Rajnish extended right.. from 27 to 29
Rajnish Wellness Limited IPO
(i) Rajnish Wellness Limited was originally incorporated on June 13, 2015. The company is currently engaged in the business of selling various products in the categories ranging from consumer durables to ayurvedic personal care products.
(ii) Company’s major focus area is sexual wellness, energy revitalization and personal care products. Changing lifestyle and awareness of health and wellness is increasing demand for sexual wellness and energy revitalization products. The current product portfolio is concentrated on ayurvedic products. The company is exploring the ethical market in sexual wellness and energy revitalization category. They sell personal care products under the brand name. “PlayWin Capsules”, “PlayWin Condom”, “Rajnish Lotion”, “Rajnish Plus Lotion”, “Play Win Spray”, “PlayWin Plus Capsules”, “Playin Oil”, , “PlayWin F Capsule”, “Kasaav Powder”, “SudantaDantManjan”, “Mithohar Liquid”, “Mithohar Tablets”, “Madamrit Hair Shampoo”, “Madamrit Hair Oil”, “Madamrit Hair Capsule” and Pia Lo Herb’s.
(iii) Recently, the company newly launched Play win spray in this category. They have a competitive price advantage as compared to others competitors as they mailny operates in Tier I, Tier II and Tier III markets.
(iv) Rajnish wellness has very strong hold in Maharashtra, Uttar Pradesh, Karnataka, Bihar, Odisha, Delhi, Jharkhand, Madhya Pradesh, Uttarakhand, Haryana and West Bengal. Their products are available in all major medical stores in these states.
(v) The company runs on an asset-light model and owns all the brands under its name. Rajnish is sourcing it all products from dedicated manufacturers since inception. It has outsourced all its manufacturing needs to various suppliers who are expert in a particular product in India which enables a company to adhere to the required specifications and quality in stipulated time.
Objects of the Rajnish Wellness Limited IPO:
Rajnish Wellness Limited IPOare: 1. Funding of working capital requirements of the Company. 2. Funding of Branding and Advertisement expenses 3. To meet General corporate purposes 4. To meet the expenses of the Issue
Rajnish Wellness Limited IPO Details:
|Open Date:||Jun 25 2018|
|Close Date:||Jun 29 2018|
|Face Value:||₹ 10 Per Equity Share|
|Issue Type:||Fixed Price Issue|
|Issue Size:||11.9814 Cr.|
|Lot Size:||1200 Shares|
|Issue Price:||₹ 95 Per Equity Share|
|Listing At:||BSE SME|
|Listing Date:||Jul 05 2018|
Promoters And Management:
|(i) Authorized Share Capital 70,00,000 shares at FV@10)||7 Cr|
|(ii) Issued, Subscribed,& Paid-up Share Capital Before Issue (34,12,500 Shares at FV@10)||3.412 Cr|
|(iii) Present Issue ( 12,61,200 Shares at FV@10)||1.2612 Cr|
|(iv) Reservation for Market Maker ( 63,600 Shares at FV@10)||6.3 Lacs|
|(v) Net Issue to Public 12,61,200 -63,600= 1197600 Shares)||1.197 Cr|
|(vi) QIB & HNI quota-5,98,800||50%|
|(vii) Retail Quota - 5,98,800||50%|
|(viii) Paid Up Share Capital after the issue||4.6732|
Financials of Rajnish Wellness Limited IPO:
|1. Assets and Liabilities Key Parameters|
|Year||Asset(lacs)||Liabilities(lacs)||Net Worth(lacs)||Book Value||D/E [<1.5]||RONW||Receivable days|
|2. Profit n Loss Key Parameters|
|Year||Revenue(lacs)||PAT(lacs)||EBITDA Margins||Profit Margins||Outstanding Shares(lacs||EPS|
|3. Cash Flow Statement(all figures in lacs)|
|(i) Net Cash Generated from Operation||-301.94||-167.29||54.29|
|(ii) Net Cash Generated from Investment||-10.81||-3.95||-2.13|
|(iii) Net Cash Generated from Financing Activity||333.17||131.44||5|
|(iv) Total[ (i)+(ii)+(iii) ]||20.42||-39.8||57.16|
Comparison With Peers:
Recommendation on Rajnish Wellness Limited IPO:
Rajnish Wellness Limited IPOfrom our side is: Rating: 2/10. 1-5: Fair 5-7: Good 7-10: Excellent Check Next Mainline IPO => HDFC AMC IPO
Lead Manager of Rajnish Wellness Limited IPO:
Registrar of Rajnish Wellness Limited IPO:
Bid Details of Rajnish Wellness Limited IPO as on
29 Jun 2018 | 11:59:01 PM
|Category||No.of shares offered||No. of shares bid|
Discussion on Rajnish Wellness Limited IPO:
As per new SEBI guidelines, the company coming up with an IPO now have to show only 3 years Financial statements in the DRHP. This will lead more companies to raise funds via IPO. However, this will have negative from the perspective of the investor as less numbers means less interpretation about the company’s performance.
As per new SEBI guidelines, the Minimum size of anchor investor has been reduced from 10 cr to 2 cr in SME IPOs. This will lead to more participants in pre-IPO placement. This is a good move as generally the issue size of SME IPOs ranges from 5 Cr to 70 Cr.
Always give Receivables days a due importance as it gives immense insight into the financial irregularities. As in case of Rajnish Wellness, it has gone from 56 days to 179 days . This is highly unlikely for debtor days to go 3 fold in a year in a good business.
No business moat ,high debtors days, negligible fixed assets, all 78 employees are on contract basis, limited financial history, huge dilution of equity before the IPO, so overall a bad company to invest.
Avoid at all cost.
The company founded 3 years back has come with an IPO to loot the investors.
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