Gabriel Pet Straps
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 31 Jan 2024 – 02 Feb 2024
- Listing date
- 07 Feb 2024
- Face value
- ₹10 per share
- Issue price
- ₹101 per share
- Lot size
- 1,200 shares
- Issue type
- Fixed Price issue
- Total issue size
- ₹8.06 Cr
- Market cap at offer price
- ₹26.73 Cr
- Promoter holding
- 100.00% → 69.84% pre-issue → post-issue
- ISIN
- INE0QZF01012
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Shreni Shares Ltd.
- Registered office
- Plot No.23, Radhe Industrial Area, Paddhari Bypass, Behind Reliance Petrol Pump, Jamnagar Highway, Paddhari, 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 |
|---|---|---|---|
| Market maker | 44,400 | — | — |
Application size
Minimum 1,200 shares per lot, in multiples, at ₹101
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,200 | ₹1,21,200 |
| S-HNI (min) | 2 | 2,400 | ₹2,42,400 |
| S-HNI (max) | 8 | 9,600 | ₹9,69,600 |
| B-HNI (min) | 9 | 10,800 | ₹10,90,800 |
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 (₹) | 2.81 | 1.12 |
| P/E (×) | 35.94 | 90.18 |
| Price to book (×) | 1.42 | — |
| Market cap | — | ₹26.73 Cr |
Key performance indicators
- Return on net worth
- 20.83%
- ROCE
- 46.89%
- Debt / equity
- 1.19
- PAT margin
- 3.46%
- NAV per share
- ₹2,494.14
- Price to book
- 1.42
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Gabriel Pet Straps
Gabriel Pet Straps Limited, originally formed as M/s Gabriel Pet Straps LLP on November 12, 2020, was converted into a public limited company on August 3, 2023. The company is engaged in the manufacturing and selling of PET straps under its brand name 'Gabriel', widely used in packaging of heavy materials. The company produces PET straps from 9mm to 32mm width with thickness ranging from 0.70mm to 1.30mm, manufactured from a composition of virgin content raw material (hot washed PET bottle flakes) and non-virgin content raw material (used PET straps grinding). The company generates revenue from the sale of these straps primarily to cotton industry (45% share), followed by automotive, appliance and other industries. The company is based in Rajkot, Gujarat and aims to continuously improve its products with innovative technologies.
Company Analysis
from RHPGabriel Pet Straps Limited manufactures and sells PET straps for packaging heavy materials, primarily serving cotton, fiber, packaging, paper, waste cloth and other industries.
Gabriel Pet Straps Limited, originally formed as M/s Gabriel Pet Straps LLP on November 12, 2020, was converted into a public limited company on August 3, 2023. The company is engaged in the manufacturing and selling of PET straps under its brand name 'Gabriel', widely used in packaging of heavy materials. The company produces PET straps from 9mm to 32mm width with thickness ranging from 0.70mm to 1.30mm, manufactured from a composition of virgin content raw material (hot washed PET bottle flakes) and non-virgin content raw material (used PET straps grinding). The company generates revenue from the sale of these straps primarily to cotton industry (45% share), followed by automotive, appliance and other industries. The company is based in Rajkot, Gujarat and aims to continuously improve its products with innovative technologies.
Objects of the Issue
- Repayment or prepayment, in full or in part, of borrowings availed by our Company from banks, financial institutions and non-banking financial companies ₹173.07 Lakhs p.18
- Acquisition of land ₹197.93 Lakhs p.18
- Funding of capital expenditure requirements of our Company towards set up of Solar Power Plant ₹292.50 Lakhs p.18
- General corporate purposes ₹73.77 Lakhs p.18
- Repayment or prepayment, in full or in part, of borrowings availed by our Company from banks, financial institutions and non-banking financial companies ₹173.07 Lakhs p.75
- Acquisition of land ₹197.93 Lakhs p.75
- Funding of capital expenditure requirements of our Company towards set up of Solar Power Plant ₹292.50 Lakhs p.75
- General corporate purposes ₹73.77 Lakhs p.75
- Installation of solar power plant to reduce electricity costs and dependence on state electric supply p.120
- Land acquisition and facility expansion p.129
- Not specified in this document section
Issue Structure
- Total Issue
- ₹805.98 Lakhs (7,98,000 Equity Shares at ₹101/- per share)
- Fresh Issue
- ₹805.98 Lakhs (7,98,000 Equity Shares)
- Offer for Sale
- N.A.
