QVC Exports Limited IPO

Apply 0
Avoid 0

The company specializes in the trading and distribution of ferroalloys, including but not limited to high carbon silico manganese, low carbon silico manganese, high carbon ferro manganese, high carbon ferro chrome, and ferro silicon. Additionally, they are actively involved in sourcing raw materials critical to the steel manufacturing process. Their innovative business model enables them to procure essential raw materials like manganese ore, chrome ore, and coke, which are necessary for the production of ferroalloys. They then purchase the finished ferroalloy products from manufacturers and sell them to steel producers both domestically and internationally.

This unique inward and outward model allows us to create a robust and reliable customer and supplier base, effectively serving manufacturers at different stages of the steel supply chain. By March 31, 2024, a significant 82.95% of their operational revenue was generated through export activities. Their products are exported to a wide array of countries, including Taiwan, Japan, Bangladesh, Vietnam, Thailand, Turkey, Afghanistan, Korea, Italy, Ukraine, the United Kingdom, Belgium, and Oman, among others. They also import manganese ore and manganese ore lumps from reputable miners and manufacturers based in Hong Kong and France.

As a supplier to well-known Indian steel manufacturers, they are committed to maintaining the highest standards of quality for the products they procure and deliver. To ensure quality compliance, they engage independent inspection agencies such as Bureau Veritas, IRA, and SGS, and maintain a rigorous follow-up process with their customers. In the event of any quality issues, they take corrective and preventive measures by investigating the root cause, updating their customers on their findings, and, if necessary, altering their suppliers or inspection agencies to prevent recurrence.

Their company has developed a thorough supplier selection process to evaluate and select suppliers based on their product quality, reducing purchase risks, and maximizing overall value. This process fosters close, long-term relationships with their suppliers and ensures that they only engage with manufacturers who meet their stringent quality standards. They also conduct site visits to the mines and manufacturing units of their suppliers to ensure adherence to quality practices.

Due to their unwavering commitment to quality, their company has received certifications from Bureau Veritas (India) Private Limited, attesting that their management systems comply with ISO 9001:2015, ISO 14001:2015, and ISO 45001:2018 standards.

This consistent growth underscores their ability to adapt and thrive in the competitive global market, while maintaining their commitment to quality and customer satisfaction.

Objects of the QVC Exports Limited IPO:

The Objects of the Issue are: i. To repay the unsecured loans taken by the Company ii. To meet working capital requirement iii. General Corporate Purposes Total number of shares issue :- i. Fresh issue is 2,049,600 shares, ii. Offer for sale is 748,800 shares.

QVC Exports Limited IPO Details:

Open Date: Aug 21 2024
Close Date: Aug 23 2024
Total Shares: 2,798,400
Face Value: ₹ 10 Per Equity Share
Issue Size: 24.07 Cr.
Lot Size: 1600 Shares
Issue Price: ₹ 86 Per Equity Share
Listing At: NSE Emerge
Listing Date: Aug 28 2024

Promoters And Management:

Nilesh Kumar Sharma, aged 47 years, is one of the Promoters, Chairman and Managing Director of the Company. He attended Baba Saheb Bhimrao Ambedkar Bihar University to pursue a bachelor’s degree in commerce. He has passed the intermediate examination held by the Institute of Chartered Accountants of India, He has completed the requirements of the executive program for young professionals from Indian Institute of Management, Calcutta. He has been associated with the Company since incorporation and heads the finance and marketing divisions of the Company. He holds an experience of more than a decade in trading of manganese ore and ferro alloys of various types. Madhu Sharma, aged 69 years, is the Whole-time Director of the Company. She holds a master’s degree in arts from BHU. She has been associated with the Company since incorporation and heads the human resource division of the Company. She has an experience of more than a decade in human resource management. Esanoo Kanjilal, aged 37 years, is the Whole-time Director of the Company. He holds provisional certificate for completing Sahityalankar Examination from Hindi Vidyapeeth, Devghar, Jharkhand. He has completed a course in marketing management from IIBM Institute of Business Management. He has completed a training programme on digital marketing from MSME- Technology Development Centre, Meerut. In the past, he was associated with Prithvi Ferro Alloys Private Limited in the capacity of a marketing officer; with Shyam Metalics & Energy Limited in the capacity of marketing (officer); with Oswal Minerals Limited in the capacity of assistant manager marketing. Currently, he holds directorship in the Karthik Alloys Limited. He has been associated with the company since June 1, 2019.

Financials of QVC Exports Limited IPO:

Particulars ( In Lakhs )
2022
2023
2024
Revenue from Operations 12,310 20,724 44,599
Other Income 472 747 864
Total Revenue 12,783 21,471 45,463
Purchase of Traded Goods 10,667 18,610 41,394
Changes in inventories -167 421 0
Employees Benefit Expenses 95 70 89
Other Expenses 1,953 1,928 2,908
EBITDA 234 441 1,071
OPM (%) 1.83% 2.05% 2.36%
Depreciation & Amortisation 10 11 26
EBIT 224 430 1,046
Finance Cost 99 207 503
PBT 125 223 542
Tax 34 52 149
PAT 91 171 393
NPM (%) 0.71% 0.80% 0.86%
No.of Shares 104.51 104.51 104.51
EPS 0.86 1.64 3.75

Comparison With Peers:

Note :- There are no listed companies in India or abroad whose business portfolio is comparable with this business

Recommendation on QVC Exports Limited IPO:

1. QVC Exports Limited specializes in the trading of ferro alloys, including high carbon silico manganese, low carbon silico manganese, high carbon ferro manganese, high carbon ferro chrome, and ferro silicon. 2. Additionally, they deal in raw materials essential for steel manufacturing. Their unique business model involves procuring raw materials like manganese ore, chrome ore, and coke for ferro alloy manufacturers, purchasing their finished products, and then selling these to both domestic and international steel manufacturers. 3. Their products are exported to countries such as Taiwan, Japan, Bangladesh, Vietnam, Thailand, Turkey, Afghanistan, Korea, Italy, Ukraine, the United Kingdom, Belgium, and Oman. They also import manganese ore from reputable suppliers in Hong Kong and France. 4. The Revenue has Increased from Rs.123 Crores in FY22 to Rs.446 Crores in FY24. 5. The EBITDA has Increased from 2 Crores in FY22 to 10.7 Crores in FY24. 6. The PAT has Increased from 91 Lakhs in FY22 to 4 Crores in FY24. 7. As per FY24, CFO/EBITDA is 0.92, and EPS is 3.75, 8. Market Capitalization is 90 Crores and P/E is 22.9x based on FY24.

Lead Manager of QVC Exports Limited IPO:

  1. Khandwala Securities Limited

Registrar of QVC Exports Limited IPO:

  1. Cameo Corporate Services Limited

Company Address:

QVC Exports Limited 6 th Floor, South City Business Park 770 EM Bypass, Anandapur, Adarsha Nagar, E.K.T, Kolkata- 700107 Phone: +91 3324197677 Email: office@qvcgroup.com Website: http://www.qvcgroup.com/

Discussion on QVC Exports Limited IPO:

Leave a Reply