Rajnandini Metal Limited IPO

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(i) Rajnandini Metal Limited was incorporated on dated March 18, 2010, in NCT of Delhi and Haryana The Company work as a crucial business interface, networking between manufacturers/ processors/yards and consumers/traders across the country. and the company pursue business based on quality contacts, information and service.

(ii) They operate as an important intermediary in the Metals Supply Chain whereby they import/purchase materials such as Annealed/Un-Annealed Copper Wires, Copper Wires, Brass Scrap, Aluminium ingot, Zinc ingot etc. from various suppliers and supply the same to customers in the Metal Business.

(iii) The Company Product Portfolio offers a diversified product range which includes a variety of grades, thickness, widths and standards, in of all types of ferrous and Non-ferrous Metals according to customer specifications. They have been conscious of addressing environmental and safety concerns and our stocking facilities.

Rajnandini Metal Limited IPO Stock Quote & Charts

26.30

-0.38%

Check History
  • Open: 26.40
  • High - Low: 26.45 - 26.30
  • Previous Close: 26.40
  • Total Traded Volume: 16000
  • Updated On: 17-Jun-2019

Objects of the Rajnandini Metal Limited IPO:

Objective of Rajnandini Metal Limited IPO are: 1. To meet out the Working Capital requirements of the Company 2. General Corporate Purposes 3. Issue Expenses
DRHP of Rajnandini Metal Limited IPO
RHP of Rajnandini Metal Limited IPO

Rajnandini Metal Limited IPO Details:

Open Date: Sep 24 2018
Close Date: Sep 27 2018
Total Shares: 1,644,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price Issue IPO
Issue Size: 4.2744 Cr.
Lot Size: 4000 Shares
Issue Price: ₹ 26 Per Equity Share
Listing At: NSE Emerge
Listing Date: Oct 08 2018

Promoters And Management:

Promoters of Rajnandini Metal Limited IPO Company are: (i) Mr. Het Ram, aged 38 years, is the Promoter & Managing Director of our Company. He has done Bachelor of Arts from Kurukshetra University. He has a rich experience of 15 years in the business field and is running our company since incorporation. He is a proven influencer & negotiator and has a pragmatic approach to getting the required results. He has a power track record through his leadership vision and understanding of legal, regulatory, information security and compliance requirements of the industries. His long professional career gives guidance to his employees in achieving targets in a dynamic and complex business environment, building and maintaining a strong and effective relationship with customers and suppliers and handling operational issues. The Gross Compensation paid to him during Fiscal Year 2017-18 as remuneration was Rs. 24,00,000/- p.a. (ii) Mrs. Mithlesh Sharma, aged 40 years, is the Promoter & Director of Our Company. She has done Bachelor of Arts from Kurukshetra University. She has pioneered the needs in various fields of the industry. She is an expert in human relations and has hired trained and managed internal staff. She has planned and directed the strategies, development of advertising campaign, creative development for the company. The Gross Compensation paid to him during Fiscal Year 2107-18 as remuneration was Rs.6,00,000/- p.a.

Financials of Rajnandini Metal Limited IPO:

Particulars For the year/period ended (in Rs Lacs)
31-Mar-2018 31-Mar-17 31-Mar-16 31-Mar-15 31-Mar-14
Total Assets 3,833.98 4,250.62 3,437.18 3,316.57 4,590.35
Total Revenue 14,115.52 12,730.96 13,654.76 10,983.81 10,437.12
Profit After Tax 94.26 55.21 31.62 55.41 40.74

Comparison With Peers:

Currently, there are no listed companies in peer group company which are strictly comparable to them with respect to the Industry in which they operate and the size of our company.

Recommendation on Rajnandini Metal Limited IPO:

Review and Recommendation of Rajnandini Metal Limited IPO from IZ team is:3/10 [The Company do only trading as such there is no moat in the business. The asking P/E at 19.2 is very high for an SME company. D/E, Current Ratio and Interest Coverage Ratios are not at all comfortable. The company has poor RONW 0f 7.6%.]

Lead Manager of Rajnandini Metal Limited IPO:

  1. Corporate Capital Ventures Private Limited

Registrar of Rajnandini Metal Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Rajnandini Metal Limited 3E/17 B.P. N.I.T Faridabad Haryana-121001 India Phone No. 0129-4074043 Email:info@rajnandinimetal.com Website: www.rajnandinimetal.com

Bid Details of Rajnandini Metal Limited IPO as on
27-Sep-2018 18:30:01 IST

Category No.of shares offered No. of shares bid
780,000 1,856,000
780,000 300,000
84,000 84,000
1,644,000 2,240,000
QIBs No
QIBs+HNIs Subscription 2.38X
Retail Subscription 0.38X
Total Subscription 1.38X

Discussion on Rajnandini Metal Limited IPO:

5 Comments

    Details of the past cases in which penalties were imposed by the statutory or regulatory authorities against Issuer Company, Promoters of the Issuer Company, Promoter Group of the Issuer Company and Directors of the Issuer Company and Group Entities of Issuer Company.

    (i) Mr. Het Ram has received a summon dated October 1, 2015 under Section 131 of the Income Tax Act, 1961 in relation to the production of books of accounts of the assessee or other relevant documents as may be deemed necessary in this regard.

    (ii) The Centralized Processing Centre of the Income Tax Department has raised a demand of Rs.11,140 (Rupees Eleven Thousand One Hundred and Forty) on April 22, 2018 arising out of intimation under Section 143(1)(a) of the Income Tax Act, 1961 which is payable by Loveni Marketing & Advertising Private Limited (Group Company )for the assessment year 2017-2018.

    Reply

    Issues in some of the Financials Ratios:

    (i) Current Ratio( ideally be >1.5)= 1.23
    (ii) Interest Coverage Ratio ( ideally be >2)= 1.78

    Both these financials ratios are important considering that if any Debt and liquidity issues arise in the company they will not able to withstand.

    Reply

    Debt Story based on FY18 Financials( Pre-Issue)

    (i) Debt= 21.97 Cr
    (ii) Equity= 8.02 Cr
    (iii) D/E= 2.73

    Debt Story based on FY18 Financials( Post-Issue)

    (i) Debt= 21.97 Cr
    (ii) Equity= 12.2944 Cr
    (iii) D/E= 1.78

    Conclusion: The Company has a high debt.

    Reply

    EPS story (Pre-Issue) based on FY18 Financials
    (i) PAT= 94.26 Lakh
    (ii) Outstanding Shares= 45 Lakh
    (iii) EPS= 2.09
    (iv) P/E= 12.44

    EPS story (Post-Issue) based on FY18 Financials
    (i) PAT= 94.26 Lakh
    (ii) Outstanding Shares= 61.44 Lakh
    (iii) EPS= 1.53
    (iv) P/E= 17

    We all know that just before the IPO many companies may cook their book and present rosy picture of Profits. So it is always advisable e to find P/E based on Average for the last three years.

    (i) EPS(2016)=0.70
    (ii) EPS(2017)=1.23
    (iii) EPS(2018)=2.09
    (iv) Average EPS= 1.34
    (v) Average P/E= 19.4

    Conclusion: The asking price of 19.4 for an SME company that does only trading is not at all acceptable.

    Reply

    The Company is in the business of trading of a scrap of all types of ferrous and Non-ferrous Metals such as Copper Wires, ingot scrap, and other related items used in various electrical and industrial applications. So there is no moat in the business. Anybody can start such business and give competition to the company.

    Reply

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