Hindcon Chemicals Limited IPO

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Hindcon Chemicals Limited IPO Stock Quote & Charts

18.00

+5.88%

  • Open: 18.00
  • High - Low: 18.00 - 18.00
  • Previous Close: 17.00
  • Total Traded Volume: 4000
  • Updated On: 02-Nov-2018

Objects of the Hindcon Chemicals Limited IPO:

1.To Meet Working Capital Requirement. 2.To meet General Corporate Expenses 3.To meet Issue Expenses

Hindcon Chemicals Limited IPO Details:

Open Date: Feb 26 2018
Close Date: Feb 28 2018
Total Shares: 2760000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Issue
Issue Size: 7.728 Cr.
Lot Size: 4000 Shares
Issue Price: ₹ 28 Per Equity Share
Listing At: NSE Emerge
Listing Date: Mar 09 2018

Promoters And Management:

1.Mr. Sanjay Goenka is the Managing Director and Promoter of the Company. Completed his first year Bachelor of Commerce from University of Calcutta. Joined the Company as Director in the year 1999. Over 25 years of experience in business of construction chemicals/cement additives. Has been awarded with “National Award – 2010” in the year 2011 from Ministry of Micro, Small & Medium Enterprises for Outstanding Entrepreneurship. A visionary entrepreneur who is well versed with construction chemicals industry. 2.Mrs. Nilima Goenka is the Executive Director and Promoter of the Company. She has completed her matriculation in 1986.She is one of the subscribers of MOA and has been on company board since incorporation to 2012, and rejoined the Board as Executive Director from June’17. She has over 20 years of experience in Administration and HR Management. She is entrusted with the responsibility to oversee administration and HR functions.

Company Business:

The Company’s manufacturing facility is based at Howrah, West Bengal and Company primarily engaged in the manufacturing of construction chemicals such as Waterproofing additives, Plasticizers, Concreting Aids, Sealant Products etc., which finds their applications mainly in Construction Sector. Consequently, the business of the company is dependent on the performance of the construction and infrastructure industry. The revenues are significantly dependent on sales of single product i.e. sodium silicate and over the years, such sales have emerged as the largest single contributor to companies revenue and business. In F.Y. 2016-17, revenue from sale of sodium silicate accounted for 72.69% of total revenue for such year. For the year ended March 31, 2017 Company’s top ten customers cumulatively accounted for approximately 61.05% of total revenue from operations as per restated financial statements. Major Clientele (Top 10 clients )
Name of the Amount (` in Lacs) Clients As % of total turnover
Jaiprakash Associates Limited 421.06 12.40
Bengal Traders Private Limited 299.92 8.84
Gammon India Limited 261.65 7.71
H. C. C Ltd. 226.34 6.67
Dinesh Chandra R Agarawal Infracon Pvt Ltd 195.7 5.77
Larsen & Toubro Limited 169.49 4.99
BGR Energy Systems Ltd. 153.25 4.51
Ashwin International Pvt Ltd 139.6 4.11
Chetak Enterprises Ltd 118.24 3.48
SSNR Projects Private Limited 86.44 2.55
Patel Engineering Limited 52.32 1.54
SEW Infrastructure limited 7.74 0.23
TOTAL 2132.41 62.82%
 

Capital Structure:

Authorized Share Capital (1,10,00,000 Equity Shares @FV=10) 1100 lakh
Issued, Subscribed,& Paid-up Share Capital Before Issue (  74,78,125 Equity Shares @FV=10) 747.81 lakh
Present Issue (27,60,000 Equity Shares@FV=10) 276 lakh
Reservation for Market Maker (1,44,000 Equity Shares @FV=10) 14.4 lakh  
Net Issue to Public (27,60,000-1,44,000)= 26,16,000 261.60 lakh
Retail Quota(<2 Lkah) 13,08,000 shares
HNI & QIB Quota(>2 Lakh) 13,08,000 shares
Paid Up Capital after the issue 1023.81 lakh
Average Cost of acquisition by the promoters
Sr.no Name of the Promoter No. of shares held Average price of Acquisition
1 Mr. Sanjay Goenka 15,22,500 2.69
2 Mrs. Nilima Goenka 13,28,500 .97
 

Financials of Hindcon Chemicals Limited IPO:

1. Balance Sheet Snippet[ All Calculations are for FY 16-17] (i) Shareholders’ Fund[Equity] Value =1525.53 Lakh (ii) Asset= 2604.09 Lakh (iii) Liability = 1078.56 Lakh (iv) Debt/Equity =0.71 (v) RONW(%)= 14% 2. Profit n Loss Snippet[ All Calculations are upto Mar 17] (i) Revenue of last 5 years is growing at approx. CAGR of 2.63%. The revenue is almost flat in the last 5 years. (ii) PAT of last 5 years is growing at a CAGR of 64%(Excellent). The company has shown big spike in profit in the year ended March'17 on flat Topline is surprising. (iii) Weighted EPS of last 3 years= 3.61 (iv) P/E=7.75(looks reasonably price) at the price of 28. 3. Cash Flow Statement The company has slight hiccup in the year 2013 and 2015 where they have generated negative cash flows otherwise company has generated positive cash flow.

Comparison With Peers:

Peers FV EPS PE
Pidilite Industries Limited 1 17.07 51.85
BASF India Limited 10 51.03 41.11
Gillanders Arbuthnot & Company Limited 10 2.36 31.78
Hindcon Chemicals Limited2 10 5.46 10.17

Recommendation on Hindcon Chemicals Limited IPO:

Recommended.

Lead Manager of Hindcon Chemicals Limited IPO:

  1. Hem Securities Limited

Registrar of Hindcon Chemicals Limited IPO:

  1. Link Intime India Private Limited

Company Address:

Hindcon Chemicals Limited 62/B, Braunfeld Row, 1st Floor, Kolkata Phone: 033-24490835/39 Fax: +91-033-24490849 Email: contactus@hindcon.com, Website: http://www.hindcon.com

25th Sep 2018 - 27th Sep 2018 => Aavas Financiers IPO

Discussion on Hindcon Chemicals Limited IPO: