Jakharia Fabric Limited IPO
(i) The Jakharia group is into the business of textiles since 1987, It started the business with manufacturing of fabrics on power looms working on all types of fabric qualities in cotton and synthetic base as per the market demands, later the group came up with a plant of yarn dyeing only for cellulose fibers in Bhiwandi, wherein they do the work for the reputed brands .
(ii) The company is engaged in the business of dying and processing of fabrics on job work basis for other textile companies as well as for own manufacturing product lines. The Company procures Grey Fabric from the market and further dyes and finishes the same as per the client’s requirements on the basis of the quality of the fabric, sizing requirements etc. The Company also outsources certain processes like the weaving of the fabric and printing as per the demand of the customers based on the quality required. The Company manufactures and processes the fabric specially suitable for Shirtings.
(iii) The Company has set-up two (2) processing units located at MIDC Area of Saravali, Bhiwandi in Maharashtra and MIDC Area of Tarapur, Bhiwandi in Maharashtra. The plant has the facilities for dyeing and processing wide range of fabrics.
(iv) The Company Revenue from operations for the FY17, FY16 and FY15 were 74.79 Cr, 76.76 Cr, and 88.47 Cr respectively. The Net Profit after tax for the above mentioned periods i.e. in the last 3 years was 3.38 Cr in FY17, 4.467 Cr in FY16 and 4.32 Cr in FY15. The Revenue from operations for nine months period ending December 31, 2017, was 53.48 Cr and the net profit after tax was 1.89 Cr. This shows that the company has inconsistency both in Top-line and Bottom-line in last 3 years which does not augur well for any company.
Objects of the Jakharia Fabric Limited IPO:
Jakharia Fabric Limited IPO
are: 1. Part finance the setting up of processing unit through M/s. Jakharia Industries at Tarapur, MIDC. 2. Funding Expenditure for General Corporate PurposesJakharia Fabric Limited IPO Details:
| Open Date: | Jun 29 2018 |
| Close Date: | Jul 03 2018 |
| Total Shares: | 1,092,000 |
| Face Value: | ₹ 10 Per Equity Share |
| Issue Type: | Fixed Price Issue IPO |
| Issue Size: | 19.6560 Cr. |
| Lot Size: | 800 Shares |
| Issue Price: | ₹ 180 Per Equity Share |
| Listing At: | NSE Emerge |
| Listing Date: | Jul 11 2018 |
Promoters And Management:
Financials of Jakharia Fabric Limited IPO:
| Particulars | For the year/period ended (in Rs. Lacs) | ||||
| 31-Dec-2017 | 31-Mar-17 | 31-Mar-16 | 31-Mar-15 | 31-Mar-14 | |
| Total Assets | 6,070.27 | 5,843.80 | 5,954.17 | 5,044.23 | 4,468.05 |
| Total Revenue | 5,376.25 | 7,702.84 | 7,723.49 | 8,917.25 | 7,582.72 |
| Profit After Tax | 189.12 | 338.82 | 446.17 | 432.86 | 356.66 |
Recommendation on Jakharia Fabric Limited IPO:
Lead Manager of Jakharia Fabric Limited IPO:
Registrar of Jakharia Fabric Limited IPO:
Company Address:
Bid Details of Jakharia Fabric Limited IPO as on
03-Jul-2018 17:00:00 IST
| Category | No.of shares offered | No. of shares bid |
|---|---|---|
| 516,000 | 949,600 | |
| 516,000 | 307,200 | |
| 60,000 | 60,000 | |
| 1,092,000 | 1,316,800 |
| QIBs | Yes |
| QIBs+HNIs Subscription | 1.84X |
| Retail Subscription | 0.60X |
| Total Subscription | 1.22X |
Discussion on Jakharia Fabric Limited IPO:
4 Comments
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The issue is fully price at P/E of 30.
Poor record of LM in the past. same can be checked at this link https://investorzone.in/lead-manager/aryaman-financial-services-limited/.
Another Textile Company hitting the primary market. We all know the fate of recently listed Akshar Spintex. The issue price was 40 and now trading at 28. So looking at the market condition there is no harm to give a miss to this issue.
As per new SEBI guidelines, the Minimum size of anchor investor has been reduced from 10 cr to 2 cr in SME IPOs. This will lead to more participants in pre-IPO placement. This is a good move as generally the issue size of SME IPOs ranges from 5 Cr to 70 Cr.