Goblin India Limited IPO

Apply 0
Avoid 0

(i) They have certified travel luggage company engaged in the design, marketing and sale of travel, business, and casual luggage as well as travel accessories. As on March 31, 2019, our products were sold in over 6 states in India as well as in Paris, France through a variety of wholesale and retail distribution channel.

(ii) They sell the products under the brand name “Goblin”. Apart from the travel luggage products, our company is involved in the trading and distribution of various products in multiple verticals such as digital consumer electronics, batteries & torches, office electronics, household items and other commodities to the corporate for the purpose of corporate gifting.

(iii) Today, Goblin is one of the reputed brands specializing in traveling gears. It has built its trust and goodwill in the field of luggage and corporate gifting. They utilize multiple channels, including retail, wholesale, corporate gifting, and e-commerce to sell products.

(iv) Goblin has a presence in the local markets across India, with 4 Distributors, 129 direct dealers and 245 dealers of our distributors having a distribution network pan India. Goblin has also developed and strengthened its brand value through its subsidiary in France with over 250 dealers. As on date, Goblin owns
two exclusive retail outlets in Ahmedabad, Gujarat and one exclusive store in Paris through its subsidiary company.

(v) The esteemed clients in corporate gifting are Corona Remedies, Torrent Pharmaceuticals, Intas Pharmaceuticals, Indian Institute of Management (Ahmedabad), Nirma Limited, Sun Pharmaceuticals, Cipla Limited, Micro Labs Limited etc. Their products are produced by third-party manufacturers, located primarily in China as well as in India.

(vi) As per Restated Financial statements for the period ended March 31, 2019, 2018 and 2017,

Revenues were Rs. 6848.65 lakhs, Rs. 6093.69 lakhs and Rs. 5243.98 lakhs, respectively.

PAT for Rs. 344.92 lakhs, Rs. 309.37 lakhs and Rs. 63.32 lakhs, respectively.

Objects of the Goblin India Limited IPO:

1. To set up a plant to manufacture/assemble Acrylonitrile Butadiene Styrene (ABS) Luggage bags at Ahmedabad, Gujarat. 2. Funding the working capital requirement of the Company. 3. General corporate purposes.

Goblin India Limited IPO Details:

Open Date: Sep 30 2019
Close Date: Oct 04 2019
Total Shares: 2,924,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Book Building
Issue Size: 15.20 Cr.
Lot Size: 2000 Shares
Issue Price: ₹ 51-52 Per Equity Share
Listing At: BSE SME
Listing Date: Oct 14 2019

Promoters And Management:

(i) Mr. Manish Nagori, aged 35 years, is appointed as Chief Financial Officer vide Board resolution dated April 05, 2019 of our Company. He has joined our company in the year 2008 as Executive in Marketing and further he was appointed as Director of our Company w.e.f April 01, 2013. (ii) Ms. Nikita Suyani, aged 25 years, is appointed as Company Secretary vide Board Resolution dated April 05, 2019 of our Company. She is a Company Secretary from Institute of Company Secretaries of India and holds a degree of Bachelor of Commerce from R.J Tibrewal Commerce College and degree of LLB from Maneklal Nanavati Law College and has an overall experience of 9 months in her functional area. She is responsible for the day to day operations and looks after the overall secretarial work and corporate compliances of our Company.

Financials of Goblin India Limited IPO:

Year Revenue(Cr) EBITDA(cr) PAT(Cr) No. of Shares(cr) EPS
2017 52 3.52 0.63 1.0443 0.60
2018 60 5.77 3.09 2.96
2019 68 7 3.44 3.29

Comparison With Peers:

The company has shown VIP Industries as its peer. Let us see its performance. VIP Industries( FY- 2019 performance) 1. Revenue= 1798 Cr ( growth of 26% as compared to last year). 2. EBITDA Margins = 13% 3. PAT Margins = 11.92% 4. EPS = 10 5. RONW = 24.9% 6. Mcap = 6352Cr 7. P/E= 44x and Mcap/Sales= 3.5x The asking valuation of Goblin in P/E and Mcap/Sales multiples looks reasonable as compared to VIP Industries. However, the EBITDA margins and RONW are far less in Goblin( 10.2% and 14% respectively) as compared to VIP Industries. The growth in revenue is only 13% for Goblin as compared to 26% in VIP Industries. VIP Industries is a leader in Bags and Goblin is still growing with no manufacturing of its own.

Recommendation on Goblin India Limited IPO:

Review and Recommendation of InvestorZone is:  3/10 1. The Valuation looks reasonable as compared to its peers. 2. The company does not manufacture any of its bags. It makes its bag through the third party which is present in India and China and sells under its brand in the market. However, in the IPO some of the funds will be utilized to start their own manufacturing. So we need to see the quality of their bags once they start manufacturing to judge the future of the company. Till then wait and watch. 3. The market condition is not suitable to go with small companies when leaders are available in the market.

Lead Manager of Goblin India Limited IPO:

  1. Fast Track Finsec Private Limited

Registrar of Goblin India Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Goblin India Limited Camex House, 1st Floor, Commerce Road, Navrangpura, Ahmedabad-380009, India Phone: +91 79 26465080 Email: cs@goblinindia.com Website: http://www.goblinindia.com/

Bid Details of Goblin India Limited IPO as on
04 Oct 2019 | 11:00:00 AM

Category No.of shares offered No. of shares bid
1,388,000 2,592,000
1,388,000 1,212,000
148,000 148,000
2,924,000 3,952,000
QIBs No
QIBs+HNIs Subscription 1.87X
Retail Subscription 0.87X
Total Subscription 1.37X

Discussion on Goblin India Limited IPO:

    For time being unless some sanity prevails in the market please ignore SMEs.

    Goblin currently sources luggage bags and other travel gear accessories from different suppliers manufactured by them based in India and China.

    As on the date of Red Herring Prospectus, they do not have a manufacturing facility and are relying entirely on the third-party manufacturer(s) for procuring the products.

    Further, the Company will set up its own manufacturing unit of ABS Luggage Bags in Ahmedabad from the money raised from IPO.