HindPrakash Industries SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 15 Jan 2020 – 17 Jan 2020
- Listing date
- 27 Jan 2020
- Face value
- ₹10 per share
- Issue price
- ₹40 per share
- Lot size
- 3,000 shares
- Total issue size
- ₹11.52 Cr
- Market cap at offer price
- ₹41.70 Cr
- Promoter holding
- 100.00% → 72.37% pre-issue → post-issue
- ISIN
- INE05X901010
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Hem Securities Ltd.
- Registered office
- 301, Hindprakash House,, Plot No.10/6,, GIDC, Vatva,, 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 | 1,50,000 | — | — |
Application size
Minimum 3,000 shares per lot, in multiples, at ₹40
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 3,000 | ₹1,20,000 |
| S-HNI (min) | 2 | 6,000 | ₹2,40,000 |
| S-HNI (max) | 8 | 24,000 | ₹9,60,000 |
| B-HNI (min) | 9 | 27,000 | ₹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 |
|---|---|---|
| Market cap | — | ₹41.70 Cr |
About HindPrakash Industries SME
Hindprakash Industries Limited (formerly Hindprakash Lonsen Industries Private Limited) was incorporated on November 11, 2008, was renamed Hindprakash Industries Private Limited on March 14, 2018, and was converted into a public limited company as Hindprakash Industries Limited on November 29, 2018, with its registered office at GIDC Vatva, Ahmedabad, Gujarat. The company started its manufacturing unit in 2008 to produce Disperse Dyes, Reactive Dyes and Textile auxiliaries for the domestic textile industry (initially via a technical agreement with 'LONGSHENG' Group China for dry mixing of finished disperse dyes), launched Reactive Dyes under the 'HINDACTIVE' brand in 2011, added White R Liquid for polyester fabric in 2014, developed a replacement product for Sodium Hydro Sulphite in 2016, and added Solvents, Monomers and Acids in 2017. It earns revenue from manufacturing (Rs. 8,020.94 Lakhs, 83.03% of FY2018-19 revenue) and trading (Rs. 1,639.26 Lakhs, 16.97%) of dyes, auxiliaries, intermediates and chemicals, selling on a purchase-order basis without long-term contracts to domestic and international customers (exports to Korea, Egypt, Vietnam). Its installed capacity is 4,000 MTPA with production of approx. 3,100 MTPA, and it had 45 employees as on July 31, 2019. For FY ended March 31, 2019, total revenue was Rs. 9,799.48 Lakhs and profit after tax was Rs. 283.42 Lakhs; its top ten customers accounted for approximately 49.79% of revenue and top ten suppliers approximately 68.21% of cost of materials purchased. The company is promoted by Mr. Sanjay Prakash Mangal, Mr. Om Prakash Mangal and Mr. Santosh Narayan Nambiar.
Company Analysis
from DRHPHindprakash Industries Limited is engaged in the manufacturing and trading of Dyes, Auxiliaries, Intermediates and Chemicals, catering to the dyestuff and dye intermediates, textiles, construction chemicals and speciality chemicals industries.
Hindprakash Industries Limited (formerly Hindprakash Lonsen Industries Private Limited) was incorporated on November 11, 2008, was renamed Hindprakash Industries Private Limited on March 14, 2018, and was converted into a public limited company as Hindprakash Industries Limited on November 29, 2018, with its registered office at GIDC Vatva, Ahmedabad, Gujarat. The company started its manufacturing unit in 2008 to produce Disperse Dyes, Reactive Dyes and Textile auxiliaries for the domestic textile industry (initially via a technical agreement with 'LONGSHENG' Group China for dry mixing of finished disperse dyes), launched Reactive Dyes under the 'HINDACTIVE' brand in 2011, added White R Liquid for polyester fabric in 2014, developed a replacement product for Sodium Hydro Sulphite in 2016, and added Solvents, Monomers and Acids in 2017. It earns revenue from manufacturing (Rs. 8,020.94 Lakhs, 83.03% of FY2018-19 revenue) and trading (Rs. 1,639.26 Lakhs, 16.97%) of dyes, auxiliaries, intermediates and chemicals, selling on a purchase-order basis without long-term contracts to domestic and international customers (exports to Korea, Egypt, Vietnam). Its installed capacity is 4,000 MTPA with production of approx. 3,100 MTPA, and it had 45 employees as on July 31, 2019. For FY ended March 31, 2019, total revenue was Rs. 9,799.48 Lakhs and profit after tax was Rs. 283.42 Lakhs; its top ten customers accounted for approximately 49.79% of revenue and top ten suppliers approximately 68.21% of cost of materials purchased. The company is promoted by Mr. Sanjay Prakash Mangal, Mr. Om Prakash Mangal and Mr. Santosh Narayan Nambiar.
