Mahickra Chemicals Limited IPO

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Mahickra Chemicals Limited IPO

Mahickra Chemicals Limited is engaged in the business of manufacturing and trading of Reactive Dyes. The company manufactures 40 various types of Reactive Dyes. The products of the company cater to textiles & garments manufacturers. It also offers specialty performance chemicals to the Textile Dyeing and printing industry.
Mahickra has a production capacity of approx. 900 tons per annum. The manufacturing facility of the company is situated at Vatva GIDC in Gujarat. The facility is spread over 2 storeyed 700 sq. meters in area. It is an ISO 9001:2015, ISO 14001:2015 and GOTS certified company. The company had 18 employees on its payroll as on 31st January 2018.

Mahickra Chemicals Limited IPO Stock Quote & Charts

50.00

-2.91%

  • Open: 50.00
  • High - Low: 51.80 - 48.80
  • Previous Close: 51.50
  • Total Traded Volume: 42000
  • Updated On: 14-Aug-2018

Objects of the Mahickra Chemicals Limited IPO:

Objective of

Mahickra Chemicals Limited IPO

are: 1. Funding the working capital requirements of the Company; 2. General Corporate Purposes

Mahickra Chemicals Limited IPO Details:

Open Date: Apr 16 2018
Close Date: Apr 18 2018
Total Shares: 2,100,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Book Built Issue IPO
Issue Size: 5.25 Cr.
Lot Size: 6000 Shares
Issue Price: ₹ 24-25 Per Equity Share
Listing At: NSE Emerge
Listing Date: Apr 26 2018

Promoters And Management:

Promoters of Mahickra Chemicals Limited Company are:

(i) Miteshkumar Champaklal Gandhi, aged 46 years, is Promoter, Chairman & Managing Director of our company. He has been an Executive Director of the Company from November 13, 2017 and thereafter has been designated as Chairman of the Company from December 18, 2017 and as Managing Director of the Company from December 20, 2017. He holds a Bachelor’s degree in n Engineering in chemical branch from Gujarat University and has a rather knowledge in chemical industry and is presently looking after sales, Page 150 of 327 marketing, production and quality control department in company. He is guiding force behind all the corporate decisions of the company.

(ii) Ashishkumar Champaklal Gandhi, aged 45 years, is the Promoter & Whole Time Director of our Company. He has been an Executive Director of the Company from November 13, 2017 and thereafter has been designated Whole-time Director of the Company from December 20, 2017. He holds a Bachelor’s degree in Engineering in electrical branch from Sardar Patel University, Gujarat. He currently looks after finance, exports, administration and accounting department in the company. (iii) Komal Mitesh Gandhi, aged 45 years, is the Promoter & Whole Time Director of our Company. She has been an Executive Director of the Company from November 13, 2017 and thereafter has been designated Whole-time Director of the Company from January 02, 2018. She holds Diploma in Banking from Technical Examination Board, Gujarat and also holds Bachelor’s degree in Commerce from Gujarat University

Capital Structure:

(i) Authorized Share Capital ( 80,00,000 shares at FV@10) 8 cr
(ii) Issued, Subscribed,& Paid-up Share Capital Before Issue (51,34,160   Shares at FV@10) 5.1341 cr
(iii) Present Issue (21,00,000 Shares at FV@10) 2.1 cr
(iv) Reservation for Market Maker (1,08,000 Shares at FV@10) 10.80 lac
(v) Net Issue to Public (21,00,000-1,08,000=  19,92,000Shares) 1.992 cr
(vi) QIB & HNI Quota-9,96,000 50%
(vii) Retail Quota- 9,96,000 50%
(viii) Paid Up Share Capital after the issue 7.4141 cr

Financials of Mahickra Chemicals Limited IPO as per DRHP:

 1. Balance Sheet Snippet[ Financials as on Dec 2017]
       (i) Shareholders’ Fund[Equity] Value 659.37 lakhs
      (ii) Asset 3028.02 lakhs
      (iii) Liability 2368.62 lakhs
      (iv) Debt/Equity[<1 ideal] 3.59(high)
      (v)  Net Worth(Asset- Liability) 659.37 lakhs
     (vi)  RONW(PAT/Net Worth) 5.43%(low)
     (vii) P/B(post issue)[<5 ideal] 2.74(reasonable)
2.  Profit n Loss Snippet (i) The Revenue of the company in last 4 years is growing at CAGR of 21.61%(Excellent). (ii) The PAT of the company is last 4 years is growing at CAGR of 39.51%(Excellent). (iii)The EBITDA Margins of last 5 years are: 3.35%(FY13),1.89%(FY14), 2.45%(FY15), 2.82%(FY16) and 3%(FY17). EBITDA margins of the company are very low. (iv) Annualized EPS(post issue)=  .67 (v)  Annualized P/E(post issue)=37 (aggressively priced )at the cutoff price of 25.
3. Cash Flow Statement(all figures in lakhs)
Particulars FY17 FY16 FY15 FY14 FY13
(i) Net Cash Generated from Operation -19.8 7.67 73.46 -172.34 21.05
(ii) Net Cash Generated from Investment -7.77 -8.46 -17.59 -8.85 0.12
(iii) Net Cash Generated from Financing Activity 45.66 -6.63 21.4 180.78 -21.3
(iv) Total[ (i)+(ii)+(iii) ] 18.09 -7.42 77.27 -0.41 -0.13
(v) Cash and Cash Equivalents at the Beginning of the Year 70.13 77.56 0.28 0.69 0.82
(vi) Cash and Cash Equivalents at the end of the Year 88.22 70.14 77.55 0.28 0.69

Comparison With Peers:

Sr.No Name of the Company FV EPS PE RONW(%)
1 Mahickra Chemicals Limited 10 0.67 37 5
2 Aksharchem (India) Limited 10 71 8.74 38.79
3 Kiri Industries Limited 10 34.2 15.02 35.33
4 Camex Limited 10 1.59 25.38 6.7
5 Meghmani Organics Limited 1 1.63 59.17 6.56

Recommendation on Mahickra Chemicals Limited IPO:

Review and Recommendation of

Mahickra Chemicals Limited IPO

from our side is:
The issue is aggressively priced at issue price of 25 and EBITDA margins of the company are very low.
Rating: 4/10. 1-5: Fair 5-7: Good 7-10: Excellent

Lead Manager of Mahickra Chemicals Limited IPO:

  1. Pantomath Capital Advisors Private Limited

Registrar of Mahickra Chemicals Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Mahickra Chemicals Limited Plot No. 1209, Phase-3 GIDC Vatva Ahmedabad-382445 Phone: 079-25890811/25832692 Email: info@mahickra.com Website: www.mahickra.com

Bid Details of Mahickra Chemicals Limited IPO as on
18-Apr-2018 18:00:00 IST

Category No.of shares offered No. of shares bid
1,050,000 22,374,000
1,050,000 33,636,000
- -
2,100,000 56,010,000
QIBs Yes
QIBs+HNIs Subscription 21.26X
Retail Subscription 32.03X
Total Subscription 26.67X

Discussion on Mahickra Chemicals Limited IPO: