Avoid, pricing too high as compared to value
Raw Edge Industrial Solutions Limited IPO
(i) Raw Edge Industrial Solutions Limited was established in the year 2005 with an aim of providing industrial minerals to manufacturing industries at competitive prices. Raw Edge is an innovation-driven enterprise engaged in delivering fully integrated solutions of Raw Material supplies to large and medium industrial houses. They are one of the leading Manufacturers and Suppliers of quality range of Calcined Lime, Dolomitic Lime, Hydrated Lime, AAC Lime, Calcined Magnesite, Clinker, Quartz, Gypsum, Imported Coal, etc. They are renowned for offering best quality products to their clients, at the most competitive prices.
(ii)The Raw Edge business model finds its origin in organizing the inefficiencies of the industrial raw materials supplies. The supply of industrial raw materials involves research & development, exploration, mining, processing, logistics and IT enabling and company promoters foresaw the inefficiencies in the unorganized industrial raw materials sector and decided to work on this.
(iii) In the FY 2006-07, the company foreseen the potential use of Lime products and its demand, as a results, they initially started trading in Lime Fines, Limestone, Ferrous Sulphate, Quartzite, Dolomite. Later on, In the year FY 2009-10 company setup its first Calcium Lime crushing plant in Surat.
(iv) The Company has a setup with 1000 Trucks which are GPS enabled to supply the Raw material from factories to suppliers.
(v) In 2013-14, the company bought a land on lease for a period of 9 years and shifted the entire operation from Surat plant to this plant and enhanced its manufacturing capacity to 60,000 MT/Annum. Recently in Feb 2018, the Company has started a process of acquiring a new land in Surat for setting up manufacturing unit of crushed Quick Lime and Hydrated Lime with an installed capacity of 1,20,000 MT/per annum . This will help them to enhance their manufacturing capacity from 60,000 MT/Annum to 1,20,000 MT/Annum.
Objects of the Raw Edge Industrial Solutions Limited IPO:
Raw Edge Industrial Solutions Limited IPOare: The issue comprises of OFS of 6,10,000 and Fresh Shares of 16,81,200 Equity Shares. The Fresh Issue will be utilized for 1. Expansion by setting up Manufacturing Unit 2. Working Capital Margin 3. General Corporate Purpose 4. Meeting Public Issue Expenses.
Raw Edge Industrial Solutions Limited IPO Details:
|Open Date:||Jul 05 2018|
|Close Date:||Jul 10 2018|
|Face Value:||₹ 10 Per Equity Share|
|Issue Type:||Fixed Price Issue|
|Issue Size:||16.4966 Cr.|
|Lot Size:||2000 Shares|
|Issue Price:||₹ 72 Per Equity Share|
|Listing At:||BSE SME|
|Listing Date:||Jul 18 2018|
Promoters And Management:
|(i) Authorized Share Capital 90,00,000 shares at FV@10)||9 Cr|
|(ii) Issued, Subscribed,& Paid-up Share Capital Before Issue (67,00,800 Shares at FV@10)||6.70 Cr|
|(iii) Present Issue ( 22,91,200 Equity Shares at @FV@10)||2.291 Cr|
|(iv) Fresh Issue of 16,81,200 Equity Shares @FV=10.||1.681 Cr|
|(v) OFS of 6,10,000 Equity Shares @FV=10||6.10 Lacs|
|(vi) Reservation for Market Maker [1,15,200] Shares at FV@10)||11.5 Lacs|
|(vii) Net Issue to Public[ 22,91,200-115200]= 21,76,000||2.176 Cr|
|(viii) Reservation for QIB & HNI[10,88,000 ] Shares at FV@10)||50%|
|(ix) Reservation for Retail [10,88,000 ] Shares at FV@10)||50%|
|(x Paid Up Share Capital after the issue||8.381 Cr|
Financials of Raw Edge Industrial Solutions Limited IPO:
|1. Assets and Liabilities Key Parameters|
|Year||Asset(lacs)||Liabilities (lacs)||Net Worth(lacs)||Book Value||D/E [<1.5]||RONW||Debtor 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||212.93||207.08||-179.76||363.24||208.81||99.42|
|(ii) Net Cash Generated from Investment||-20.01||-117.22||-93.3||-108||-480.01||-11.73|
|(iii) Net Cash Generated from Financing Activity||-189.87||-92.07||273.1||-259.74||276.64||-97.01|
|(iv) Total[ (i)+(ii)+(iii) ]||3.05||-2.21||0.04||-4.50||5.44||-9.32|
|(v) Cash and Cash Equivalents at the Start of the Year||1.48||3.69||3.66||8.16||2.71||12.03|
|(vi) Cash and Cash Equivalents at the end of the Year||4.53||1.48||3.70||3.66||8.15||2.71|
Comparison With Peers:
|Name of the Company||FV||Mcap(cr)||EPS||P/E||Profit Margins||RONW||Mcap/sales|
|Raw Edge Industrial Solutions Limited||10||60||1.92||37||3%||18%||1.13|
|Sanginita Chemicals Limited[SME]||10||135||0.65||120||0.76%||4.14%||0.92|
|India Gelatin and Chemicals Limited||10||60||2.9||30||2.32%||2.29%||0.59|
|Meghmani Organics Limited||10||2037||3.03||26||5.90%||8.00%||1.58|
Recommendation on Raw Edge Industrial Solutions Limited IPO:
Lead Manager of Raw Edge Industrial Solutions Limited IPO:
Registrar of Raw Edge Industrial Solutions Limited IPO:
Bid Details of Raw Edge Industrial Solutions Limited IPO as on
10 Jul 2018 | 11:58:03 PM
|Category||No.of shares offered||No. of shares bid|
Discussion on Raw Edge Industrial Solutions Limited IPO:
Hi Sheetal, Can we have the transcript of your conversation with the promoters, so that all group members can get benefit from this.
Extremely glad to have had an opportunity to interact with the promoters… Shri Bimal Bansal has a very dynamic personality, always striving to learn and excel. The team is young and energetic- a very good and rare combination of business experience and academic excellence.
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