About the Company:
Incorporated in the year 1999,Goldstar Power Ltd is a battery manufacturing Company, manufacturing & marketing their products under the flagship brand ―Star Gold.
Company started by manufacturing of battery plates and gradually moved to forward and backward stages of manufacturing.
Company‘s major revenue is from sale of Battery and Lead Plates various measures ranging from IST 1000 to IST 2200, GS 400 to GS 1800 and GST, GSD and GSV versions.
Company’s product range covers various types of batteries including automotive batteries, tubular batteries, SMF series batteries, VRLA batteries, Solar batteries, Pure Lead and Alloy batteries.
Company’s batteries are used by inverter manufacturers, automobile industry, general industrial applications, solar power plants, UPS applications for Power Back up, etc.
Currently Company caters to all three segments of market viz. exports, domestic/after sales market and OEM.
They have a widespread customer base with their domestic customer base situated in various regions of the country and the international customers situated across varied countries like Uganda, Nepal, Lebanon, etc.
Company’s batteries are generally used in cars manufactured by Tata, Maruti and Mahindra.
Company‘s significant revenue is dependent on Amara Raja Batteries Limited who sells the same to OEMs.
Sale to Amara Raja Batteries Ltd accounted to 47.14% of their revenue in FY 17.
Management Team:
- Mr.Mulji Pansara (Designation: Chairman)
- Mr.Navneet Pansara (Designation: Managing Director)
- Mr.Amratlal Pansara (Designation: Whole time Director)
Promoters Average Acquisition Cost:
| Name of the Promoter | No. of Shares held | Average Acquisition Cost (in Rs.) |
|---|---|---|
| Mulji Pansara | 27,72,942 | 6.84 |
| Amratlal Pansara | 18,69,582 | 6.34 |
Promoters Stake Pre & Post Issue:
| Shareholder Name | Pre Issue Stake (%) | Post Issue Stake |
|---|---|---|
| Promoters | ||
| Mulji Pansara | 35.55% | 25.92% |
| Amratlal Pansara | 23.97% | 17.48% |
| Promoter-Group Entities | 40.48% | 29.51% |
| Total | 100.00% | 72.91% |
Valuation of Peer Group Companies:
| Company Name | CMP | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Amara Raja Batteries Ltd | 805.65 | 28.01 | 28.76 | 18.45% | 151.81 |
| High Energy Batteries Ltd | 325.75 | 1.89 | 172.35 | 13.00% | 14.56 |
| Exide Industries Ltd | 215.80 | 8.16 | 26.45 | 13.97% | 58.40 |
| HBL Power Systems Ltd | 47.00 | 1.16 | 40.52 | 4.70% | 26.67 |
Objectives of the Issue:
- Working capital requirements of the Company.
- General Corporate Purpose.
- Listing Benefits.
Fund Utilisation:
| Particulars | Amount (Rs. in Lakhs) |
|---|---|
| Working Capital Requirements | 675.00 |
| General Corporate Expenses | 4.50 |
| Net Proceeds | 679.5 |
Financials of the Company:
| (in Crores) | FY 13 | FY 14 | FY 15 | FY 16 | FY 17 |
|---|---|---|---|---|---|
| Revenue | 62.01 | 49.23 | 41.30 | 40.50 | 54.97 |
| Net Profit | 0.72 | 0.30 | (-0.66) | (-0.38) | 0.91 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 27th September 2017 |
| Issue Closes on:. | 29th September 2017 |
| Issue Price | Rs.25 |
| Face Value | Rs.10 |
| Minimum Lot | 6000 |
| Minimum Investment | Rs.1,50,000 |
| Issue Constitutes | 27.09% |
| Issue Size | Rs.7.24 cr |
| Market Cap | Rs.26.74 cr |
| Listing at | NSE SME |
| Equity Shares Offered | 28,98,000 |
| Equity Shares Prior | 78,00,000 |
| Equity Shares after the issue | 1,06,98,000 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 1.17 | 21.36 | 7.94% | 14.72 |
Markets Guruji Opinion:
| IPO View | Apply For: | Expected listing Gain: |
|---|---|---|
| Avoid | NA | NA |
