Marvel Decor Limited IPO

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Background of the Company

(i) Our Company was incorporated as Modele Blinds and Components Private Limited in October 1996 with Mr.Ashok Ramniklal Paun, Mr. Dipak Paun, Ms. Minal Mayank Gandhi and Ms. Rashmi Ajay Bhargava as initial subscribers holding 100 shares each. Our Promoters Ashok Ramniklal Paun and Mr. Dipak Paun, were meanwhile conducting business in the name of Accumax Industries, a partnership firm, manufacturing accessories for blinds.

(ii) In the year 2000-2001, our Promoters Mr. Ashok Paun and Mr. Dipak Paun took over the command of our Company and accelerated the business with manufacturing of venetian blinds components and supplying it to the company making venetian blinds.

(iii) Our first manufacturing unit was established in the year 2000 at Plot No. 93 & 94, GIDC Phase II, Dared, Jamnagar, Gujarat in which manufacturing of ready made venetian blinds specially for Reliance Refineries started and continued for five years.

(iv) In the year 2005-2006 Mr. Ashok Paun established “Marvel” as a brand commencing with the manufacturing of Curtain rods. In year 2011-2012 manu -facturing of Roller blinds commenced and we started supplying it to the furnishing stores. Later manufacturing of Bamboo, Vertical and Wooden Venetian blinds were added to the cart. Marvel started its second manufacturing unit at Plot No. 211, GIDC Phase II, Dared, Jamnagar, Gujarat. This was a turning and a challenging phase for Marvel as we also introduced “Gallery” concept for market ing our blinds making it a point to be a known brand providing niche range to its channel partners.

(v) The core part of the business is the dealer network, which now supplies through independent channel partners PAN India in over 224 cities of 24 states and is recognised within the Window Blind industry for its prompt delivery, speed of service and quality of products, post-sale support. Using only the best quality materials and manufacturing processes, we ensure that our products are not only superior in design and construction, but will also withstand the rigors of time.

Marvel Decor Limited IPO Stock Quote & Charts

53.90

+7.91%

  • Open: 46.00
  • High - Low: 53.90 - 46.00
  • Previous Close: 49.95
  • Total Traded Volume: 4000
  • Updated On: 12-Nov-2018

Objects of the Marvel Decor Limited IPO:

The company is issuing total 45,16,000 shares to public at a price of 57 and 100000 shares to employees of the company at a price of 52. So company is raising around 26.26 cr via this issue. The utilization of the fund is mentioned below. 1. To meet the working capital requirements of our Company= 1251.08 lakh 2. Repayment of Unsecured Loans of Promoters/Directors= 650.04 lakh 3. General Corporate Purpose= 450.00 lakh 4. Issue Expenses= 275.00 lakh

Marvel Decor Limited IPO Details:

Open Date: Mar 12 2018
Close Date: Mar 15 2018
Total Shares: 46,16,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price Issue IPO
Issue Size: 26.26 Cr.
Lot Size: 2000 Shares
Issue Price: ₹ 57 Per Equity Share
Listing At: NSE Emerge
Listing Date: Mar 23 2018

Promoters And Management:

(i) Mr. Ashok Ramniklal Paun, aged 47 years is the Promoter and Managing Director of the Company looks in to the core matters of the Company. Having 25 years of experience for Industrial management, planning, manpower skill development planning and adopting new technology he has been undertaking activities for Nation acceptance to be Digital India. He is being thoroughly overlooking business ongoing and insights on regular basis. His contribution to the research and development aspect to bring in innovations in our products has been significant. (ii) Mr. Dipak Ramniklal Paun, aged 52 years, is the Promoter and Whole Time Director of our Company looks after pre-dispatch activities of the Company, like planning of material procurement, production and streaming of dispatch of finish goods. He has his involvement in Finance, fund flows with respect to collection as well as payment. He has also vital role in the implementation of Rules, Regulation & Policy made, which has played a major role in the operation and success of the Company. He undertakes the comprehensive ongoing of both the factories

Company Business:

