Bonlon Industries SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 30 Jun 2020 – 03 Jul 2020
- Listing date
- 13 Jul 2020
- Face value
- ₹10 per share
- Issue price
- ₹28 per share
- Lot size
- 4,000 shares
- Total issue size
- ₹10.52 Cr
- Market cap at offer price
- ₹39.71 Cr
- Promoter holding
- 98.92% → 72.44% pre-issue → post-issue
- ISIN
- INE0B9A01018
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Sarthi Capital Advisors Pvt.Ltd.
- Registered office
- 7A/39 (12- First Floor),, WEA Channa Market,, Karol Bagh,, New Delhi
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 | 1,88,000 | — | — |
Application size
Minimum 4,000 shares per lot, in multiples, at ₹28
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 4,000 | ₹1,12,000 |
| S-HNI (min) | 2 | 8,000 | ₹2,24,000 |
| S-HNI (max) | 8 | 32,000 | ₹8,96,000 |
| B-HNI (min) | 9 | 36,000 | ₹10,08,000 |
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 |
|---|---|---|
| Market cap | — | ₹39.71 Cr |
About Bonlon Industries SME
Bonlon Industries Limited, incorporated in 1997 as Bonlon Steels Private Limited, has evolved into a diversified conglomerate with over two decades of experience. The company operates primarily in the metal business (both manufacturing and trading of copper, aluminum, zinc, and lead products), hotel business (operating Hotel Bonlon Inn in Karol Bagh, New Delhi), and construction activities. In 2018, three group companies were amalgamated with the company to streamline operations and achieve business synergies. The company manufactures copper wire rods and wires using the continuous casting process and trades various metal products including copper cathodes, ingots, and aluminum products. It also operates a 24-room hotel in a prime location near Metro stations and tourist attractions.
Company Analysis
from RHPBonlon Industries Limited is a diversified company engaged in manufacturing and trading of ferrous and non-ferrous metals, hotel operations, and construction activities.
Bonlon Industries Limited, incorporated in 1997 as Bonlon Steels Private Limited, has evolved into a diversified conglomerate with over two decades of experience. The company operates primarily in the metal business (both manufacturing and trading of copper, aluminum, zinc, and lead products), hotel business (operating Hotel Bonlon Inn in Karol Bagh, New Delhi), and construction activities. In 2018, three group companies were amalgamated with the company to streamline operations and achieve business synergies. The company manufactures copper wire rods and wires using the continuous casting process and trades various metal products including copper cathodes, ingots, and aluminum products. It also operates a 24-room hotel in a prime location near Metro stations and tourist attractions.
Objects of the Issue
- Working Capital Requirements Rs. 1,011.68 lakhs p.94
- Issue Expenses Rs. 40.00 lakhs p.94
Issue Structure
- Total Issue
- Rs. 1,051.68 lakhs
- Fresh Issue
- 37,56,000 equity shares of face value Rs. 10/- each at Rs. 28/- per share = Rs. 1,051.68 lakhs
- Offer for Sale
- Nil (100% fresh issue; no promoter selling)
- Price Band
- Rs. 28/- per equity share (fixed price)
- Lot Size
- As per applicable SEBI regulations for SME platform
- Face Value
- Rs. 10/- per equity share
Business Model
The company generates revenue through manufacturing and trading of metals (contributing ~99.8% of revenues), hotel operations (~0.2% of revenues), and potentially construction activities. For its metal business, it procures raw materials (copper scrap, cathodes, ingots) from domestic and international suppliers, manufactures wire rods and wires using continuous casting and wire drawing processes, and sells to customers in electrical, construction, and engineering industries. Hotel revenues come from room bookings and hospitality services.
Business Segments
SWOT Analysis
- • Established track record of over 20 years with experienced promoter(p.22)
- • Diversified business portfolio across metals, hotel, and construction sectors(p.22)
- • Quality products and long-term customer relationships(p.119)
- • Strategic hotel location near city center with proximity to metro and key landmarks(p.119)
- • Access to technical expertise and domain knowledge of management team(p.119)
- • Low and fluctuating manufacturing capacity utilization due to commodity price sensitivity(p.31)
- • High dependence on few customers creating concentration risk(p.39)
- • Outstanding legal litigations involving company, promoter, directors and group entities(p.29)
- • Hotel operations affected by fire safety license suspension previously(p.33)
- • Significant contingent liabilities from corporate guarantees given to group entities(p.38)
- • Growing demand for metals and mining sector driven by infrastructure development(p.22)
- • Expansion in tourism and hospitality sector with 100% FDI allowed(p.22)
- • Strong government focus on infrastructure sector with significant budgetary allocations(p.22)
- • Widening business operations across diversified segments(p.120)
- • Exploring civil construction segment with existing infrastructure and expertise(p.121)
- • Highly volatile commodity prices affecting raw material costs and product margins(p.31)
- • Intense competition from organized and unorganized sector players(p.41)
- • Economic slowdown and reduced demand impacting profitability(p.47)
- • Regulatory changes and increased compliance costs for operations(p.47)
- • COVID-19 pandemic impact causing business disruption and operational challenges(p.36)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Arun Kumar Jain | Promoter | 62.85% | 46.20% |
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.