Akshar Spintex Limited IPO

Apply 0
Avoid 0

Akshar Spintex Limited IPO

(i) The Company is engaged in manufacturing of cotton yarn. The manufactured 100% cotton yarn which include combed, semi-combed and carded yarn. The Company has installed capacity of 24,480 spindle. The company is is equipped with modern spinning technology and processing technique for quality yarn.
(ii) Gujarat based Akshar Spintex Limited takes immense pride in perceiving its role as the comprehensive architect of every single yarn that produces. It is this demand for perfection that has spurred the growth of an organization and its corporate philosophy.
(iii) The company has total 24,480 spindles with annual production 6000 MT in cotton yarn for our count range is 16’s to 44’s Ne contamination Controlled auto coned carded, semi comes and combed mill with all latest German and Japanese technology machinery. When it comes to quality yarns, we are the industry leader in satisfying customers.
(iv) Those who can furnish clients with the best quality, competitive price and excellent customer services and prompt delivery can only survive in the market.
(v)Because of increased demand of value added quality yarns the company has decided to increase the capacity of value-added yarn, the company has decided to make Slub yarn, Core yarn, TFO(Doubling) yarn, Eli Twist yarn, Fancy yarn, Melange yarn, Blended yarn, BCI, and Organic Certified yarn.

Akshar Spintex Limited IPO Stock Quote & Charts

20.15

+4.40%

  • Open: 20.50
  • High - Low: 20.70 - 19.40
  • Previous Close: 19.30
  • Total Traded Volume: 18000
  • Updated On: 14-Dec-2018

Objects of the Akshar Spintex Limited IPO:

Objective of

Akshar Spintex Limited IPO

are: 1. Funding the working capital requirements of the Company 2. General corporate purposes.

Akshar Spintex Limited IPO Details:

Open Date: Apr 27 2018
Close Date: May 03 2018
Total Shares: 67,47,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price Issue IPO
Issue Size: 27 Cr.
Lot Size: 3000 Shares
Issue Price: ₹ 40 Per Equity Share
Listing At: BSE SME
Listing Date: May 11 2018

Promoters And Management:

Promoters of Akshar Spintex Limited Company are: Mr. Ashok Bhalala Mr. Amit Gadhiya Mr. Harikrishna Chauhan Ms. Rekhaben Chauhan

Capital Structure:

(i) Authorized Share Capital ( 2,50,00,000 shares at FV@10) 25 Cr
(ii) Issued, Subscribed,& Paid-up Share Capital Before Issue (2,40,00,000 Shares at FV@10) 24 Cr
(iii) Present Issue (67,47,000 Shares at FV@10) 6.747 Cr
(iv) Fresh Issue- 9,90,000 Shares 99 Lacs
(v) Offer for Sale- 57,48,000 Shares 5.748 Cr
(vi) QIB & HNI Quota-32,01,000 50%
(vii) Retail Quota- 32,01,000 50%
(viii) Paid Up Share Capital after the issue 25 Cr

Financials of Akshar Spintex Limited IPO:

 1. Balance Sheet Snippet[ Financials as of Sept 2017]
       (i) Shareholders’ Fund[Equity] Value 3406.73 Lacs
      (ii) Asset 9416.28 Lacs
      (iii) Liability 6009.55 Lacs
      (iv) Debt/Equity[<1 ideal] 1.76
      (v)  Net Worth(Asset- Liability) 3406.73 Lacs
     (vi)  RONW(PAT/Net Worth) or ROE 7%
     (vii) Book Value or NAV[ Net Worth/No.of Shares] 14
     (viii) P/B  [<5 ideal] 2.9
2.  Profit n Loss Snippet (i) The Revenue of the company in last 4 years ( FY14 to FY17) is growing at a CAGR of 79.87 %[ Excellent] (ii) The PAT of the company was negative in FY14. However, from FY15 to FY17 company has shown marked improvement in bottom-line and its Profit has gone from 2.66 Cr(FY15)  to 5.04 Cr( FY17, Annualized). (iii) The EBITDA Margins of the company for FY14( 16%), FY15(15%), FY16(13%) and FY17(17%). (iv) P/B(post issue)=  2.62 (v) Annualized EPS(post issue)=  2.01 (vi)  Annualized P/E(post issue)= 20 at the cutoff price of 40
3. Cash Flow Statement(all figures in lacs)
Particulars FY16 FY15 FY14 FY13
(i) Net Cash Generated from Operation 578.17 766.27 580.13 -795.64
(ii) Net Cash Generated from Investment -124.43 -829.34 -4152.22 -1347.8
(iii) Net Cash Generated from Financing Activity -465.91 -134.94 3656.92 2392.41
(iv) Total[ (i)+(ii)+(iii) ] -12.17 -198.01 84.83 248.97
(v) Cash and Cash Equivalents at the Beginning of the Year 135.78 333.8 248.98 0
(vi) Cash and Cash Equivalents at the end of the Year 123.61 135.79 333.81 248.97
Note-  The Company's Cash flows in the FY15 and FY16 was negative which does not augur well for the sustained growth of the company in future.

Comparison With Peers:

Sr.No Name of the Company FV EPS PE RONW(%)
1 Akshar Spintex Limited 10 2.01 20 *7.04%
2 Vippy Spinpro Limited 10 5.65 8.83 10%
3 Sri Nachammai Cotton Mills Limited 10 1.48 10.14 37%
* Not Annualized. It is calculated as of Sept 2017.

Recommendation on Akshar Spintex Limited IPO:

Review and Recommendation of

Akshar Spintex Limited IPO

from our side is: Rating: 6/10 1-5: Fair 5-7: Good 7-10: Excellent

Lead Manager of Akshar Spintex Limited IPO:

  1. Pantomath Capital Advisors Private Limited

Registrar of Akshar Spintex Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Akshar Spintex Limited Revenue Survey No. 102/2, Paiki, Plot No. 2, Village - Haripar, Ranuja Road, Tal - Kalavad, Jamnagar - 361013 Phone: +9198252 13622 Email: admin@aksharspintex.in Website: www.aksharspintex.in

Bid Details of Akshar Spintex Limited IPO as on
03 May 2018 | 11:59:10 PM

Category No.of shares offered No. of shares bid
3,201,000 5,532,000
3,201,000 29,604,000
345,000 345,000
6,747,000 35,481,000
QIBs Yes
QIBs+HNIs Subscription 1.73X
Retail Subscription 9.25X
Total Subscription 5.49X

Discussion on Akshar Spintex Limited IPO:

    In continuation to the Exchange’s notice no. 20180510-26 dated Thursday, May 10, 2018 Trading Members are hereby informed that the trading in the equity shares of Akshar Spintex Limited (Scrip Code: 541303) shall be transferred from Trade for Trade segment (MT Group) to Rolling segment with effect from May 25, 2018. Accordingly, the dealings in the equity shares of the company will be shifted under M Group