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Aaron Industries Limited IPO
(i) The Aaron Industries Limited was founded by Mr. Amar Chinubhai Doshi in the year 2013 as a separate entity for elevator industry to provide an exceptional design in Elevator cabins and started their own journey as group Company of MOTI Group. Within the short span of time, the company has changed the elevator industry from simple cabins to extra-ordinary designer cabins.
(ii) The Company involves in Manufacturing and Trading of Elevator products and other elevator parts with the continuation of the existing business of MOTI group. Currently, they are providing all Elevator product and parts under one roof. It includes Elevator cabins, Doors, Frem, Header, Traction Machine and etc. From designing ultra-modern, up-to-the-mark cabins for luxurious properties-residential as well as commercials, they give customers an artistic edge that enhances their property and provides customer satisfaction.
(iii) The Company total revenue increased from 39.07 Lakh in FY14 to 1,179.14 Lakh in FY18, representing a CAGR of 97.67 %. Their EBITDA increased from 1.45 Lakh in FY14 to 160.73 Lakh in FY18, representing a CAGR of 156.42%.
Objects of the Aaron Industries Limited IPO:
Aaron Industries Limited IPO Details:
|Open Date:||Aug 20 2018|
|Close Date:||Aug 24 2018|
|Face Value:||₹ 10 Per Equity Share|
|Issue Type:||Fixed Price Issue IPO|
|Issue Size:||4.776 Cr.|
|Lot Size:||3000 Shares|
|Issue Price:||₹ 38 Per Equity Share|
|Listing At:||NSE Emerge|
|Listing Date:||Sep 03 2018|
Promoters And Management:
|(i) Authorized Share Capital 50,00,000 Equity shares at FV@10)||5 Cr|
|(ii) Issued, Subscribed,& Paid-up Share Capital Before Issue (35,25,838 Equity Shares at FV@10)||3.525 Cr|
|(iii) Present Issue ( 12,57,000 Equity Shares at FV@10)||1.257 Cr|
|(iv) Reservation for Market Maker 63,000 Shares at FV@10)||6.3 lacs|
|(v) Reservation for QIB & HNI 5,97,000 Equity Shares at FV@10)||50%|
|(vii) Reservation for Retail 5,97,000 Equity Shares at FV@10)||50%|
|(viii) Paid Up Share Capital after the issue||4.782|
Financials of Aaron Industries Limited IPO:
|1. Assets and Liabilities Key Parameters|
|Year||Asset(lacs)||Liabilities(lacs)||Net Worth(lacs)||Book Value||D/E (<2)||RONW||Receiveable days|
|2. Profit n Loss Key Parameters|
|Year||Revenue(lacs)||PAT(lacs)||EBITDA Margins||Profit Margins||Outstanding Shares(lacs)||EPS|
|3. Cash Flow Statement(all figures in lacs)|
|(i) Net Cash Generated from Operation||0.05||-5.64||-91.28||-15.21||7.05|
|(ii) Net Cash Generated from Investment||-151.59||-3.39||-1.62||-2.25||-5.83|
|(iii) Net Cash Generated from Financing Activity||158.88||2.61||93.32||22.07||2.06|
|(iv) Total[ (i)+(ii)+(iii) ]||7.34||-6.42||0.42||4.61||3.28|
|(v) Cash and Cash Equivalents at the Beginning of the Year||1.91||8.32||7.9||3.29||0|
|(vi) Cash and Cash Equivalents at the end of the Year||9.25||1.90||8.32||7.90||3.28|
Comparison With Peers:
Recommendation on Aaron Industries Limited IPO:
Lead Manager of Aaron Industries Limited IPO:
Registrar of Aaron Industries Limited IPO:
Bid Details of Aaron Industries Limited IPO as on
24-Aug-2018 18:30:00 IST
|Category||No.of shares offered||No. of shares bid|
Discussion on Aaron Industries Limited IPO:
Avoid this company.
Apart from selling the products in India the company also engaged in export. In fiscal 2018, the revenue from exports accounted for 77.53 Lakh which is 6.6% of the total revenue. The Company exports the products to many countries namely Uganda, Kenya, and Nepal etc.
The Company has negative Working Capital of 26 Cr for FY18. The major risk of negative working capital is:
(i) The high risk of bankruptcy & lower creditability in banks.
(ii) The potential risk of winding up the application by creditors.
(iii) Lost trade discounts & bad supplier relationships etc.
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