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Astron Paper & Board Mill IPO: Subscribe the issue - IndiaNotes.com
Astron Paper & Board Mill IPO: Subscribe the issue
Rudra Shares and Stock Brokers | Published: 15 Dec, 2017  | Source : IndiaNotes.com

THE OFFER


Issue Open :15 Dec 2017 to 20 Dec2017


-  Issue Type: Book Built Issue IPO

Issue Size: 14,000,000Equity 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: 280Shares

- Minimum Order Quantity: 280Shares

Listing At: NSE, BSE



CAPITAL STRUCTURE


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


FINANCIAL PERFORMANCE


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%.



VALUATION



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.   Read full report Click here to read the full report


About Rudra Shares and Stock Brokers

RUDRA is one of the growing & dynamic brokerage houses with a strong presence in the Retail and HNI broking segment. With over 25 years of experience and lead by a team with outstanding managerial acumen, RUDRA is a professionally managed company supported by over 100 professionals, including Chartered Accountants, MBAs and other senior executives. RUDRA can thereby cater to its clients' short-term as well as long-term financial needs through a comprehensive bouquet of investment services. RUDRA offers a diverse range of financial services, including institutional and retail brokerage of Equity, Currency, Commodities, Derivatives, Online Trading, Depository Services, Fixed Deposits, IPOs and Mutual Funds Distribution, and Wealth Advisory & Research. RUDRA is looking to become one of the biggest broking houses. RUDRA Securities Limited, is a member of National Stock Exchange of India Limited, Bombay Stock Exchange Limited, MCX Stock Exchange, and Depository Participant of Central Depository Services (I) Limited. RUDRA can be approached online at www.rudrashares.com.

 

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