EP Biocomposites SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 29 Aug 2022 – 05 Sep 2022
- Listing date
- 13 Sep 2022
- Face value
- ₹10 per share
- Issue price
- ₹126 per share
- Lot size
- 1,000 shares
- Total issue size
- ₹6.35 Cr
- Market cap at offer price
- ₹21.19 Cr
- Promoter holding
- 98.97% → 69.40% pre-issue → post-issue
- ISIN
- INE0D2I01014
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Aryaman Financial Services Ltd.
- Registered office
- C/o OM Ventures, Shed No D-2/12, Bicholim Industrial Estate, Bicholim, Goa
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 | 28,000 | — | — |
Application size
Minimum 1,000 shares per lot, in multiples, at ₹126
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,000 | ₹1,26,000 |
| S-HNI (min) | 2 | 2,000 | ₹2,52,000 |
| S-HNI (max) | 7 | 7,000 | ₹8,82,000 |
| B-HNI (min) | 8 | 8,000 | ₹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 |
|---|---|---|
| EPS (₹) | 9.48 | — |
| P/E (×) | 13.29 | — |
| Market cap | — | ₹21.19 Cr |
Key performance indicators
- Return on net worth
- 40.50%
- NAV per share
- ₹16.97
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About EP Biocomposites SME
EP Biocomposites Limited is a manufacturer and supplier of products and services for environmental sanitation and waste management. The company produces fibre reinforced plastic (FRP) doors and allied products, bio-digester toilets incorporating Defence Research and Development Organisation (DRDO) patented technology, and provides wastewater recycling solutions through sewage treatment plants (STP) and effluent treatment plants (ETP). The company acquired the running business of M/s OM Ventures, a sole proprietorship, through a business transfer agreement dated August 31, 2021. The company has supplied more than 200,000 FRP doors and 2,500 bio-toilets, and currently recycles 1 million litres of waste daily for hotels, industries, and housing companies. The company operates primarily in Goa, North Karnataka, and Kokan regions.
Company Analysis
from RHPEP Biocomposites manufactures and supplies fibre glass doors, bio-digester toilets with DRDO technology, and wastewater recycling solutions for sewage and effluent treatment.
EP Biocomposites Limited is a manufacturer and supplier of products and services for environmental sanitation and waste management. The company produces fibre reinforced plastic (FRP) doors and allied products, bio-digester toilets incorporating Defence Research and Development Organisation (DRDO) patented technology, and provides wastewater recycling solutions through sewage treatment plants (STP) and effluent treatment plants (ETP). The company acquired the running business of M/s OM Ventures, a sole proprietorship, through a business transfer agreement dated August 31, 2021. The company has supplied more than 200,000 FRP doors and 2,500 bio-toilets, and currently recycles 1 million litres of waste daily for hotels, industries, and housing companies. The company operates primarily in Goa, North Karnataka, and Kokan regions.
Objects of the Issue
- Long term lease deposit for manufacturing facilities ₹200.00 lakhs p.19
- Part Repayment of loan ₹80.00 lakhs p.19
- Funding Working Capital Requirement ₹151.18 lakhs p.19
- General Corporate Purpose ₹148.86 lakhs p.19
- Long term lease deposit for Manufacturing Facility ₹200.00 lakhs p.59
- Part Repayment of Loan ₹80.00 lakhs p.59
- Funding Working Capital Requirement ₹151.18 lakhs p.59
- General Corporate Purpose ₹148.86 lakhs p.59
- Repayment of unsecured loans from Directors ₹80.00 lakhs
Issue Structure
- Total Issue
- ₹635.04 lakhs (5,04,000 Equity Shares of ₹10 each at ₹126 per share)
- Fresh Issue
- 5,04,000 Equity Shares of ₹10 each at ₹126 per share, aggregating to ₹635.04 lakhs
- Price Band
- ₹126 per Equity Share (Fixed Price Issue)
- Lot Size
- 1,000 shares and in multiples of 1,000 thereafter
- Face Value
- ₹10 per Equity Share
Business Model
The company earns revenue through manufacturing and selling FRP doors and allied products, bio-digester toilets based on licensed DRDO technology, and providing wastewater treatment solutions (STP and ETP) to corporate houses, trusts, industries, hotels, and individual customers.
