Balance Sheet look very weak in FY21 due to Short term loan of ~11 Crores taken…. However, good thing is Loan is taken from Directors and Relatives…And, some of the debt will be reduced via IPO funding.
Alkosign Limited IPO (Alkosign IPO)
(i) The Company, Alkosign Limited is engaged in manufacturing of visual presentation systems namely writing boards/display boards/notice boards of different types along with its associated accessories and stands used for these boards, school benches, desks and their accessories. ALKOSIGN is the biggest dedicated manufacturing unit with a production space of more than 5,00,000 sq. feet, for writing boards and display boards in India. The company ALKOSIGN PRIVATE LIMITED is an ISO 9001-20015; ISO 18001;2007 (OHSAS); ISO 45001-2018, BIFMA (Level – 3) COMPLIANCE AND GREEN GAURD certified fastest growing company in India. They are an MSME registered with GEM (Government E market). ALKOSIGN is the only company in India to manufacture WORLD CLASS INNOVATIVE UPDOWN (VERTICAL) & HORIZONTAL SLIDDING BOARDS in 3 types MANNUAL, DEPENDANT & INDEPENDENT.
(ii) The manufacturing facility is well equipped with required facilities including machinery, other handling equipments to facilitate smooth manufacturing process and easy logistics. They endeavour to maintain safety in its premises by adhering to key safety norms.
(iii) As on date, they have several designs in our product basket, which are marketed under various trademarks such as “Alkosign”, “Sit and Study”, “Brainee”, “Glassy-BO”, “Ultra- EX”, “Ultra”.
(iv) Company focus its research and development efforts on developing products that they believe are innovative and in line with the trends. They have introduced a new product, Glass White Boards, under the brand name, “Glassy-BO”. Some of the key features of this product include:
a) Compatible with any marker pen
b) Wipes away easily without staining or ghosting.
c) Lasts as much as life span of the wall.
(a) Widespread sales and dealers’ network
(b) Quality Certifications
(c) Recognised Products
Objects of the Alkosign Limited IPO (Alkosign IPO):
Alkosign Limited IPO (Alkosign IPO) Details:
|Open Date:||Jan 18 2022|
|Close Date:||Jan 21 2022|
|Face Value:||₹ 10 Per Equity Share|
|Issue Type:||Fixed Price Issue IPO|
|Issue Size:||12.15 Cr.|
|Lot Size:||3000 Shares|
|Issue Price:||₹ 45 Per Equity Share|
Promoters And Management:
Financials of Alkosign Limited IPO (Alkosign IPO):
|Particulars (in Lakhs)||June-21||March-21|
|Cost of Material Consumed||55||812|
|Changes in inventories||6||-96|
|Employee benefit expenses||38.92||245.01|
|Profit Before tax||40.19||91.47|
|Profit After Tax||29.96||66.07|
Comparison With Peers:
Recommendation on Alkosign Limited IPO (Alkosign IPO):
Lead Manager of Alkosign Limited IPO (Alkosign IPO):
Registrar of Alkosign Limited IPO (Alkosign IPO):
Discussion on Alkosign Limited IPO (Alkosign IPO):
Cash-Flow Statement Analysis of FY21….
a) Cash-flow from operations
Profit Before Tax after adjusting non-cash items = 1.42 Crores———-This is the amount they have earned from Operations…..
Changes in Working Capital = -5.35 Crores
Inventory has been increased by 2.26 Crores, Trade Receivables increased by ~5 Crores, Trade Payable increased by 1.93 Crores……
So, overall, the total cash outflow in Working Capital was 5.35 Crores……
Total Cash generated from operations = 1.42 Crores -5.35 Crores = -3.93 Crores….So, they are unable to generated cash from operations…..
b) Cash Flow from Investment…..
In FY21, they have done Capex of ~16 Crores…..
Now you will wonder, if they are not able to generate any cash from operations, how they will get 16 crores to do capex…..The answer is below….
c) Cash generated from Financing…
They have raised ~9 Crores of long term debt and ~11 Crores of Small term debt….So, they have raised 20 Crores to fuel the capex…..
Total debt on books as on 30.06.2021 is Rs.20.50 Crores……
Total Equity as on 30.06.2021 = ~1 Crores…
D/E = 20x ( very high)
In Nov-21, company has raised 2.362 Crores by issuing 35,000 Equity Shares at Rs.675 per share….
After that 60:1, bonus was issued….So, per share value comes out to be 11.25 per share….
So, after this fund raising, the Equity becomes ~3.3 Crores…
Still D/E is ~6x….which is very high…..
1. Issue Price is Rs.45 per share
2. Total Shares Outstanding before IPO = 27,45,000
3. Total New Shares to be issued = 27,00,000
4. Total Outstanding Shares after IPO = 54.45 Lakh
5. Mcap = 24.50 Crores
6. PAT of FY21 = 66 Lakh
7. EPS(FY21) = 1.21 per share
8. P/E = 45/1.21 = 37x….
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