Bright Solar Limited IPO

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Bright Solar Limited IPO

(i) Bright Solar Limited is at the crest of the innovative wave in solar-powered water pumping mechanisms. Since it’s inception in the year 2010, Bright Solar has been a front-runner in developing, manufacturing and selling high-quality products that run on the clean and cost-friendly solar energy. Their manufacturing unit is located in the megacity of Ahmadabad.

(ii) The company is engaged in assembling of DC/AC Solar Pumps and Solar Pump Systems under the registered brand name of ―PUMPMAN, ―BRIGHT SOLAR, and ―BRIGHT SOLAR WATER PUMP. The company is also engaged in EPC contracts of Solar Photovoltaic Water pumps which include supplying, installing and commissioning of the pump system along with comprehensive maintenance contract for a specific period of 1-5 years.

(iii) In the year 2017-18, they have started providing consultancy services for acquiring projects and tender bidding after identifying competent client on tender to tender basis. In addition, they have also been added water supply, sewerages  and infra project in their service portfolio.They have also been awarded water supply and sewerages projects.

(iv) The company is in process of acquiring land measuring area of 18209 Square meters at  Kheda, Gujarat and on which the company is planning to set up manufacturing unit for Solar PV modules/panels. The Company has already executed agreement to sale on February 15, 2018 and paid 43.00 Lakhs towards earnest money for acquisition of land. The  Company is also planning to set up water treatment plant assembling unit at Patna (Bihar).

 

Bright Solar Limited IPO Stock Quote & Charts

39.00

-1.76%

  • Open: 39.75
  • High - Low: 39.75 - 36.60
  • Previous Close: 39.70
  • Total Traded Volume: 18000
  • Updated On: 12-Nov-2018

Objects of the Bright Solar Limited IPO:

Objective of

Bright Solar Limited IPO

are: 1. Acquisition of Land, its Registration, Stamping, and other charges 2. Working Capital 3. General Corporate Purpose 4. Issue Expense

Bright Solar Limited IPO Details:

Open Date: Jun 26 2018
Close Date: Jun 29 2018
Total Shares: 54,00,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price Issue
Issue Size: 19.44 Cr.
Lot Size: 3000 Shares
Issue Price: ₹ 36 Per Equity Share
Listing At: NSE Emerge
Listing Date: Jul 09 2018

Promoters And Management:

Promoters of Bright Solar Limited Company are: Mr. Piyushkumar Thumar, aged 37 years is a Promoter Cum Chairman and Managing Director of the Company and has the distinction of leading the Company. He has a Professional Experience of More than 15 Years in International Trade, Road Construction equipment spare parts deals, Solar Energy systems, and projects. He has been awarded, Certificate of Competence by the Gujarat Energy Research and Management Institute for demonstrating a fundamental level of competence in technical and management aspects of the Solar Photovoltaic Technology by completing the four-day course as a part of the Solar Technical Workshop. He too has vast experiences in the analysis of rates, preparing of variation order, bill of quantities, and in the planning of Solar projects. Apart from his hands-on experience of implementing solar energy projects both big and small, he is advising National and Multinational Companies and has been mentoring start-ups in the solar sector.

Capital Structure:

(i) Authorized Share Capital 2,20,00,000  shares at FV@10) 22 Cr
(ii) Issued, Subscribed,& Paid-up Share Capital Before Issue (1,50,00,000 Shares at FV@10) 15 Cr
(iii) Present Issue (   54,00,000  Shares at FV@10) 5.4 Cr
(iv) Reservation for Market Maker 2,70,000 Shares at FV@10) 27 Lacs
(v) Net Issue to Public[ 54,00,000- 2,70,000]= 51,30,000 5.13 Cr
(vi) Reservation for QIB and HNI  25,65,000 Shares at FV@10 50%
(vii) Reservation for Retail  2565000 Shares at FV@10) 50%
(viii) Paid Up Share Capital after the issue 20.4 Cr

Financials of Bright Solar Limited IPO:

