Iris Clothings Limited IPO
(i) Kolkata based Iris Clothings Limited was incorporated in 2004, Iris Clothings Limited is engaged in the Manufacturing, Designing, Branding, and Selling of Kids Wear under the brand name DoReMe© in India.
(ii) DoReMe© caters to the Kids Wear category mostly juniors including various kinds of apparels and related products for all Infants, Boys, and Girls. They have been able to establish their brand Do Re Me© as a mid-market, comfortable and high-quality junior Kids Wear brand.
(iii) The Company makes different kinds of products like Tops, T-shirts, Pants, Shorts, Frock, Dresses, and Towels among others catering to Kids Wear category. The Company continuously strives to add new product lines and innovate with Designs to be able to appeal to the changing consumer demands.
(iv) As on date Company has an active distribution network of 60+ distributors across cities/states with reach to more than 4,000+ retailers. The Company has always believed in offering high-quality products at an affordable value and the same has helped the brand to develop a strong pull from the end customers and trade partners. The company was among the pioneers to start with printed Maximum Retail Price (MRP) in 2005 when this practice was relatively unknown in the unorganized Kids Wear Market.
Objects of the Iris Clothings Limited IPO:
Iris Clothings Limited IPO Details:
| Open Date: | Oct 10 2018 |
| Close Date: | Oct 12 2018 |
| Total Shares: | 1,230,400 |
| Face Value: | ₹ 10 Per Equity Share |
| Issue Type: | Fixed Price Issue IPO |
| Issue Size: | 11.07 Cr. |
| Lot Size: | 1600 Shares |
| Issue Price: | ₹ 90 Per Equity Share |
| Listing At: | NSE Emerge |
| Listing Date: | Oct 23 2018 |
Promoters And Management:
Financials of Iris Clothings Limited IPO:
| Particulars | For the year/period ended (in Rs Lacs) | ||||
| 31-Mar-2018 | 31-Mar-17 | 31-Mar-16 | 31-Mar-15 | 31-Mar-14 | |
| Total Assets | 3,978.58 | 3,182.40 | 2,661.01 | 2,968.46 | 2,893.88 |
| Total Revenue | 5,310.12 | 4,689.14 | 3,699.20 | 3,009.49 | 2,498.51 |
| Profit After Tax | 337.90 | 159.73 | 64.61 | 24.23 | 68.08 |
Comparison With Peers:
| Company | FV | Mcap(cr) | EV(cr) | EPS | P/E | Adj. P/E | RONW | Mcap/sales |
| IRIS Clothing | 10 | 42 | 61.87 | 7.22 | 12.5 | 18.42 | 13.5% | 0.79 |
| S P Apparel | 10 | 611 | 759 | 19 | 12.78 | 15.84 | 11.30% | 0.95 |
| Ashapura Intimates Fashion | 10 | 344 | 451 | 31 | 5.77 | 7.47 | 27.00% | 0.90 |
| Indian Terrain | 2 | 477 | 465 | 6.71 | 18.63 | 18.18 | 12.00% | 1.18 |
Recommendation on Iris Clothings Limited IPO:
Lead Manager of Iris Clothings Limited IPO:
Registrar of Iris Clothings Limited IPO:
Company Address:
Bid Details of Iris Clothings Limited IPO as on
12-Oct-2018 17:00:00 IST
| Category | No.of shares offered | No. of shares bid |
|---|---|---|
| 584,000 | 1,176,000 | |
| 584,000 | 156,800 | |
| 62,400 | 62,400 | |
| 1,230,400 | 1,395,200 |
| QIBs | No |
| QIBs+HNIs Subscription | 2.01X |
| Retail Subscription | 0.27X |
| Total Subscription | 1.14X |
Discussion on Iris Clothings Limited IPO:
9 Comments
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Textile sector and bad track of lead manager and hence a avoid for me
Completely agree with you tarun jii.
The Revenue and PAT growth shown by the company in the last 5 years is excellent.
Revenue Growth= 20%
PAT Growth= 49%
However, the weak balance sheet overshadows all the good work done by a company in term of Sales growth. Once the position of the balance sheet improves this can look for investment purpose.
In terms of EV/EBITDA based on FY18 numbers, the value is above 10 which is again high.
The Average EPS of the last three years.
2016= 2.46
2017= 6.07
2018= 7.22( Post IPO Dilution)
Average EPS= 5.25
P/E= 17.14
In many forums/websites, you will find the P/E to below 10. They have actually calculated considering Q1FY19 numbers and then Annualized it. This formula works fine but to be on the safer side we should always calculate EPS by considering the last 3 years Average EPS because many times just before the IPO lot of manipulation done in financials.
Balance Sheet Diagnosis based on FY18 Financials
1. D/E=~2( High).
2. Current Ratio=24/23=1.04 ( Not comfortable).Should be at least greater than 1.5.
3. Quick Ratio= 13/23= .56 ( Not comfortable).Should be at least greater than 1.
4. Long-term Debt/Working Capital= 6( Not comfortable).Should be at less than 1.
Conclusion: The Company’s Balance Sheet is in very poor shape.
(i) Shares Issued before the Issue- 34,30,779 Equity Shares.
(ii) Present Issue= 12,30,400 Equity Shares.
(iii) Total Shares after the Issue= 46.61,179
*Ultra Wiring Connectivity System* is coming with an SME IPO on NSE Emerge Platform.
The company is engaged in the business of manufacturing of Couplers, Connectors and allied products for automobiles. The Company has Manufacturing Plant situated near Delhi at HSIDC Industrial Area, Faridabad.
Issue Details:
Issue Opening: October 12, 2018
Issue Closing: October 17, 2018
Issue Price: Rs. 35 per equity share
Lot size: 4000 Equity shares
*Apparent Advisors LLP* is acting as sole advisors for this IPO on NSE Emerge Platform.