Vera Synthetic Limited IPO

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Vera Synthetic Limited is engaged in manufacturing of Fishing Nets, PP Yarns,PP  /HDPE Ropes, PP Twines and Niwar. company manufacture and market our products under our flagship brand “Sujlon”. Our products are primarily used in fishing sector and other allied use thereon. The company is promoted by Sunil Makwana and Nagin Makwana. They joined the Company in 2008 and at present looking after the overall management, day to day affairs and are the guiding force behind the strategic decisions of our Company. company manufacturing facility is divided into two units namely Division I and Division II (both situated in the same premises at Mamsa, Gujarat). the manufacturing unit is well equipped with required facilities and machinery to facilitate the smooth manufacturing process. the company also have in-house testing machines to test our products. our dealers, traders, and distributors spread across different regions of the Country thus giving us the advantage of wide geographical presence. Currently, the company sells their products either directly to traders/fishermen or through our distribution network in Gujarat, Maharashtra, Kerala, Karnataka, Andhra Pradesh, West Bengal, Delhi, Bihar, Rajasthan, etc.
The Company has two group companies:
1. Suraj Filaments Pvt Ltd
2. Vera Nets Pvt Ltd

Vera Synthetic Limited IPO Stock Quote & Charts

42.00

-1.29%

  • Open: 42.00
  • High - Low: 42.00 - 42.00
  • Previous Close: 42.55
  • Total Traded Volume: 3000
  • Updated On: 24-May-2018

Objects of the Issue:

The company is issuing 13,35,000 number of shares at price of Rs.40 per share to raise 5.34 cr. The breakup of fund is detailed below: 1. Funding the working capital requirements of the Company= 3.84 cr 2. General corporate purposes= 1 cr 3. Issue Expense= 50 lakh

Listing Date: Apr 12 2018

Issue Details:

Open Date: Mar 28 2018
Close Date: Apr 04 2018
Total Shares: 13,35,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price Issue IPO
Issue Size: 5.34 Cr.
Lot Size: 3000 Shares
Issue Price: ₹ 40 Per Equity Share
Listing At: NSE Emerge
Listing Date: Apr 12 2018

Promoters And Management:

(i) Sunil Makwana, aged 31 years, has been re designated as the Chairman and Managing Director of the Company w.e.f October 10, 2017. He holds a Bachelor degree in Commerce from Swami Sahajanand College of Commerce & Management, Bhavnagar affiliated with Bhavnagar University. He is the guiding force behind all the corporate decisions and is responsible for the entire business operations of the Company since his appointment. (ii) Nagin Makwana, aged 38 years, has been re designated as the Whole Time Director of company w.e.f. October 10, 2017. He has been on the Board of Directors of the company since 2008. He has completed his Graduation in Business Administration from K S School of Business Management, Ahmedabad affiliated with Gujarat from University and he holds Master of Business Administration degree with specialization in Finance from the same college . His scope of work includes handling the financial and day to day operations of our company.  

Capital Structure:

Authorized Share Capital ( 70,00,000 shares at FV@10) 7 cr
Issued, Subscribed,& Paid-up Share Capital Before Issue (36,00,000 Shares at FV@10) 3.6 cr
Present Issue (13,35,000 Shares at FV@10) 1.33 cr
Reservation for Market Maker (69000 Shares at FV@10) 6.9 lakh
Net Issue to Public (13,35,000-69000=  12,66,000 Shares) 1.267 cr
Retail Quota(<2 Lkah)[6,33,000  Shares] 50%
HNI & QIB Quota(>2 Lakh)[6,33,000 Shares] 50%
Paid Up Capital after the issue 4.93 cr

Company Financials:

 1. Balance Sheet Snippet[ All Calculation for FY 16-17]
       (i) Shareholders’ Fund[Equity] Value 481.47 lakh
      (ii) Asset 863.60 lakh
      (iii) Liability 382.13 lakh
      (iv) Debt/Equity 0.79
      (v)  Net Worth(Asset- Liability) 481.47 lakh
     (vi)  RONW(PAT/Net Worth) 7%
     (vii) P/B 1.5
2. Profit n Loss Snippet (i) The Revenue of the company is inconsistent in last 4 years which does not augur well for future growth. (ii) PAT of the company is also showing the same trendline as revenue and to top of that the company has incurred loss of tune to 1.03 cr for the first 6 month ending Sept 2017 which is almost equal to last 5 years combined profit. (iii)Margins(PBT/Reveune): 2.2 to 2.6% in last 4 years. The company has low margin business. (iv) Annualized EPS(post issue)= (-4.41) (v) Annualized P/E(post issue)=(-9) at the cutoff price of 40 3. Cash Flow Statement The company is not generating positive cash flow continuously in the preceding years which does not augur well for future growth.

Comparison With Peers:

As per DRHP the company is facing competition from Garware Wall Ropes Limited which is listed at both BSE/NSE in mainboard and trading at PE of 23 on the basis of Mar' 17 earnings.

Recommendation:

Rating: 3/10. 1-5: Fair 5-7: Good 7-10: Excellent

Company Address:

UL-27, Pattani Plaza, Devubag, Dairy Road, Bhavnagar – 364002, Gujarat, India Tel. No.:0278 2525434 Fax No. 0278 2883029 Email: info@sujlonropes.com Website: www.sujlonropes.com

Bid Details as on 04-Apr-2018 19:30:00 IST

Category No.of shares offered No. of shares bid
667,500 2,082,000
667,500 2,385,000
- -
1,335,000 4,467,000
QIBs No
QIBs+HNIs Subscription 3.12X
Retail Subscription 3.57X
Total Subscription 3.35X

    The LM is Pantomath which has given good listing gains in the past IPOs. Will pantomath magic works again??

      This IPO belongs to Gujrata-HySpin Category. Listing might be POSITIVE but will go down below issue price. ha ha