White Organics IPO

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(i) In 2011, the Company was incorporated as “Sapna Infraventure Private Limited” having a registered office in Mumbai with a view of doing Real Estate Development Business Activity.

(ii) In the year 2016, the company diversified its business from Real Estate Development Activity to dealings in Organic Products and Subsequently, the name of our Company was changed to White Organic Retail Private Limited.

(iii) White Organic Retail Limited (Formerly known as Sapna Infraventure Private Limited) is into trading of Agriculture produce like Cereals, Pulses, Grains, Fruits and Vegetables, etc.

IZ View: So they are nothing more than ” Kirana Shop”. 

As per DRHP, the company which was running the business of trading store located at Krushal commercial complex, Amar Mahal, Chembur, Mumbai has been now closed and the company is in the process of opening a new store at Shop No-1, Shreenath Heights, Lake Road, Bhandup (West), Mumbai- 400078,
Maharashtra, India.

IZ View: This means as on date the company does not have any store to run its existing business of trading.

As per DRHP, the company has the following Future Plans.

1. The management has launched the franchisee module for the retail network. In the first phase of expansion the company is looking to set up 40+ retail outlets across Mumbai, Pune, Nasik, Ahmedabad, Surat, Vadodara, Rajkot and different educated, Health conscious and densely populated sectors across India.

2. With a vision of moving forward with digital India, the management is planning to commence the eCommerce integrated website: www.whiteorganics.co.in.

3. Exports: The Retail Division of the company shall also commence exports soon.

IZ View: Everything that management saying is of future fantasies. The website currently shows only the product and no buying option is available.

White Organics IPO Stock Quote & Charts

10.13

+16.44%

  • Open: 9.80
  • High - Low: 10.44 - 9.79
  • Previous Close: 8.70
  • Total Traded Volume: 389157
  • Updated On: 13-Nov-2019

Objects of the White Organics IPO:

The Objects of the Issue are: A. To meet the working capital requirements of the company = 1,251.02 Lakh B. To meet the Issue Expenses = 95 Lakh C. General Corporate Purposes = 200 Lakh

White Organics IPO Details:

Open Date: Apr 26 2019
Close Date: May 02 2019
Total Shares: 2454000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Type
Issue Size: 15.46 Cr.
Lot Size: 2000 Shares
Issue Price: ₹ 63 Per Equity Share
Listing At: BSE SME
Listing Date: May 10 2019

Promoters And Management:

White Organics Agro Limited ( BSE listed company) is the Parent company.

Financials of White Organics IPO:

Particulars(Lakh) 2016 2017 2018 9MFY19 Post Issue
Balance Sheet Item
Share Capital 1 1 1 300 545.4
FV 10 10 10 10 10
Net Worth 88.35 147.03 449.48 2336.66 4133.06
Book Value 883 1470 4495 78 75.8
Long-Term Debt 0.00 0.00 0.00 0.00 0.00
Short-Term Debt 1167.00 1143.00 1440.00 203.00 203.00
D/E 13.21 7.77 3.20 0.09 0.05
Receivables days 0.00 193.00 144.00 90.00 NA
P/L Items
Revenue 106.54 255.23 8399.55 11635.17 NA
EBITDA 34.63 86.37 437.678 624.98 NA
EBITDA Margins 32.5% 33.8% 5.2% 5.4% NA
Profit 23.9 58.68 302.45 450.78 600.00
PAT Margins 22.4% 23.0% 3.6% 3.9% NA
EPS 0.43 1.07 5.54 8.25 11.00
Key Ratios and Valuation
RONW 27.1% 39.9% 67.3% 19.3% 14.5%
P/E 5.72
 

Comparison With Peers:

None of the listed companies in India offer products or services across the various business segments in which the company operates.

Recommendation on White Organics IPO:

Review and Recommendation of White Organics IPO from IZ Team is : 3/10

Lead Manager of White Organics IPO:

  1. Finshore Management Services Limited

Registrar of White Organics IPO:

  1. Link Intime India Private Limited

Bid Details of White Organics IPO as on
02 May 2019 | 11:35:00 PM

Category No.of shares offered No. of shares bid
1,165,000 2,358,000
1,165,000 818,000
124,000 124,000
2,454,000 3,300,000
QIBs No
QIBs+HNIs Subscription 2.02X
Retail Subscription 0.70X
Total Subscription 1.36X

Discussion on White Organics IPO:

    Sudden increase in Revenue in FY17-18 and first 9MFY19 just before the IPO raising concern.

    Issue looks attractively priced.

    Parent company is trading at Rs. 24 in the BSE.

    The White Organics(Parent Company) has given an Interest-Free loan of 14.40 cr to White Organics Retail limited which was converted into equity in FY18-19 by issuing 2,28,00,00 shares at 63 per share.

    The Company deals in Organic Products Distribution and Retailing. However, the Company does not have any Organic Certification.