Essen Speciality Films
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 23 Jun 2023 – 27 Jun 2023
- Listing date
- 06 Jul 2023
- Face value
- ₹10 per share
- Issue price
- ₹107 per share
- Lot size
- 1,200 shares
- Issue type
- Book Building issue
- Total issue size
- ₹66.33 Cr
- Market cap at offer price
- ₹220 Cr
- Promoter holding
- 100.00% → 70.00% pre-issue → post-issue
- ISIN
- INE0ITO01014
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- GYR Capital Advisors Pvt.Ltd.
- Registered office
- Plot No.A, Survey No.192, Veraval (Shapar), Gujarat
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 17,65,200 | — | — |
| Market maker | 3,10,800 | — | — |
Application size
Minimum 1,200 shares per lot, in multiples, at ₹107
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,200 | ₹1,28,400 |
| S-HNI (min) | 2 | 2,400 | ₹2,56,800 |
| S-HNI (max) | 7 | 8,400 | ₹8,98,800 |
| B-HNI (min) | 8 | 9,600 | ₹10,27,200 |
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.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 8.36 | — |
| P/E (×) | 12.80 | — |
| Market cap | — | ₹220 Cr |
Key performance indicators
- Return on net worth
- 15.62%
- ROCE
- 12.19%
- Debt / equity
- 0.08
- PAT margin
- 11.37%
- NAV per share
- ₹53.51
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Essen Speciality Films
Essen Speciality Films Limited was incorporated on August 14, 2002 as a private limited company ('Essen Speciality Films Private Limited') and was converted into a public limited company pursuant to a resolution dated December 31, 2022, with a fresh certificate of incorporation dated January 3, 2023. Based in Veraval (Shapar), Rajkot, Gujarat, the company commenced operations in fiscal 2003 by manufacturing desk-mats, expanded into expanded polystyrene foam disposables (commercial production from September 20, 2008), added dining table mats, coasters, yoga mats and inner shoe soles via compression molding in 2014, and artificial plants via injection molding in 2018, growing installed capacity from 960 MTPA in 2002 to 9,450 MTPA in 2021. It is a recognized 'two star export house' with an ISO 9001:2015-certified, fully-integrated manufacturing unit, and forms part of the Rajoo Group headed by promoter group company Rajoo Engineers Limited (listed on BSE). Essen has been an exclusive global supplier to IKEA for certain products since incorporation and received IKEA's 'Best Supplier of the Year' title twice (2006 and 2009). Its portfolio spans seven categories — bath area, kitchen & dining, home décor, storage and organization, fitness and lifestyle, outdoor and utility, and customized products — marketed predominantly under the 'Draperi', 'Runner' and 'Paperi' brands, and it supplies products to twenty-four countries. The company makes money by selling these products: in fiscal 2023, 78.85% of revenue came from renowned multinational modern trade retailers, 20.84% from domestic traders and distributors and 0.31% from online platforms (Amazon, Flipkart, Snapdeal, Meesho, IndiaMart, JioMart), with the top five customers contributing 72.82% of fiscal 2023 revenue from operations. For fiscal 2023 it reported revenue from operations of ₹11,861.18 lakhs, EBITDA of ₹2,067.65 lakhs and profit after tax of ₹1,337.23 lakhs. Its sustainability model ('Product, Packaging and Energy') entails at least 25% post-consumer and/or post-industrial recycled plastic in most products, Forest Stewardship Council-certified packaging, and a manufacturing unit substantially operated through its own solar plant.
Company Analysis
from RHPEssen Speciality Films Limited is a manufacturer and exporter of specialized plastic products for the home improvement and home furnishing industry, supplying renowned multinational modern trade retailers such as IKEA, Walmart, Kmart, Bed Bath & Beyond, Rusta, Runsven, Kohl's and Kroger.
Essen Speciality Films Limited was incorporated on August 14, 2002 as a private limited company ('Essen Speciality Films Private Limited') and was converted into a public limited company pursuant to a resolution dated December 31, 2022, with a fresh certificate of incorporation dated January 3, 2023. Based in Veraval (Shapar), Rajkot, Gujarat, the company commenced operations in fiscal 2003 by manufacturing desk-mats, expanded into expanded polystyrene foam disposables (commercial production from September 20, 2008), added dining table mats, coasters, yoga mats and inner shoe soles via compression molding in 2014, and artificial plants via injection molding in 2018, growing installed capacity from 960 MTPA in 2002 to 9,450 MTPA in 2021. It is a recognized 'two star export house' with an ISO 9001:2015-certified, fully-integrated manufacturing unit, and forms part of the Rajoo Group headed by promoter group company Rajoo Engineers Limited (listed on BSE). Essen has been an exclusive global supplier to IKEA for certain products since incorporation and received IKEA's 'Best Supplier of the Year' title twice (2006 and 2009). Its portfolio spans seven categories — bath area, kitchen & dining, home décor, storage and organization, fitness and lifestyle, outdoor and utility, and customized products — marketed predominantly under the 'Draperi', 'Runner' and 'Paperi' brands, and it supplies products to twenty-four countries. The company makes money by selling these products: in fiscal 2023, 78.85% of revenue came from renowned multinational modern trade retailers, 20.84% from domestic traders and distributors and 0.31% from online platforms (Amazon, Flipkart, Snapdeal, Meesho, IndiaMart, JioMart), with the top five customers contributing 72.82% of fiscal 2023 revenue from operations. For fiscal 2023 it reported revenue from operations of ₹11,861.18 lakhs, EBITDA of ₹2,067.65 lakhs and profit after tax of ₹1,337.23 lakhs. Its sustainability model ('Product, Packaging and Energy') entails at least 25% post-consumer and/or post-industrial recycled plastic in most products, Forest Stewardship Council-certified packaging, and a manufacturing unit substantially operated through its own solar plant.
