Godha Cabcon and Insulation Limited IPO

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Godha Cabcon and Insulation Limited IPO


(i)
The Company was incorporated as Godha Cabcon & Insulation Private Limited on October 04, 2016 under the provisions of Companies Act, 2013 in the State of Madhya Pradesh. Subsequently, the Company was converted into a Public Limited Company and the name was changed to “Godha Cabcon & Insulation Limited” vide fresh Certificate of Incorporation dated July 28, 2017 issued by the Registrar of Companies,Madhya Pradesh .

(ii) Godha Cabcon And Insulation Ltd is one of the leading manufacturers of ACSR Conductor wire, AAAC Conductor. It has the highest production capacity in Madhya Pradesh and also has the latest machine having the best technology. The company has manufacturing unit located in the Industrial Area, Sanwer Road, Indore(M.P.). The company is supplying their products to the State Electricity Board of Jabalpur, Bhopal, Indore and currently, in process of discussion with other states Electricity Board (like Gujarat, Punjab, and Haryana) to be the approved vendor and in the row, they are planning to be the best supplier all over India basis.

Company’s Product:
(i) AAAC Conductor
(All Aluminium Alloy Conductor):Designed to meet any international standards, these bare overhead conductors are used in primary and secondary distribution. All Aluminium Alloy Conductors (AAAC).This has given AAAC a wide acceptance in the distribution and transmission lines.

(ii) ACSR Conductor (Aluminium Conductor, Steel Reinforced):Designed to offer unique optimal strength for line design, these overhead transmission cables meet international standards including ASTM, BS, DIN, IEC, NFC etc.

(iii) AAC Conductor (All Aluminium Conductor): Used primarily for overhead transmission, primary and secondary distribution, where capacity must be maintained and a lighter conductor is desired.

Godha Cabcon and Insulation Limited IPO Stock Quote & Charts

30.00

+4.17%

  • Open: 30.00
  • High - Low: 30.00 - 30.00
  • Previous Close: 28.80
  • Total Traded Volume: 4000
  • Updated On: 14-Dec-2018

Objects of the Godha Cabcon and Insulation Limited IPO:

Objectives of

Godha Cabcon and Insulation Limited IPO

are: 1. To meet the Working Capital Requirements 2. To meet General Corporate Expenses

Godha Cabcon and Insulation Limited IPO Details:

Open Date: Apr 27 2018
Close Date: May 03 2018
Total Shares: 30,00,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Book Built Issue IPO
Issue Size: 9.9 Cr.
Lot Size: 4000 Shares
Issue Price: ₹ 30-33 Per Equity Share
Listing At: NSE Emerge
Listing Date: May 11 2018

Promoters And Management:

Promoters of Godha Cabcon and Insulation Limited Company are: (i) Mr. Dipesh Godha, aged 34 years is young and dynamic person with business experience of more than 10 years is the Promoter, Executive Director & CEO of the company. He is a Commerce Graduated from DAVV University. He has modified machine design to achieve higher production at lower consumption of electricity and manpower mainly based on his experience. He looks after entire management including procurement, production, marketing etc. (ii) Mrs. Madhu Godha, aged 61 years is the Promoter and Executive Director of the Company. She has done her Higher Secondary in 1972. She is having overall experience of 10 years in this sector. (iii) Mrs. Rupali Godha, aged 34 years is the Promoter and Executive Director of the Company. She is a Commerce Graduate from DAVV University, Indore.She has 5 years of experience in various fields. She has contributed for the growth and expansion of the Company.

Capital Structure:

(i) Authorized Share Capital ( 1,25,00,000 shares at FV@10) 12.5 Cr
(ii) Issued, Subscribed,& Paid-up Share Capital Before Issue (81,00,000 Shares at FV@10) 8.1 Cr
(iii) Present Issue (30,00,000 Shares at FV@10) 3 Cr
(iv) Reservation for Market Maker (1,60,000 Shares at FV@10) 16 Lacs
(v) Net Issue to Public (30,00,000-1,60,000=  28,40,000Shares) 2.840 Cr
(vi) QIB & HNI Quota-14,20,000 50%
(vii) Retail Quota- 14,20,000 50%
(viii) Paid Up Share Capital after the issue 11.1 Cr
Average Cost of Acquisition of the Promoters:
Sr.no Name of the promoter No. of shares Average cost of equity shares
1 Mr. Dipesh Godha 2,36,500 29.58
2 Mrs. Rupali Godha 5,000 10
3 Mrs. Madhu Godha 78,58,460 15.05
 

Financials of Godha Cabcon and Insulation Limited IPO:

 1. Balance Sheet Snippet[ Financials as of 31st Oct 2017]
       (i) Shareholders’ Fund[Equity] Value 681.71 Lacs
      (ii) Asset 2660.66 Lacs
      (iii) Liability 1978.95 Lacs
      (iv) Debt/Equity[<1 ideal] 2.90(high debt)
      (v)  Net Worth(Asset- Liability) 681.71 Lacs
     (vi)  RONW(PAT/Net Worth) or ROE 13%
     (vii) Book Value or NAV[ Net Worth/No.of Shares] 12
     (viii) P/B  [<5 ideal] 2.84(reasonable)
2. Profit n Loss Snippet (i) As company is recently incorporated in Oct 2016 ,the Reveune of the first 7 months of FY 2017-18 is shown in DRHP and same is 2123.40 Lacs. (ii) The PAT of the first 7 months of FY 2017-18 is 93.40 Lacs. (iii) The EBITDA Margins of the first 7 months of FY 2017-18 is 23%[Excellent Margins]. (iv) P/B(post issue)= 2.2 (v) Annualized EPS(post issue)= 1.44 (vi)Annualized P/E(post issue)=23 at the cutoff price of 33 3. Cash Flows Statement The company has generated positive cash flows in the first 7 months of FY 2017-18.

Comparison With Peers:

Name of the Company FV EPS PE
Apar Industries Limited 10 47.64 17.17
GODHA CABCON AND INSULATION LIMITED 10 1.44 23

Recommendation on Godha Cabcon and Insulation Limited IPO:

Review and Recommendation of

Godha Cabcon and Insulation Limited IPO

from our side: As very limited history of the company is available, so nothing much can be concluded. However, the company has shown good performance in first 7 months of FY 2017-18. Rating: 4/10. 1-5: Fair 5-7: Good 7-10: Excellent

Lead Manager of Godha Cabcon and Insulation Limited IPO:

  1. Mark Corporate Advisors Private Limited

Registrar of Godha Cabcon and Insulation Limited IPO:

  1. Karvy Computershare Private Limited

Company Address:

Godha Cabcon and Insulation Limited 36-D, Sector B, Sanwer Road, Industrial Area, Indore-452 006, Madhya Pradesh Phone No.: +91 731 4029 509 E-Mail ID: compliance.godhacabcon@gmail.com Website: www.godhacabcon.com

Bid Details of Godha Cabcon and Insulation Limited IPO as on
03-May-2018 18:00:00 IST

Category No.of shares offered No. of shares bid
1,420,000 1,556,000
1,420,000 2,400,000
160,000 160,000
3,000,000 4,116,000
QIBs No
QIBs+HNIs Subscription 1.10X
Retail Subscription 1.69X
Total Subscription 1.39X

Discussion on Godha Cabcon and Insulation Limited IPO:

    Will wait for final Subscription figures. If it Subscribes more than 5X then will apply 1-2 lots.