Five Core Electronics Limited IPO

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(i) Established in 2002 by principals with a background in electronics, 5CORE has grown into one of the world’s leading suppliers of commercial PA system products. Our Company is committed to develop creative, reliable and value-oriented PA systems and distributing it worldwide with an uncompromising level of service and support. We facilitate public address system to commercial segment which helps in reinforcing sound. These user-friendly systems are easy to install, operate and maintain, and are offered with comprehensive warranties and after sale services. 5CORE products have been developed to meet countless requirements and are suitable for small, medium as well as large venues including factories, schools, religious places, banks, restaurants, office buildings, workshops, shopping malls, meeting halls and boardrooms, etc. Based in New Delhi our company continues to prosper fulfilling the requirements of customers from many different market sectors and backgrounds.
(ii) Our professional team of sound engineers, software engineers, industrial design engineers and simulation and application engineers work tirelessly in developing innovative PA equipment with exceptional sound quality and robust designs. Our legacy of product development and innovation is reflected through our foray into new technologies and the number of industry firsts we’ve achieved. Our staff’s skill ranges from top quality studio recording to electrical engineering. We pride ourselves in the training and practicality of our staff and always do our best to make sure that if we can expand our skill set to make us better serve our customers we will. From musicians to sound engineers and system designers our staff lives sound and we do our best to keep up with the constantly expanding library of knowledge in sound & sound equipment so that we can always be here to use that knowledge for customer’s benefit.
(iii) As audio engineers and professionals, our ears are our most important tools. Our sales staff is trained to listen first to the needs and requirements of our customers, and then use our expertise to design sound systems that best suit our customer’s application criteria and budget.
(iv) 5CORE has taken giant leaps right from the moment of technology. The remarkable progress of the company is based on the strong foundation of innovation, organized systems, and quality that form the core element of its product range. Notably, 5CORE has become a leading manufacturer of Public Address Systems in the country and has a strong presence in the overseas market in African Continent, UAE, South America, Singapore, Dubai, Bangladesh, Vietnam Nepal, to name a few. Our products are sold in 56 countries across 6 continents through a network of over 350 distributors and dealers. In India we are present in 17 States through a distributor and
dealer network of more than 240 in different zones. Our Company has also opened showrooms in Dehradun, Saharanpur, Chomu, Guwahati, Jeopur, Patna, Raxaul, Bhagalpur, Calicut and Hyderabad which are run by our dealers.
(v) 5CORE is coined from the word “Join” to symbolize the pleasing effect experienced by the customers from our innovative products. The rationale behind every 5CORE product is based on the “5R” core principle.
Reliability: Establish new standards in terms of consistency and performance.
Reach: To be on every corner of the world map.
Responsibility: Being highly accountable in our effort to provide excellent products and professional service.
Reasonable: Offering dynamic products at an economical price as to suit every customer.
Research: Keep exploring & innovating and use advanced technologies to produce high quality PA products.

Investor Presentation

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Five Core Electronics Limited IPO Stock Quote & Charts

145.50

+3.93%

  • Open: 140.90
  • High - Low: 147.90 - 138.00
  • Previous Close: 140.00
  • Total Traded Volume: 577000
  • Updated On: 21-May-2018

Objects of the Issue:

Objectives of

Five Core Electronics Limited IPO

are: 1. To meet the working capital requirements of our Company 2. To meet the working capital requirements of our Subsidiary, 5 Core Acoustics Private Limited 3. General Corporate Purpose 4. Repayment of Unsecured Loan of Promoters/Directors 5. Issue Expenses

Listing Date: May 21 2018

Issue Details:

Open Date: May 09 2018
Close Date: May 11 2018
Total Shares: 33,33,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price
Issue Size: 46.662 Cr.
Lot Size: 1000 Shares
Issue Price: ₹ 140 Per Equity Share
Listing At: NSE Emerge
Listing Date: May 21 2018

Promoters And Management:

Promoters of Five Core Electronics Limited Company are: (i) Mr. Amarjit Singh Kalra , aged 51 Years, is the Promoter and Managing Director of our Company. He holds a Diploma in Electronics. He has an experience of over 30 years in production and marketing of electronic goods. At the age of 14 he started business of electronic spare parts in Calcutta. In the year 1996, he had opened the first "Cyber Café" in Calcutta and also introduced five core solder wire which was far superior in quality to the single core ones available in the market for which he was named in various newspapers and magazines. He was a secretary of All India Radio and Electronics Associations, Eastern Region for several years. He is a member of the executive committee of Electronics Hardware & Software Export Promotion Council (ESC). He has traveled extensively over 60 countries across globe. He has also attended and executed more than 100 exhibitions globally for 5CORE brand.Our Company has recently been awarded "Electronics Business of the Year 2018" and nominated for the "Most Impactful Power Brand of India " under his guidance. (ii) Ms. Surinder Kaur Kalra , aged 43 Years, is the Promoter and Non-Executive Director of our Company. She is a graduate from Tribhuvan University, Nepal. She has a rich experience of more than 25 years in production and marketing of electronic goods. She has planning and organization skills and is aware of the rapid technological changes as per the demands of the international market which contributes in the overall development of the business. The major goal of her career is manufacturing and producing fewer more bespoke products with less emphasis on high volume manufacturing.

