#MEGAFLEX#SMEIPO
Biz
-Mfg of Leno Bags used for packaging agri prod. like potatoes, onions, garlic, coconuts, fruits & vegies
- also mfg. Woven PP Fabric & Sutli (Fibrillated Twisted Thread)
-trading of Polypropylene Granules.
- 148 Emp
1/n
Biz
- Mfg plant in Howrah, WB with captive power generation unit, UPS, water treatment plant
- production capacity of 60 looms & 51.30 million Bags /year
- export Leno Bags to Poland for 2 years
2/n
Biz
-Sales mainly in WB due 2 capacity constraints but have started selling in last 2-3 years to UP, BH, RJ, MP & PN
- Top 10 cust 86.44% in 22,
- Top 10 suppliers 96.39% in 22
- Rev from WB 89.17%in 22
- Export of 0.85% & 1.47% in 21 and 20
Peers-
No listed Peers
3/n
Issue
- 950 lots, IPO proceeds towards Wcap
- 100% fresh issue, post iPO promoter holding is 73.32%
- IPO proceeds will reduce cost of RM - PP fabrics can help with margin expansion. Inventory holding is biggest bottleneck for them currently due to seasonality of the demand
4/n
Good
- Revenue is increasing
- reserves are good
- No debt in Mar 22
Bad
- Single digit OPM
- other income is high
- Mercedez & Honda city on company's name
- related party transaction of 6.5 cr in rev of 47 cr
5/n
bad
- Bank gaurantee for a 10 cr loan by a grp company
- negative operating cash flow in 2020
- Utilization is almost at 90% & no plan for adding new capacity declared
- some mfg exp. in other expense
- repair & maintence charges are high as well may be due to old machine
6/n
Bad
- too many grp companies
- Bank gaurantee for a 10 cr loan for a grp company
- Return ratios are poor
in the end,
PE perspective company looks decent and also 0 debt is good
7/n
subx is shaping up good for last day
some gmp heard but not sure.
i will decide if i want to apply around 2.30
I have applied in this IPO
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Segments: 1. Distribution of Solar inverters and Solar panels)
- On-grid Solar inv
- Hybrid Solar Inv 2. Solar EPC 3. Solar Plant O&M 4. Distribution of Sungrow Inv & Satvik & LONGi Panels
Own brand called Invergy
1/n
Own brand called Invergy
hybrid solar inverters & lithium ferro phosphate (LFP) batteries
As of now, the Invergy batteries are mfg by subco
Reduction in supplier concentration from 62% to 50% to 42% in last 3 years
one of the supplier to #oriana
2/n
Future Growth Potential:
EPC biz & O&M increased from 2022 to 2023
Hybrid Solar starts with 1.88 cr Rev from 2023
Demand of solar hybrid inverter is massive
Bid for Govt. Tenders: The capacity of the tender for each location is 2.52MW & Approx 8 loc. with total of 20MW
for Pre-IPO,
if your PF is below 2 Cr, i will not advise it. this is more riskier due to many factors which is not under your control.
start with mainboard companies, migrate to SME once you get some handle on risk and pf grows.
what can go wrong - 1. Delay in IPO
........
1/n
2. Valuation stays same for longer period 3. Promoter dilutes more and more 4. Company doesnt meet its projected numbers 5. U cant trade or exit as no buyers 6. no price transparency 7. U pay higher tax if u sell unlisted shares 8. U pay higher price / commission to brokers
2/n
those who followed me from beginning have seen my journey. I didnt start with Pre-IPOs. I started with mainboard, with single lots in SME & slowly grown
i have seen all of these above issues and cite examples if i want to for each point.
Someone asked me what he should do option 1) keep the funds for IPO applications 2) repay the home loan.
I told him to go for OD Home loan account. I am using SBI Max Gain Home Loan which allows me to withdraw the money for IPO as and when i need it and ........
1/2
I pay interest on amount i take out. when i dont need it, i keep my surplus cash there and i dont pay interest on that much amount.
for e.g. u have taken 10 lakh home loan and u have 5 lakhs in savings. put that in OD Home loan and u will pay interest on remainig 5 L only
2/3
This is one time hassle to convert and u can ask your existing home loan bank if they have this facility. this way it can help you in emergency cash
@RBJAIN_ Allotment in hni category in sme's is proportionate basis so more the number of lots you are applying better the chances of allotment. In sme, minimum allotment is 1 lot. if you have applied lesser no. of lots than final HNI category subscription then your allotment ....
1/n
@RBJAIN_ ... is based on lottery depending on how many other applicants are there for same lot size.
Lottery happens for each lot size separately in hni category where lot size is lesser than total hni subscription. Allotment probability is:
....
2/n
@RBJAIN_ (round off of (applied lots/HNI subs)*no of applicants.) / no of applicants*. And round off happens to next number above 0.49-0.55 approx.
Lets understand with below example taking hni subscription of 252X for this ipo and your lot size of 56 lots:
#SME #Shritech
Biz
History:
Started in in 2011 as Partnership firm with biz of ind. trading in Polymers, Chem, Packaging Materials & other allied prod. Followed by a mfg on a job-work basis. After demerger, biz of contract mfg was transferred to Aurum Fabritech pvt Ltd
Activity:
mfg Polypropylene (PP) Non-Woven Fabric in a variety of sizes & densities upto 4.5 m size & 15 GSM to 800 GSM.
Customer Base:
used for ecological apps, in fields & ind. where disposable or single-use products are necessary 2/n
Usage in organic farming, hospitals, health care, nursing homes, home furnishing, vehicle upholstery, seat fabrication, Mattress & furniture covering, ecological packaging, ind. & consumer goods.
client base comes from GJ, TN & WB & USA, Taiwan, Canada, Denmark, & China
3/n
#Magson #SME
Biz
- retail & distribution business of gourmet, frozen food, and specialty foods under Magson & My Chocolate World brands
- jain brothers, the company deals in Nonveg products as well
- Products are Frozen food Vegetarian & Non-vegetarian, Premium Cheese and.. 1/n
Dairy products, Exotic Vegetables and fruits, Ambient Products, Imported/ luxury Chocolates, Imported packed products etc
- 26 retail stores/outlets of 16 are operated by the company, 7 by franchises and 3 under 2 jv
- Available on e‐commerce and online shopping
2/n
also mobile app (2% sales)
- The total retail space of 30,000 sq. ft+ . with 3000 SKU
- warehouse of 14,000 sq. ft +
- procures 75% directly from MFg
- own brand - Rf Gourmet ( based on promoter's name) with premium products such as French Fries, Fiery Fries, ...
3/n