Issue Open :15 Dec 2017 to 20 Dec2017
- Issue Type:
Book Built Issue IPO
- Issue Size: 1
4,000,000Equity Shares of Rs10 aggregating up to Rs70.00 Cr
- Face Value:
Rs10 Per Equity Share
- Issue Price
: Rs 45-Rs 50Per Equity Share
- Market Lot:
- Minimum Order Quantity
- Listing At:
The share capital of Company, is set forth below:(Amount in Rs except share data)
Authorized Share Capital :5,00,00,000 Equity Shares @10 Aggregate value 50,00,00,000
Issued, subscribed and paid up capital before the Issue :3,25,00,000 Equity Shares @10 Aggregate value 32,50,00,000
Present Issue:14,000,000 Equity Shares of Rs 10 aggregating up to Rs 70Cr
OBJECT OF THE OFFER
- Astron Paper intends to utilize the net proceeds from this public issue towards the following objects:
- Setting up of additional facility for manufacturing of lower GSM and lower B.F Kraft Paper. Rs 23cr
- Part repayment of unsecured loan. Rs 8.1cr
- Funding the working capital requirements Rs 23.9cr and
- General corporate purposes. Rs 15cr
ROAD MAP AHEAD
Company objectives are to expand their market share and aim to accomplish this through the following strategies:
- Setting up of additional manufacturing facility which willincrease product range.
- Expand domestic geographical reach through marketing network.
- Continue to improve operating efficiencies through technology enhancements.
- Forward integration
From FY 2013-14 to FY 2016-17, as per Restated Financial Statements:
- Total revenue has shown growth from Rs1,06.19cr to Rs. 1,84.58cr, Representing a CAGR of 14.82% .
- EBITDA has shown growth from Rs11.33cr to Rs23cr. Representing a CAGR of 17.95%.
- PAT has shown growth from Rs. a loss of Rs(3.02)cr to a profit of Rs9.95cr
- Return on net worth has shown a growth from (12.78)% to 21.98%.
- Restated total Revenue, EBITDA and PAT for the six months ended September 2017 was Rs 1,10.96cr, Rs14.62cr and Rs9.45cr respectively, with an EBITDA margin of 13.18% and PAT margin of 8.52%.
The increasing demand for packaging, changing lifestyle patterns in India, growth in population, growing awareness and need of education, sustainability and down gauging are some of the key demand drivers for the paper and paper products industry.
It is one of the major kraft paper manufacturers in Gujarat with manufacturing Facility having an installed capacity of 96,000 MTPA which it intends to expand up to 1,29,000 MTPA in FY19. The company is also planning to explore export markets and expand in the domestic markets.
On the upper price band of Rs50 with EPS of Rs3 for FY17, P/E works out at 16.6x, Its seems FY17 is good for the company but if we compare it with estimated growth of FY18, FY18 looks far better than FY17.Therefore we recommend to ‘SUBSCRIBE’ the IPO on listing as well as for long-term.
Click here to read the full report