About the Company:
Silkflex Polymers Ltd is engaged in the trading of the textile printing inks and water-based wood coating polymers products of a Malaysian based brand- “Silkflex” produced by Silkflex Polymers SDN BHD (“Silkflex Malaysia”).
Company offers a wide variety of products which consists of 108 textile printing ink products and 51 wood coating polymers products.
Company has entered into an agreement with Silkflex Malaysia on October 01, 2016, for distribution and selling, the water-based textile printing inks products of Silkflex.
Company has also entered into agreement with Silkflex Malaysia on October 01, 2019 for distribution and selling, the wood coating polymers products of Silkflex Malaysia.
Company has been associated with Silkflex Malaysia since year 2016 and have over 7 years of business association with Silkflex Malaysia.
About Silkflex Malaysia:
Silkflex Malaysia was formed 20 years ago to develop and manufacture environment friendly coatings that are unique to the world.
Silkflex Malaysia, is one of the garment printing ink manufacturers of Malaysia. Silkflex Malaysia manufactures its products through its manufacturing unit located in Malaysia and the same products are then supplied around the globe through its authorised agents.
The list of countries where Silkflex Malaysia supplies the products includes India, Thailand, Turkey, Russia, Sri Lanka, Bangladesh and Indonesia.
Silkflex Malaysia is Major Producer of High-Quality Textile Screen Printing Inks in the World.
Silkflex Malaysia is the world’s largest producer of premium textile rubber inks at 6,000 MT and also a Major supplier of water-based wood coatings worldwide at 7,200 MT.
About Company’s Tieup with Silkflex Malaysia:
Company has entered into an agreement with Silkflex Malaysia on October 01, 2016, for distribution and selling, the water-based textile printing inks products of Silkflex.
Companyhas also entered into agreement with Silkflex Malaysia on October 01, 2019 for distribution and selling, the wood coating polymers products of Silkflex Malaysia.
These agreements also give us the rights to use the brand name of Silkflex in India. Further, by virtue of Technology Transfer Agreement (“TTA”) dated July 25, 2023,
Silkflex Malaysia has permitted company to be the manufacturer of its products in India and agreed to provide full right, technology relating to products like Silkbond 35 and binder for table glue products.
However, as on the date of this Prospectus, Company is in the process of setting up the manufacturing unit and has not started its production activities.
Royalty Paid by the Company to Silkflex Malaysia:
Company is not paying any royalty for using the brand Silkflex in Trading business.
In relation to the proposed manufacturing process, the royalty fees shall be paid to Silkflex Malaysia only after commencement of production and the percentage amount will be mutually decided by the parties on the basis on the volume and cost of production.
Company’s Products:
- Textile Printing Ink Products.
- Wood Coating Products.
Company’s Product Revenue Breakup: (in Lakhs)
Company’s State-wise Revenue breakup: (in Lakhs)
Management Team:
- Mr. Tushar Lalit Kumar Sanghavi (Designation: Chairman & Managing Director)
- Ms. Urmi Raj Mehta (Designation: Whole time Director)
Objectives of the Issue:
Fresh Issue: (Rs.18.10 cr)
- Acquisition of land.
- Funding of capital expenditure requirements of our Company towards purchase of Plant and Machineries.
- Funding Working Capital Requirements of our Company.
- General corporate purposes.
Fund Utilization:
| Particulars | Amount (Rs. in Crores) |
|---|---|
| Acquisition of land | 5.53 cr |
| Funding of capital expenditure requirements of our Company towards purchase of Plant and Machineries | 2.07 cr |
| Funding Working Capital Requirements of our Company | 4.68 cr |
| General corporate purposes | 4.10 cr |
| Net Proceeds | 16.40 cr |
Positives for the Company:
Company has Wide range of Products.
- Company’s product mix has evolved over the past several years as we have entered into new product categories.
- Company deals in large number of products and offers a wide range of printing ink products used in textiles & garments industry. Company also offer wood coating products to the furniture industry.
- The wood coating products sourced by us have a unique class of water-based wood coatings. Company believes that maintaining a variety of products in our business provides us with an opportunity to cater to diverse needs of different customer segment.
Expanding Clientele Network by Geographic Expansion.
- Since the garment manufacturers are scattered in various parts of India, Company is having presence in the states of West Bengal, Gujarat, Maharashtra, Tamil Nadu, Rajasthan and Punjab which covers majority of garment hubs.
