Active Clothing Co Limited IPO

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Active Clothing Co Limited IPO Stock Quote & Charts

14.50

+3.57%

  • Open: 14.50
  • High - Low: 14.50 - 14.50
  • Previous Close: 14.00
  • Total Traded Volume: 2000
  • Updated On: 20-Dec-2019

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%
2. Profit n Loss Snippet (i) Revenue of last 5 years is growing at approx. CAGR of 10.49%.(Average) (ii) As far as PAT goes, the company is growing at CAGR of 6.46%(low) (iii)Margins(PBT/Reveune): The company's Margin has not gone up despite increased in revenue which is not a good sign and plus the margin in the business is in the range of 1.8 to 2.6% in last 5 years which is very low. (iv) EPS= 1.6( post Issue) (v) P/E(post issue)=40(fully priced)at the issue price of 65 3. Cash Flow Statement The company is generating positive cash flow which is a good sign for any business to sustain in long term.

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:

  1. Ajcon Global Services Limited

Registrar of Active Clothing Co Limited IPO:

  1. Bigshare Services Private Limited

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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