The retail portion oversubscribed 10.64 times, NIB by 1.26 times signaling strong demand for the company’s IPO
Kolkata…September 9, 2023… The initial public offering (IPO) of Kolkata-based Jiwanram Sheoduttrai Industries Ltd. got off to a flying start as it was oversubscribed within few hours on the opening day. The SME IPO of the company will remain open for subscription till September 12.
The company has received a total of 6,256 applications. The public issue has been subscribed 5.95 times, signaling strong demand. The retail portion was subscribed 10.64 times, while the Non-Institutional Bidders (NIB) portion was subscribed 1.26 times.
Jiwanram Sheoduttrai Industries Ltd. IPO has received bids for 4,19,82,000 shares against 70,50,000 shares on offer. The retail investors’ portion received bids for 3,75,36,000 shares against 35,28,000 shares and NIB portion received bids for 44,46,000 shares against 35,22,000 on offer for this segment.
Jiwanram Sheoduttrai Industries Ltd. (JSIL) engaged in the business of manufacturing of Industrial garments and Safety Gloves and is a significant player in the global and domestic personal protective equipment (PPE) market. The company is planning to raise Rs. 17.07 crore to meet the working capital requirements, repayment of certain unsecured loans availed by the company, general corporate purpose and to meet the offer expenses as per the Prospectus.
Jiwanram’s issue is being managed by Affinity Global Capital Market Private Limited (AGCMPL), a Category I Merchant Banker registered with SEBI. Company’s shares will be listed on the NSE EMERGE Platform. Registrar to the offer is Cameo Corporate Services Limited and Giriraj Stock Broking Pvt. Ltd. is the market maker to the Issue. Mrs. Anupama Prakash is the Chief Financial Officer.
The initial public offering comprises a fresh issue of 74,22,000 and no offer for sale (OFS) at a fixed price of Rs. 23/- per equity share aggregating upto Rs 17.07 crore. The face value of the equity shares is Rs 10 each and the issue price is 2.30 times of the face value of the equity share. The company is offering minimum of 6,000 equity shares and in multiples of 6,000 equity shares thereafter which translates into Rs 1.38 lakh per application.
Alok Prakash, Promoter and Managing Director, Jiwanram Sheoduttrai Industries Ltd. said, “The remarkable oversubscription within just two hours reflects the trust and confidence investors have in our vision and the growth potential of our company. We are excited about this journey ahead, and we are committed to utilizing these funds to further strengthen our position in the industrial safety sector and continue delivering high-quality products to our global clientele.”
Out of the issue proceeds, the company will utilize Rs 2 crore for repayment/prepayment of certain borrowings, Rs 9.1 crore for working capital, and Rs 3.2 cr. for general corporate purposes. Post Issue the share capital of the company will increase to Rs 24.74 crores from Rs 17.32 crore before the public issue. Promoters and Promoters Group holds a 99.996 per cent stake in the company. Post-IPO promoter group holding will be 70.01 per cent.
The initial public offering of upto 74,22,000 equity shares of face value of Rs. 10 each (“EQUITY SHARES”) of the company for cash at a price of Rs. 23 per equity share (including a share premium of Rs. 13 per equity share) (“OFFER PRICE”) aggregating upto Rs. 1,707.06 lakhs (THE “OFFER”) comprising totally as fresh issue aggregating up to Rs. 1,707.06 lakhs by the company (THE “FRESH ISSUE”) of which up to 3,72,000 equity shares of Rs 10 each will be reserved for subscription by market maker to the issue (THE “MARKET MAKER RESERVATION PORTION). The issue less market maker reservation portion i.e. issue of upto 70,50,000 equity shares of Rs. 10/- each is hereinafter referred to as the “NET ISSUE”. THE OFFER AND THE NET OFFER will constitute 29.99 % and 28.48% of the post-issue PAID-UP EQUITY SHARE CAPITAL of the company.
The promoters of the company are Mr. Alok Prakash – MD, Mrs. Anupama Prakash – CFO, Mr. Gyan Prakash and Alok Prakash (HUF). Growing at 20%, the company’s current turnover is INR 42 crore with a PAT of INR 4 crore and 9.5% PAT Margin. For FY21-22 company reported revenues of Rs 34.2 crore and Net Profit of Rs 1.5 crore.
Jiwanram Sheoduttrai Industries Limited began producing PPEs when it first began business in 1997. The company built a cutting-edge production plant and began exporting to the United States, Spain, Germany, and Belgium. JSIL has distinguished itself in the market as it has grown, notably in Europe, America, and the Middle East, with its high-quality products. JSIL has more than 20 years of experience in the industrial safety sector. Its geographic reach extends to more than 20 nations.The company first produced industrial safety gloves before progressively expanding its offering in the industrial garment industry. The company has expanded into one of the top exporters and technology-driven safety solutions providers in India, 10 other countries, and 6 other states, with 3 manufacturing facilities.
The personal protective equipment market (PPE Market) was valued at USD 68.5 billion in 2022 and is projected to shrink by 1.3% between 2022 and 2027 to reach USD 64.2 billion. The manufacturing and construction sectors’ rising need for personal protection equipment is one of the key drivers fuelling market expansion.
The company has registered with the Government e-Marketplace (GeM) under the Quality Council of India as an Original Equipment Manufacturer (OEM). The purpose of this action was to strengthen the company’s position in the domestic market. For some of the brand owners in the work and casual clothing market, JSIL has been giving employment opportunities.