SME IPO: Le Merite Exports Limited IPO

Grey Market Trend News :
On 28 April 2022 @ 12.00 noon
Subject to Rates# :  Rs 7000   but no trades
GMP Rates :  – nil
Past Trend details at the bottom

Subscription Trend on 28 April 2022 @ 5.00 pm
NII (50%) 30,32,000 Sh : 15.27 T
RII (50%) 30,32,000 Sh : 16.10 T
Total 60,64,000 Sh : 15.69 T

IPO Opens on 25 April 2022
IPO Closes on 28 April 2022
Allotment tentatively on  4  April 2022
Listing tentatively on : 6 May 2022
Listing on NSE SME
Total Issue Size : 6,400,000 Shares
Net IPO size  Rs. 45.48 Crore/ 6064,000 Shares
Retail Quota : 50 % ( net  3032,000 Shares)
Price Band ( FV Rs. 10) of Rs. 75
Min Order Quantity : 1600 Shares
Retail Min Application : 1600 Shares/ Rs. 120,000
Retail : 1895 Applications required for one time subscriptions.

Business :

Le Merite Exports 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. It deals 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. It also exports sustainable – ecofriendly organic yarn and fabric to international textile and garment manufacturers. The company has been recognized as “Three Star
Export House” by the Director General of Foreign Trade with a certificate valid from September 30, 2015 to September 2020.

The 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 Limited is yet to start its business activities. For more information about the company.. Click http://www.lemeriteexports.com/

Promoters:

Abhishek Lath and Umashankar Lath

Objects of the Issue:

Meeting incremental working capital requirements.

Registered office :

Le Merite Exports Limited
C B1-104D, Boomerang,
Chandivali Farm Road, Powai,
Andheri (East), Mumbai – 400072
Company Secretary and Compliance Officer: Sarita Mishra

Lead Manager:

Fedex Securities Limited

Observations & Guidance by Paresh Gordhandas ( Research Analyst) : 

SME IPO Financial & Analytical Ratios#
Earnings per Share 2019-20,Rs 1.84
Earnings per Share 2020-21 Rs 4.13
Return on Net Worth: 19-20 18.20 %
Return on Net Worth: 20-21: 28.99. %
Book Value of the Share as on 30.09.21 Rs 20.80
Book Value of the Share after the IPO Rs ?

IPO Peer Comparison:
Ambika Cotton Mills @ PE Multiple of 16.57
Pashupati Cotspin PE Multiple of 24.21
Shiva Texyarn PE Multiple of 27.88
Sambandam Spinning PE Multiple of 14.24
Precot Ltd. PE Multiple of 12.45
KPR Mills Ltd. PE Multiple of 44.73

Observation by Paresh Gordhandas ( Research Analyst )
The company has good profitability during last 2 accounting years. Considering the earnings of the last accounting year, the Issue price seems to be okay and not on higher side.

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News of Grey Market Past Trend
On 25 April 2022 @ 7.00 pm SbT# :  No Trades