Siddhika Coatings IPO

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Siddhika Coatings Limited is a strategic channel partner in India for SK Kaken Ltd. (SKK). It is an authorized importer of SKK’s products in India from SKK Singapore Pte. Ltd. SKK is a renowned coatings and pigments manufacturer based in Japan. Having been associated with SKK for over 15 years, the company has gained the reputation of being one of the well-known suppliers of their products in India. Siddhika Coatings Limited provides application services that include preparing and coating interior as well as exterior surfaces of civil structures using organic and inorganic architectural textured pigments and technical-grade functional coatings. In addition, to apply and supply to the majority of the clients, they also provide technical support service along with a supply of products wherein the experienced team provides technical know-how, guidance, and equipment for paint/coatings application. Currently, Siddhika is placed as one of the older marketers for SKK products and its specialist paint and application service providers in India.

It provides supplies to the various eminent architects, real estate developers as well as government and private entities in India. Their PAN India network of application specialists enabled the company to execute projects for big names across various industries over the past decade. The Restated Consolidated Financial Statements show that the company has grown its total revenue at a CAGR of 11% from Rs. 2197.63 lakhs to Rs. 3012.53 lakhs in Fiscal 2018 to Fiscal 2020 respectively. The Company is gradually expanding its presence to various cities in India. Currently, it has branch offices across 11 states, including Delhi, Haryana, Uttar Pradesh, Rajasthan, Himachal Pradesh,
Karnataka, Tamil Nadu, Telangana, West Bengal, Gujarat, and Maharashtra.

Business Strengths

i. Experienced Promoter and Management Expertise.

ii. Has an excellent record of providing quality services.

iii. Good Track Record and Customer Retention.

iv. Largest contract company for SKK brand.

Objects of the Siddhika Coatings IPO:

The company is raising funds from the IPO for the following purpose. (i) Working Capital = 330 Lakhs (ii) General Corporate Expenses = 99 Lakhs (iii) Issue Expense = 40 Lakhs
DRHP of Siddhika Coatings IPO

Siddhika Coatings IPO Details:

Open Date: Mar 24 2021
Close Date: Mar 26 2021
Total Shares: 824,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Issue
Issue Size: 4.70 Cr.
Lot Size: 2000 Shares
Issue Price: ₹ 57 Per Equity Share
Listing At: NSE Emerge
Listing Date: Apr 05 2021

Promoters And Management:

(i) Mr. Charitra Maheshwari Aged 44 years, has experience of more than 26 years in the business with respect to logistics, sales, marketing, finance, and strategy. He is associated with the company since 2013 and in 2017 he was appointed as Managing Director of the Company for a period of 5 years. (ii) Mr. Gaurav Agarwal Aged 40 years, has experience of 17 Years in this business. He is Executive Director of the Company and has been associated with the Company since 2014. (iii) Mr. Abhijeet Banerjee Aged 50 years, has a rich experience of more than 31 years in the architectural paint segment & project management. He is Executive Director of the Company and has been associated with Company since 2013.

Financials of Siddhika Coatings IPO:

(Financials in Crores)
Year Revenue EBITDA OPM% PAT NPM% Shares EPS
2018 22 3.7 17% 2.56 12% 0.30895 8.29
2019 32 5.06 16% 3.51 11% 0.30895 11.36
2020 30 4.32 14% 2.95 10% 0.30895 9.55
6MFY21 6 3.3 55% 0.19 3% 0.30895 0.61

Comparison With Peers:

As on the date of this Prospectus, there are no comparable peer which is listed companies in India and which are engaged in the same line of business as that of Siddhika Coatings Limited, hence comparison with industry peers are not applicable.

Recommendation on Siddhika Coatings IPO:

to be updated shortly

Lead Manager of Siddhika Coatings IPO:

  1. Unistone Capital

Registrar of Siddhika Coatings IPO:

  1. Skyline Financial Services Private Ltd

Company Address:

L-9, Lower Ground Floor Kalkaji New Delhi South Delhi, Delhi-110019, India

Discussion on Siddhika Coatings IPO:

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