Shankar Lal Rampal Dye Chem Private Limited IPO

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The Company’s business in the trading of Dyes and Chemicals was started by Shree Shankar Lal Inani (Late). in the year2005 with a vision to corporatize the business and to expand its operations, they have constituted a Private Limited Company.

The company mainly specializes in Hydrogen Peroxide, Sodium Bi-Carbonate 99.5%, Sodium Meta Bi Sulphite 97%, Soda Ash Light, Linear Alkyl Benzene Sulphonic Acid 90% and many others chemicals.

The Dyes and Chemicals in which the Company deals in, mainly caters to Textiles & Garments manufacturing Industry, Food and beverages Industries, Laboratory, Leather, Candel making industries, Plastic Industries, Agriculture, Water Treatment, Personal Care & Cosmetics Industries, Plywood Industry etc. The Company also trades in speciality performance chemicals used in Textile Dyeing and Printing Industry

The Trading facility of the Company is situated at Bhilwara (Rajasthan) where the operations are centralised which controls the trading activities in Mumbai (Maharashtra) and Delhi where they have rented warehouses for stocking the products and onward sale to their customers. The company is an ISO9001:2015, ISO 14001:2015 certified company.

Shankar Lal Rampal Dye Chem Private Limited IPO Stock Quote & Charts

42.60

+0.47%

  • Open: 42.60
  • High - Low: 42.60 - 42.60
  • Previous Close: 42.40
  • Total Traded Volume: 3000
  • Updated On: 13-May-2019

Objects of the Shankar Lal Rampal Dye Chem Private Limited IPO:

Objective of Shankar Lal Rampal Dye Chem IPO A. To meet the working requirement of the company B. To meet the Issue Expenses

Shankar Lal Rampal Dye Chem Private Limited IPO Details:

Open Date: Dec 12 2018
Close Date: Dec 14 2018
Total Shares: 16,20,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price Issue IPO
Issue Size: 6.9255 Cr.
Lot Size: 3000 Shares
Issue Price: ₹ 45 Per Equity Share
Listing At: BSE SME
Listing Date: Dec 24 2018

Promoters And Management:

Promoters of Shankar Lal Rampal Dye Chem Private Limited Company are: 1) Mr Rampal Inani. 2) Mr Jagdish Chandra Inani. 3) Mr Dinesh Chandra Inani. 4) Mr Vinod Kumar Inani and 5) Mr Susheel Kumar Inani

Financials of Shankar Lal Rampal Dye Chem Private Limited IPO:

Year Revenue(Cr) PAT(lakh) OPM NPM EPS P/E
2014 23.41 7.39 0.98 0.0031 0.56 80
2015 21.94 6.28 0.99 0.0028 0.47 95.74
2016 25.99 9.94 0.99 0.0038 0.57 78.94
2017 29.19 11.13 0.98 0.0038 0.64 70
2018 75.16 96 0.96 0.012 2.19 20.15
IZ Financial Review 1. The Growth of the company was timid in the last 4 years, however, just before the IPO, the Revenue doubles up raising concern. 2. The Receivables have gone up from 4 cr in FY17 to 22 Cr in FY18 is a cause of concern.  The Company's receivables from FY14 to FY17 was close to 50 days which has suddenly risen in FY18 to 112 days. 3. The Total Outstanding Shares after the IPO would be close to 59.07 lakh shares, the PAT of FY18 is close to 96 Lakh. So EPS Post issue would be 1.62. 4. P/E (Post Issue)= 27.77. ( very high )[ Based on FY18 earnings].

Comparison With Peers:

The peers like Jaysynth Dyestuff (India) Ltd, Camex Limited and Bhageria Industries Limited are trading at P/E of 18, 10.07 and 8.32 which clearly shows that the IPO is priced aggressively.

Recommendation on Shankar Lal Rampal Dye Chem Private Limited IPO:

Review and Recommendation of Shankar Lal Rampal Dye Chem IPO from IZ team is: 3/10 [ The company has shown timid growth in Revenue and PAT from FY14 to FY17, moreover, the sudden rise of Revenue and PAT in FY18 is a cause of concern. The Issue is priced aggressively and better opportunity are available in the market ]

Lead Manager of Shankar Lal Rampal Dye Chem Private Limited IPO:

  1. Finshore Management Services Limited

Registrar of Shankar Lal Rampal Dye Chem Private Limited IPO:

  1. Cameo Corporate Services Limited

Company Address:

Shankar Lal Rampal Dye Chem Private Limited G-2730,Suwana,Bhilwara-311001, Rajasthan, India, Phone No. 01482-220062 Email ID:info@srdyechem.com Website:www.srdyechem.com

Bid Details of Shankar Lal Rampal Dye Chem Private Limited IPO as on
14 Dec 2018 | 11:58:02 PM

Category No.of shares offered No. of shares bid
769,500 1,404,000
769,500 600,000
81,000 81,000
1,620,000 2,085,000
QIBs No
QIBs+HNIs Subscription 1.82X
Retail Subscription 0.78X
Total Subscription 1.30X

Discussion on Shankar Lal Rampal Dye Chem Private Limited IPO:

    Shares of IPO of Shankar Lal Rampal Dye-chem closed with a gain of 4 per cent at ₹46.15 on the BSE-SME platform against the issue price of ₹45.

    Shankar Lal Rampal Dye-chem became the 279th company to get listed on the BSE SME Platform on December 24, the BSE said in a statement.

    Finshore management has not been able to deliver returns on most of issues. Even the one which is above issue price is just ruling around issue price. Avoid as no point taking risk and also lead manager with no track record should be avoid completely

    As of September 2018, they have only 9 whole-time employees. The following table provides information about our full-time.

    1 Sales & Marketing =3
    2 Purchase Department =2
    3 Administration =1
    4 Supervisor Quality Control= 2
    5 Company Secretary =1
    Total =9

    Debt Story as on FY18.

    1. Long-term Debt= 9.82 Cr
    2. Short-Term Debt= 3.40 Cr
    3. Equity= 20 Cr
    4. D/E= 0.661

    Conclusion: The company has comfortable Debt/Equity position.