White Organics IPO
(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.
Objects of the White Organics IPO:
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:
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:
Recommendation on White Organics IPO:
Lead Manager of White Organics IPO:
Registrar of White Organics IPO:
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:
4 Comments
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Avoid.
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.