(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.
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
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:
2 Comments
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
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
Apply for listing gains.