Wonder Fibromats Limited IPO

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(i) They are a fully integrated end-to-end product and solution suite to the original sellers of the fans wherein they provide start to end solutions for fan sellers including sourcing, manufacturing, quality testing and packaging. They manufacture and supply fans to many well-known companies in India, which in turn distribute these products under their own brands.

(ii) The Company is engaged in the manufacturing of Ceiling fans, Exhaust, pedestal, and Brushless DC (BLDC) fans. All the parts & components of the fans are tested stringently at their in-house quality management lab to ensure their flawless performance. Moreover, various R&D activities are conducted by professionals to remain abreast of the latest market requirements and competition.

Their state-of-the-art manufacturing facility is strategically located at Raipur Industrial Area, Bhagwanpur, Roorkee.

(iii) Range of fans is available in different designs, colors and has superior gloss finishes that add grace to the decor of the surroundings. They also manufacture these fans as per the specification of the clients which include well-known companies which are selling under their own brands in India.

(iv) Installed Capacity and its Utilization.

Objects of the Wonder Fibromats Limited IPO:

The Objective of the IPO of raising 20.01 Cr; 1. To finance the Expenditure towards Acquisition of Land, Site Development and Other Civil Work. = 4.4 Cr 2. To Acquire the Plant & Machinery = 2.90 Cr 3. To part finance the requirement of Incremental Working Capital  = 9 Cr 4. To meet General corporate purposes= 2.35 Cr 5. To meet the expenses of the Issue = 1.3576 Cr

Wonder Fibromats Limited IPO Details:

Open Date: Jul 22 2019
Close Date: Jul 29 2019
Total Shares: 22,24,000
Face Value: ₹ 10 Per Equity Share
Issue Type: fixed type
Issue Size: 20.0160 Cr.
Lot Size: 1600 Shares
Issue Price: ₹ 89 Per Equity Share
Listing At: NSE Emerge
Listing Date: Aug 08 2019

Promoters And Management:

(i) Mr. Harsh Kumar Anand: aged 68 years, is one of the Promoters and Managing Director of our Company. He is B.E. (Mechanical) by education. He is having more than 45 years of experience in the field of Manufacturing of Component & materials used in the manufacturing of electric ceiling & Exhaust Fans, business, Sales & Marketing and Client Retention. (ii) Mr. Yogesh Sahni: aged 60 years, is Executive Director and one of our Promoters. He is Post Graduate in Commerce. He is having more than 40 years of experience in the field of Manufacturing of Component & materials used in the manufacturing of electric ceiling & Exhaust Fans, business, Sales & Marketing and Client Retention.

Comparison With Peers:

As per DRHP, the company has shown  Bajaj Electricals and Crompton Greaves Consumers as its listed peers that are currently trading at a P/Es of around 29 and 36.

Recommendation on Wonder Fibromats Limited IPO:

Review and Recommendation of Wonder Fibromats Limited IPO from IZ Team are 2/10. [ The company is raising fund from IPO to set up a new plant in Hyderabad. However, there existing plant is underutilized. It is working at 63% of its capacity. So why they are investing in a new factory is not understandable. They have very high Trade Payables and high receivables show stress in business. Current Market condition after budget are very poor.]

Lead Manager of Wonder Fibromats Limited IPO:

  1. Navigant Corporate Advisors Limited

Registrar of Wonder Fibromats Limited IPO:

  1. Karvy Computershare Private Limited

Company Address:

New Delhi, India - HQ 45, Okhla Industrial Estate, Phase-III, New Delhi-110020 Tel. + (91) - 11-66058952 Mail. info@wonderfibromats.com Factory Address Khasra no. 105-106, Raipur Industrial Area, Bhagwanpur, Roorkee, Uttarakhand

Bid Details of Wonder Fibromats Limited IPO as on
29-Jul-2019 17:00:00 IST

Category No.of shares offered No. of shares bid
1,056,000 2,316,800
1,056,000 353,600
112,000 112,000
2,224,000 2,782,400
QIBs Yes
QIBs+HNIs Subscription 2.19X
Retail Subscription 0.33X
Total Subscription 1.26X

Discussion on Wonder Fibromats Limited IPO:

    Wonder Fibro —- Attn Members : BRLM to the Wonder Fibromats Limited issue, has informed the Exchange that the issue closure date has been extended upto 29 July,2019.Post issue modification date has been revised to 30 July,2019.Price has been revised from 90/- to Rs. 89/- per share

    The Company proposed to set up a manufacturing facility at Hyderabad.

    They have proposed to utilize Rs. 440.00 Lakhs out of Issue proceeds to meet the expenditure towards Acquisition of Land, Site Development and Other Civil Work.

    Following are the details of our proposed Manufacturing Plant.

    Presuming 300 operating days in a year and single Shift (12 Hours)- working basis, the installed production capacity of the unit would be the manufacturing of 24,00,000 fans per annum, which would likely to be increased in the subsequent years. Actual utilization is expected to be 50% in Ist year, 70 % in IInd year, 85 % in IIIrd year and approx 95% and above in further years.

    (i) The Promoters Shri Harsh Anand, Shri Yogesh Anand, and Shri Yogesh Sahni have vast Experience of over 40 years in Manufacturing, making fans for 35 years.

    (ii) OEM Suppliers to India’s leading Brands. Brands are associated with us for our Quality conscious approach with committed suppliers. We are in the OEM business for 25 years.

    (iii) Made 62 Lakh fans in 2017-18 with a group turnover of Rs. 525 Crore.

    (iv) The plan is to produce 1 crore fans per year in 3 years.

    (v) They make ceiling fans, heavy-duty exhaust fans, light-duty exhaust fans, farata fans. They also make critical components in their factories for better control over quality.

    (vi) Modern manufacturing plants across India. All the plants have state of the art machinery