- Price Band
- ₹101/- per Equity Share (Fixed Price)
- Lot Size
- 1,200 Equity Shares and in multiples thereof
- Face Value
- ₹10/- per Equity Share
Business Model
The company manufactures PET straps from virgin and non-virgin raw materials and sells them primarily through dealers/distributors and to end-users. For the period ended August 2, 2023, dealer sales represented 56.07% of revenue and end-user sales represented 43.93%. The company generates revenue from operations by fulfilling customer orders on an order-by-order basis.
Business Segments
SWOT Analysis
- • Established market presence and customer relationships in pet straps manufacturing(p.47)
- • In-house manufacturing facility with equipped machines and processes(p.83)
- • Scalable business model enabling product innovation and competitive pricing(p.47)
- • Strong profitability metrics with positive EBITDA margin and return on net worth(p.86)
- • Experienced management team with industry expertise(p.118)
- • Quality assurance systems with dedicated quality control(p.118)
- • Strong relationships with suppliers for reliable material supplies(p.118)
- • Diversified customer base across multiple geographies and industries(p.118)
- • Strategic manufacturing location with local material sourcing(p.118)
- • Scalable business model based on customer-centric approach(p.119)
- • Three-year positive track record with cash accruals(p.221)
- • Strong improvement in profitability with 55% revenue growth FY2023(p.210)
- • Positive net worth and tangible assets exceeding ₹150 Lakhs minimum(p.220)
- • Pan-India distribution network across 10 states(p.199)
- • Advanced manufacturing technology and quality control(p.199)
- • Land for solar power plant not yet registered in company name(p.26)
- • High debt-to-equity ratio of 3.10x requiring significant cash for servicing debt(p.33)
- • Unsecured loans from directors and NBFCs repayable on demand(p.35)
- • Negative cash flows from operating activities in prior periods(p.28)
- • No long-term contracts with customers; sales order-by-order basis(p.28)
- • Heavy dependence on top 10 customers without long-term contracts(p.29)
- • Promoters and directors provided personal guarantees and collateral for company loans(p.35)
- • Company operated factory without Factory License in the past(p.34)
- • Restated financial statements prepared by non-statutory auditor peer reviewer(p.28)
- • Company recently incorporated with potential non-compliance risks under Companies Act 2013(p.41)
- • High financial leverage with debt-to-equity ratio of 3.10 as of October 2023(p.86)
- • Concentrated promoter shareholding limiting minority investor influence and governance(p.47)
- • Potential conflicts of interest from promoter-controlled board and shareholder decisions(p.47)
- • Intellectual property vulnerability and litigation exposure(p.47)
- • Reliance on state electricity supply with associated operational risks(p.78)
- • High capital intensity of manufacturing operations(p.117)
- • Rising raw material costs pressuring margins(p.117)
- • Vulnerability to regulatory changes(p.117)
- • High debt-to-equity ratio of 3.10x pre-IPO(p.200)
- • Low current ratio of 1.46x indicating working capital pressure(p.200)
- • Very recent conversion from partnership to public company (August 2023)(p.199)
- • Trademark objections for key brand identity(p.218)
- • Income tax demand pending for AY 2023-24(p.212)
- • Plan to install solar power plant to reduce power costs and dependence(p.37)
- • Pet straps market expected to record high CAGR of 14% from 2015 to 2020(p.18)
- • Pet straps third largest recycled PET market by revenue, second by production volume(p.18)
- • Expanding supplier base to reduce dependence on few raw material suppliers(p.27)
- • Expansion through solar power plant installation to reduce production costs and energy dependence(p.78)
- • Debt reduction to improve financial leverage and access to future capital at competitive rates(p.77)
