Issue Details :
Issue opens /
closes on
|
24-04 /26-04-2019
|
Issue size
|
Equity Shares comprising of
fresh issue of up to Rs. 700
Million and
OFS of up to 29,00,000
Equity shares.
|
Face value
|
Rs 10
|
Price Band
|
Rs 212-215
|
Business
|
Manufacturers of bromine-
based
and lithium-based,
specialty chemicals.
|
Promoters
|
HARIDAS THAKARSHI
KANANI AND
HARIN HARIDAS KANANI
|
Listing
|
Bse, Nse
|
BRLM
|
Inga Advisors and
Batlivala & Karani Securities
India Private Limited
|
Registrar
|
Link Intime
|
Business :
Company is in to manufacture of specialty organic bromine-based and other specialty organic chemical compounds and specialty inorganic lithium-based chemicals compounds.
Specialty organic chemical compounds find use in application industries such as pharmaceutical, agrochemical, flavor and fragrance and electronic-chemical.
Lithium Compounds manufactured are used in eco-friendly Vapor Absorption Machines for cooling air/water/process equipment and find application in industries such as heating ventilation and air-conditioning and refrigeration, construction chemicals, pharmaceutical and specialty polymer.
The company markets their Products in India and as well export to Europe, USA and Japan.
Objects of the Fresh Issue:
1. Prepayment or repayment of loans.
2. Early redemption of debentures.
3. Long term working capital.
4. General corporate purposes.
Financials : (Rs in crores except EPS)
|
31-12-2018
(9 months)
|
31-03-2018
|
31-03-2017
|
Revenues
|
160
|
165
|
122
|
Net profit
|
12.22
|
10.49
|
7.68
|
Capital
|
20.10
|
20
|
20
|
Other Equity
|
41
|
30
|
22
|
EPS
|
6.09
|
5.25
|
3.84
|
Risks:
Suit filed by Neogen Corp against the company for using the mark ‘Neogen’.
Promoter and member of promoter group are selling Shares in the Offer.
Debt heavy enterprise.
Company has in the past made erroneous filings with the Registrar of Companies.
Recommendations:
The offer is made around 30 PE on its FY 19 financials, which is is on the higher side. The company is un professionally managed.
Avoid the IPO.