GKP Printing and Packaging Limited IPO

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(i) The company is an ISO 9001:2015 certified engaged in the manufacturing of corrugated boxes.

(ii) The company deals in various types of corrugated boxes such as master cartons, mono cartons, Honeycomb, partition boxes, Die cut self-locking boxes, storage bins, adjustable depth book flap, Ring flap boxes, and unit cartons.

(iii) Apart from manufacturing of corrugated boxes, the company is also engaged in the trading of Kraft paper, Duplex paper and Low – Density Plastic Rolls (LD Rolls). Kraft paper and Duplex papers are the primary raw material in corrugated boxes manufacturing and their trading provides the benefits of backward integration to the company by enabling them to procure raw material at very competitive prices as compared to other manufacturers of the corrugated boxes.

(iv) The registered office and manufacturing facility unit of the company is situated at Palghar, Thane.

To cope with the continuous growing demand in the domestic market for the corrugated boxes, the company has also set up a new manufacturing facility which is located at Vapi, Gujarat which has been made operational from 27th December, 2018 onwards.

With the start of this additional manufacturing facility, the manufacturing capacity of the company will be double i.e. from 3600 MT existing to 7200 MT.

GKP Printing and Packaging Limited IPO Stock Quote & Charts

34.30

+11.54%

  • Open: 34.00
  • High - Low: 34.30 - 34.00
  • Previous Close: 30.75
  • Total Traded Volume: 8000
  • Updated On: 13-Nov-2019

Objects of the GKP Printing and Packaging Limited IPO:

The objective of raising 6.58 Cr from the issue is : a) Working Capital Requirement b) General Corporate Purposes

GKP Printing and Packaging Limited IPO Details:

Open Date: Apr 23 2019
Close Date: Apr 26 2019
Total Shares: 2056000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price Issue
Issue Size: 6.58 Cr.
Lot Size: 4000 Shares
Issue Price: ₹ 32 Per Equity Share
Listing At: BSE SME
Listing Date: May 06 2019

Promoters And Management:

a) Keval Harshad Goradia, aged 38 years is the Promoter and Managing Director of our Company. He has been associated with our Company since incorporation and has been designated as Managing Director w.e.f. April 25th, 2018. b) Payal Keval Goradia, aged 38 years, is the Promoter and Non-Executive Director of our Company. She completed her graduation from Mumbai University and also holds a Diploma in Interior Designing from L.S. Raheja College of Architecture, Mumbai. She has ventured into the corrugating box manufacturing industry in the year 2012 through her proprietorship concern viz. M/s. Pratham Packaging.

Financials of GKP Printing and Packaging Limited IPO:

As the company was formed in April 2018, only 6MFY19 financials are available. 1. Revenue= 13 Cr 2. EBITDA= 10.50 Cr 3. PAT= 1.99 Cr 4. Total Shares outstanding= 73.32944 Lakh 5. EPS after Annualizing first 6MFY19 = 5.45 6. P/.E= 5.87

Comparison With Peers:

Worth Peripheral is shown as peer which is currently trading at P/E of 15.

Recommendation on GKP Printing and Packaging Limited IPO:

Review and Recommendation of GKP Printing and Packaging Limited IPO from IZ Team is : 3/10 [ It is very hard to predict and analyze a company based on only 6 months financials. It is better to wait for listing to see how the company performs and then someone may look for investment. Worth Peripheral in the same segment is a very good company. ]

Lead Manager of GKP Printing and Packaging Limited IPO:

  1. Holani Consultants Private Limited

Registrar of GKP Printing and Packaging Limited IPO:

  1. Link Intime India Private Limited

Bid Details of GKP Printing and Packaging Limited IPO as on
26 Apr 2019 | 11:58:03 PM

Category No.of shares offered No. of shares bid
976,000 1,528,000
976,000 1,520,000
104,000 104,000
2,056,000 3,152,000
QIBs No
QIBs+HNIs Subscription 1.57X
Retail Subscription 1.56X
Total Subscription 1.56X

Discussion on GKP Printing and Packaging Limited IPO:

    The company has issued shares in the Pre-IPO placement at par with Issue price.

    So after forming a company, only first 6 months financials are available.

    Revenue= 13 Cr
    EBITDA= 10.50 Cr
    PAT= 1.99 Cr

    Total Shares outstanding= 73.32944 Lakh
    EPS after Annualizing first 6MFY19 = 5.45
    P/.E= 5.87

    Trade receiivables= 7 Cr
    Current ratio <1

    Conclusion:

    a) As per DRHP, the company is projecting that in 2019, the company would require a total 12 Cr working capital. So 4.41 Cr raised from this IPO would be used for that. We do not know how much this projection is correct.

    b) Only 6MFY19 financials are available after forming the company in April 2018. Hence nothing can be concluded about the company in such a short span.

    c) If somebody is looking into this sector for investment then Worth peripheral is good to watch out for.

    The Goradia family initially running the business of manufacturing corrugated boxes from three Proprietary firms.

    1. M/s G.K. Packaging

    Mr. Keval Harshad Goradia ventured into the corrugated boxes manufacturing business in the year 2004 by setting up a proprietorship concern in the name of M/s. G.K. Packaging.

    2. M/s Pratham Packaging

    Mrs. Payal Keval Goradia entered into the corrugated box manufacturing business in the year 2012 as she set up a proprietorship concern in the name of M/s Pratham Packaging for carrying out the business.

    3. K P Print & Packaging

    The firm was run by Mrs. Geeta Goradia.

    Finally, before raising money from an IPO, the business of first two firms was merged and 3rd firm business was closed down and transfer all its business into a new entity.

    So on 3rd April 2018, a new company was formed with the name GKP Printing and Packaging Limited.