Alkosign SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- Listing date
- 01 Feb 2022
- Face value
- ₹10 per share
- Issue price
- ₹45 per share
- Lot size
- 3,000 shares
- Total issue size
- ₹12.15 Cr
- Market cap at offer price
- ₹24.50 Cr
- Promoter holding
- 100.00% → 50.41% pre-issue → post-issue
- ISIN
- INE0KA601012
- Registrar
- Skyline Financial Services Pvt.Ltd.
- Lead managers
- Shreni Shares Ltd.
- Registered office
- S NO : 12A, MIDC, NR Mother Dairy, Saravli, Bhiwandi, Maharashtra
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Market maker | 1,38,000 | — | — |
Application size
Minimum 3,000 shares per lot, in multiples, at ₹45
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 3,000 | ₹1,35,000 |
| S-HNI (min) | 2 | 6,000 | ₹2,70,000 |
| S-HNI (max) | 7 | 21,000 | ₹9,45,000 |
| B-HNI (min) | 8 | 24,000 | ₹10,80,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 10.86 | — |
| P/E (×) | 4.14 | — |
| Market cap | — | ₹24.50 Cr |
Key performance indicators
- Return on net worth
- 98.51%
- ROCE
- 13.00%
- Debt / equity
- 30.46
- NAV per share
- ₹11.02
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Alkosign SME
Alkosign Limited, incorporated in March 2020 and converted to a public company in December 2021, is engaged in the manufacturing of visual presentation systems including writing boards, display boards, notice boards of different types, along with associated accessories and stands, as well as school benches, desks and their accessories. The company operates a manufacturing facility in Bhiwandi, Maharashtra. The business was acquired from M/s Alkosign Display Systems through a business purchase agreement dated March 20, 2020, which included the transfer of brand (trademark), domain name, goodwill, machinery, and inventory. As of November 30, 2021, the company had revenue from operations of Rs 591.39 lakhs and experienced a loss of Rs 63.61 lakhs for that period.
Company Analysis
from RHPAlkosign Limited manufactures visual presentation systems (writing boards, display boards, notice boards) with accessories, stands, school benches, and desks for the educational and commercial sectors.
Alkosign Limited, incorporated in March 2020 and converted to a public company in December 2021, is engaged in the manufacturing of visual presentation systems including writing boards, display boards, notice boards of different types, along with associated accessories and stands, as well as school benches, desks and their accessories. The company operates a manufacturing facility in Bhiwandi, Maharashtra. The business was acquired from M/s Alkosign Display Systems through a business purchase agreement dated March 20, 2020, which included the transfer of brand (trademark), domain name, goodwill, machinery, and inventory. As of November 30, 2021, the company had revenue from operations of Rs 591.39 lakhs and experienced a loss of Rs 63.61 lakhs for that period.
Objects of the Issue
- Funding Working capital requirements ₹546.25 lakhs p.19
- Repayment of loan ₹300.00 lakhs p.19
- General Corporate Purpose ₹243.00 lakhs p.19
- Prepayment/repayment of certain secured borrowings availed by our Company ₹300.00 lakhs p.64
- Funding working capital requirements ₹546.25 lakhs p.66
- General corporate purposes ₹243.00 lakhs p.67
- Not specified in this part of the document
Issue Structure
- Total Issue
- ₹1,215.00 lakhs
- Fresh Issue
- 27,00,000 Equity Shares at ₹45 per share aggregating ₹1,215.00 lakhs
- Price Band
- Fixed at ₹45 per equity share
- Lot Size
- 3,000 Equity Shares and in multiples of 3,000 thereafter; subject to a minimum allotment of 3,000 Equity Shares
- Face Value
- ₹10 per equity share
Business Model
The company manufactures and sells visual presentation systems and related products directly to customers on a purchase order basis, generating revenue primarily through the sale of writing boards, display boards, notice boards and associated accessories. The majority of customers are educational institutions.