Objects of the Issue
- To meet working capital requirements p.82
- General corporate purposes p.83
- To meet the Issue Expenses p.84
Issue Structure
- Total Issue
- Initial Public Issue of upto 28,80,000 Equity Shares of face value of Rs.10/- each for cash at a price of Rs.[●] per Equity Share aggregating to Rs. [●] Lakhs (comprising Market Maker Reservation Portion of upto 1,52,000 Equity Shares and Net Issue of upto 27,28,000 Equity Shares)
- Fresh Issue
- Fresh Issue of upto 28,80,000 Equity Shares of face value of Rs. 10/- each at an Issue Price of Rs. [●] per Equity Share (the Issue comprises a Fresh Issue by the Company)
- Face Value
- Rs. 10/- per Equity Share
Business Model
The company earns revenue from the sale of manufactured products (dyes, auxiliaries and chemicals) and from trading of dyes and intermediates, procuring differential quantities from the market when customer orders exceed its manufacturing capacity or inventory. Sales are generated through continuing customer relationships on a purchase-order basis without long-term contracts, serving both domestic and international customers.
Business Segments
SWOT Analysis
- • Focus on quality and innovation in dyes and chemicals(p.112)
- • Experienced promoters and management team(p.112)
- • Technical assistance and customisation support to customers(p.112)
- • Locational advantage in Gujarat chemical hub with port proximity(p.112)
- • Established client relationships with significant repeat business(p.113)
- • In-house quality control laboratory at the manufacturing unit(p.105)
- • Steady growth in productivity and expanded product range(p.105)
- • ISO 45001:2018 occupational health and safety certification(p.127)
- • Heavy dependence on single business segment (dyes)(p.25)
- • Customer concentration - top 10 customers account for ~49.79% of revenue(p.28)
- • Supplier concentration - top 10 suppliers constitute ~68.21% of material cost(p.26)
- • No long-term contracts with major customers; order-to-order basis(p.25)
- • Negative net cash flows from operating activities in some years(p.31)
- • Past non-compliance with certain statutory provisions under the Companies Act(p.26)
- • Promoters and a Non-Executive Director were previously named in a Wilful Defaulter list(p.27)
- • Unsecured loans repayable on demand(p.29)
- • Export expansion aided by closure of Chinese chemical units under strict environmental norms(p.113)
- • Growth through organic and inorganic expansion, acquisitions, joint ventures and partnerships(p.113)
- • Deepening integration in dye intermediates / speciality chemicals where the company is a leading player(p.113)
- • Indian chemical industry projected to nearly double to USD 304 billion by FY25(p.100)
- • India's strong global position in dyestuff production supports demand(p.97)
- • Colourant industry expected to grow at 11% over FY15-FY20(p.102)
- • Operations in heavily regulated sector subject to environmental, health and safety regulations(p.25)
- • Intense competition from organised and unorganised players(p.29)
- • Fluctuations in raw material prices or shortage in supply(p.29)
- • Foreign exchange rate fluctuation risk on exports/imports(p.34)
- • Alternative technology adoption by competitors may render products obsolete(p.26)
- • Dependence on the Indian economy; slowdown or inflation would hit input costs and demand(p.38)
- • Changing tax laws and legal uncertainties (e.g., GST implementation)(p.39)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Sanjay Prakash Mangal | Promoter | 14.38 | — |
| Mr. Om Prakash Mangal | Promoter | 19.49 | — |
| Mr. Santosh Narayan Nambiar | Promoter | 0.12 | — |
Leadership
Auto-extracted from the company's DRHP 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 DRHP before relying on it.