Sorich Foils Limited IPO

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Sorich Foils Limited IPO

(i) Sorich Foils Limited was incorporated on January 19, 2011, in Ahmedabad, Gujarat. Established in the year 2011, the Company is an ISO 9001: 2015 certified company engaged in manufacturing and supplying a varied range of Aluminium Foils for Blister, Strip Foils, Cold Forming Foil, Coated Glassine Paper for Blister, Laminated Glassine Paper for Strip Pack, Child Resistant (CR) Foils, Aluminium Lid Foils, Triple Laminates, Flexible Packaging for Pharma & Food Industries, also FMCG packaging materials. These products are manufactured using a quality raw material, which is sourced from reliable vendors of the market. This range is designed & developed utilizing advanced machinery and latest technology in complete adherence with the industry laid norms and standards. The offered range is appreciated among the clients for its features such as Water Vapor Resistance, Moisture & chemical barrier properties. These products are widely applicable in different industries such as Pharmaceutical Industries, FMCG packaging, Food and dairy industries, Confectionery / Chocolate industries & Personal Care Packaging. There is in-house quality check department to check the entire range on different parameters to maintain its authenticity throughout the manufacturing process.

(ii)The Company is promoted by Mr. Chandrahas Kotian who has successfully managed various phases of expansion and growth of company business and operations. He has around 2 decades of experience in foil packaging industry and has been instrumental in formulating growth strategy for the Company.
The Promoter is supported by a dedicated management team with several years of industry experience in their respective domains of sales, marketing, strategy, and finance.

Objects of the Sorich Foils Limited IPO:

Objective of

Sorich Foils Limited IPO

are: 1. Part Repayment/prepayment of Unsecured Loans availed by our Company 2. General corporate purposes

Sorich Foils Limited IPO Details:

Open Date: May 24 2018
Close Date: May 28 2018
Total Shares: 25,00,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price Issue IPO
Issue Size: 4 Cr.
Lot Size: 8000 Shares
Issue Price: ₹ 16 Per Equity Share
Listing At: NSE Emerge
Listing Date: Jun 05 2018

Promoters And Management:

Promoters of Sorich Foils Limited Company are: (i) Chadrahas Kotian, aged 47 years, is the Managing Director & CEO of the Company. He holds a Bachelor’s degree in Arts from the University of Mysore. He has a work experience of more than 25 years in High-Quality Pharma & Flexible Packaging material manufacturing. He is a guiding force behind the strategic decisions of our Company. He has been instrumental in formulating the overall business strategy and developing business relations of our Company. (ii) Rajkumar Mishra, aged 40 years, is a Non-executive Director of the Company. He has completed the second year of Graduation in Commerce (SY BCOM) from University of Mumbai. He has more than 20 years of experience in pharmaceutical material manufacturing which also includes 5 years of experience in marketing of pharmaceutical packaging. In our Company, he looks after routine operational, production activities and manages overall operations of the plant. (iii) Priya Kotian, aged 38 years, is a Non – Executive Director of the Company. She holds a Bachelor’s degree in Commerce from University of Mumbai and Diploma in Human Resource from Wellingkars Institute of Management Development Research, Mumbai. Her scope of work includes handling Human Resources and Administration Department of our Company. (iv) Mayur Jain, aged 35 years, is an Independent Director of the Company. He is qualified Chartered Accountant and a proprietor of M/s Mayur Jain & Co., Chartered Accountants since 2010.

Capital Structure:

(i) Authorized Share Capital (1,00,00,000  shares at FV@10) 10 Cr
(ii) Issued, Subscribed,& Paid-up Share Capital Before Issue (58,33,334 Shares at FV@10) 5.834 Cr
(iii) Present Issue (  25,00,000 Shares at FV@10) 2.5 Cr
(iv) Reservation for Market Maker  ( 20000 Shares at FV@10) 20 Lacs
(v) Net Issue to Public (25,00,000-20000= 23,00,000 Shares) 2.3 Cr
(vi) QIB & HNI quota-11,50,00 50%
(viii) Retail Quota - 11,50,000 50%
(ix) Paid Up Share Capital after the issue 8.334 Cr

Financials of Sorich Foils Limited IPO:

1. Assets and Liabilities
Year Asset(Lacs) Liabilities(Lacs) Net Worth(Lacs) Book Value D/E RONW Receiveable days
FY13 956.16 858.15 98.01 33.02 8.76 24.45% 76
FY14 959.68 841.3 118.38 39.89 7.11 17.21% 87
FY15 1528.47 1347.61 180.86 45.58 7.45 12.43% 91
FY16 1663.38 1463.66 199.72 50.33 7.33 9.44% 105
FY17 1599.39 1306.54 292.85 29.29 4.46 11.22% 109
10MFY18 2756.8 1793.23 963.57 16.52 1.86 5.95% 102
Post Issue 1363.57 16 1.3
2.  Profit n Loss Key Parameter (i) The Revenue of the company in last 5 years ( FY13 to 10MFY18) is 19.63 Cr, 22.85 Cr, 25.06 Cr, 26.89 Cr , 26.59 Cr and 23.13 Cr respectively. (ii) The PAT of the company in last 5 years ( FY13 to 10MFY18) is  23.09 Lacs, 20.37 Lacs, 22.48 Lacs, 18.86 Lacs, 32.85 Lacs and 57.38  Lacs respectively. (iii) The EBITDA Margins of the company for FY13( 5%), FY14(8.35%), FY15(8.50%) ,FY16(9.16%) , FY17(10.89%) and 10MF18(13.82%) . (iv) P/B(post issue)=  1 (at cutoff price of 16) (v) Annualized EPS(post issue)=  .82 (vi)  Annualized P/E(post issue)= 19.51 at the cutoff price of 16

Recommendation on Sorich Foils Limited IPO:

Review and Recommendation of

Sorich Foils Limited IPO

from our side is: Rating: 4/10 1-5: Fair 5-7: Good 7-10: Excellent

Lead Manager of Sorich Foils Limited IPO:

  1. Saffron Capital Advisors Private Limited

Registrar of Sorich Foils Limited IPO:

  1. Link Intime India Private Limited

Company Address:

Sorich Foils Limited Plot No. 4802/1, Plastic Zone, GIDC, Sarigam, Tal: Umbergaon, Z Dist: Valsad, Gujrat-396155 Phone No. +91 260 2780670 E-mail: cs@sorichfoils.in Website: www.sorichfoils.in

Bid Details of Sorich Foils Limited IPO as on
25-May-2018 18:00:00 IST

Category No.of shares offered No. of shares bid
1,150,000 264,000
1,150,000 152,000
200,000 200,000
2,500,000 616,000
QIBs No
QIBs+HNIs Subscription 0.23X
Retail Subscription 0.13X
Total Subscription 0.18X

Discussion on Sorich Foils Limited IPO:

1 Comment

    Issue is withdrawn by management due to poor response from investors.

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