Anuroop Packaging Limited IPO

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(i) They are a corrugated box manufacturer based out of Wada, Thane. They provide quality fixed packaging products such as corrugated boxes, sheets, boards to clients from various industries such as pharmaceutical, stationery, metals, water treatment, etc.

(ii) The products can be classified into the following categories:

a) Corrugated Boxes.

b) Corrugated Sheets/Boards.

(iii) They cater to a wide variety of industries for corrugated packaging solutions; however, they have a strong grip in catering to clients from the stationery industry where they work with industry leaders such as Kokuyo Camlin, A.W. Faber-Castell (India). Other prominent clients are Himalaya Organics, Ion exchange India, Mattel Toys India, FDC, Pepe Jeans London etc.

(iv) Apart from the manufacturing of corrugated boxes the company is also involved in the trading of Gum (Turpentine and Dipentene).The trading of Gum was stared in the year 2017-2018 but it got the boast in the year 2018-2019.

Objects of the Anuroop Packaging Limited IPO:

The Issue includes a fresh Issue of 3,30,000 Equity Shares and an Offer for Sale of 17,00,000 by one of the promoters. The company will get only ~42.90 lakh and the same will be utilized for the working capital requirements.

Anuroop Packaging Limited IPO Details:

Open Date: Nov 08 2019
Close Date: Nov 13 2019
Total Shares: 2030000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed price Issue
Issue Size: 2.64 Cr.
Lot Size: 10000 Shares
Issue Price: ₹ 13 Per Equity Share
Listing At: BSE SME
Listing Date: Nov 21 2019

Promoters And Management:

(i) Mr. Akash Amarnath Sharma, aged 30 Years, is the Promoter and Managing Director of our Company. He has been appointed as director of our company since January 03, 2015 and has been designated as Managing Director w.e.f. July 06, 2018 and has been designated as chairman on August 01, 2019. He completed his Higher Secondary from Maharashtra State Board of Secondary and Higher Secondary Education, Pune. (ii) Mrs. Shweta Akash Sharma, aged 32 Years, was appointed as Executive Director of our Company on January 03, 2015. She is now re-designated as Non-Executive Director w.e.f February 08, 2019. She has completed her graduation from the University of Mumbai and completed her Master’s in Business Administration from The Institute of Chartered Financial Analysts of India University, Tripura.

Financials of Anuroop Packaging Limited IPO:

Year Revenue(Cr) EBITDA(cr) EBITDA Margins PAT PAT Margins EPS
2017 2.58 0.38 15% 0.03 1% 0.04
2018 3.96 1.36 34% 0.72 18% 0.95
2019 6.67 2.45 37% 1.36 20% 1.79

Comparison With Peers:

APL has shown Worth Peripherals as its listed peer that is currently trading at a P/E of around 5.3.

Recommendation on Anuroop Packaging Limited IPO:

Review and Recommendation of InvestorZone is: 3/10 (i) The valuation at P/E multiple of 3.20x on a consolidated basis looks attractive. (ii) The SME platform was formed to raise money for expansion or working capital requirements for business and not for OFS by promoters. Promoters selling shares of a small-Cap company in the IPO shows the lack of confidence in management. (iii) The IPO size is 2.64 Cr and the company is getting only ~33 lakh, rest is going in the pocket of Promoter and Lead manager. Had they need 33 lakh for the working capital requirement they could have taken a loan from a bank and save themselves from all the due diligence of exchanges after listing.

Lead Manager of Anuroop Packaging Limited IPO:

  1. Gretex Corporate Services Private Limited

Registrar of Anuroop Packaging Limited IPO:

  1. Karvy Computershare Private Limited

Bid Details of Anuroop Packaging Limited IPO as on
13 Nov 2019 | 11:35:00 PM

Category No.of shares offered No. of shares bid
960,000 3,670,000
960,000 6,770,000
110,000 110,000
2,030,000 10,550,000
QIBs No
QIBs+HNIs Subscription 3.82X
Retail Subscription 7.05X
Total Subscription 5.44X

Discussion on Anuroop Packaging Limited IPO:

    On first instance looks an avoid. SME IPO coming with OFS is a strict no. Promoters want money. If SME doesn’t need money then why to come up with such an IPO.