Bilwin Industries Limited IPO

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(i) Founded in the year 2006, Bilwin Industries is engaged in the business of manufacturing of protective gear; these gears are basically rain wears, life jackets, and inflatable boats which are used in seas and other water bodies for safety. The product range includes Rainwear Coat, Rain Jacket, Pulsar Jacket, Winter Jacket, River Raft Boat, Inflatable Boats Dinghys, Sleeping Bags, School Bags, Life jackets, Rucksack, facial’s mask etc.

(ii) The company has a manufacturing unit located in Bhandup West Mumbai Maharashtra and having a total area of approximately 5190 sq. ft.

(iii) The company is promoted by Ms. Smita Subrata Dey and Mr. Subrata Dey who are the guiding force behind all the strategic decisions of the Company.

(iv) The key raw material to make the above products is Coated Fabric. The company procures this from the domestic and international markets. It primarily sells its products through tenders and some are sold to distributors and retailers.

Objects of the Bilwin Industries Limited IPO:

The company is issuing 6,66,000 Shares in the IPO and intent to raise ~2.46 Cr from it. Out of this 2.46 cr, the big chunk of ~54 Lakh will go to Lead Manager who is helping the company in raising funds. It is a staggering 21%. If you go by the normal funding route of PE/VC, they charge typical 2-3% of fees. The rest 1.92 Cr will go to the company for Working capital requirements.

Bilwin Industries Limited IPO Details:

Open Date: Jun 18 2020
Close Date: Jun 22 2020
Total Shares: 666000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Issue
Issue Size: 2.46 Cr.
Lot Size: 3000 Shares
Issue Price: ₹ 37 Per Equity Share
Listing At: BSE SME
Listing Date: Jun 30 2020

Promoters And Management:

(i) Mr. Subrata Dey, aged 60 years, is the Promoter & Chairman and Managing Director of the Company. He has done his B.Sc. Examination in the year 1975 from University of Mumbai (ii) Mr. Pritish Subrata Dey, aged 23 years, is the Non- Executive Director of the Company. He has done his B.Engg. Electrical & Electronics from Asia Pacific University, Malaysia and currently he is pursuing Postgraduate in AI & ML from Great learning, Mumbai.

Financials of Bilwin Industries Limited IPO:

( Fig.in Lakhs )
Year Revenue EBITDA OPM PAT NPM EPS
2017 46.37 1.5 3.23% 0.29 0.63% 0.01
2018 184.61 16.15 8.75% 11.47 6.21% 0.54
2019 60.72 16.25 26.76% 10.78 17.75% 0.51
2020 38.42 7.11 18.51% 3.47 9.03% 0.16
IZ Review: 1. The company's revenue is on the decline path. Not a good sign for the business. 2. The company has an average EPS of 0.40 per share in the last 3 years. Asking price is 37, which means 92 times of earning. P/E of 92x.( A plain Joke ). 3. As on 05.03.2020, the company's balance sheet size is 7.33 Cr, with almost negligible long-term assets. The balance sheet assets are Trade Receivables of 5.43 Cr and Inventory of 1.67 Cr. 4. With this heavy Trade Receivables, the money they will suppose to get in some future time has made cash flow from operation negative. So literally they are not making any money from the business.

Recommendation on Bilwin Industries Limited IPO:

Review and Recommendation for Bilwin Industries Limited IPO from InvestorZone is 1/10. [ The company with a balance sheet size of 7.33 Cr, that too with negligible assets, is looking to raise 2.43 Cr from the IPO proceed. The issue is priced at P/E of 92. Don't know who are the valuers.  As per RHP, due to the impact of coronavirus, there can be a problem for the company to procure the necessary raw material.]

Lead Manager of Bilwin Industries Limited IPO:

  1. Gretex Corporate Services Private Limited

Registrar of Bilwin Industries Limited IPO:

  1. Bigshare Services Private Limited

Discussion on Bilwin Industries Limited IPO:

    Day1 Subscription – 1.67x(QIB+HNI) , 0.07x( Retail)

    Final Day – 1.98x(QIB+HNI), 0.24x( Retail)