AKI India Limited IPO

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(i) AKI India Limited was established in the year 1994 With the object of manufacturing and export of leather and leather goods with the technical assistance of Horse riding group from Germany for the making of Leather Saddlery & Harness Goods and after successful running of saddlery business for 13 years, the company set up its own leather footwear unit in the year 2007-08 and started the manufacturing and export of leather shoes over the next several years.

(ii) The Company is engaged in the activities of producing and export of saddlery goods, services of the leather shoes and trading of leather chemicals at domestic level. Changing economic scenario and business conditions, evolving consumer preferences, rapid technological innovations and adoption, and globalization are driving them to transform the manner in which they operate.

(iii) The core competencies are our in-house technical knowledge, skilled workforce, diversified product portfolio which enable them to meet varied client requirements. Our Company deals in all kinds of footwear’s leather accessories.

(iv) The Company operates through two distinct business verticals, retail and distribution, each with its predominantly own customer base, sale channels and product range. Their retail business operates through exclusive retail stores run by their Promoters through the proprietorship concern catering to middle and upper-middle income consumers, who primarily shop in high street stores and malls, for fashionable products. Their distribution business operates through a wide network of distributors catering to lower and middle-income consumers, who primarily shop in multi-brand-outlets (“MBO”) for functional products.

(v) They are committed to satisfying their customers’ need for quality products by product innovations, using the quality materials available and manufacturing the highest quality products and continually searching for better materials and improved methods of production.

AKI India Limited IPO Stock Quote & Charts

10.99

+4.67%

  • Open: 10.99
  • High - Low: 10.99 - 10.99
  • Previous Close: 10.50
  • Total Traded Volume: 10000
  • Updated On: 07-Dec-2018

Objects of the AKI India Limited IPO:

Objective of

AKI India Limited IPO

are: (i) To meet working Capital Requirement (ii) To Meet the issue Expences (iii) To Meet General Corporate Purpose

AKI India Limited IPO Details:

Open Date: Sep 28 2018
Close Date: Oct 05 2018
Total Shares: 28,00,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price Issue IPO
Issue Size: 3.08 Cr.
Lot Size: 10000 Shares
Issue Price: ₹ 11 Per Equity Share
Listing At: BSE SME
Listing Date: Oct 12 2018

Promoters And Management:

Promoters of AKI India Limited Company are: (i) Mr. Asad Kamal Iraqi (ii) Mr. Anwar Kamal Iraqi

Financials of AKI India 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 3,575.64 3,992.77 3,910.23 3,665.68 2,580.79
Total Revenue 4,536.26 4,269.87 4 4067.47 3,180.03 1,541.05
Profit After Tax 102.22 15.11 14.26 (63.45) 12.95

Recommendation on AKI India Limited IPO:

Review and Recommendation of AKI India Limited IPO from IZ team is:2/10 [ The Financials are average. The asking price is aggressive as compared to Mirza International. The market condition is not good for IPO.] 

Lead Manager of AKI India Limited IPO:

  1. Finshore Management Services Limited

Registrar of AKI India Limited IPO:

  1. Link Intime India Private Limited

Company Address:

AKI India Limited 9/6, Jajmau Rd, Asharfabad, J K Puri, Kanpur, Uttar Pradesh 208010 E-mail: info@groupaki.com Website: www.groupaki.com

Bid Details of AKI India Limited IPO as on
05 Oct 2018 | 11:58:03 PM

Category No.of shares offered No. of shares bid
1,330,000 2,840,000
1,330,000 1,320,000
140,000 140,000
2,800,000 4,300,000
QIBs No
QIBs+HNIs Subscription 2.14X
Retail Subscription 0.99X
Total Subscription 1.56X

Discussion on AKI India Limited IPO:

    Peer Comparison with Mirza International

    A) Mirza International

    (i) EV=1253 Cr
    (ii) Adjusted Price=104
    (iii) Adjusted P/E=15.95
    (iv) EV/EBITDA= 7.20
    (v) Mcap/Sales= 1.02
    (vi) RONW=13.66

    B) AKI India Limited

    (i) EV=26.98 Cr
    (ii) Adjusted Price=26.20
    (iii) Adjusted P/E= 24.71
    (iv) EV/EBITDA= 6.56
    (v) Mcap/Sales=.23
    (vi) RONW=10.65%

    Conclusion: An SME company asking P/E multiple more than an established mainline company having revenue of 1000 Cr with RONW of 13.66% is beyond my understanding. The asking price should not be more than Rs.5.

    EPS Story based on consolidated FY18 Earnings(Pre Issue)
    (i) PAT=110 Lakh
    (ii) Outstanding Shares= 74.97 Lakh
    (iii) EPS= 1.46
    (iv) P/E= 7.53

    EPS Story based on consolidated FY18 Earnings(Post Issue)
    (i) PAT=110 Lakh
    (ii) Outstanding Shares= 102.97 Lakh
    (iii) EPS= 1.06
    (iv) P/E= 10.37

    As on FY18, the company has a debt of ~15 Cr with an Equity of 7.64 Cr. So D/.E is approx. 2 which is quite high.