April 20, 2018
admin
Short Note about the Company:
Qualitative Factors
We believe the following business strengths allow us to successfully compete in the industry:
# Diversified business portfolio
# Strong long-term customer relationships
#Modern and versatile manufacturing facilities at strategic locations
#Research and development capabilities allowing product innovation
# Experienced Promoter and strong management team
Detailed note about the sector in which the company operates and about the company is given in Page-bottom-boxes.Please study the same.
The promoters :
RAMESH PAREKH
Main object of the issue is:
The objects for which the Company intends to use the Net Proceeds are as follows:
1)Expansion and modernization of the Company`s existing manufacturing facilities at Silvassa and Taloja;
2. Funding working capital requirements of our Company;
3. Part financing the project cost towards establishment of a manufacturing facility by the Joint Venture
IPO Particulars:
Fresh Issue [Ï%] Equity Shares aggregating up to Rs. 1,950 million
Offer for Sale 600,000 Equity Shares
IPO Opens on : ?
IPO Closes on 😕
Issue Type: Book Built Issue IPO
Face Value: INR 10 per share
Price Band: Per Equity Share: Not declared
Minimum Order Quantity: ?
Listing will at: BSE,NSE
Shares offered to
Anchors ? Shares = INR ? Crs
QIB ? Shares = INR ?Crs
NII ?Shares = INR ?Crs
RII ?Shares = INR ?Crs (Lot size: 20 = ? Forms)
Tentative timeTable:
? – Price Band announced
? – Anchor List
? – Offer Opens
? – Offer Closes
?– Finalisation of Basis of Allotment
?– Unblocking of ASBA
?– Credit to Demat Accounts
?– Listing on NSE & BSE
Financials:
Consolidated Total Income of 2016-17 INR 2232.92 Crore
Total Income of 2017-18(6M) INR ? Crore
Consolidated Net Profit of 2016-17 INR 74.29 Crore
Net Profit of 2017-18 (6M) INR ? Crore
Consolidated Earnings per Share (EPS)(16-17) INR 46.43
Earnings per Share 2017-18 (9M) INR ?
Equity Capital as on 31.3.2017 INR 16.00 Crore
Equity Capital after the IPO: 322,141,400 shares Rs.161.07
Upper Price Band/last EPS: ?
Book Value of the Share as on 31.03.2017 INR 188.33
Upper offer price/Book Value Ratio:
Return on Net Worth: 24.65 %
Peer Comparison:
Apar Industries Limited, (PE Ratio:17.00)
Savita Oil Technologies Limited (PE Ratio:17.34)
Panama Petrochem Limited (PE Ratio 18.73)
GP Petroleums Limited (PE Ratio 20.59)
Gulf Oil Lubricants Limited (PE Ratio 32.74)
are the listed public industry peers of the Company
Lead Manager:
SBI Capital Markets Limited
Registrar to theIPO:
Link Intime India Private Limited
Registrered Office of the Company :
18th Floor, DLH Park, S.V. Road, Goregaon (West), Mumbai 400 062, Maharashtra, India
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Total Subscription:
on Day 1(on 00.00.2018 at 17.00 IST)
QIB : shares offered:xx Subscribed
NII : Shares offered: xx Subscribed : xx
RII : Shares offered : XX Subscribed : xx
Total : Shares offered :XX Subscribed : xx
IPO Analysis by Experts / Fund Managers
India s manufacturing sector is seeing a concerted push from the Government of India to make the country a major manufacturing hub for global companies. The sector is perceived to have a potential value of $1 trillion by 2025, contributing 25% of the national GDP and creating 90 million jobs in the country. India is attracting investments from key global economies across several key industries including oil &gas, technology, automotive, pharmaceuticals retail and defense among others.
The government is taking initiatives to make India more conducive to do business in. Besides working on improving its Ease of Doing Business Index, the government has been taking steps to promote entrepreneurship in the manufacturing sector. The ambitious plans of the government also include manufacturing of 181 products locally, majorly in the capital goods sector. This could provide growth for sectors like power, oil and gas, and automotive manufacturing which bank on large capital expenditure requirements, while reviving the Indian capital goods market worth ‘ 1,85,000 crores.
The Indian automotive sector contributed 4.3% to Indian exports with more than 35 lakh units exported in 2016-17. Global automotive giants like Volvo and Daimler are using India as a hub to service the Middle East, Africa, and Asian nations while car majors like Ford, Hyundai, Volkswagen, and Nissan also use India as a manufacturing hub. The industry is also a major benefactor from the FDI inflows accounting for 5% of total inflows.
Speciality oils and lubricants refers to a group of mineral oil based products that are used across multiple sectors for functions varying from lubrication and wear-and-tear protection, cooling and heat transfer, chemical characteristic alteration of compounds, and product finishing. The common element in all the speciality oils and lubricants is the use of mineral-based base oils. The final product, according to the application, may or may not contain additives which enhance or augment the process for which the oil is used. Speciality oils and lubricants cater to industries ranging from automotive, heavy manufacturing, chemicals, marine, oil and gas, power and electrical, mining, tyre and rubber and even consumer products like cosmetics and pharmaceuticals. The main speciality oils considered for the study are liquid paraffin, industrial oil and greases, transformer oil, automotive lubricants, petroleum jelly, and rubber process oil (“RPO”). Though speciality oils are only marginal products in their respective industries, they are significant to the processes they are used for. E.g.: RPO constitutes only 1% of the total cost of manufacturing a tyre but is a key agent that influences the physiochemical characteristics of the materials used in the manufacturing process. Most of the other speciality oils also have similar characteristics