Though revenue of the company has gone up from 36 cr to 39 cr from FY16 to FY17 but increase in receivables days from 29 to 66 days clearly indicates that company is selling products on credit of 66 days almost double from previous years, which is quite negative for the companies with the large working capital requirement.
Sonam Clock Limited IPO
Sonam Clock Limited IPO
(i) Sonam Clock Limited is a clock manufacturing Company situated in Morbi, Gujarat and established in 2001. Clocks are available at various price points across budget, mid-range of `100 to `1800 which includes LED digital clocks, LCD clocks, light sens rotating pendulum musical clocks, sweep clocks, office clocks, designer clocks, alarm clocks, table clocks and regular clocks also offer customized corporate clocks in bulk quantities for corporate gifting up.
(ii) The products are sold mainly to clock dealers, retailers, consumers. Their products are sold under the brand name of Sonam, and Lotus. In F.Y. 2016 operations comprised of Rs. 37.9285 Cr of which approximately 40% comprised of export sales to as Dubai and Iraq. .They are also engaged in clock parts which include clock movements, clock cases etc
.They are ISO 9001:2008 accredited Company and have grown many folds during the past decade under the leadership and guidance of their Promoter, Chairman and Managing Director, Mr. Jayeshbhai years in the field of clock industry. His expertise and experience have been instrumental in the growth of the business.
1 Rotating Pendulum Musical Clock
2 Pendulum Musical Clock
3 Rotating Musical Clock
4 Pendulum Clock
5 Musical Clock
6 Divine Clock (with/ without tune)
(iii) Sonam Clock Limited First Ever Company to register unpredicted growth in chorological industry in sector of corporate Gifting. The company is well equipped with the world-class technology and state-of-the-art equipment which are strategically utilized by highly professional management team & the workforce from surrounding villages. (Most of them are female workers). With the values of dedication, commitment and hard work, the company as a team is climbing the ladder of success. At present, the company has a wide range of Clocks, LED clocks & Timepieces.
(iv)Since last Seven years “SONAM” has never looked back, and now become India’s one of the largest customized clock producing Company. In the field of Indian Clock Manufacturing industry “SONAM” is running “NECK to NECK” a winning track with its production capacity and strong marketing network.
Objects of the Sonam Clock Limited IPO:
Sonam Clock Limited IPOare: 1. Funding the Working Capital Requirement 2. Repayment of Unsecured Loan availed by our Company 3. General Corporate Expenses 4. Issue Expenses
Sonam Clock Limited IPO Details:
|Open Date:||Jun 01 2018|
|Close Date:||Jun 06 2018|
|Face Value:||₹ 10 Per Equity Share|
|Issue Type:||Fixed Price Issue IPO|
|Issue Size:||10.11 Cr.|
|Lot Size:||3000 Shares|
|Issue Price:||₹ 36 Per Equity Share|
|Listing At:||NSE Emerge|
|Listing Date:||Jun 14 2018|
Promoters And Management:
|(i) Authorized Share Capital (1,10,00,000 shares at FV@10)||11 Cr|
|(ii) Issued, Subscribed,& Paid-up Share Capital Before Issue (72,00,000 Shares at FV@10)||7.2 Cr|
|(iii) Present Issue ( 28,08,000 Shares at FV@10)||2.808 Cr|
|(iv) Reservation for Market Maker ( 1,44,000 Shares at FV@10)||6.2 Lacs|
|(v) Net Issue to Public (28,08,000 -1,44,000= 26,64,000 Shares)||2.664 Cr|
|(vi) QIB & HNI quota-13,32,000||50%|
|(vii) Retail Quota - 13,32,000||50%|
|(viii) Paid Up Share Capital after the issue||10.008 Cr|
Financials of Sonam Clock Limited IPO:
|1. Assets and Liabilities Key Parameter|
|Year||Asset(Lacs)||Liabilities(Lacs)||Net Worth(Lacs)||Book Value||D/E||RONW||Receiveable days|
|3. Cash Flow Statement(all figures in Lacs)|
|(i) Net Cash Generated from Operation||270.57||468.16||94.12||154.71||350.22|
|(ii) Net Cash Generated from Investment||-150.88||-261.12||-63.5||-192.27||-173.37|
|(iii) Net Cash Generated from Financing Activity||-130.65||-211.95||-76.87||46.05||-155.2|
|(iv) Total[ (i)+(ii)+(iii) ]||-10.96||-4.91||-46.25||8.49||21.65|
Comparison With Peers:
Recommendation on Sonam Clock Limited IPO:
Sonam Clock Limited IPOfrom our side is: Rating: 1/10. 1-5: Fair 5-7: Good 7-10: Excellent
Lead Manager of Sonam Clock Limited IPO:
Registrar of Sonam Clock Limited IPO:
Bid Details of Sonam Clock Limited IPO as on
06-Jun-2018 17:30:00 IST
|Category||No.of shares offered||No. of shares bid|
Discussion on Sonam Clock Limited IPO:
It is a big avoid. No point of applying in a company which has big corporate governance issues like No filling of TDS , increase in trade payables and many more issues.
The recently announced Customs Duty on Imported clocks as well as other new regulatory impositions by the Government, such as introduction of GST and the likely to be announced E-way will help a great deal in eliminating from the scene those businesses that were operating nefariously by evading payment of taxes Organised Players grow their businesses and progressively move forward
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