- Company believes that our growth in other states in the country can fetch us new business expansion and opportunities.
- Company also intends to establish our presence in other locations of India through selling agents. Company’s emphasis is on scaling of our operations in other markets which provides us with attractive opportunities to grow our client base and revenues.
Financials of the Company:
| (in Crores) | FY 21 | FY 22 | FY 23 | Upto 31st Dec 23 |
|---|---|---|---|---|
| Revenue | 20.96 | 28.04 | 34.43 | 33.81 |
| Net Profit | 0.45 | 0.68 | 0.78 | 2.56 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Silkflex Polymers Ltd | 10 | 0.97 | 53.60 | 9.62% | 10.05 |
| Heubach Colorants India Ltd | 10 | 8.31 | 48.88 | 4.44% | 187.34 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 7th May 2024 |
| Issue Closes on | 10th May 2024 |
| Issue Price | Rs.52 |
| Face Value | Rs.10 |
| Minimum Lot | 2000 Shares |
| Minimum Investment | Rs.1,04,000 |
| Issue Constitutes | 60.35 % |
| Issue Size | Rs.18.10 cr |
| Market Cap | Rs.60.35 cr |
| Listing at | NSE SME |
| Equity Shares Offered (Fresh) | 34,82,000 (Rs.18.10 cr) |
| Equity Shares Prior to the Issue | 81,25,000 |
| Equity Shares after the Issue | 1,16,07,000 |
Important Dates:
| Finalization of Basis of Allotment | on or Before 13th May 2024 |
| Initiation of Refunds | on or Before 14th May 2024 |
| Credit of Equity Shares: | on or Before 14th May 2024 |
| Listing Date: | on or Before 15th May 2024 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) | Debt Equity Ratio (D/E) |
|---|---|---|---|---|
| 0.97 | 53.60 | 9.62% | 10.05 | 1.48 |
Also Read: Complete List of NSE/BSE Holidays List>>
| Should You Subscribe or Not ? (Markets Guruji’s View) |
|---|
| Silkflex Polymers Ltd specializes in the distribution of premium textile printing inks and water-based wood coating polymers under the esteemed Malaysian brand, “Silkflex,” manufactured by Silkflex Malaysia. With an extensive product range comprising 108 variants of textile printing inks and 51 options for wood coating polymers, the company caters to diverse industrial needs. Renowned for its superior quality, Silkflex products stand as a hallmark of excellence in the market.
Despite commendable product quality, the company faces challenges related to debt management. However, its scalable business model, buoyed by the consistent demand for quality products, promises growth opportunities. Notably, Silkflex Malaysia’s prestigious clientele includes global giants like Puma and H&M, highlighting its dominance in the industry. As a major global producer of high-quality textile screen printing inks and premium textile rubber inks, Silkflex Malaysia presents a lucrative opportunity for expansion into the Indian market. The upcoming IPO of Silkflex Polymers Ltd offers investors a chance to capitalize on this potential and participate in the company’s promising growth trajectory. |
| Company Contact Info: |
|---|
| Silkflex Polymers Ltd Daga Complex, Sulati Jaladhulagori, Sankrail, Howrah-711302, West Bengal, India. Telephone: +91 9674912615 Email: investors@silkflexindia.in Website: www.silkflexindia.in |
| Registrar to the Issue: |
|---|
| BIGSHARE SERVICES PRIVATE LIMITED Office No. S6-2, 6th Floor, Pinnacle Business Park, Next to Ahura Centre, Mahakali Caves Road, Andheri East, Mumbai – 400 093, Maharashtra, India Tel: 022 – 6263 8200 E-mail: ipo@bigshareonline.com Website: www.bigshareonline.com |
| Lead Manager to the Issue: |
|---|
| SHRENI SHARES LIMITED Office No. 217, Hive 67 Icon, Poisar Gymkhana Road Lokmanya Tilak Nagar Poisar, Near Raghuleela Mall, Kandivali West, Mumbai – 400067, Maharashtra, India Telephone: 022 – 2089 7022 E-mail: shrenishares@gmail.com Website: www.shreni.in |
| Check IPO Allotment Status: |
|---|
Bigshare: http://www.bigshareonline.com/IPO/Allotment |
| Find the List of Upcoming IPOs in India: |
|---|
Upcoming IPOs in India (Click on the below Link)https://www.marketsguruji.com/upcoming-ipos-in-india/ |
