SK International Export Limited IPO

Apply 0
Avoid 0

(i) They were established in the year 1991 as a partnership firm in international exports of scarves and beachwear. The Company has created a distinct identity of its own in the International business domain and mainly caters to European market i.e. Spain, Germany, France, Netherlands, UK and started selling in US market since 2018 onwards and also entered into the domestic market.

(ii) The Company is a manufacturer and exporter in Scarves and Beachwear based in Mumbai, India. The Company is engaged in the manufacturing and marketing of women and men’s apparels like scarves, shawls, sarongs, headband & bandanas and Beachwear garments in all qualities like silk, viscose, cotton, polyester & wool and several blends.

From the year 2018, the Company entered into manufacturing for several Retail brands in the domestic market by creating new designs as per local market for its main core product scarves. They also entered in the ethnic wear category by developing trendy dupattas at affordable prices catering women who look for fashionable styles at affordable prices.

(iii) The Company believes that fashion is for all women and hence, took a challenge to provide the affordable range of fashionable garments to the women in the international and domestic market. They have also entered into the Kids segment with our own domestic brand Sand Kastle for Beachwear/Holiday wear garments and fashion accessories.set for ourselves.

(iv) A major portion of the product is manufactured in-house factory at Virar (Palghar). They manufacture products on made to order basis as per the current fashion forecast for several big brands in International & domestic markets.

Objects of the SK International Export Limited IPO:

A. To meet the working capital requirements of the company General Corporate Purposes  B. To meet the Issue Expenses

SK International Export Limited IPO Details:

Open Date: Jun 28 2019
Close Date: Jul 05 2019
Total Shares: 1,980,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price IPO
Issue Size: 3.96 Cr.
Lot Size: 6000 Shares
Issue Price: ₹ 20 Per Equity Share
Listing At: BSE SME
Listing Date: Jul 13 2019

Financials of SK International Export Limited IPO:

Comparison With Peers:

As per DRHP, the company has showed Kewal Kiran and Jindal Worldwide as its listed peers that are currently trading at a P/Es of around 17 and 51 (as on 24.06.19).

Recommendation on SK International Export Limited IPO:

Review and Recommendation of SK International Export Limited IPO from IZ Team are 2/10. [ The textile companies which has come lately with SME IPOs have given negative returns. The Issue price is fully priced. The profit looks inflated in FY18 just before the IPO. ] 

Lead Manager of SK International Export Limited IPO:

  1. Finshore Management Services Limited

Registrar of SK International Export Limited IPO:

  1. Karvy Computershare Private Limited

Bid Details of SK International Export Limited IPO as on
05 Jul 2019 | 11:55:03 PM

Category No.of shares offered No. of shares bid
939,000 1,854,000
939,000 510,000
102,000 102,000
1,980,000 2,466,000
QIBs No
QIBs+HNIs Subscription 1.97X
Retail Subscription 0.54X
Total Subscription 1.26X

Discussion on SK International Export Limited IPO: