Shubham Polyspin Limited IPO
(i) Gujarat based Shubham Polyspin Limited was incorporated in 2012. Shubham Polyspin manufactures Polypropylene Multifilament Yarn of various types i.e. Air-Intermingled yarn, Twisted Yarn & Shubhlon Bag closing yarn. These yarns are used in various fields like Geo-Textiles, Filter Cloth, In FIBC, HDPE, PP Bags as Mouth & bottom closing thread, Narrow Woven Fabrics (webbings & tapes) etc. This allows us to cater to diverse customer demands. With Their unsurpassed quality of yarns and excellent client relations, They have created Their name globally. They have received a brand acceptance within India and abroad through our exports.
(ii) The Company’s customers are large & credible industrial entities. Within 2 years, Company has developed an excellent clientele base and values every client that works with Shubham, with the aim of maintaining long & friendly relations with them.
(iii) The Company uses advanced technology & machinery producing quality yarn that conforms to international standards. Their manufacturing process is completely automated from the feeding of raw material in the machine to packaging of finished product. Thus, enhancing our production, product strength & its quality.
Objects of the Shubham Polyspin Limited IPO:
Shubham Polyspin Limited IPO
are: 1. Modernizations of Plant and Machineries, Building and Electrification 2. Working Capital Requirements 3. General Corporate Purpose 4. Developing of New Products 5. Public Issue ExpensesShubham Polyspin Limited IPO Details:
| Open Date: | Sep 28 2018 |
| Close Date: | Oct 04 2018 |
| Total Shares: | 1,500,000 |
| Face Value: | ₹ 10 Per Equity Share |
| Issue Type: | Fixed Price Issue IPO |
| Issue Size: | 6 Cr. |
| Lot Size: | 3000 Shares |
| Issue Price: | ₹ 40 Per Equity Share |
| Listing At: | BSE SME |
| Listing Date: | Oct 12 2018 |
Promoters And Management:
Financials of Shubham Polyspin Limited IPO:
| Particulars | For the year/period ended (in Rs Lacs) | ||||
| 31-Mar-2018 | 31-Mar-17 | 31-Mar-16 | 31-Mar-15 | 31-Mar-14 | |
| Total Assets | 1,783.7 | 2,029.45 | 1,447.05 | 789.88 | 758.51 |
| Total Revenue | 2827.00 | 1771.19 | 1540.45 | 1354.57 | 626.13 |
| Profit After Tax | 148.15 | 21.58 | 24.81 | 20.47 | 2.18 |
Recommendation on Shubham Polyspin Limited IPO:
Lead Manager of Shubham Polyspin Limited IPO:
Registrar of Shubham Polyspin Limited IPO:
Company Address:
Bid Details of Shubham Polyspin Limited IPO as on
04 Oct 2018 | 11:58:04 PM
| Category | No.of shares offered | No. of shares bid |
|---|---|---|
| 711,000 | 1,614,000 | |
| 711,000 | 2,586,000 | |
| 78,000 | 78,000 | |
| 1,500,000 | 4,278,000 |
| QIBs | No |
| QIBs+HNIs Subscription | 2.27X |
| Retail Subscription | 3.64X |
| Total Subscription | 2.95X |
Discussion on Shubham Polyspin Limited IPO:
4 Comments
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*Shubham Polyspin* List @ 41.80 against Issue price Rs 40
Yarn company. They have shaky business.even though valuation is ok but such business never generate investor confidence due to no wealth creation for shareholder. I am neutral on this issue . In such market condition better to avoid
EPS story (Pre-Issue) based on FY18 Financials
(i) PAT= 148.15 lakh
(ii) Outstanding Shares= 40.1 lakh
(iii) EPS= 3.69
(iv) P/E= 10.84
EPS story (Post-Issue) based on FY18 Financials
(i) PAT= 148.15 lakh
(ii) Outstanding Shares= 55.1 Lakh
(iii) EPS= 2.68
(iv) P/E= 15
Conclusion: The valuation looks reasonable as compared to its peer Garware Technical Fibres
Limited( as mentioned in the DRHP) which is trading at P/E of 22 on the basis of the closing price on 27.09.2018. However, we need to see Garware Technical Fibres is a Mainline company. Comparing SME with Mainline is quite difficult due to differences in scale of operation. Hard to believe no SME working in the same sector has been chosen as a peer.
Another Yarn Company. We have seen the faith of Axar Spintex and recent mayhem created by lagnam. The textile sector has been laggard and in the past have not given good returns.