About the Company:
Le Merite Exports Ltd is an ISO 9001:2015 certified company engaged in manufacturing and trading of textile products namely cotton yarn, greige fabric and finished fabric for domestic and export sales.
Company deal in diversified product portfolio with capability to supply compact cotton yarn varying from counts NE 16/1 to NE 32/1 & NE 16/2 to NE 32/2 combed carded & double yarn that are used in various forms and for varied end uses.
Company also export sustainable – ecofriendly organic yarn and fabric to international textile and garment manufacturers.
Company’s Exports:
Exports accounted for 86.53% and 76.08%, 83.52% and 91.86% of revenue from Sale of products for the nine months period ended on December 31, 2021 and for Financial year March 31 of 2021, 2020 and 2019 respectively.
For Financial year March 31, 2021, Company exported its products to 39 countries with more than 70 % of the revenue from export sales coming from China, Bangladesh, Turkey and Iran.
The export sales on this scale are possible due to our relationship with customers across the world and network of sales representatives / agents in various countries.
For the period from financial year 2017 to the for the nine months period ended on December 31, 2021, company has served global customers in 40 countries including India.
Details of top 10 export markets is as below:
Company’s Financial Metrics:
Company have incorporated two (2) subsidiary companies for diversification into non cotton yarn products:
Le Merite Filament Private Ltd
Company holds 51% of the equity capital of Le Merite Filament Private Limited incorporated on October 08, 2021, to diversify into business of trading in polyester yarn, viscose yarn, synthetic fibers, staple fibers, worsted yarn, lycra yarn and such other varieties whether texturized, twisted, sized, dyed or otherwise and other such kinds of fiber.
Le Merite Filament Private Ltd is yet to start its business activities.
Le Merite Laxmi Spinning Private Ltd
Company holds 51% of the equity capital of Le Merite Laxmi Spinning Private Limited incorporated on December 15, 2021, to diversify into business of trading in polyester yarn, viscose yarn, synthetic fibers, staple fibers, worsted yarn, lycra yarn and such other varieties whether texturized, twisted, sized, dyed or otherwise and other such kinds of fiber.
Le Merite Laxmi Spinning Private Ltd is yet to start its business activities.
Management Team:
- Mr. Abhishek Lath (Designation: Managing Director & CFO)
- Mr. Umashankar Lath (Designation: Chairman & Managing Director)
Objectives of the Issue:
Fresh Issue: (Rs.48 cr)
- Meeting incremental working capital requirements.
- General corporate purposes.
Positives for the Company:
Strong growth in Exports:
Company has a strong dedicated sales and marketing team. The sales and marketing team have a cumulative experience of 58 years in the textile industry and is instrumental in generating business from various parts of the world such as Egypt, China, South Korea, Bangladesh, Thailand, Sri Lanka, Turkey, Portugal, Peru, etc.
Long standing association with low customer concentration.
As on December 31, 2021, we had more than 155 customers and the share of the top 10 customers and the top 5 customers in the total revenue was 35.46% and 21.68%, respectively.
Company’s long-term association with key customers also offers significant competitive advantages such as revenue visibility, industry goodwill and also allows us to up-sell and cross-sell our diverse range of products.
For the nine months period ended on December 31, 2021, we supplied to customers spanning 21 countries which has offered us insulation from business risk since the customers are from diverse geographies.
Financials of the Company:
| (in Crores) | FY 19 | FY 20 | FY 21 | 31st Dec 21 |
|---|---|---|---|---|
| Revenue | 180.93 | 217.28 | 269.13 | 370.87 |
| Net Profit | 1.12 | 3.14 | 7.05 | 15.86 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Le Merite Exports Limited | 10 | 4.13 | 18.15 | 28.99% | 14.25 |
| Pashupati Cotspin Ltd | 10 | 3.80 | 29.74 | 5.39% | 64.42 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 25th April 2022 |
| Issue Closes on:. | 28th April 2022 |
| Issue Price | Rs.75 |
| Face Value | Rs.10 |
| Minimum Lot | 1600 |
| Minimum Investment | Rs.1,20,000 |
| Issue Constitutes | 27.25% |
| Issue Size | Rs.48 cr |
| Market Cap | Rs.176 cr |
| Listing at | NSE SME |
| Equity Shares Offered (Fresh) | 64,00,000 |
| Equity Shares Prior to the Issue | 1,70,81,000 |
| Equity Shares after the issue | 2,34,81,000 |
Also Read : List of Upcoming IPO’s in India.
Also Read : List of Upcoming SME IPO’s in India.
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 4.13 | 18.15 | 28.99% | 14.25 |
| Company Contact Info: |
|---|
| Le Merite Exports Limited B1-104D, Boomerang, Chandivali Farm Road, Powai, Andheri (East), Mumbai – 400072 Maharashtra, India Tel No: 022 28579209 Email: compliance@lemeriteexports.com Website: www.lemeriteexports.com |
| IPO Registrar Info: |
|---|
| BIGSHARE SERVICES PRIVATE LIMITED 1st Floor, Bharat Tin Works Building, Club House Road, Opp. Vasant Oasis, Makwana Road, Marol, Andheri (East), Mumbai 400059 Tel No.: 022 6263 8200 Email: ipo@bigshareonline.com Website: www.bigshareonline.com |
| Lead Manager to the Issue: |
|---|
| FEDEX SECURITIES PRIVATE LIMITED B 7, 3rd Floor, Jay Chambers, Dayaldas Road, Vile Parle (East), Mumbai – 400057, Maharashtra, India Tel No: +91 81049 85249 E-mail: mb@fedsec.in Website: www.fedsec.in |