- • Strategic acquisition of land to support manufacturing capacity and facility expansion(p.78)
- • Enhanced brand visibility and market access through public listing on BSE SME Platform(p.75)
- • Significant growth potential in domestic and international pet strap markets(p.117)
- • Geographic expansion within India to new states(p.119)
- • Cost reduction through renewable energy adoption(p.119)
- • Brand strengthening and market visibility enhancement(p.120)
- • Expansion through customised bulk packaging solutions to multiple industries(p.199)
- • Leveraging circular economy 'Waste to Best Process' philosophy(p.199)
- • Growing product customisation capability with width and thickness variations(p.199)
- • Domestic market growth with PET strap demand in heavy material packaging(p.199)
- • Raw material prices subject to volatility beyond company control(p.25)
- • Risk of shortages, delays or disruption in raw material supply(p.27)
- • Manufacturing facility concentration at single location vulnerable to disruption(p.26)
- • Labour-intensive industry subject to strikes and wage pressures(p.28)
- • Significant concentration of revenue from cotton bale segment (90-95%)(p.29)
- • Revenue concentrated in specific states (Gujarat, Maharashtra, Madhya Pradesh)(p.33)
- • Intense competition from fragmented pet straps industry players(p.35)
- • Customer pricing pressure initiatives may reduce margins(p.36)
- • Dependence on third-party logistics providers for product delivery(p.37)
- • Significant power requirements with exposure to electricity supply disruptions(p.37)
- • Regulatory compliance requirements becoming increasingly stringent(p.34)
- • Natural disasters and infrastructure challenges in operating regions(p.37)
- • Dependence on state electricity supply subject to supply interruptions and price volatility(p.78)
- • Exposure to Indian economic slowdown, interest rate fluctuations, and inflation pressures(p.53)
- • Vulnerability to changes in labor laws increasing employee and operational costs(p.52)
- • Regulatory uncertainty and evolving tax policies affecting business operations and profitability(p.52)
- • Global economic uncertainty and geopolitical tensions affecting demand and supply chains(p.53)
- • Climate change regulations requiring capital investment for compliance and emissions management(p.53)
- • Volatility in raw material costs affecting profitability(p.117)
- • Risk from government policy shifts impacting finances(p.117)
- • Fragmented and competitive industry with low entry barriers(p.128)
- • Dependence on raw material suppliers and price volatility(p.199)
- • Intense competitive pressure from organized and unorganized players(p.210)
- • Exposure to interest rate risk affecting debt service obligations(p.209)
- • Inflation impact on salaries, wages and operational costs(p.209)
- • Promoter litigation risk with income tax dispute(p.212)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Shah Jay Pareshbhai | Promoter | 49.05% | — |
| Mr. Varasada Vimal Dayabhai | Promoter | 24.53% | — |
| Mr. Kavathiya Vivek Dharmendrabhai | Promoter | 24.53% | — |
| Kavathiya Vivek Dharmendrabhai | Promoter | 24.53% | 17.13% |
| Shah Jay Pareshbhai | Promoter | 49.05% | 34.26% |
| Varasada Vimal Dayabhai | Promoter | 24.53% | 17.13% |
| Kavathiya Ankit Dharmendrabhai | Promoter Group | 0.47% | 0.33% |
| Aarti Jaybhai Shah | Promoter Group | 0.47% | 0.33% |
| Varasada Shilpaben V | Promoter Group | 0.47% | 0.33% |
| Aakash Nilesh Kavathiya | Promoter Group | 0.48% | 0.33% |
| Mr. Shah Jay Pareshbhai | Promoter | 49.05% | 34.26% |
| Mr. Kavathiya Vivek Dharmendrabhai | Promoter | 24.53% | 17.13% |
| Mr. Varasada Vimal Dayabhai | Promoter | 24.53% | 17.13% |
| Mr. Shah Jay Pareshbhai | Promoter | 50.00% | 34.26% |
| Mr. Varasada Vimal Dayabhai | Promoter | 25.00% | 17.13% |
| Mr. Kavathiya Vivek Dharmendrabhai | Promoter | 25.00% | 17.13% |
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.