HindPrakash Industries Ltd IPO

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(i) The  Company is engaged in the manufacturing and trading of Dyes, Auxiliaries, Intermediates, and Chemicals.

(ii) They started their manufacturing unit in the year 2008 to produce Disperse Dyes, Reactive Dyes and Textile auxiliaries for catering to the needs of the domestic textile industry. The Company has achieved steady growth in productivity and has expanded its range of products from dyes to auxiliaries to specialty chemicals.

(iii) The Company is located at Vatva i.e. in the heart of Gujarat Industrial Development Corporation, an Industrial Estate for manufacturing, blending and formulation of dyes, auxiliaries & intermediaries. The Estate has a common effluent treatment plant of which most of the units in the estate are members apart from having their own environmental treatment facilities.

InvestorZone Take:

The Textile sector in India is going through a tough time due to increased competition from Bangladesh and unfavorable conditions for business. So ancillary companies like Dye making will also face problems.

Objects of the HindPrakash Industries Ltd IPO:

The company is looking to raise 11.52 Crores from the IPO for the following purpose: (i) To Meet Working Capital Requirements; (ii) General Corporate Purpose (iii) To Meet the Issue Expenses.

HindPrakash Industries Ltd IPO Details:

Open Date: Jan 15 2020
Close Date: Jan 17 2020
Total Shares: 2,880,000
Face Value: ₹ 10 Per Equity Share
Issue Type: fixed type
Issue Size: 11.52 Cr.
Lot Size: 3000 Shares
Issue Price: ₹ 40 Per Equity Share
Listing At: NSE Emerge
Listing Date: Jan 27 2020

Promoters And Management:

The Company is promoted by Mr. Sanjay Prakash Mangal, Mr. Om Prakash Mangal, and Mr. Santosh Narayan Nambiar.

Financials of HindPrakash Industries Ltd IPO:

( Fig. in Crores )
Year Revenue EBITDA OPM PAT NPM Equity EPS
2017 86 5 6% 2.14 2% 2.15 9.95
2018 87 5 6% 2.31 3% 2.15 10.7
2019 97 5 5% 2.83 3% 7.5441 3.8
6MFY20 50 3 6% 1.77 4% 7.5441 2.3
1. The company has shown only 11% growth in the last 3 years in revenue. 2. The PAT is almost flat. 3. ROE post-issue stands at 10%, which is average. 4. The D/E post-issue shares at 0.39 which is good, 5. The company has a negative cash flow in the year FY19.

Recommendation on HindPrakash Industries Ltd IPO:

Review and Recommendation of InvestorZone is: 3/10 [ The financial performance is weak. The company has timid growth, poor ROE, negative cash flows, and moreover, with the sector to which the company makes products is going through tough times. ]

Lead Manager of HindPrakash Industries Ltd IPO:

  1. Hem Securities Limited

Registrar of HindPrakash Industries Ltd IPO:

  1. Bigshare Services Private Limited

Discussion on HindPrakash Industries Ltd IPO:

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