Jinaam’s Dress Limited IPO

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(i) Jinaam’s Dress Limited is one of the manufacturers of Indian ethnic and fusion wear for women. They design, manufacture, and market-wide portfolio of women’s apparels across multiple brands. They sell their products through the distribution network spread across around 19 states and 4 union territories in India. They operate a retail store for women’s apparel located at The Gateway Hotel, Surat, Gujarat. They also have an exclusive tie up with e-commerce platform www.manndola.com, owned by one of the Group Company, for marketing and selling of the products.

(ii) They have an installed manufacturing capacity of 5,00,000 mtrs/month for dress materials. The manufacturing process starts with processing of procured grey fabrics, dying, printing, embroidery, cutting, stitching, sewing, finishing, inspection and packing of the final products.

(iii)  The distribution channel currently covers states of Gujarat, Punjab, Delhi, Haryana, Jammu & Kashmir, Maharashtra, Karnataka, West Bengal, Madhya Pradesh, Kerala, Telangana, and Uttar Pradesh. They also cater international market in countries such as the United Kingdom, Dubai, Nepal, Pakistan, Afghanistan, and Mauritius directly or through merchant exporters and bulk fabric dealers.

(iv) Products

They offer a wide range of Indian ethnic and fusion wear for woman which includes ‘lehenga-choli’, ‘kurti’, ‘dupatta’, scarfs and ‘sarees’ of various fabrics such as satin, georgette, crepe, chiffon, velvet, polyester, cotton, silk, wool etc. that caters to a wide variety of the wardrobe requirements of the Indian woman, including every-day wear, casual wear, work wear, evening wear, party wear and occasion-wear at various price range.

The current brand portfolio includes “JINAAM’.”, “FLORAL CREATION”, “ROMA”, “ASMIRA”, “HEROINE”, “BAHNI”, “ZAREEN”, “TIARAA” and “FORMM”.

During FY 2017-18 we have introduced around 134 product catalogues each of which comprises an average of around 8-10 designs.

Objects of the Jinaam’s Dress Limited IPO:

1) Purchase of Machinery 2) Augmenting the long term working capital requirements of our Company 3) Repayment of certain debt facilities availed by our Company 4) General corporate purposes 5) To meet the Issue related expenses

Jinaam’s Dress Limited IPO Details:

Open Date: Apr 09 2019
Close Date: Apr 15 2019
Total Shares: 7,200,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price IPO
Issue Size: 42.48 Cr.
Lot Size: 2000 Shares
Issue Price: ₹ 59 Per Equity Share
Listing At: BSE SME
Listing Date: Apr 25 2019

Promoters And Management:

The Company is promoted by Rahul Hemraj Oswal, Vishal Hemraj Oswal and Pritam Hemraj Oswal, who are all well experienced in the textile and fashion industry.

Financials of Jinaam’s Dress Limited IPO:

Particulars(lakh) 2016 2017 2018 8MFY19 Post Issue
Balance Sheet Item
Share Capital 1000 1000 1400 1485.8 2228.2
FV 10 10 10 10 10
Net Worth 2013 2301 3083 4100 6585
Book Value 20.13 23.01 22.02 27.59 29.553
Long-Term Debt 1579.00 1616.00 2421.00 2581.00 2581
Short-Term Debt 2976.00 3013.00 3110.00 3298.00 2798
D/E 2.26 2.01 1.79 1.43 0.82
P/L Items
Revenue 13649.00 13501.00 15424.00 9523.00 NA
EBITDA 1080 1223 2007 1129
EBITDA Margins 7.9% 9.1% 13.0% 11.9%
Profit 213 287 782 416
PAT Margins 1.56% 2.13% 5.07% 4.37%
EPS 0.96 1.29 3.51 1.87 2.49
Key Ratios and Valuation
RONW 10.6% 12.5% 25.4% 10.1% 8.4%
P/E 23.69
P/B 2.00
Mcap 131 Cr
Mcap/Sales 1.040
EV 182 Cr

Comparison With Peers:

The company has shown TCNS as a listed peer in the market which is currently trading at P/E of 50 on FY18 Earnings. However, both the companies having a different working style of business so strict comparison cannot be done. TCNS is also a debt-free company.

Recommendation on Jinaam’s Dress Limited IPO:

Review and Recommendation of Jinaam's Dress Limited IPO from IZ team are 3/10. [ The issue looks fully priced at P/E of 23. The sudden jump in FY18 is surprising just before the IPO. The company has issued shares in Pre-IPO at Rs.70. ]

Lead Manager of Jinaam’s Dress Limited IPO:

  1. SMC Capitals Limited

Registrar of Jinaam’s Dress Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Jinaam House Limited Plot No-524, Road No - 5,Sachin GIDC, Surat - 394230, Gujarat - India.

Discussion on Jinaam’s Dress Limited IPO:


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