Quality RO SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- Listing date
- 09 Feb 2022
- Face value
- ₹10 per share
- Issue price
- ₹51 per share
- Lot size
- 2,000 shares
- Total issue size
- ₹2.70 Cr
- Market cap at offer price
- ₹9.84 Cr
- Promoter holding
- 84.00% → 60.93% pre-issue → post-issue
- ISIN
- INE0KAF01018
- Registrar
- Skyline Financial Services Pvt.Ltd.
- Lead managers
- Shreni Shares Ltd.
- Registered office
- Plot No.09, POR Industrial Park, NH 08 Behind Sahayog Hotel, Village POR, 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 | 30,000 | — | — |
Application size
Minimum 2,000 shares per lot, in multiples, at ₹51
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 2,000 | ₹1,02,000 |
| S-HNI (min) | 2 | 4,000 | ₹2,04,000 |
| S-HNI (max) | 9 | 18,000 | ₹9,18,000 |
| B-HNI (min) | 10 | 20,000 | ₹10,20,000 |
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 | — | ₹9.84 Cr |
About Quality RO SME
Quality RO Industries Limited was incorporated on September 30, 2021, and subsequently acquired the entire running business of M/s Quality RO Products (a sole proprietorship of promoter Vivek Dholiya) on November 02, 2021 via Business Transfer Agreement. The company was then converted to a public limited company on December 13, 2021. The company is engaged in the business of manufacturing, marketing and supplying components for water purifiers and softener equipment. These water purifier parts are designed for proper fitting in RO Plants and Systems of different varieties, manufactured strictly according to industry standards. The manufacturing facility enables the company to design quality and precise product lines in bulk quantities.
Company Analysis
from RHPQuality RO Industries Limited manufactures, markets, and supplies components for water purifiers and softener equipment across the water treatment industry.
Quality RO Industries Limited was incorporated on September 30, 2021, and subsequently acquired the entire running business of M/s Quality RO Products (a sole proprietorship of promoter Vivek Dholiya) on November 02, 2021 via Business Transfer Agreement. The company was then converted to a public limited company on December 13, 2021. The company is engaged in the business of manufacturing, marketing and supplying components for water purifiers and softener equipment. These water purifier parts are designed for proper fitting in RO Plants and Systems of different varieties, manufactured strictly according to industry standards. The manufacturing facility enables the company to design quality and precise product lines in bulk quantities.
Objects of the Issue
- To Meet the Capital Expenditure Requirements ₹139.72 Lakhs p.19
- To Meet the Incremental Working Capital Requirements ₹50.00 Lakhs p.19
- General Corporate Expenses ₹24.27 Lakhs p.19
- Public Issue Expenses ₹56.31 Lakhs p.19
- To Meet the Capital Expenditure Requirements ₹139.72 lakhs p.62
- To Meet the Incremental Working Capital Requirements ₹50.00 lakhs p.63
- General Corporate Purpose ₹24.27 lakhs p.64
- Public Issue Expenses ₹56.31 lakhs p.64
- Expansion of production capacity by purchasing new machinery p.147
- Investment in logistic assets (trucks) for contractual logistics services p.147
- Installation of Solar Power Project p.147
Issue Structure
- Total Issue
- ₹270.30 Lakhs
- Fresh Issue
- 5,30,000 Equity Shares of Rs. 10/- each at a price of Rs. 51.00 per share aggregating Rs. 270.30 Lakhs
- Price Band
- Rs. 51.00 per Equity Share
- Lot Size
- 2000 Equity Shares and in multiples of 2000 thereafter
- Face Value
- Rs. 10/-
Business Model
The company earns revenue from manufacturing and supplying water purifier components and softener equipment parts. The company operates on a purchase order basis with customers and receives orders through online portals where products are listed, allowing prospective customers across India to place orders for required products.
Business Segments
SWOT Analysis
- • Experienced management with 4 years industry experience(p.82)
- • Strong repeat customer base reflecting product quality and consistency(p.82)
- • Established supplier relationships enabling quality material supply and cost efficiency(p.83)
- • Cost-effective production with timely order fulfillment capability(p.83)
- • Experienced management with industry knowledge(p.146)
- • Established customer relationships and repeat orders(p.146)
- • Long-standing supplier relationships(p.147)
- • Cost-effective production and timely fulfillment capabilities(p.147)
- • Limited operating history as a newly incorporated company(p.22)
- • Dependence on raw material suppliers with no long-term contracts(p.23)
- • Heavy dependence on Promoter for business success(p.24)
- • Rented manufacturing facility with unregistered lease agreement(p.26)
- • Outstanding indebtedness of Rs. 52.85 Lakhs with transfer issues(p.27)
- • Trademark not yet registered(p.25)
- • Outstanding litigation against Promoter(p.26)
- • Negative cash flows from operations and investing activities(p.28)
- • Very short operational history post business acquisition(p.81)
- • Minimal production capacity utilization in initial operations(p.87)
- • Significant dependence on promoter and very small employee base(p.88)
- • Plant and machinery not yet acquired despite IPO capital raise plan(p.88)
- • Very young company with limited operational history(p.145)
- • Highly concentrated promoter shareholding creating governance risk(p.116)
- • Promoter litigation pending regarding illegal mining(p.157)
- • Minimal installed capacity utilization(p.148)
- • Heavy dependence on borrowed capital(p.155)
- • Capacity expansion through new plant and machinery acquisition(p.83)
- • Expansion into contractual logistics services with truck investment(p.83)
- • Operating cost reduction through solar power installation(p.83)
- • Growing demand for water treatment and RO systems in India(p.77)
- • Planned capacity expansion through new machinery(p.147)
- • Expansion of logistics business through asset investment(p.147)
- • Cost reduction through solar power installation(p.147)
- • Growing market for water treatment products and RO systems(p.145)
- • New environmental regulations for RO water purification industry(p.25)
- • Compliance burden within 18 months of environmental rules(p.25)
- • Power supply disruptions and electricity cost fluctuations(p.24)
- • Natural disasters and supply chain disruptions(p.23)
- • COVID-19 pandemic impact on business and economy(p.24)
- • Economic slowdown and declining economic conditions in India(p.35)
- • Global economic volatility and impact on Indian markets(p.35)
- • Business conducted on purchase order basis without long-term contracts(p.29)
- • Highly competitive and fragmented market with unorganized players(p.89)
- • Competitors with substantially larger capital base and broader product ranges(p.89)
- • Dependence on polypropylene raw material procurement subject to price volatility(p.88)
- • Regulatory changes in water purification systems management(p.92)
- • Ongoing impact of COVID-19 pandemic on demand(p.145)
- • High degree of market competition(p.149)
- • Volatility in raw material costs(p.153)
- • Inflation pressure on operating costs(p.153)
- • Dependency on key customer relationships for revenue sustainability(p.149)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Vivek Dholiya | Promoter | 79.00% | 57.31% |
| Mrs. Damini Dholiya | Promoter Group | 4.99% | 3.62% |
| Mr. Vinubhai A Dholiya | Promoter Group | 0.01% | 0.00% |
| Mr. Vivek Dholiya | Promoter & Chairman cum Managing Director | 79.00% | 57.31% |
| Mrs. Damini Dholiya | Promoter Group & Whole-time Director | 4.99% | 3.62% |
| Mr. Vinubhai A Dholiya | Promoter Group | 0.01% | 0.00% |
| Mr. Vivek Dholiya | Promoter | 79.00% | — |
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.