(i) We design, manufacture and sell wide range of window covering products like Blinds, Curtain Rods and Tracks. We are one of the largest production houses of window covering industry which is producing about 810 components of different type, size and colors as per customer requirement. Our Company has carved a niche by combination of research, quality, technology and experience. Our company is one of the leading companies in India due to our quality, wide range of products, prompt services, and innovative ideas at affordable price. (ii)The traditional way of covering windows was to use curtains which didn’t give much choice as far as style was concerned. Marvel, has brought the trend of b linds in India. It has brought awareness in people that the blinds cannot be restricted for the commercial spaces but also can be used at residences. No. 11067808 on November 16, 2017 as a Private Company. (iii) WHY BLINDS • Gives complete control over the amount of light that can pass through your windows • Makes the room look bigger & consumes less space as compared to curtains • Can be accurately installed, exactly covering the window. • Can be operated both, vertically as well as horizontally. • They enable you to ensure your own privacy while when you are at home • With advance and innovative operating system, it’s safer for childre • Help reduce your utility bills. • NO human touch involved and NO washing required. • Protection from harsh UV rays & energy efficient. • More agile & resistant fabric. (iv) WHY MARVEL • Large range of Products. • 14 types of blinds and more than 900+ shades. • Largest range of 9 operating systems. • Stringent international quality standards • Affordable Prices • Uniformity in Policy. • Select, Key Channel Partners in most of the cities. • Consistent innovation and improvement driven with our in-house R&D team • Technical Support, prompt after sales service • Presence across 24 states with a network of 224+ cities • 300+ galleries & showrooms across the nation • Ultra modern manufacturing factory spread across 2 lac sq. ft. at Jamnagar, Gujarat • Dedicated & Hi-tech ERP system for smooth transitions of orders

Capital Structure:

Authorized Share Capital (2,00,00,000 shares at FV@10) 20 cr
Issued, Subscribed,& Paid-up Share Capital Before Issue (1,24,24,140 Shares at FV@10) 12.4241 cr
Present Issue (46,16,000 Shares at FV@10) 4.616 cr
Reservation for Market Maker (2,36,000 Shares at FV@10) 23.6 lakhs
Reservation for Employee (1,00,000 Shares at FV@10) 10 lakhs
Net Issue to Public (46,16,000-2,36,000-100000= 42,80,000Shares) 4.28 cr
Retail Quota(<2 Lkah)[21,40,000 Shares] 50%
HNI & QIB Quota(>2 Lakh)[21,40,000 Shares] 50%
Paid Up Capital after the issue 17.0401 cr

Financials of Marvel Decor Limited IPO:

 1. Balance Sheet Snippet[ All Calculations are for FY 16-17]
       (i) Shareholders’ Fund[Equity] Value  1258.91 Lakhs
      (ii) Asset 3906.55 Lakhs
      (iii) Liability 2647.56 Lakhs
      (iv) Debt/Equity 2.10( high)
      (v)  Net Worth(Asset- Liability) 1258.91 Lakhs
     (vi)  RONW(PAT/Net Worth) 10%(low)
2. Profit n Loss Snippet[ last 5 years data  ]
     (i) Revenue of last 5 years is growing at approx. CAGR of 6.28%. [ low growth]
    (ii) Despite 6.28% growth in the revenue the PAT has shown inconsistency which is negative for the company.
    (iii)Margins(PBT/Reveune): The company has low margin business which is around 4-6% in the last 5 years.
    (iv) EPS= 1.66 ( post Issue)
    (v)  P/E(post issue)=34(over priced)at the issue price of 57
3. Cash Flow Statement The company is not generating positive cash flows in the last 5 years which is a danger signal for any business to sustain in long term.

Comparison With Peers:

The company does not have any listed peers in India which are solely engaged in same type of business . Hence a strict comparison is not possible.

Recommendation on Marvel Decor Limited IPO:

We are avoiding the issue as company has shown inconsistency with PAT growth and not generating sufficient cash flows to sustain in long term. The valuation also looks on expensive side. Risky investor can apply as this is completely new business to be listed publicly.

Lead Manager of Marvel Decor Limited IPO:

  1. Sarthi Capital Advisors Private Limited

Registrar of Marvel Decor Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Plot No 211 GIDC Phase II, Dared Jamnagar-361004, Gujarat, India. Phone No: +91 288 2730601/602 Fax: +91 288 2730603 E-mail: info@marvellifestyle.com Website: www.marvellifestyle.com

25th Sep 2018 - 27th Sep 2018 => Aavas Financiers IPO

Bid Details of Marvel Decor Limited IPO as on
15-Mar-2018 15:55:01 IST

Category No.of shares offered No. of shares bid
2,308,000 4,914,000
2,308,000 1,566,000
- -
4,616,000 6,480,000
QIBs Yes
QIBs+HNIs Subscription 2.13X
Retail Subscription 0.68X
Total Subscription 1.40X

Discussion on Marvel Decor Limited IPO: