Jainam Ferro Alloys (I) Limited IPO
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Jainam Ferro Alloys is currently manufacturing two types of Ferro Alloys namely, Ferro Manganese (FeMn) and Silico-manganese (SiMn). Both the alloys are largely used in the Steel industry. The Company also generates revenue from its trading activities of manganese ore, used as a raw material in manufacturing Ferroalloys.
Company’s Products –
i. High Carbon Ferro Manganese
ii. High Carbon Silicon Manganese
Competitive Strengths
i. Quality Assurance
ii. Strategic location of manufacturing unit
iii. Strong & long-term relationship with our clients
Objects of the Jainam Ferro Alloys (I) Limited IPO:
The Offer includes a fresh Issue of up to 13,02,000 Equity Shares and an Offer for the Sale of 15,00,000 aggregating up to ₹10.50 Cr.
The company proposes to utilize the funds for fresh issues in:
1. To meet Working Capital requirements
2. General Corporate Purpose
3. To meet offer related expenses
Jainam Ferro Alloys (I) Limited IPO Details:
| Open Date: | Sep 28 2021 |
| Close Date: | Sep 30 2021 |
| Total Shares: | 2,802,000 |
| Face Value: | ₹ 10 Per Equity Share |
| Issue Type: | Fixed Price Issue |
| Issue Size: | 19.61 Cr. |
| Lot Size: | 2000 Shares |
| Issue Price: | ₹ 70 Per Equity Share |
| Listing At: | NSE Emerge |
| Listing Date: | Oct 08 2021 |
Promoters And Management:
i. Mr. Archit Parakh, Aged 33 Years is the Chairman & Managing Director of the company. He is a Bachelor of Business Management and holds a degree of Master of Science in Finance and Accounts from the University of Manchester. He was originally appointed on the board as the first director on incorporation dated March 06, 2014, and further designated as Managing Director for a term of 5 years w.e.f. July 13, 2018, vide EGM dated July 13, 2018. He has an overall experience of around 10 years. Mr. Archit Parakh is currently involved in marketing and financial operations, oversight of quality control, and the day-to-day affairs of the Company. Under his leadership, the company has been successful in expanding its customer base and revenue growth.
ii. Mr. Arpit Parakh, Aged 28 Years is the Whole Time Director of the company. He was originally appointed on the board as the first director on incorporation dated March 06, 2014, and further designated as Whole Time Director for a term of 5 years w.e.f. July 13, 2018, vide EGM dated July 13, 2018. He is a Bachelor of Technology from the National Institute of Technology, Raipur. He has work experience of around 5 years. After completing his studies, he started looking after the manufacturing activities of the company. He is also heading the administration and Human Resource activities of the company.
iii. Mrs. Namita Bai Parakh, Aged 49 Years is the Non-Executive Director of the Company. She has ventured into the family business by joining as Non-Executive director w.e.f June 26, 2018. She has completed her Bachelor of Home Science from Ravishankar University, Raipur in 1992.
Financials of Jainam Ferro Alloys (I) Limited IPO:
| Particulars (in Lakhs) | Mar 21 | Mar 20 |
| Revenue from operations | 10,152.00 | 12,144.00 |
| Cost of Materials Consumed | 4,875.00 | 7,459.00 |
| Purchase of stock Trade | 957.00 | 121.00 |
| (Increase) / decrease in inventories | 20.14 | 30.95 |
| Employee Benifit Expense | 203.00 | 170.00 |
| Other expenses | 3,561.00 | 4,043.00 |
| Operating Profit | 535.86 | 320.05 |
| OPM% | 5.28% | 2.64% |
| Other income | 98 | 89 |
| Finance costs | 143 | 231 |
| Depreciation and amortisation | 54 | 62 |
| Profit before tax | 434.00 | 112.00 |
| Profit for the year | 311 | 86 |
| EPS | 3.37 | 0.93 |
Recommendation on Jainam Ferro Alloys (I) Limited IPO:
Review and Recommendation of Jainam Ferro Alloy IPO by InvestorZone is 4/10
1. There is no growth in the Revenue and PAT in the last 3 years.
2. Asking P/E of 24x.....Looks on higher side... Maithan Alloys and Shyam Century Ferrous Lt, the listed counter parts are trading at P/E of just 9x and 10x... This shows that LM has priced the IPO way above the valuation.
3. SME coming up with an OFS is always a joke...
Lead Manager of Jainam Ferro Alloys (I) Limited IPO:
Registrar of Jainam Ferro Alloys (I) Limited IPO:
Company Address:
Jainam Ferro Alloys (I) Limited
Plot No. 103 to 113 & 130 to 136/A & 137,
Urla Industrial Area, Raipur,
Chhattisgarh - 492003, India
Phone: 771 4700109
Email: cs@jainamferro.com
Website: http://www.jainamferro.com/
Discussion on Jainam Ferro Alloys (I) Limited IPO:
2 Comments
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SME coming out with an OFS will always a joke to me…..
Total Outstanding shares before IPO = 92,59,200
New Shares to be issued in IPO = 13,02,000
PAT = 3.11 Crores….
EPS = 3
Issue Price = 70
P/E = 23x…