Priti International Limited IPO

Apply 0
Avoid 0

Please read this Interesting Story of Mr.Ritesh Lohiya and Mrs.Priti Lohiya that published in the year 2015 in Your Story blog to sum up everything about the Priti International Limited———-

Dropbox founder and CEO Drew Huston said, “You only need to be right once.”Hritesh Lohiya suffered through an embarrassing deluge of wrongs before stumbling onto the idea that would eventually make him a multimillionaire. “I started a textile chemical factory and then a stone cutting factory, manufactured and sold washing powder, began a stock market business, et cetera. I lost huge amounts of money in all these ventures,” he rues.

Hritesh Lohiya
Hritesh Lohiya

Venturing into garbage recycling was not a business savvy idea; it was literally the only choice left. Hritesh says, “After losing all our money in these bust businesses, we could not afford to invest in anything new. The only legacy of those failures was the string of garbage strewn around our old factory. There were old gunny bags, drums of chemicals, various bits of plastic and so on. We tried to sell some of these for our bread-and-butter, but no one would buy them. Out of desperation we started thinking about how we could generate any kind of revenue from these waste items. Thus, Priti International was born in 2005.”

Hritesh was quite superstitious when christening his umpteenth effort at starting up. “My wife Priti is my rock. She is very lucky for me. I believe that all my earlier startups failed miserably because there was no part of her name in their nomenclature. This time round, I didn’t make that mistake.” Or rather, this time round, he got it right.

The firm designs and manufactures various handmade products out of waste materials. “We make handbags from old gunny bags, cast off military tents, denim pants, etc. We are also into producing furniture from waste tins, drums, old military jeeps, tractor parts, waste machine parts and lamps from old scooter- and bike-lights. These products are then exported to various countries like China, USA, European nations, and Australia. We are now India’s biggest exporter of waste handicraft products, and the only one in India to export to China,” he rattles off.

“At present, our current turnover is around $8million. Our customer base is in 36 countries. Our production facilities are spread over 3 large factories, with around 400 people working for us. Our focus market is China, where there is huge customer potential; the new generation is veryfond of using our products to decorate bars, cafés, pubs, restaurants etc. We are planning to expand our production facility and scale our venture to $20 million by 2016,” Hritesh beams proudly. “We have recently started a retail showroom in Ningbo, China for selling our products in retail.  This is just a test showroom, but the response has been heartwarming. Now we are planning to open 12 more showrooms across China exclusively, for our products.”

While scouring through garbage was once a mode of survival for Hritesh, it is now the most exciting part of his day. “Ours is a purely design-based business. We have to think over each waste product we come across, and design it to make a useful product out of it. It’s a very exciting job! Every day we find new waste products, and brainstorm new ways to turn them into something people would like to own.”

India figures prominently in Priti International’s expansion plans. “In regard to India, the potential for our products, due to the rise of online shopping, is immense. We are in talks with several online retailers, like Pepperfry and Flipkart,about selling our products online here.” Priti International’s popularity shows no signs of plateauing. “We are completely booked with our export orders for the year 2015.  In 2016, we are participating in various international exhibitions, like China’s Canton Fair and International Furniture Fair, Shanghai. Recently our unique products’ success story was filmed by Discovery Channel for their segment titled, ‘The Liquidators.’ Our work comprises an entire episode, and is scheduled to be telecast in 140 countries around the world. This is a big landmark for us,” he exudes.

Priti International is self-funded. “We have taken no loans from banks or any other financial institution.” The core team comprises only two people, Hritesh and his wife Priti. “It is a labour of love for us. It’s just the two of us and we are hands-on with every aspect of the firm,” Hritesh explains.

 

Priti International Limited IPO Stock Quote & Charts

91.00

-0.55%

  • Open: 91.05
  • High - Low: 91.05 - 91.00
  • Previous Close: 91.50
  • Total Traded Volume: 3200
  • Updated On: 12-Dec-2018

Objects of the Priti International Limited IPO:

Objective of

Priti International Limited IPO

are: 1. Purchase of Plant and Machinery and Related Civil Work 2. Funding The Working Capital Requirement of Company 3. General Corporate Purpose

Priti International Limited IPO Details:

Open Date: Jun 11 2018
Close Date: Jun 13 2018
Total Shares: 700800
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price Issue IPO
Issue Size: 5.256 Cr.
Lot Size: 1600 Shares
Issue Price: ₹ 75 Per Equity Share
Listing At: NSE Emerge
Listing Date: Jun 21 2018

Promoters And Management:

Promoters of Priti International Limited Company are: Mr. Goverdhan Das Lohiya Ms. Priti Lohiya Mr. Ritesh Lohiya

Capital Structure:

(i) Authorized Share Capital 60,00,000 shares at FV@10) +A2:B9 6 Cr
(ii) Issued, Subscribed,& Paid-up Share Capital Before Issue (18,93,532 Shares at FV@10) 1.8934 Cr
(iii) Present Issue (  7,00,800 Shares at FV@10) 70.08 Lacs
(iv) Reservation for Market Maker  ( 35,000 Shares at FV@10) 3.5 Lacs
(v) Net Issue to Public 7,00,800-35000=  6,65,000 Shares) 66.56 Lacs
(vi) QIB & HNI quota-3,32,800 50%
(vii) Retail Quota - 3,32,800 50%
(viii) Paid Up Share Capital after the issue 2.5942 Cr

Financials of Priti International Limited IPO:

The Company Priti International Limited is recently incorporated in 30 June 2017 under the provisions of Companies Act 2013. Prior to incorporation the promoters were carrying out the operations of the sole proprietorship of M/s Priti International  which was taken up by the company with total consideration of 1.5 Cr. So company has very limited financial history to look upon. Key Financial Observations 1. The Company has Shareholder's Fund of around 4 Cr. 2. Long term and Short term Debt is nil. 3. The Revenue for the first 9M of FY18 is 3.23 Cr. 4. The PAT for the first 9M of FY18 is 15.97 Lacs. So if you calculate it annually the PAT comes out to be 21.29 Lacs. 5. The total equity shares after the IPO would be= 25,94,332. 6. EPS would be= 3.47( pre-issue) and hence asking Price at P/E=21.61. Looks overpriced issue. 7. The Company has M.Cap of around 19 Cr and annualized sales of around 4.3 Cr. So M.Cap/Sales= 4.4 which is very high. 8. The Company has sales of around 1.2 lacs per day and trade receivables of around 317 Lacs for first 9M of FY18. So Trade receivables days( Trade receivables/sales per day) are around 266 which is very high. 9. The Company has very low RONW of around 4%.

Comparison With Peers:

Priti International Limited does not have any peers to compare in the market.

Recommendation on Priti International Limited IPO:

Review and Recommendation of

Priti International Limited IPO

from our side is: Though Business looks promising and unique plus they have good international exposure. However, on the pricing front it looks fully priced. Rating 3/10.

Lead Manager of Priti International Limited IPO:

  1. Pantomath Capital Advisors Private Limited

Registrar of Priti International Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Priti International Limited Khasra No. 20, opp. Meera Sansthan, Boranada, Jodhpur, Rajasthan, 342001, India

Bid Details of Priti International Limited IPO as on
13-Jun-2018 18:00:00 IST

Category No.of shares offered No. of shares bid
332,800 2,467,200
332,800 3,046,400
35,200 35,200
700,800 5,548,800
QIBs No
QIBs+HNIs Subscription 7.41X
Retail Subscription 9.15X
Total Subscription 8.28X

Discussion on Priti International Limited IPO:

    The Company has unique set of business where they buy trash from the market , design it , refurbish it and then sell in the market.