Avon Moldplast Limited IPO
Avon Moldplast Limited IPO
(i) Avon Mold Plast Private Limited was established in the year 2002 at Ghaziabad U.P. India, to manufacture quality plastic molded furniture in the brand name of AVON, catering to the wide strata of consumers. The manufacturing facility of the Company is located at Ghaziabad, Uttar Pradesh.
(ii) Avon Mold has strived to utilize modern imported machine and molds from global leaders and are always ahead in offering the latest product with better finish and quality, which is comparable to the best and established manufacturers in India and across the globe in a fully automatic environment.
(iii) The Company’s Product Portfolio can be classified as under:
a) Molded Chairs
b) Molded Stools
c) Molded Tables
d) Molded Baby Chairs and Baby Desks
Objects of the Avon Moldplast Limited IPO:
Objective of Avon Moldplast Limited IPOare: a) To acquire additional molds of a chair, cupboard, table etc. at the existing manufacturing facilities. The company is planning to utilize around 2.1 cr out of 4.5 cr funds raised from IPO towards buying different molds from China b) To meet the incremental working capital requirements c) General Corporate Purpose
Avon Moldplast Limited IPO Details:
|Open Date:||Jul 12 2018|
|Close Date:||Jul 18 2018|
|Face Value:||₹ 10 Per Equity Share|
|Issue Type:||Fixed Price Issue IPO|
|Issue Size:||4.5084 Cr.|
|Lot Size:||2000 Shares|
|Issue Price:||₹ 51 Per Equity Share|
|Listing At:||NSE Emerge|
|Listing Date:||Jul 26 2018|
Promoters And Management:
|(i) Authorized Share Capital 5,000,000 shares at FV@10)||5 Cr|
|(ii) Issued, Subscribed,& Paid-up Share Capital Before Issue (2,370,000 Shares at FV@10)||2.370 Cr|
|(iii) Present Issue ( 884,000 Equity Shares FV@10)||88.4 Lacs|
|(iv) Market Maker 46,000 Equity Shares FV@10.||4.6 Lacs|
|(v) Net Issue to Public 838000 Equity Shares FV@10||83.8 Lacs|
|(vi) Reservation for QIB & HNI Shares at FV@10)||50%|
|(vii) Reservation for Retail  Shares at FV@10)||50%|
|(viii) Paid Up Share Capital after the issue||3.254 Cr|
Financials of Avon Moldplast Limited IPO:
|1. Assets and Liabilities Key Parameters|
|Year||Asset(lacs)||Liabilities (lacs)||Net Worth(lacs)||Book Value||D/E [<1.5]||RONW||Debtor days|
|2. Profit n Loss Key Parameters|
|Year||Revenue(lacs)||PAT(lacs)||EBITDA Margins||Profit Margins||Outstanding Shares(lacs||EPS|
|3. Cash Flow Statement(all figures in lacs)|
|(i) Net Cash Generated from Operation||189.03||194.25||137.27||16.17||50.38||69.82|
|(ii) Net Cash Generated from Investment||-143.50||-131.89||-121.82||-180.12||-42.81||-18.68|
|(iii) Net Cash Generated from Financing Activity||-50.03||-35.48||-22.99||166.26||-3.92||-57.21|
|(iv) Total[ (i)+(ii)+(iii) ]||-4.50||26.88||-7.54||2.31||3.64||-6.07|
|(v) Cash and Cash Equivalents at the Start of the Year||30.27||3.39||10.93||8.62||4.98||11.05|
|(vi) Cash and Cash Equivalents at the end of the Year||25.77||30.27||3.39||10.93||8.62||4.98|
Comparison With Peers:
Recommendation on Avon Moldplast Limited IPO:
Avon Moldplast Limited IPO Rating by InvestorZone team => 3/10 1-5: Fair 5-7: Good 7-10: Excellent
Lead Manager of Avon Moldplast Limited IPO:
Registrar of Avon Moldplast Limited IPO:
Bid Details of Avon Moldplast Limited IPO as on
18-Jul-2018 17:00:00 IST
|Category||No.of shares offered||No. of shares bid|
Discussion on Avon Moldplast Limited IPO:
Average EPS of last three years i.e FY 16, 17 and 18 is 1.30. The issue is priced at 51, so on that basis P/E is 40. How can you even think of in your wildest dream to come up with an IPO at such high valuation.
Ther trademark(AVON) is currently registered in the name of one of their Promoters Mrs. Anita
Aggarwal . However, M/s Avon Cycles Limited, a Public Limited Company, has filed application against the company for misusing the name of their brand. So in future they may be restricted to use this logo which will impact their brand and obviously the growth of the company.
The remuneration of Promoters i.e Mr. Sushil Kumar Aggarwal and Mr. Sahil Aggarwal, Managing Director will be enhanced to 2,00,000/m and 1,50,000/m from FY18 onwards, a whopping jump from 96000/m in FY17. The total expense of Salary of two promoters will be 42 Lacs/year from this year onwards and guess what the total profit of the company in 10 FY18 was 69 Lacs.
Highest P/E. even mainline larger comany are ruling at lower P/E . Nilkamal and supreme are big brands.
Also first time Lead manager is highly riskly. Avoid.
New LM , risky market, negative sentiments for whole SME market & recent IPOs have difficult time in sailing through. So be careful before you apply.
Before investing in IPO always i check your comment, Thanks
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