About the Company:
Vasa Retail Ltd primarily deals in all kinds of (a) stationery products viz. artistic materials, hobby colors, scholastic colors, scholastic stationery, office products, drawing instruments, writing instruments, office stationery, adhesives, notebooks, office supplies and writing instruments, books, pens, pencils, erasers, files, copier paper, bags and bottles.
We can further classify the range of stationary products into (i) school and education products; (ii) fine art and hobby products; and (iii) office products.
Company has exclusive license agreements dated October 01, 2014 and June 10, 2016 with Oxford Limited to market, sell, distribute, and promote various stationary products under the brand “University of Oxford” to around twenty six (26) countries spread across Asia, Middle East and Africa including India.
Company has been in developing innovative product range under the brand “University of Oxford”; entering into arrangements with distributors; tie-up with suppliers.
In addition to the above license arrangement, Company also markets and sells its stationery products and bags under its own brand “VASTA” in the overseas markets.
In addition to the above business activities, Company also acts as a supplier of copier paper under the brand “Trion” to certain paper dealers in the Middle East. However,they do not own the brand “Trion” under which they sell the copier paper.
They distribute the products through a network of approximately seven (07) distributors catering to more than 500 stores by way of modern retail outlets, shop in shop, traditional retail outlets, MBO‘s and e-commerce platform in India.
Company has strong customers base in the overseas markets in countries like Saudi Arabia, Kuwait, Qatar, Bahrain, UAE, Oman, and Mauritius, where they market and sell products under the brand “University of Oxford”.
Company Sells Products Under the Following Brand Logo’s:
Company Sells Products under following Product Categories:
- Students and education products.
- Fine art and hobby products.
- Office products.
Business Overview:
Management Team:
- Mr.Mr.Hardik Bhupendra Vasa (Designation: Chairman & Managing Director)
- Ms.Kajal Hardik Vasa (Designation: Whole Time Director)
- Ms.Aruna Bhupendra Vasa (Designation: Non-Executive & Non-Independent Director)
Promoters Average Acquisition Cost:
| Name of the Promoter | No. of Shares held | Average Acquisition Cost (in Rs.) |
|---|---|---|
| Mr. Hardik Vasa | 19,63,630 | 10.00 |
| Mrs. Kajal Vasa | 10,50,800 | 10.00 |
Promoters Stake Pre & Post Issue:
| Shareholder Name | Pre Issue Stake (%) | Post Issue Stake |
|---|---|---|
| Promoters | ||
| Mr. Hardik Vasa | 44.70% | 32.77% |
| Ms. Kajal Vasa | 23.92% | 17.54% |
| Promoter Group Entities | 26.82% | 19.66% |
| Total | 95.45% | 69.96% |
Objectives of the Issue:
- To meet Working Capital Requirement.
- General Corporate Expenses.
- To Meet the Issue Expenses.
Fund Utilization:
| Particulars | Amount (Rs. in Crores) |
|---|---|
| To Meet Working Capital Requirement | 4.00 |
| General Corporate Expenses | 0.197 |
| Net Proceeds | 4.8 crores |
Positives for the Company:
- Exclusive rights over the brand “University of Oxford”
- Experience and expertise in global sourcing of diverse stationary products and brand consolidator.
- Vast network of distributors in the domestic markets and strong customers base in the overseas markets.
- Own brand VASTA for the overseas market.
Financials of the Company:
| (in Crores) | FY 13 | FY 14 | FY 15 | FY 16 | FY 17 | 20th Oct 17 |
|---|---|---|---|---|---|---|
| Revenue | 10.47 | 17.55 | 18.82 | 21.85 | 23.85 | 17.92 |
| Net Profit | 0.11 | 0.84 | (-0.11) | (-0.15) | 0.91 | 0.86 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Vasa Retail and Overseas Ltd | 10 | 2.18 | 13.78 | 44.64 | 4.89 |
| Kokuyo Camlin Limited | 1 | 0.10 | 1427.5 | 0.44% | 21.79 |
| Linc Pen & Plastics Ltd | 10 | 11.61 | 29.92 | 14.51% | 80.00 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 24th January 2018 |
| Issue Closes on:. | 29th January 2018 |
| Issue Price | Rs.30 |
| Face Value | Rs.10 |
| Minimum Lot | 4000 |
| Minimum Investment | Rs.1,20,000 |
| Issue Constitutes | 26.69% |
| Issue Size | Rs.4.80 cr |
| Market Cap | Rs.17.98 cr |
| Listing at | NSE SME |
| Total Equity Shares Offered (Fresh) | 16,00,000 |
| Equity Shares Prior | 43,92,550 |
| Equity Shares after the issue | 59,95,550 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 2.18 | 13.78 | 44.64 | 4.89 |
Markets Guruji Opinion:
| IPO View | Apply For: | Expected listing Gain: |
|---|---|---|
| Subscribe | Long Term | 20% |
| Company Contact Info: |
|---|
| Vasa Retail and Overseas Limited C-001, Ground Floor A/3, Antop Hill Warehousing Vidyalankar College Marg Barkat Ali, Antop Hill Mumbai 400037, India. Telephone: +91 22 2414 1380 Email id: investor@vasagroup.in Website: www.vasagroup.in |
| IPO Registrar Info: |
|---|
| BIGSHARE SERVICES PRIVATE LIMITED 1st Floor, Bharat Tin Works Building Opp. Vasant Oasis, Makwana Road Marol, Andheri (East), Mumbai 400059, India. Telephone: +91 22 6263 8200 Facsimile: +91 22 6263 8299 Email: ipo@bigshareonline.com Website: www.bigshareonline.com |
| Lead Manager to the Issue: |
|---|
| HEM SECURITIES LIMITED 904, A Wing, 9th Floor Naman Midtown, Senapati Bapat Marg Elphinstone Road, Mumbai 400 013, India. Telephone: +91 22 4906 0000 Facsimile: +91 22 4906 0061 Email: ib@hemsecurities.com Website: www.hemsecurities.com |
