A-1 Acid Limited IPO

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(i) A-1 Acid Private Limited was incorporated in Gujarat, Dadra & Nagar Haveli on April 22, 2004. A-1 Acid Limited is engaged in the business of trading of high-quality industrial acid and Chemicals. They offer a wide range of chemical products which finds a variety of applications in the industrial sector like chemical, textile, steel, aluminium, pesticides, College, intermediates, defence, metals and petro refineries. We also provide transportation facilities to our customers through our owned fleet of tankers.

(ii) The Company is promoted by Harshadkumar Patel and Jitendra Patel. Promoters are actively and fully involved in the day-to-day affairs of the company’s operations. Harshadkumar Patel and Jitendra Patel have 25 years and 20 years of experience respectively in the Chemical and acid business and industry.

(iii) The registered office of the company is situated at Ahmedabad, Gujarat. The Company have two godowns/warehouses both are located at Gujarat and one branch office located at Rajasthan. Both of the offices are well equipped with the necessary infrastructure facilities.

(iv) As per restated financial statements for the fiscal year ended on March 31, 2018, 2017 and March 31, 2016, the total revenue of the Company stood at Rs. 96.16 Cr, Rs. 105.79 Cr, and Rs. 85.39 Cr respectively. Further, Company profit after tax for the fiscal year ended on March 31, 2018, March 31, 2017, and March 31, 2016, stood at Rs. 2.47 Cr, Rs. 3 Cr, and Rs. .92 Cr respectively.

A-1 Acid Limited IPO Stock Quote & Charts

63.50

+2.83%

  • Open: 61.50
  • High - Low: 63.50 - 61.50
  • Previous Close: 61.75
  • Total Traded Volume: 14000
  • Updated On: 14-Dec-2018

Objects of the A-1 Acid Limited IPO:

Objective of A-1 Acid Private Limited IPO are: 1. Funding of working capital requirements of the Company 2. General Corporate Purpose 3. Issue Expenses

A-1 Acid Limited IPO Details:

Open Date: Sep 25 2018
Close Date: Oct 01 2018
Total Shares: 3,000,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price Issue IPO
Issue Size: 18 Cr.
Lot Size: 2000 Shares
Issue Price: ₹ 60 Per Equity Share
Listing At: BSE SME
Listing Date: Oct 10 2018

Promoters And Management:

Promoters of A-1 Acid Private Limited Company are: (i) Harshadkumar Patel aged 49 years is the Chairman and Managing Director of our Company. He has completed his Diploma in Mechanical Engineering from B & B Polytechnic, Vallabh Vidhya Nagar, Gujarat. He has an experience of around 25 years and has been associated with the Company since incorporation with overall responsibility for acquisition of materials, marketing, management, and finance functions. He is a guiding force behind the strategic decisions of our Company. He has been designated as the Managing Director with effect from February 01, 2018 with enhanced responsibilities to grow the business of the Company in size and geographically. (ii) Jitendra Patel aged 46 years, is the Whole-time Director of our Company. He has completed First Year B.com from L.J. CC College, Gujarat University. He has an experience of around 22 years and has been associated with the Company since incorporation. He looks after finance, administration, marketing and operational activities in our company. He has been appointed as the Whole-time Director with effect from February 01, 2018.

Financials of A-1 Acid Limited IPO:

Particulars For the year/period ended (in Rs Lacs)
31-Mar-2018 31-Mar-17 31-Mar-16 31-Mar-15 31-Mar-14
Total Assets 3,934.59 3,765.29 2,593.89 2,415.72 2,436.23
Total Revenue 9,616.50 10,579.67 8,539.29 9,700.82 10,114.03
Profit After Tax 247.88 300.04 92.48 12.61 (12.39)

Comparison With Peers:

The company believes that there are no listed Companies in India which are engaged in the business similar to them.

Recommendation on A-1 Acid Limited IPO:

Review and Recommendation of A-1 Acid Private Limited IPO from IZ team is:2/10 [It is purely a trading company which do not have any moat. The financial performance in the last 5 years is inconsistent. The asking P/E is very high.]

Lead Manager of A-1 Acid Limited IPO:

  1. Guiness Corporate Advisors Private Limited

Registrar of A-1 Acid Limited IPO:

  1. Cameo Corporate Services Limited

Company Address:

A-1 Acid Private Limited House No. A-1, Shivalik Business Centre, B/h. Rajpath Club, S. G. Highway, Bodakdev, Ahmedabad -380059, Gujarat, India. Phone No. +91 79 40091111 E-mail: cs@a1acid.com Website: www.a1acid.com

Bid Details of A-1 Acid Limited IPO as on
01 Oct 2018 | 11:58:04 PM

Category No.of shares offered No. of shares bid
1,422,000 3,366,000
1,422,000 1,780,000
156,000 156,000
3,000,000 5,302,000
QIBs No
QIBs+HNIs Subscription 2.37X
Retail Subscription 1.25X
Total Subscription 1.81X

Discussion on A-1 Acid Limited IPO:

    It is purely a trading company which does not have any moat. There is no issue in skipping this one.

    (i) The company has almost flat revenue growth in the last 5 years.

    (ii) The company has shown improvement in the ROE and it has gone up from 11% in 2016 to 17% in 2018. However, ROE post-IPO would be only 7.7%.

    (iii) EV/EBITDA=10.20 ( high)

    (iv) M.cap/Sales= .625( reasonable)

    (v) P/E=24 ( Fully Priced)

    EPS story (Pre-Issue) based on FY18 Financials
    (i) PAT= 2.74 Cr
    (ii) Outstanding Shares= 70 Lakh
    (iii) EPS= 3.914
    (iv) P/E= 15.32

    EPS story (Post-Issue) based on FY18 Financials
    (i) PAT= 2.47 Cr
    (ii) Outstanding Shares= 1 Cr
    (iii) EPS= 2.47
    (iv) P/E= 24.29

    Conclusion: The asking P/E is quite aggressive.