Objects of the Issue
- Prepayment or repayment of all or a portion of certain outstanding borrowings availed by our Company (ECLGS facility from Axis Bank Limited) Up to ₹353.91 lakhs p.74
- Funding the working capital requirements of our Company Up to ₹2,900.00 lakhs p.76
- General corporate purposes (capped at 25% of the gross proceeds from the Fresh Issue) p.78
Issue Structure
- Total Issue
- Up to 61,99,200 Equity Shares aggregating to ₹ [●] Lakhs
- Fresh Issue
- Up to 46,99,200 Equity Shares aggregating to ₹ [●] Lakhs
- Offer for Sale
- Up to 15,00,000 Equity Shares aggregating to ₹ [●] Lakhs
- Lot Size
- 1,200 Equity Shares and in multiples of 1,200 Equity Shares thereafter
- Face Value
- ₹ 10/- each
Business Model
Earns revenue from the manufacture and sale of specialized plastic products on a purchase-order basis, predominantly through exports to renowned multinational modern trade retailers (78.85% of fiscal 2023 revenue), alongside sales to domestic traders and distributors (20.84%) and online platforms (0.31%); domestic sales constituted 24.59% of total sales in fiscal 2023, and the company works without long-term customer agreements or exclusive agents/dealers/distributors.
Business Segments
SWOT Analysis
- • Trusted brand with strong parentage via the Rajoo Group(p.97)
- • Long-standing relationships with renowned multinational modern trade retailers with clean compliance record(p.97)
- • Exclusive global supplier to IKEA for certain products; twice awarded 'Best Supplier of the Year'(p.94)
- • Wide-spread domestic and international market presence across 24 countries(p.98)
- • Comprehensive, diversified product portfolio across seven categories at entry-level price points(p.99)
- • Integrated business model with PPD Division delivering first-mover, customized innovations(p.100)
- • Quality certifications including ISO 9001:2015, OEKO-TEX STANDARD 100 and GRS Version 4.0(p.101)
- • Sustainable, circular 'zero-discharge' manufacturing reducing raw material expenditure(p.101)
- • High customer concentration - top five customers contributed 72.82% of revenue in Fiscal 2023(p.27)
- • No long-term agreements with customers; business conducted on a purchase-order basis(p.28)
- • Dependence on a few key suppliers for critical raw materials without long-term supply contracts(p.31)
- • Single manufacturing unit concentrated in Gujarat, exposed to localized disruptions(p.30)
- • History of negative net cash flows in operating, investing and financing activities(p.35)
- • Contingent liabilities of ₹216.84 lacs as of March 31, 2023(p.38)
- • Working-capital-intensive business model requiring significant working capital for growth(p.33)
- • Loan facilities supported by personal guarantees of Promoter and Executive Director(p.40)
- • Strengthen marketing network by horizontally deploying products to existing customers(p.102)
- • Expand existing product portfolio into new high-growth segments and variants(p.103)
- • Increase global presence into new geographies (Russia, Middle East, South America, Southern Europe, UK)(p.103)
- • Expand customer base among new multinational, regional and local customers(p.103)
- • Government of India targets growing the plastic industry to Rs. 10 lakh crores in 4-5 years(p.20)
- • Growing global decorative plastic market (US$ 641.4 Billion in 2020 to US$ 838.6 Billion by 2027)(p.92)
- • Potential complete or partial government ban/regulation on industrial usage of plastics(p.28)
- • Currency fluctuation risk on export sales and imported raw materials(p.32)
- • Intense competition from organized and unorganized players in domestic and international markets(p.37)
- • Changing laws, rules, regulations and legal uncertainties including adverse tax law applications(p.43)
- • Dependence on prevailing economic conditions in India(p.44)
- • Global economic, political and social conditions beyond company control(p.45)
- • Power/water supply interruptions and potential hikes in power tariffs raising production costs(p.37)
- • Downturn in the industries/businesses of customers would directly hit demand for products(p.26)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Pallav Kishorbhai Doshi | Promoter | 8.50 | 6.57 |
| Khushboo Chandrakant Doshi | Promoter / Promoter Selling Shareholder | 13.50 | 9.47 |
| Karishma Rajesh Doshi | Promoter / Promoter Selling Shareholder | 20.5 | 14.88 |
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.