Active Clothing Co Limited IPO
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Objects of the Active Clothing Co Limited IPO:
1. To meet the incremental working capital requirements
2. To meet the Issue Expenses
3. For general corporate purposes
Active Clothing Co Limited IPO Details:
Open Date: | Mar 12 2018 |
Close Date: | Mar 16 2018 |
Total Shares: | 40,86,000 |
Face Value: | ₹ 10 Per Equity Share |
Issue Type: | Fixed Price Issue |
Issue Size: | 26.56 Cr. |
Lot Size: | 2000 Shares |
Issue Price: | ₹ 65 Per Equity Share |
Listing At: | BSE SME |
Listing Date: | Mar 26 2018 |
Promoters And Management:
1. Mr. Rajesh Mehra -Managing Director.
Rajesh Mehra, aged 54 years, founded the company Active in the year 1998, Mr. Mehra holds a Diploma in Technology (Weaving)from Punjab Institute of Textile Technology, Amritsar and having an experience in apparel industry of 30 years, he individually conceptualized and externalized the concept of providing design solutions to growing and established brands initially which outgrew into providing one-stop solutions initiating the sketch to store service at ACTIVE. His journey in the field has been enriched and cultivated by boundless and capricious experiences which helped him to become a master of all fields. Having worked with Indian companies and also handling foreign assignments for export buying houses, Mr. Mehra has an in-depth understanding of the domestic and international markets. Being a dynamic and toe marking personality, he looks after all the operations of the company directly with the help of a very strong team of industry professionals.
2. Renu Mehra, aged, 49 years, an arts graduate with an unmatched exuberance in providing creative and innovative ideas to update the products has been with the company since even before its inception. She solely handles the distribution business taking it to growing heights. Performing her duties as a member of
the board, she has been a regular visitor to the national and international markets which in turn makes her knowledge in the area worth incorporating in the business. Her experience in the apparel industry has made her a valuable asset to the company.
Company Business:
Our Company was incorporated as “Active Clothing Co Private Limited” under the provisions of the Companies Act, 1956 on 27th February, 2002 bearing Corporate Identity Number U51311CH2002PTC24970, issued by Registrar of Companies, Punjab & Chandigarh.
Active is an integrated apparel manufacturer with the comprehensive capability to design and manufacture high quality readymade garments with a competitive price. The Company can produce various kinds of garments in various styles across three categories which include flat knit sweaters, outwear jackets, circular knit t-shirts, sweatshirts, joggers for both men, women, kids and babywear. The Company has an annual total capacity 12,58,810 pieces of sweaters, 242,190 pieces of jackets and 7,80,000 T-Shirts and Sweatshirts. The total production area in the Company is 230,000 sq. ft. For producing high quality products, the Company is supported by sophisticated technology and framework.
The key customer base of the Company incudes Levi Strauss (India) Pvt. Ltd., U.S Polo, Arrow, Izod, United Colours of Benetton, Numero Uno, Basics, Aero staple, Elle, Iconic, Pepe Jeans, Impulse buying house and other reputed international brands.The Company is also a distributor for international brands such as Levis,Celios, Arvind owned licensee brands Ed Hardy, Flying Machine. The established brands add immense strength to the continuous flow of orders to the Company and its credit-ability in all aspects.
Capital Structure:
Authorized Share Capital (1,60,00,000 shares at FV@10) | 16 cr |
Issued, Subscribed,& Paid-up Share Capital Before Issue (11,426,215 Shares at FV@10) | 11.4262 cr |
Present Issue (40,86,000 Shares at FV@10) | 4.086 cr |
Reservation for Market Maker (2,06,000 Shares at FV@10) | 20.6 Lakhs |
Net Issue to Public (40,86,000-2,06,000= 38,80,000Shares) | 3.88 cr |
Retail Quota(<2 Lkah)[19,40,000 Shares] | 50% |
HNI & QIB Quota(>2 Lakh)[19,40,000 Shares] | 50% |
Paid Up Capital after the issue | 15.5122 cr |
Average cost of Acquisition of promoters | |||
Sr.no | Name of the Promoter | No. of shares | Average cost of acquisition |
1 | Renu Mehra | 46,17,700 | 12.58 |
2 | Rajesh Mehra | 57,22,715 | 9.88 |
3 | Rajesh Mehra, HUF | 10,67,500 | 17.17 |
Financials of Active Clothing Co Limited IPO:
1. Balance Sheet Snippet[ All Calculations are for FY 16-17] | |
(i) Shareholders’ Fund[Equity] Value | 2949.41 Lakhs |
(ii) Asset | 10998.18 Lakhs |
(iii) Liability | 8048.77 Lakhs |
(iv) Debt/Equity | 2.72( high) |
(v) Net Worth(Asset- Liability) | 2949.41 Lakhs |
(vi) RONW(PAT/Net Worth) | 6% |
Comparison With Peers:
Company | EPS | PE Ratio | RONW | NAV | Face Value |
Active Clothing Co Ltd. | 1.62 | 40.12 | 6.29 | 25.81 | 10 |
Cantabil Retail India Ltd | 2.99 | 39.83 | 5.93 | 50.44 | 10 |
Monte Carlo Fashions Ltd | 19.47 | 31.27 | 8.66 | 224.78 | 10 |
Page Industries Ltd | 237.39 | 103.75 | 39.77 | 596.9 | 10 |
Ashapura Intimates Fashion Ltd | 10.43 | 43.44 | 13.53 | 77.06 | 10 |
Recommendation on Active Clothing Co Limited IPO:
The company is offering shares at a PE of 40 against the industry PE of 65. All the listed players in the market are also available almost at same PE, so the issue looks fully priced. However, the company can be looked for long term investment as it has impressive list of clienteles.
Lead Manager of Active Clothing Co Limited IPO:
Registrar of Active Clothing Co Limited IPO:
Company Address:
Active Clothing Co Limited
Plot no. E-225,
Phase VIII B, Industrial Area,
Focal Point, Mohali,
Phone: +91-172-4313300
Fax: +91-172-4313333
Email: rmehra@activesourcing.org
Website: www.activesourcing.org
Bid Details of Active Clothing Co Limited IPO as on
16 Mar 2018 | 11:03:10 PM
Category | No.of shares offered | No. of shares bid |
---|---|---|
2,043,000 | 3,714,000 | |
2,043,000 | 838,000 | |
- | - | |
4,086,000 | 4,552,000 |
QIBs | No |
QIBs+HNIs Subscription | 1.82X |
Retail Subscription | 0.41X |
Total Subscription | 1.11X |
Discussion on Active Clothing Co Limited IPO:
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