkata-700020, West Bengal Telephone: 033 – 22895101 Email: ramakrishna@finshoregroup.com; Website: www.finshoregroup.com; |
