Saketh Exim Limited IPO
(i) Saketh Exim Limited was founded in the year 2010. The company is managed and promoted by a group of individuals and is led by Mr. Sanjay Patel who has an approximate 36 years of experience in managing a business.
(ii)The Company manufacture and fabricate various steel products which are meant for its application in Pipe hangers, Support Systems, HVAC Systems, Anti-vibration System and Equipment for construction Industrial, Commercial, Utility, and OEM Installations.
(iii) The Company also manufacture metal and base metal products like G. I. nuts, various types of Bolts, Clamps, Hangers etc. Further, the Product Portfolio includes all types of Bathroom pipes, Fittings, Bathroom accessories and Sanitary wares.
(iv) The company’s Revenue from Manufacturing and Trading is stood at 61.29% and 38.78% in FY18 respectively.
(v) Their Certain manufactured products are certified by Underwriter’s Laboratory Inc. (U.S.A) and FM Global Approved (U.S.A) which are meant to be used for Fire Sprinklers System Installations.
(vi) The company has 3 manufacturing units located at Vasai near Mumbai. The Company has installed various plant and machinery for manufacturing and fabrication of the various products. SAKETH has developed a favorable position in the Middle Eastern and Gulf market. Their products are marketed through a dealer network in various Companies in Gulf countries like United Kingdom, UAE, Oman, Qatar, Kuwait, Jordan, Bahrain, Saudi Arabia, Bahrain, and Egypt.
Objects of the Saketh Exim Limited IPO:
Saketh Exim Limited IPO Details:
| Open Date: | Aug 01 2018 |
| Close Date: | Aug 03 2018 |
| Total Shares: | 1,368,000 |
| Face Value: | ₹ 10 Per Equity Share |
| Issue Type: | Fixed Price Issue IPO |
| Issue Size: | 9.43 Cr. |
| Lot Size: | 2000 Shares |
| Issue Price: | ₹ 69 Per Equity Share |
| Listing At: | NSE Emerge |
| Listing Date: | Aug 13 2018 |
Promoters And Management:
Capital Structure:
| (i) Authorized Share Capital 55,00,000 Equity shares at FV@10) | 5.5 Cr |
| (ii) Issued, Subscribed,& Paid-up Share Capital Before Issue (39,00,000 Equity Shares at FV@10) | 3.9 Cr |
| (iii) Present Issue ( 13,68,000 Equity Shares at FV@10) | 1.368 Cr |
| (iv) Reservation for Market Maker [72000] Shares at FV@10) | 7.2 Lac |
| (v) Reservation for QIB & HNI 6,48,000 Equity Shares at FV@10) | 50% |
| (vi) Reservation for Retail 6,48,000 Equity Shares at FV@10) | 50% |
| (vii) Paid Up Share Capital after the issue | 5.023 Cr |
Financials of Saketh Exim 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 |
| FY14 | 1,550.80 | 1,417.05 | 133.75 | 27 | 10.6 | 10% | 84 |
| FY15 | 1,812.55 | 1,488.49 | 324.06 | 16 | 4.6 | 12% | 103 |
| FY16 | 1,562.01 | 1,160.93 | 401.08 | 20 | 2.9 | 19% | 76 |
| FY17 | 2,445.78 | 1,949.14 | 496.64 | 25 | 3.9 | 19% | 98 |
| FY18 | 3,717.27 | 2,958.41 | 758.86 | 19 | 3.9 | 14% | 124 |
| Post Issue | 1533.73 | 31 | 1.9 | ||||
| 2. Profit n Loss Key Parameters | ||||||
| Year | Revenue(lacs) | PAT(lacs) | EBITDA Margins | Profit Margins | Outstanding Shares(lacs | EPS |
| FY14 | 3,321.15 | 13.31 | 3% | 0.4% | 5 | 2.66 |
| FY15 | 3,749.45 | 40.31 | 4% | 1.1% | 20 | 2.02 |
| FY16 | 4,672.11 | 77.02 | 5% | 1.6% | 20 | 3.85 |
| FY17 | 5,140.47 | 95.55 | 7% | 1.9% | 20 | 4.78 |
| FY18 | 6,199.76 | 107.12 | 6% | 1.7% | 39 | 2.75 |
| Post Issue | 50.23 | 2.13 | ||||
| 3. Cash Flow Statement(all figures in lacs) | |||||
| Particulars | FY18 | FY17 | FY16 | FY15 | FY14 |
| (i) Net Cash Generated from Operation | -621.86 | 224.64 | -84.62 | -12.52 | -35.13 |
| (ii) Net Cash Generated from Investment | -132.13 | -148.97 | -6.52 | -121.9 | -7.58 |
| (iii) Net Cash Generated from Financing Activity | 821.74 | -55.77 | 114.96 | 140.1 | 42.5 |
| (iv) Total[ (i)+(ii)+(iii) ] | 67.75 | 19.9 | 23.82 | 5.68 | -0.21 |
| (v) Cash and Cash Equivalents at the Beginning of the Year | 52.1 | 32.2 | 8.38 | 2.7 | 2.91 |
| (vi) Cash and Cash Equivalents at the end of the Year | 119.85 | 52.10 | 32.20 | 8.38 | 2.70 |
Comparison With Peers:
Recommendation on Saketh Exim Limited IPO:
Lead Manager of Saketh Exim Limited IPO:
Registrar of Saketh Exim Limited IPO:
Company Address:
25th Sep 2018 - 27th Sep 2018 => Aavas Financiers IPO
Bid Details of Saketh Exim Limited IPO as on
03-Aug-2018 17:00:00 IST
| Category | No.of shares offered | No. of shares bid |
|---|---|---|
| 648,000 | 1,146,000 | |
| 648,000 | 544,000 | |
| 72,000 | 72,000 | |
| 1,368,000 | 1,762,000 |
| QIBs | No |
| QIBs+HNIs Subscription | 1.77X |
| Retail Subscription | 0.84X |
| Total Subscription | 1.30X |
OFS from the promoters group in SME companies is a joke. How can someone sell their shares in the company which was formed just 6 years back.
Business is ok but priced issue expensive. It should have priced it lower to attract investors.
Many times companies show their peer from the mainline board and try to justify their valuation. I think in the first instance we should not compare any SME to mainline company as their scale of operation is very small to have a meaningful comparison.
As on FY18, the company owes 9.18 Cr from the creditors.
The company faces competition from players in the global market, since they are an export-oriented unit for the goods manufactured. Further, they are also engaged in Trading of Fabric and other Textile products, which is largely unorganized and fragmented industry.
Costly issue at P/E of 32.
In FY18, the company has done a sale of 37.84 Cr in the manufacturing segment and 23.97 Cr in Trading of Fabrics of and Textile Material. The total sales of FY18 were stands at 61.82 Cr out of which 25.87 Cr was from Domestic operations and 35.95 Cr from Export.