Le Merite Exports Limited IPO
(i) Le Merite Exports is an ISO 9001:2015 certified company engaged in manufacturing and trading of textile products namely cotton yarn, greige fabric and finished fabric for domestic and export sales. We deal in diversified product portfolio with capability to supply compact cotton yarn varying from counts NE 16/1 to NE 32/1 & NE 16/2 to NE 32/2 combed carded & double yarn that are used in various forms and for varied end uses.
(ii) The Company have incorporated two (2) subsidiary companies for diversification into noncotton yarn products.
a) Le Merite Filament Private Limited
The Company holds 51% of the equity capital of Le Merite Filament Private Limited incorporated on October 08, 2021, to diversify into business of trading in polyester yarn, viscose yarn, synthetic fibers, staple fibers, worsted yarn, lycra yarn and such other varieties whether texturized, twisted, sized, dyed or otherwise and other such kinds of fiber. Le Merite Filament Private Limited is yet to start its business activities.
b) Le Merite Laxmi Spinning Private Limited
The Company holds 51% of the equity capital of Le Merite Laxmi Spinning Private Limited incorporated on December 15, 2021, to diversify into business of trading in polyester yarn, viscose yarn, synthetic fibers, staple fibers, worsted yarn, lycra yarn and such other varieties whether texturized, twisted, sized, dyed or otherwise and other such kinds of fiber. Le Merite Laxmi Spinning Private Limited is yet to start its business activities.
(iii) Le Merite business is divided into three separate yarn business verticals, consisting of a) manufacturing of yarn, b) trading of yarn, and c) trading of greige and finished fabrics.
42% they earn from manufacturing, 44% they earn from trading of yarn and 14% they earn from Trading of Greige and Finished Fabrics.
(iv) Competitive Strengths:
a) Experienced management team with a proven track record and dedicated employee base.
b) Low Capex operational model.
c) Long standing association with low customer concentration.
d) Deep knowledge and understanding of optimal product assortment.
e) Strong supplier network.
f) Diversification into Organic and Sustainable Eco-Friendly Textiles.
(v) 86% of the revenue of the company comes from Exports. And, out of that 70% export goes to China, Bangladesh, Turkey and Iran.
Objects of the Le Merite Exports Limited IPO:
Le Merite Exports Limited IPO Details:
|Open Date:||Apr 25 2022|
|Close Date:||Apr 28 2022|
|Face Value:||₹ 10 Per Equity Share|
|Issue Type:||Fixed Price Issue IPO|
|Issue Size:||48 Cr.|
|Lot Size:||1600 Shares|
|Issue Price:||₹ 75 Per Equity Share|
|Listing At:||NSE Emerge|
|Listing Date:||May 09 2022|
Promoters And Management:
Financials of Le Merite Exports Limited IPO:
|Particulars (in Lakhs)||March-21||March-20||Mar 19|
|Purchase of Stock in Trade||24,384.33||19,656.02||16,347.34|
|Changes in inventories||-734.69||47.34||220.97|
|Employee Benefit Expenses||277.29||248.09||173.9|
|Profit Before tax||936.33||431.06||160.25|
|Profit After Tax||705.65||314.60||112.83|
Comparison With Peers:
|Name of the company||CMP||EPS||P/E||RONW (%)|
|Le Merite Exports Limited||75||2.85||26.31||28.99|
|Ambika Cotton Mills Ltd (standalone)||2315||118||19.62||16.00%|
|Pashupati Cotspin Ltd. (standalone)||130||3.8||34.2||7.10%|
|Shiva Texyarn Ltd. (standalone)||229||9.47||27.88||9.93%|
|Sambandam Spinning Mills Ltd||251||19||13.211||7.90%|
|KPR Mills Ltd.||655||14.98||43.72496662||21.92%|