Mangalam Global Enterprise Limited IPO

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(i) Incorporated in the year 2010, the Company Mangalam Global Enterprise Limited belongs to Ahmedabad based Mangalam group of Companies set up by the Mangal Family and led by the vision of Mr. Vipin Prakash Mangal.

(ii) They are mainly engaged in the business of manufacturing of Refined Castor Oil First Stage Grade (F.S.G.)Castor De-Oiled Cake and High Protein Castor De-Oiled Cake for the domestic market as well as for exports to international markets. They have also diversified their business operations into the manufacturing of Cotton Bales (Lint Cotton) and Delineate Cotton Seeds.

(iii) They have started manufacturing from 2018-19 onwards, prior to that were into the trading business. The Company has one cotton processing unit at Harij, Gujarat and two well-equipped Castor processing units at Harij and Palanpur, Gujarat respectively for undertaking manufacturing operations of the above mentioned two product segments. They are also engaged in the trading of Castor Seeds and Raw Cotton.

(iv) The company has marked its presence in both domestic as well as global markets. They supply products in states such as Gujarat, Rajasthan, Delhi, Maharashtra, and West Bengal and to countries such as Thailand, Oman.

(v) They have 51% holding in Hindprakash Castor Derivatives Private Limited (HCDPL) and Farpoint Enterprise LLP (Farpoint), thus making them as  subsidiary Companies.

HCDPL is engaged in the business of manufacturing of castor oil, castor oil derivatives, edible and non-edible oils, oilseeds, oil cakes, kernels and by-products and trading of chemicals, dyes, dyestuff, color chemicals & intermediates.

Farpoint is engaged in the business of manufacturing and trading of all types of articles, goods and commodities.

They have recently started a separate business unit in Singapore by incorporating a Wholly Owned Subsidiary – Mangalprakash (Singapore) PTE. Limited. It is engaged in the business of Whole Sale Trading of Goods.

Mangalam Global Enterprise Limited IPO Stock Quote & Charts

51.50

-0.96%

  • Open: 52.20
  • High - Low: 52.20 - 51.50
  • Previous Close: 52.00
  • Total Traded Volume: 24000
  • Updated On: 12-Dec-2019

Objects of the Mangalam Global Enterprise Limited IPO:

The company intends to utilize the Net Proceeds of the Issue (Issue proceeds less the issue expenses) towards the following Objects: a) Funding the working capital requirements of our Company= 17 cr b) General Corporate Purposes = 4.10 cr

Mangalam Global Enterprise Limited IPO Details:

Open Date: Nov 15 2019
Close Date: Nov 20 2019
Total Shares: 4,230,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed price Issue
Issue Size: 21.57 Cr.
Lot Size: 2000 Shares
Issue Price: ₹ 51 Per Equity Share
Listing At: NSE Emerge
Listing Date: Nov 28 2019

Financials of Mangalam Global Enterprise Limited IPO:

Particulars For the year/period ended (in Rs. Lakhs)
30-Jun-19 31-Mar-19 31-Mar-18 31-Mar-17
Total Revenue 14,649.93 38,995.21 2,689.83 268.71
Profit After Tax 99.60 244.95 25.89 9.41
IZ View 1. The sudden increase in revenue from 26 cr in FY17-18 to 389 cr in FY18-19 is a cause of concern. 2. The company has debt of ~73 cr on books as on 30.06.2019 and Net-Worth Post IPO would be close to 55 cr. The Debt/Equity Post-IPO would be 1.32 which is high. 3. The company has poor ROE of 6% in FY18-19. 4. The company has a PAT of 2.2 cr in FY18-19. The total shares post-issue would be ~1.60 cr. The EPS based on this is 1.37. The issue price is 51. So P/E multiple based on FY18-19 earnings stands at 37x. This is highly over-valued.

Comparison With Peers:

The company has shown Gokul Agro Resources and Jayant Agro Organics as its listed peers. They are currently trading at a P/E of 25.4 and 10.4.

Recommendation on Mangalam Global Enterprise Limited IPO:

Review and Recommendation of InvestorZone is: 2/10  

Lead Manager of Mangalam Global Enterprise Limited IPO:

  1. Pantomath Capital Advisors Private Limited

Registrar of Mangalam Global Enterprise Limited IPO:

  1. Link Intime India Private Limited

Company Address:

Registered Office: 101, Mangalam Corporate House, 19/B Kalyan Society Near M.G. International School, Mithakhali Ahmedabad -380006, Gujarat, India

Bid Details of Mangalam Global Enterprise Limited IPO as on
20-Nov-2019 18:00:00 IST

Category No.of shares offered No. of shares bid
2,009,000 4,194,000
2,009,000 952,000
212,000 212,000
4,230,000 5,358,000
QIBs No
QIBs+HNIs Subscription 2.09X
Retail Subscription 0.47X
Total Subscription 1.28X

Discussion on Mangalam Global Enterprise Limited IPO:

    The company has issued 2,00,000 equity shares of Rs. 10 each fully paid at a premium of Rs. 18 per equity
    share on October 16, 2019.

    The major raw materials used in the manufacturing operations are Castor Seeds and Raw Cotton. Due to the seasonal availability of these two items, the business is seasonal in nature. The company has a high volume and low margin business.

    The Company was originally incorporated in the year 2010.

    The Company was converted into a Public Limited Company on September 30, 2019.

    However, they have started commercial manufacturing activities for Refined Castor Oil and Cotton Bales and Cotton Seeds in the year 2018 only.

    Previously, they were engaged in the trading business before starting the commercial manufacturing of our abovementioned products.