(i) Sirca Paints India Limited was originally incorporated on 19th January 2006 at New Delhi Company was laid down by Mr. Sanjay Agarwal,Mr. Apoorv Agarwal and Mr. Gurjit Singh Bains in the year 2006 with a vision to have a distinct global presence in Paint Industry by providing high quality coatings and technical assistance which leads to as healthy customer relationship. After establishment, Our Company started import of Polyurethane Polish (PU) products from Italy and wall paints & Abrasives from Korea and selling them in India as the first step of Journey.
(ii) Sirca Paints India Limited is the first Company to launch wood filler in India and opened its wholly owned branches in Mumbai and Chennai.
(iii) The Company is in marketing and trading/distributor of paints and allied products after repackaging the same.The Company uses to procure the products majorly from SIRCA SPA ITALY through Import and selling them in India through its Distributors. In addition, the Company also procure the products (Thinner,Abrasives and Buffing Cream) from other suppliers based in India. Except for Thinner and Abrasives which are purchased from domestic suppliers, all other 100% Purchases are made from Outside India and the products which are purchased from domestic suppliers and sold out in India Only.
(iv) The company has shown a tremendous growth in its total revenue, our Total revenue has increased more than doubled in last 5 (five) years. Our total revenue for the Financial Year 2012-13 was Rs. 3402.29 Lacs which is now Rs. 8434.17 Lacs in the Financial Year 2016-17 and has shown an Increment of 147.89 %. Our Profit after tax is also shown a steep rise in last 5 (Five) years from Rs. 50.40 lacs in the Financial year 2012- 13 to Rs. 1370.34 Lacs in the Financial Year 2016-17 an Increment of 2618.93 %.
1. To finance the expenditure of Site/Plant Development and Purchase of Plant and Machinery
2. To part finance incremental working capital requirements of the Company
3. To meet General corporate purposes
4. To meet the expenses of the Issue
Promoters of Sirca Paints India Limited IPO Company are:
(i) Mr. Sanjay Agarwal aged 57 years, is Promoter and Managing Director of our Company. He is Chartered Accountant. He is having more than 20 years of Experience in wood coating Industry. He looks after day-to-day routine operational activities of our Company. With his multifunctional experience, He guides a company in its growth strategies. He has been on the board of Company since Incorporation of the Company i.e. January 2006.
(ii) Mr. Apoorv Agarwal: aged 30 years, is Promoter and Managing Director of our Company. He holds the degree in Master in Finance and Marketing from IIPM and Degree of Commerce from the University of Delhi. He is having more than 8 years of Experience in the Business of Italian Furniture and Italian wood coating Industry. He looks after day-to-day routine operational activities of our Company. He played an instrumental role towards increment of growth at
our Company. He has been on the board of Company since Incorporation of the Company i.e. January 2006.
(iii) Mr. Gurjit Singh Bains aged 50 years, is Promoter and Non Executive Director of our Company. He is Master in economics from the University of Venice. He is having more than 20 years of Experience in wood coating and Italian Furniture Industry. His business acumen has yielded the required results and with her tireless support to the company, facilitated the business to reach new heights all through. He has been on the board of Company since Incorporation of the Company i.e. January, 2006.
Key Highlights of the Company going forward(i) The Company has entered into a Distributorship Contract dated 1st January, 2018 with SIRCA SPA ITALY, wherein the Company got the Exclusive Right to promote the sale of PU & Metal Coating under trademark 41 SIRCA in the territory of India, Sri Lanka,Bangladesh and Nepal with a minimum turnover of EURO 4,300,000 (Four Million three hundred thousands) and EURO 4,800,000 (Four million eight hundred thousand) to be achieved in the year 2018 and 2019 respectively.
(ii) The Company has entered into a Manufacturing License Agreement dated 16th February, 2018 with SIRCA S.P.A. Italy for manufacturing the following products that the Company is currently distributing under the Product Distribution Agreement. Pursuant to this agreement, the Company is having an Exclusive Right to manufacture the following products in India, under the mark “SIRCA”.
- Paints NC
- Paints AC
- Polyurethane Products.
(iii)Proposed Production Capacity:Presuming 300 operating days in a year and single Shift (12 Hours)-working basis, the production capacity of the unit is mfg. of 3000000 kgs of PU Thinner and 3600000 kgs of NC Lacquers ,3600000 kgs of Melamine and 2000000 kgs of Polyurethane products per annum initially, which is likely to be increased in the subsequent years. Actual utilization is expected to be 25 % in Ist year, 40 % in IInd year, 60 % in IIIrd year and approx 75% and above in further years.
(i) Authorized Share Capital
(2,00,00,000 shares at FV@10)
(ii) Issued, Subscribed,& Paid-up Share Capital Before Issue
(1,34,00,000 Shares at FV@10)
(iii) Present Issue
( 48,69,600 Shares at FV@10)
(iv) Reservation for Market Maker ( 2,44,000 Shares at FV@10)
(v) Net Issue to Public
(48,69,600-2,44,000= 46,25,600 Shares)
(vi) QIB quota-22,98,400
(vii) HNI Quota not less than 6,99,200
(viii) Retail Quota not less than 16,28,000
(ix) Paid Up Share Capital after the issue
Financials of Sirca Paints India Limited IPO as per DRHP:
1. Balance Sheet Snippet[ Financials as of Sept 2017]
(i) Shareholders’ Fund[Equity] Value
(iv) Debt/Equity[<1 ideal]
(v) Net Worth[Asset- Liability]
(vi) Current Ratio[ideally>1.5]
(vii) RONW[PAT/Net Worth] or ROE
(viii) Book Value or NAV[adjusting bonus]
(ix) P/B [<5 ideal]
2. Profit n Loss Snippet(i) The Reveune of the company in last 5 years ( FY13 to FY17) is 34.02 Cr, 54.08 Cr, 69.7 Cr, 72.66 Cr and 84.34 Cr respectively. The Company is growing at a CAGR of 25.48%[Excellent]
(ii) The PAT of the company in last 5 years ( FY13 to FY17) is 50.40 Lacs, 1.97 Cr, 6.17 Cr, 7.27 Cr and 13.70 Cr respectively. The Company is growing at a CAGR of 128.79%[Excellent].
(iii) The EBITDA Margins of the company for FY13( 5.78%), FY14(6.71%), FY15(14.50%) ,FY16(16.7%) and FY17(26%) . The Company's EBITDA margins in last 5 years has shown tremendous growth and have gone 5x .
(iv) P/B(post issue)= 2.14( at cutoff price of 160)
(v) Annualized EPS(post issue)= 10.55
(vi) Annualized P/E(post issue)=15 at the cutoff price of 160.
3. Cash Flow Statement(all figures in lacs)
(i) Net Cash Generated from Operation
(ii) Net Cash Generated from Investment
(iii) Net Cash Generated from Financing Activity
(iv) Total[ (i)+(ii)+(iii) ]
(v) Cash and Cash Equivalents at the Beginning of the Year
(vi) Cash and Cash Equivalents at the end of the Year
Comparison With Peers:
Name of the Company
Sirca Paints India Limited
Kansai Nerolac Paints Ltd
Asian Paints Ltd
Recommendation on Sirca Paints India Limited IPO:
Review and Recommendation of
Sirca Paints India Limited IPO
from our side is: