Anchor Investor in Sirca Paints consist of Mauryan who has bought 7,20,000 Shares, Next Orbit Ventures Fund who has bought 3,37,600 Shares and Reliance Equity Opportunities AIF Scheme I who has bought 3,12,800 Shares. So total 13,70,400 No. of equity Shares are allotted under Anchor Category.
Sirca Paints India Limited IPO
Sirca Paints India Limited IPO
(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 %.
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Objects of the Sirca Paints India Limited IPO:
Sirca Paints India Limited IPOare: 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
Sirca Paints India Limited IPO Details:
|Open Date:||May 16 2018|
|Close Date:||May 22 2018|
|Face Value:||₹ 10 Per Equity Share|
|Issue Type:||Book Built Issue IPO|
|Lot Size:||800 Shares|
|Issue Price:||₹ 151-160 Per Equity Share|
|Listing At:||NSE Emerge|
|Listing Date:||May 30 2018|
Promoters And Management:
|(i) Authorized Share Capital (2,00,00,000 shares at FV@10)||20 Cr|
|(ii) Issued, Subscribed,& Paid-up Share Capital Before Issue (1,34,00,000 Shares at FV@10)||13.40 Cr|
|(iii) Present Issue ( 48,69,600 Shares at FV@10)||4.87 Cr|
|(iv) Reservation for Market Maker ( 2,44,000 Shares at FV@10)||24.4 Lacs|
|(v) Net Issue to Public (48,69,600-2,44,000= 46,25,600 Shares)||4.625 Cr|
|(vi) QIB quota-22,98,400||49.7%|
|(vii) HNI Quota not less than 6,99,200||15.11%|
|(viii) Retail Quota not less than 16,28,000||35.19%|
|(ix) Paid Up Share Capital after the issue||18.27 Cr|
Financials of Sirca Paints India Limited IPO:
|1. Balance Sheet Snippet[ Financials as of Sept 2017]|
|(i) Shareholders’ Fund[Equity] Value||4348.65 Lacs|
|(ii) Asset||7423.46 Lacs|
|(iii) Liability||3074.81 Lacs|
|(iv) Debt/Equity[<1 ideal]||.70(resonable)|
|(v) Net Worth[Asset- Liability]||4348.65 Lacs|
|(vi) Current Ratio[ideally>1.5]||2.04|
|(vii) RONW[PAT/Net Worth] or ROE||22.17%|
|(viii) Book Value or NAV[adjusting bonus]||35.64|
|(ix) P/B [<5 ideal]||4.6|
|3. Cash Flow Statement(all figures in lacs)|
|(i) Net Cash Generated from Operation||1071.71||455.44||654.5||235.42||152.14|
|(ii) Net Cash Generated from Investment||-538.23||-111.33||-26.96||-59.02||-196.86|
|(iii) Net Cash Generated from Financing Activity||-693.26||-123.21||-61.38||394.95||-208.18|
|(iv) Total[ (i)+(ii)+(iii) ]||-159.78||220.9||566.16||571.35||-252.9|
|(v) Cash and Cash Equivalents at the Beginning of the Year||1493.28||1272.58||706.43||135.06||387.97|
|(vi) Cash and Cash Equivalents at the end of the Year||1333.5||1493.48||1272.59||706.41||135.07|
Comparison With Peers:
|Sr.No||Name of the Company||FV||EPS||PE||RONW(%)|
|1||Sirca Paints India Limited||10||10.55||15||22.17%|
|2||Kansai Nerolac Paints Ltd||1||9.39||40.25||17.87%|
|3||Asian Paints Ltd||1||18.8||58.04||27.94%|
Recommendation on Sirca Paints India Limited IPO:
Sirca Paints India Limited IPOfrom our side is: Rating: 7/10. 1-5: Fair 5-7: Good 7-10: Excellent .
Lead Manager of Sirca Paints India Limited IPO:
Registrar of Sirca Paints India Limited IPO:
Bid Details of Sirca Paints India Limited IPO as on
22-May-2018 18:00:00 IST
|Category||No.of shares offered||No. of shares bid|
Discussion on Sirca Paints India Limited IPO:
Thanks for the information.
I found contradictory review on another site.
I need guidance about this IPO as as per the review on this site its a clear go-to issue and as per the other review that i shared, it’s a no-no.
Sirca Paints is a 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. Company has shown tremendous performance in terms of Revenue, PAT and EBITDA Margins in last 5 years. Just imagine how much Margins can be improved , once they start manufacturing all the products in India. As per Company, they have entered into a Manufacturing License Agreement dated 16th February, 2018 with SIRCA S.P.A. Italy for manufacturing the products that the Company is currently distributing under the Product Distribution Agreement. Once this manufacturing Units starts then there dependency on Variation of US dollar against the rupee will no longer be a factor affecting their bottom-line. If you are not sure applying in this IPO, then you should wait and observe the company performance once this manufacturing units start delivering and then buy it from secondary market.
Looks a decent issue. The company’s EBITDA margins have shown tremendous growth. The company is virtually debt free.
Issue size for QIB portion is of 37 crore, out of which Anchor portion is 22.15 and non Anchor is 14.85, rest 40.91 is for HNI, Market Maker and retail.
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