Dolfin Rubbers Limited IPO

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(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

Dolfin Rubbers Limited IPO Stock Quote & Charts

36.75

+5.00%

  • Open: 36.75
  • High - Low: 36.75 - 36.75
  • Previous Close: 35.00
  • Total Traded Volume: 4000
  • Updated On: 14-Dec-2018

Objects of the Dolfin Rubbers Limited IPO:

Objective of

Dolfin Rubbers Limited IPO

are: 1. To meet working capital requirements 2. General Corporate Purposes 3. To meet the Issue Expenses

Dolfin 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:

Promoters of Dolfin Rubbers Limited Company are: (i)Kawaljit Singh aged 57 years and under matriculate. He joined the company in December 1996 and currently holding position of Managing Director. With his experience of more than 20 years in tyre and tube industry he is looking after the Marketing, Finance & Accounts and Administration (ii) Ratinder Kaur aged 51 years, is Whole Time Director of our Company. She is one of the promoters of our company and is under matriculate. She has been Director of our Company since incorporation. She looks after the administration and Human Resources of the Company

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:

The Company believes that there are no listed Companies in India which are engaged in the business similar to manufacturing only Tubes.

Recommendation on Dolfin Rubbers Limited IPO:

Review and Recommendation of Dolfin Rubbers Limited IPO from IZ team is = 3/10 [The valuation looks reasonable. However, the company EBITDA and Profit margins are stagnant in the last 5 years. The Current Ratio of less than 1.5 is also not giving a comfortable picture in terms of short-term liquidity issues.]

Lead Manager of Dolfin Rubbers Limited IPO:

  1. Guiness Corporate Advisors Private Limited

Registrar of Dolfin Rubbers Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Dolfin Rubbers Limited 79/1, Block-H, Sarabha Nagar, Ludhiana Punjab 141002 Phone No: 0161-5031030, 2456880, Website: www.dolfin.co.in E-mail: dolfintube@gmail.com

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:

    Avoid as tyre companies available at huge discount in secondary market and much better players available. Nothing exciting or reason to apply. Avoid

    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.