Capital Structure:

(i) Authorized Share Capital ( 1,30,00,000  shares at FV@10) 13 Cr
(ii) Issued, Subscribed,& Paid-up Share Capital Before Issue (92,87,622 Shares at FV@10) 9.2876 Cr
(iii) Present Issue ( 33,33,000 Shares at FV@10) 3.333 Cr
(iv) Reservation for Market Maker  (1,69,000 Shares at FV@10) 16.9 Lacs
(v) Net Issue to Public (33,33,000-1,69,000=  31,64,000 Shares) 3.164 Cr
(vi) QIB & HNI Quota-15,82,000 50%
(vii) Retail Quota- 15,82,000 50%
(viii) Paid Up Share Capital after the issue 12.6206 Cr
Average Cost of Acquisition of the Promoters
Sr.no Name of the promoter No. of shares Average cost of equity shares
1 Mr. Amarjit Singh Kalra 38,39,595 50.14
2 Ms. Surinder Kaur Kalra 24,41,783 43.79

Company Financials:

 1. Balance Sheet Snippet[ Financials as of Dec 2017]
       (i) Shareholders’ Fund[Equity] Value 5989.8 Lacs
      (ii) Asset 16476.59 Lacs
      (iii) Liability 10486.79 Lacs
      (iv) Debt/Equity[<1 ideal] 1.75(reasonable)
      (v)  Net Worth[Asset- Liability] 5989.8 Lacs
     (vi) Current Ratio[ideally>1.5] 1.64
     (vii)  RONW[PAT/Net Worth] or ROE 22.72%
     (viii) Book Value or NAV 64.55
     (ix) P/B  [<5 ideal] 2.16(ideal)
2. Profit n Loss Snippet (i) The Reveune of the company in last 5 years ( FY13 to FY17) is 85.58 Cr, 111.80 Cr, 113.49 Cr, 122.94Cr and 170.65Cr respectively. The Company is growing at a CAGR of 18.83% [Excellent]. (ii) The PAT of the company in last 5 years ( FY13 to FY17) is 74.41 Lacs, 85.11 Lacs, 66.28 Lacs, 95.26 Lacs and 1.35 Cr respectively. The Company got set back in bottomline during FY15 else Company's PAT is growing at CAGR of 16.22%. (iii) The EBITDA Margins of the company for FY13( 2.86%), FY14(2.85%), FY15(3.33%) ,FY16(3.70%) and FY17(4.07%).The company has low margin business. (iv) P/B(post issue)= 1.80 (v) Annualized EPS(post issue)= 10.76 (vi) Annualized P/E(post issue)=13 at the cutoff price of 140
3. Cash Flow Statement(all figures in lacs)
Particulars FY17 FY16 FY15 FY14 FY13
(i) Net Cash Generated from Operation -892.86 -553.65 464.05 -890.46 482.79
(ii) Net Cash Generated from Investment -789.34 -98.7 -32.7 -85.07 -120.08
(iii) Net Cash Generated from Financing Activity 2306.16 1071.3 -395.7 1066.18 -324.72
(iv) Total[ (i)+(ii)+(iii) ] 623.96 418.95 35.65 90.65 37.99
(v) Cash and Cash Equivalents at the Beginning of the Year 621.01 202.06 166.41 75.76 37.77
(vi) Cash and Cash Equivalents at the end of the Year 1244.97 621.01 202.06 166.41 75.76
 

Comparison With Peers:

The company is primarily engaged in manufacturing of Public Address Systems - Woofers, Amplifiers, Computer Speakers, Personal Speaker System, headphones and Earphones. Currently there is no listed entity in India operating in this particular business segment with similar size, scale and business model and hence a strict comparison with us is not possible.

Recommendation:

Review and Recommendation of

Five Core Electronics Limited IPO

from our side is: Rating: 6/10. 1-5: Fair 5-7: Good 7-10: Excellent.

Company Address:

WZ-15B, Ground Floor, Uggarsain Market, Ashok Nagar, New Delhi – 110018 Tel No: +91 11 28128000 (100 lines); Fax No: +91 11 28128011; E-mail:investcare@5core.in; Website: https://www.5core.com

Bid Details as on 11-May-2018 22:30:01 IST

Category No.of shares offered No. of shares bid
1,582,000 4,775,000
1,582,000 1,130,000
169,000 169,000
3,333,000 6,074,000
QIBs Yes
QIBs+HNIs Subscription 2.78X
Retail Subscription 0.71X
Total Subscription 1.77X