Business Segments
SWOT Analysis
- • Manufacturing facility in MIDC industrial area with established infrastructure(p.19)
- • Acquired established brand and business operations through acquisition(p.19)
- • Diversified product portfolio covering educational and office segments(p.19)
- • Widespread sales and dealers' network with PAN India presence(p.85)
- • Quality certifications (ISO 9001:2015, ISO 14001:2015, OHSAS 18001:2017, ISO 45001:2018, Green Guard, BIFMA Level 3)(p.85)
- • Recognised products with international design registrations and brand portfolio(p.85)
- • E-retailing and online distribution network with reduced costs and wider reach(p.85)
- • Customer centric business model with focus on satisfaction(p.85)
- • Innovative product development including Glass White Boards (Glassy-BO)(p.85)
- • Established product portfolio and brand recognition(p.153)
- • Innovation in product development(p.153)
- • Multi-channel distribution network(p.153)
- • E-commerce presence and digital reach(p.153)
- • Geographic market reach(p.153)
- • Quality and certification standards(p.153)
- • Experienced management with industry knowledge(p.154)
- • Very limited operating history as a manufacturing company(p.24)
- • Promoters lack substantial manufacturing experience prior to acquisition(p.24)
- • Significant working capital deficit indicating cash flow challenges(p.32)
- • Negative cash flows from operations in prior year(p.30)
- • High dependence on few suppliers for raw materials(p.25)
- • Concentration of revenue from few customers creating business risk(p.25)
- • Expired and unrenewed trademark registrations(p.31)
- • Negative profit in recent period(p.44)
- • Unsecured loans repayable on demand creating liquidity risk(p.30)
- • Non-compliance with Companies Act filing requirements(p.31)
- • High dependence on educational institutions and dealers for customer base(p.90)
- • Significant working capital requirement and reliance on debt financing(p.66)
- • Single manufacturing facility concentrated at one location(p.90)
- • Negative profit after tax in recent period (Rs 63.61 lakhs loss for period ended November 30, 2021)(p.84)
- • Significant proportion of expired trademarks requiring renewal(p.92)
- • Heavy dependence on limited customer base(p.161)
- • High debt-to-equity ratio indicating financial leverage(p.146)
- • Operating losses in recent period(p.126)
- • Significant unsecured loans from promoters and related parties(p.164)
- • Weak current ratio indicating liquidity concerns(p.134)
- • Significant expired trademarks requiring renewal(p.171)
- • High interest expense burden(p.126)
- • Benefits from Make in India program and manufacturing sector growth(p.19)
- • Expansion into new geographic markets beyond Maharashtra(p.25)
- • Addressing growing educational infrastructure needs(p.27)
- • Capacity expansion opportunity with available land and resources(p.27)
- • Expansion of dealer network in Tier-2, Tier-3 cities and rural areas(p.85)
- • Investment in R&D to meet evolving technologies and diversify product portfolio(p.86)
- • Technology enhancement to increase asset productivity and operational efficiencies(p.86)
- • Brand building and strengthening marketing activities(p.86)
- • International market expansion with existing exports to Saudi Arabia(p.84)
- • Growth in education sector demand(p.154)
- • International market expansion(p.153)
- • Product innovation strategy(p.153)
- • Market consolidation opportunity given fragmentation(p.154)
- • Capacity expansion through IPO proceeds(p.173)
- • Raw material price volatility and supply chain disruptions(p.25)
- • Shift from offline to online education reducing product demand(p.25)
- • Competition in fragmented industry from organized and unorganized players(p.32)
- • Operating risks including power supply disruptions(p.27)
- • Dependence on contract labour and potential labour disputes(p.28)
- • COVID-19 pandemic and future communicable disease outbreaks(p.38)
- • Global and Indian economic slowdown affecting demand(p.39)
- • Inflation increasing operational costs(p.40)
- • Foreign exchange fluctuation risks on imported raw materials(p.25)
- • Single manufacturing facility concentration risk(p.26)
- • Majority customer base dependent on educational institutions affected by COVID-19(p.85)
- • Competitive market with both organized and unorganized players(p.90)
- • Price as primary deciding factor in client decisions among competitors(p.90)
- • Substantial power consumption dependency and vulnerability to power supply disruptions(p.90)
- • Dependence on imported materials subject to international supply chain risks(p.89)
- • Insurance policies may not cover all potential losses incurred(p.91)
- • Intense competition from organized and unorganized players(p.154)
- • COVID-19 impact on educational institutions and demand(p.154)
- • Price competition as primary buying factor(p.154)
- • Sensitivity to general economic and market conditions(p.154)
- • Regulatory and policy changes affecting business(p.154)
- • Inflation impact on costs and margins(p.160)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Samir Narendra Shah | Promoter | 62.00% | 30.62% |
| Akshay Narendra Shah | Promoter | 30.22% | 15.23% |
| Samir Narendra Shah | Promoter | 62.00% | 31.26% |
| Akshay Narendra Shah | Promoter | 30.22% | 15.24% |
| Zeenal Shrenik Shah | Promoter Group | 3.33% | 1.68% |
| Shrenik Kamlesh Shah | Promoter Group | 4.44% | 2.24% |
| Samir Narendra Shah | Promoter | 62.00% | 31.26% |
| Akshay Narendra Shah | Promoter | 30.22% | — |
Leadership
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.