Roni Households Limited IPO

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Roni Household Limited was incorporated on 9th October 2017 in Mumbai Maharashtra.

Roni Household Limited currently trades in Plastic granules and Plastic household products which includes Tub, Buckets, Ghamela etc. They intend to further expand their business by manufacturing plastic products for household use.

They have taken a land on lease in MIDC Jalgaon for the proposed manufacturing unit. A part of their proposed manufacturing unit has been set up on the leased land. The trial manufacturing process for a small part of the proposed capacity has recently commenced.

Roni Household Limited plans to leverage its promoter networks in the Trading community of Jalgaon and strong balance sheet situation to increase its presence in the plastic products. The Company is in the process of building a quality and innovation focused trading and manufacturing vertical as well as developing a strong team to cater to its proposed increased operational needs.

Since the company was recently incorporated they have not completed a full financial year, however, they have reported a robust operating performance for 6 months period ended March 31, 2018 wherein the Sales, EBIDTA, and Profit after Tax were 429.70 lakhs, L 10.58 lakhs, and 7.80 lakhs respectively.

Roni Households Limited IPO Stock Quote & Charts

21.00

+4.48%

  • Open: 21.00
  • High - Low: 21.00 - 21.00
  • Previous Close: 20.10
  • Total Traded Volume: 6000
  • Updated On: 14-Dec-2018

Objects of the Roni Households Limited IPO:

Objective of

Roni Households Limited IPO

are: (a) Working Capital Requirements (b) Repayment of Unsecured loan (c) Funding expenditure for General Corporate Purposes

Roni Households Limited IPO Details:

Open Date: Nov 19 2018
Close Date: Nov 22 2018
Total Shares: 15,00,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price Issue IPO
Issue Size: 3 Cr.
Lot Size: 6000 Shares
Issue Price: ₹ 20 Per Equity Share
Listing At: BSE SME
Listing Date: Dec 03 2018

Promoters And Management:

Promoters of Roni Households Limited Company are: 1. Mr. Harish Sirwani 2. Mrs. Nidhi Sirwani

Recommendation on Roni Households Limited IPO:

Review and Recommendation of Roni Households Limited IPO from IZ team is: Under Analysis

Lead Manager of Roni Households Limited IPO:

  1. Aryaman Financial Services Limited

Registrar of Roni Households Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Roni Households Limited Plot No. F - 55, Addl. MIDC Area, Ajanta Road, Jalgaon - 425003, Maharashtra Phone No: +91 77965 42369 Email: info@ronihouseholds.com Website: www.ronihouseholds.com

Bid Details of Roni Households Limited IPO as on
22 Nov 2018 | 11:58:03 PM

Category No.of shares offered No. of shares bid
708,000 342,000
708,000 1,248,000
84,000 84,000
1,500,000 1,674,000
QIBs No
QIBs+HNIs Subscription 0.48X
Retail Subscription 1.76X
Total Subscription 1.12X

Discussion on Roni Households Limited IPO:

    Avoid this company. They sell bucket and tubs. It’s a joke that such companies are coming up with an IPO.

    Review Analysis of the IPO:

    The business of the company:

    a> Trading– The trading business vertical of the company is a B2B model wherein they procure goods from suppliers on a cash or credit basis and supply to it to the clients on credit basis.

    b> Manufacturing– They manufacture different households items such as Tubs, Buckets etc.

    They were wholesalers till 09 Oct 2017. On 9 Oct 2017, they have formed a Private Limited Company. They have done this to be eligible for raising money Via IPO and within 1 year of forming the company they have come up with an IPO.

    Only one-year data is available for analysis. Therefore, nothing can be concluded based on the limited information.

    They should have provided atleast 3 years data for any meaningful analysis or maybe they don’t have any record available before forming a Private limited.

    But nevertheless, let us analyze the one-year performance and shall calculate P/E and Mcap/Sales

    PAT(17-18)= 7.8 Lakh
    Equity Shares( Post-IPO)= 43.359 lakh
    EPS= 0.17
    Asking P/E= 117( Insane)

    Mcap= 8.67 Cr
    Sales= 4.29 Cr
    Mcap/Sales=2.02( Again High)

    Very High Receivables days = 178
    Receivables/Sales~50%( very high)

    Quick Ratio<1(Poor)

    Conclusion: No harm to avoid.