Dolfin Rubbers Limited IPO
(i) Dolfin Rubbers Limited was incorporated on October 12, 1995 and we started journey of manufacturing tubes in the year 1997. The Company is engaged in manufacturing of Auto and Animal Driven Vehicle (ADV) tubes supporting the tyre industry near Ludhiana (Punjab). Our range of rubber tubes, suitable for tyres of various types of vehicles viz., Mopeds, Scooters, Motorcycles, Cars, Jeeps, Buses, Trucks and Tractors with the use of Butyl rubber.
(ii) The Company products are also available in Bangladesh, Bhutan, Egypt, Nepal, Pakistan and Sri Lanka. Though Dolfin is today becoming one of the best and fast coming up brand in the International market They are mainly Concentrating on India’s domestic market only.
(iii) In order to reach to the users, They have established a distribution network across India. They have their footsteps in every corner of India through a wide network of distributors. they have their presence in 27 states and union territories in India through these distributors who assist in supplying their products to a wide network of retail suppliers. Their growing distribution network facilitates the efficient sale of our products in the targeted markets and promotes their brand visibility.
(iv) Products of the Company
Objects of the Dolfin Rubbers Limited IPO:
Dolfin Rubbers Limited IPO
are: 1. To meet working capital requirements 2. General Corporate Purposes 3. To meet the Issue ExpensesDolfin Rubbers Limited IPO Details:
| Open Date: | Sep 27 2018 |
| Close Date: | Oct 01 2018 |
| Total Shares: | 2,000,000 |
| Face Value: | ₹ 10 Per Equity Share |
| Issue Type: | Fixed Price Issue IPO |
| Issue Size: | 5.2 Cr. |
| Lot Size: | 4000 Shares |
| Issue Price: | ₹ 26 Per Equity Share |
| Listing At: | BSE SME |
| Listing Date: | Oct 10 2018 |
Promoters And Management:
Financials of Dolfin Rubbers Limited IPO:
| Year | Revenue(Cr) | PAT(Cr) | EBITDA Margins | Profit Margins |
| FY14 | 28.56 | 0.5683 | 5.5% | 2.0% |
| FY15 | 32.55 | 0.67 | 4.7% | 2.1% |
| FY16 | 40.92 | 0.52 | 4.2% | 1.3% |
| FY17 | 43.08 | 0.69 | 4.6% | 1.6% |
| 10MFY18 | 42.2 | 1.02 | 4.9% | 2.4% |
Comparison With Peers:
Recommendation on Dolfin Rubbers Limited IPO:
Lead Manager of Dolfin Rubbers Limited IPO:
Registrar of Dolfin Rubbers Limited IPO:
Company Address:
Bid Details of Dolfin Rubbers Limited IPO as on
01 Oct 2018 | 11:58:04 PM
| Category | No.of shares offered | No. of shares bid |
|---|---|---|
| 948,000 | 1,728,000 | |
| 948,000 | 644,000 | |
| 104,000 | 104,000 | |
| 2,000,000 | 2,476,000 |
| QIBs | No |
| QIBs+HNIs Subscription | 1.82X |
| Retail Subscription | 0.68X |
| Total Subscription | 1.25X |
Discussion on Dolfin Rubbers Limited IPO:
9 Comments
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Avoid as tyre companies available at huge discount in secondary market and much better players available. Nothing exciting or reason to apply. Avoid
agree with tarun jii.
There is no harm giving a miss to this.
The Company total profit for the year is 1.02 Cr in FY18 and total Contingent liability[Letter of Credit (FLC) Limits availed from YES Bank Limited] as on 31.01.2018 per DRHP is mammoth 1.27 Cr. So going forward if any issue comes in the company and if they unable to pay their obligation in time then the company may come in trouble due to this much contingent liability.
As per Management
” As per Section 203 of the Companies Act, 2013 read with Rule 8A of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, every company having prescribed paid-up share capital and above shall appoint a whole time Company Secretary. Though our Company appointed Nancy Singla on and with 19 effect from November 01, 2017 as a whole time Company Secretary of our Company, we had inadvertently failed to comply with the said section within stipulated time as the company had to appoint the same before June 28, 2017.”
Conclusion: This is a sign of poor companies.
The Liquidity ratio Current Ratio is close to 1.13. Ideally, for the healthy company, it should be above 1.5.
The EBITDA margins and PAT margins are flat for the company in the last 5 years. The business which is growing must show improvement in the margins. In that respect, the company is not performing well.
The Company is manufacturing tubes for almost all fast moving sizes from Mopeds, Scooters, Motorcycles, Cars, Jeeps, Tractors, SCV,LCV, ADV., to Trucks.
EPS story (Pre-Issue) based on FY18 Financials
(i) PAT= 123 Lakh ( Annualized)
(ii) Outstanding Shares= 55.22496 Lakh
(iii) EPS= 2.227
(iv) P/E= 11.67
EPS story (Post-Issue) based on FY18 Financials
(i) PAT= 123 Lakh(Annualized)
(ii) Outstanding Shares=75.22496 Lakh
(iii) EPS= 1.63
(iv) P/E= 15.95
Conclusion: The valuation looks fairly priced.