Business Segments
SWOT Analysis
- • Diversified product portfolio addressing sanitation and waste management(p.19)
- • Significant market penetration in FRP doors with established track record(p.19)
- • Large-scale wastewater recycling capacity demonstrating operational excellence(p.19)
- • Patented DRDO technology providing competitive differentiation(p.22)
- • Strong revenue growth trajectory(p.23)
- • DRDO technology partnership for bio-digester systems(p.76)
- • ISO 9001:2015 certification for manufacturing quality(p.76)
- • Diversified product portfolio across multiple segments(p.76)
- • Experienced promoter with 30+ years of business background(p.76)
- • Environmentally sustainable product technology(p.77)
- • Established client base across diverse sectors(p.77)
- • Licensed bio-digester technology from DRDO with perpetual license(p.144)
- • Established track record with significant product deployment(p.144)
- • National award recognition for entrepreneurship(p.144)
- • Strong revenue growth despite pandemic(p.144)
- • Operating in organized sector with few competitors(p.153)
- • Experienced and qualified team with diversified product range(p.145)
- • Dependence on perpetual DRDO technology license with risk of future royalties(p.22)
- • High customer concentration with top 10 clients representing majority revenue(p.23)
- • No contractual agreements with third-party manufacturing vendors exposing to supply disruptions(p.23)
- • Substantial negative operating cash flow indicating working capital challenges(p.24)
- • Heavy dependence on key promoters and directors for business continuity(p.24)
- • Unsecured director loans repayable on demand creating liquidity risk(p.26)
- • Leased premises dependency with no real estate ownership(p.25)
- • Exposure to fixed cost of large refundable security deposit reducing flexibility(p.24)
- • Extreme concentration of ownership with two individuals (98.09%)(p.116)
- • High unsecured borrowings from promoter directors(p.60)
- • Recent business acquisition with integration challenges(p.60)
- • Heavy reliance on working capital financing and credit from banks/directors(p.60)
- • No formal dividend policy(p.123)
- • Heavy dependence on few major customers(p.146)
- • Unsecured loans from directors repayable on demand(p.146)
- • Rented facilities with renewal dependency(p.146)
- • Significant negative operating cash flow(p.152)
- • High working capital requirements(p.138)
- • Expansion of Aqua Division to diversify revenue streams and reduce client concentration(p.23)
- • Market expansion across geographies and customer segments(p.31)
- • Government sanitation and water treatment infrastructure investment trends(p.19)
- • Expansion into new geographies and export markets(p.78)
- • Swachh Bharat Mission and sanitation infrastructure demand in India(p.71)
- • Growing water and wastewater treatment market in India(p.72)
- • Partnership expansion with NGOs and non-profit organizations(p.78)
- • Product portfolio diversification into clean water dispensers(p.78)
- • Growing FRP composites market in Asia-Pacific region(p.73)
- • Expansion to untapped markets in India and abroad(p.153)
- • Organized sector expansion as unorganized market shrinks(p.153)
- • Growing demand for sanitation solutions(p.144)
- • Eco-friendly substitute market for traditional materials(p.144)
- • Exposure to raw material price volatility without long-term supply contracts(p.23)
- • Rising transportation costs and infrastructure dependency(p.23)
- • Intense competition from organized and unorganized sector players(p.28)
- • Regulatory and compliance risks specific to manufacturing and environmental standards(p.25)
- • COVID-19 pandemic impact on operations and supply chains(p.30)
- • Inflation impact on cost structure without proportional pricing power(p.37)
- • Macroeconomic uncertainty and potential economic slowdown in India(p.35)
- • Variable interest rate exposure on bank borrowings(p.32)
- • Tax law changes and uncertainty around available tax benefits(p.36)
- • Raw material price volatility and supply chain disruptions(p.75)
- • Competition from unorganized sector manufacturers(p.93)
- • Dependence on major customers(p.92)
- • Geographic revenue concentration with Goa accounting for 95.94% of sales(p.79)
- • Impact of COVID-19 pandemic on operations and costs(p.75)
- • Regulatory and compliance risks in environmental and labor sectors(p.97)
- • License dependency risk for bio-digester technology(p.146)
- • Substantial raw material price increases(p.145)
- • COVID-19 pandemic impact on demand and supply(p.145)
- • Intense competition in regional and unorganized sectors(p.153)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Leena Kamat | Promoter | 92.73% | — |
| Rajkumar Kamat | Promoter | 5.36% | — |
| Nimisha Kamat | Promoter Group | 0.44% | — |
| Ashma Kamat | Promoter Group | 0.44% | — |
| Leena Kamat | Promoter/Non-Executive Director | 92.73% | 65.02% |
| Rajkumar Kamat | Promoter/Chairperson & Managing Director | 5.36% | 3.76% |
| Mrs. Leena Kamat | Promoter | 92.73% | — |
| Mr Rajkumar Gajanan Kamat | Promoter | 5.36% | — |
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.