1. Assets and Liabilities Key Parameters
Year Asset(lacs) Liabilities(lacs) Net Worth(lacs) Book Value D/E [<1.5] RONW Receivable days
FY13 1978.49 1,927.43 51.06 51 37.7 74% 218
FY14 818.82 697.30 121.52 49 5.7 45% 74
FY15 3892.34 3,480.35 411.99 39 8.4 48% 273
FY16 2212.31 1,346.72 865.59 58 1.6 8% 115
FY17 3309.49 2,290.79 1018.7 68 2.2 17% 299
11MFY18 5573.36 4,020.07 1553.29 104 2.6 34% 385
Post Issue 3497.29 17 1.1 18%
2. Profit n Loss Key Parameters
Year Revenue(lacs) PAT(lacs) EBITDA Margins Profit Margins Outstanding Shares(lacs EPS
FY13 2239.93 38.02 2.3% 2% 1 38.02
FY14 2846.13 54.29 3% 2% 2.5 21.72
FY15 4784.25 196.87 7% 4% 10.6 18.57
FY16 1547.06 70.53 11% 5% 15 4.70
FY17 1812.99 171.11 17% 9% 15 11.41
11MFY18 2827.26 534.59 27% 19% 15 35.64
Post Issue 641 204 3.14
3. Cash Flow Statement(all figures in lacs)
Particulars FY17 FY16 FY15 FY14 FY13
(i) Net Cash Generated from Operation 104.25 300.57 -466.08 530.22 -371
(ii) Net Cash Generated from Investment -30.66 -63.04 5.05 -42.17 -13.32
(iii) Net Cash Generated from Financing Activity -86.35 -63.91 462.39 -463.89 432.66
(iv) Total[ (i)+(ii)+(iii) ] -12.76 173.62 1.36 24.16 48.34
Key Parameter 1. The Revenue is growing at CAGR of 4.74% from FY13 to FY18. 2. The PAT is growing at CAGR of 69% from FY13 to FY18. 3. The Annualized EPS for FY17-18 would be 3.14. 4. P/E(post issue)= 11.36( reasonably priced) at Cutoff price of 36.(Under Valued) 5. P/B(post issue)= 2.11 at cutoff price of 36. 6. The company has total debt of (long term and short term) around 2Cr as on Jan 2018.( Positive) 7. Mcap/Sales(ideally <2)= 2.62 on FY18 sales(Overvalued) 8. The Company’s EBITDA Margins has gone up from 2% to 27% in last 5 years.(Positive) 9. The Company is not consistently generating cash flows from operations in past years . Red Flag. 10. The most surprising part is debtor days which is more than a year. On a "Sale" of 28 Cr in FY18 the company has "Trade receivables" of 32 Cr.- Red Flag 11. The multi fold increase in PAT for FY18 as compared to FY17 is bit surprising.

Comparison With Peers:

As per DRHP, it is showing Urja Global and Shakti Pumps as its listed peers that are currently trading at a P/E of around 300 and 29 (as on 19.06.18).

Recommendation on Bright Solar Limited IPO:

Review and Recommendation of

Bright Solar Limited IPO

from our side is: Rating: 3/10. 1-5: Fair 5-7: Good 7-10: Excellent Check Next Mainline IPO => HDFC AMC IPO

Lead Manager of Bright Solar Limited IPO:

  1. Swastika Investmart Limited

Registrar of Bright Solar Limited IPO:

  1. Alankit Assignments Limited

Company Address:

Bright Solar Limited C-1103, Titanium Square, Thaltej Circle, S G Highway, Thaltej, Ahmedabad – 380 059, Gujarat Phone No. +91 79 4892 6868 E-Mail: compliance@brightsolar.co.in Website: www.brightsolar.in

25th Sep 2018 - 27th Sep 2018 => Aavas Financiers IPO

Bid Details of Bright Solar Limited IPO as on
29-Jun-2018 18:00:00 IST

Category No.of shares offered No. of shares bid
2,565,000 5,658,000
2,565,000 3,852,000
270,000 270,000
5,400,000 9,780,000
QIBs No
QIBs+HNIs Subscription 2.21X
Retail Subscription 1.50X
Total Subscription 1.85X

Discussion on Bright Solar Limited IPO:

    Company has debtor days of 378 which is big negative for any business to sustain long in future.

    Please visit the link http://www.brightsolar.in/about/team/ and see the team structure of Bright Solar Limited. All the team members looks experienced but most surprising fact is that total employee benefits expense for the FY18 is only 22 lacs. Pata nhn kitni salary mil rahi hai inko…..

    The company has paid only 4 lacs as a salary in FY17, which is quite strange . They have directors, independent directors, CFO, CMD and many verticals where they must have employed certain number of people. So on that ground this salary of only 4 lacs looks quite meagre.

    The Company Business Portfolio
      a)  Assembling of DC/AC Solar Pumps and Solar Pump Systems,
      b) EPC contracts of Solar Photovoltaic Water pumps,
      c) Consulting of Projects and tenders, Water supply and Sewerages Infra Project.
      d) The Company is planning to commence Solar Module manufacturing and water treatment plant assembling unit.