Siddhika Coatings SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 24 Mar 2021 – 26 Mar 2021
- Listing date
- 07 Apr 2021
- Face value
- ₹10 per share
- Issue price
- ₹57 per share
- Lot size
- 2,000 shares
- Total issue size
- ₹4.70 Cr
- Market cap at offer price
- ₹17.61 Cr
- Promoter holding
- 83.64% → 61.34% pre-issue → post-issue
- ISIN
- INE0A1E01018
- Registrar
- Skyline Financial Services Pvt.Ltd.
- Lead managers
- Unistone Capital Pvt.Ltd.
- Registered office
- L-9, Lower Ground Floor Kalkaji, New Delhi
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 | 42,000 | — | — |
Application size
Minimum 2,000 shares per lot, in multiples, at ₹57
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 2,000 | ₹1,14,000 |
| S-HNI (min) | 2 | 4,000 | ₹2,28,000 |
| S-HNI (max) | 8 | 16,000 | ₹9,12,000 |
| B-HNI (min) | 9 | 18,000 | ₹10,26,000 |
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 | — | ₹17.61 Cr |
About Siddhika Coatings SME
Siddhika Coatings Limited, incorporated on July 20, 2010 and converted to a public company on January 14, 2020, operates as a strategic channel partner for SK Kaken Ltd. (SKK), a Japan-based coatings and pigments manufacturer. The company has been associated with SKK for over 15 years and acts as an authorized importer of SKK products through its Singapore subsidiary. Beyond product distribution, Siddhika provides application services for architectural textured pigments and technical-grade functional coatings on both interior and exterior surfaces of civil structures. The company generates revenue through importing and selling paints and coatings, and through charging application services for coating projects. The business model is dependent on SKK product supply and project-based execution across various geographical regions in India.
Company Analysis
from RHPSiddhika Coatings Limited is a strategic channel partner in India for SK Kaken Ltd., importing and supplying coatings and pigments, while providing application services for interior and exterior surfaces of civil structures.
Siddhika Coatings Limited, incorporated on July 20, 2010 and converted to a public company on January 14, 2020, operates as a strategic channel partner for SK Kaken Ltd. (SKK), a Japan-based coatings and pigments manufacturer. The company has been associated with SKK for over 15 years and acts as an authorized importer of SKK products through its Singapore subsidiary. Beyond product distribution, Siddhika provides application services for architectural textured pigments and technical-grade functional coatings on both interior and exterior surfaces of civil structures. The company generates revenue through importing and selling paints and coatings, and through charging application services for coating projects. The business model is dependent on SKK product supply and project-based execution across various geographical regions in India.
Objects of the Issue
- To part finance Working Capital Requirements of the Company 330.68 lakhs p.23
- General Corporate Purposes 99.00 lakhs p.23
- Issue Related Expenses 40.00 lakhs p.23
- Working Capital Requirements ₹330.68 Lakhs p.90
- General Corporate Purposes ₹99.00 Lakhs p.90
- Issue Expenses ₹40.00 Lakhs p.90
- Not explicitly stated in this document section
Issue Structure
- Total Issue
- 469.68 lakhs (8,24,000 equity shares at Rs. 57 per share)
- Fresh Issue
- 8,24,000 equity shares of face value Rs. 10 each at price of Rs. 57 per equity share (including share premium of Rs. 47) aggregating to Rs. 469.68 lakhs
- Price Band
- Rs. 57 per equity share
- Lot Size
- 2000 equity shares (minimum allotment and trading lot)
- Face Value
- Rs. 10 per equity share
Business Model
Siddhika Coatings operates through two primary revenue streams: (1) importing and supplying paints and coatings materials from SK Kaken Ltd. (84.96% of purchase of stock in trade is imported as of FY 2019-20), and (2) providing application services for painting and coating work on civil structures, which constitutes project-based revenue. The company also conducts trading of paints and coatings through its subsidiary AB Coatings Private Limited.
Business Segments
SWOT Analysis
- • Strategic channel partnership with established Japanese coatings manufacturer(p.23)
- • Differentiated imported product portfolio from reputable Japanese supplier(p.33)
- • Long-standing market presence and reputation as SKK specialist(p.23)
- • Experienced management team with deep industry expertise(p.110)
- • Established brand partnership with international paint manufacturer(p.110)
- • Strong track record of project execution(p.112)
- • Pan-India geographic presence(p.112)
- • Quality-focused operations with trained workforce(p.112)
- • Strong revenue growth trajectory(p.111)
- • Significant annual project volume managed(p.110)
- • Well-established authorized marketer for SK Kaken Ltd. with 15+ year association(p.194)
- • Pan-India network of branch offices and application specialists across the country(p.194)
- • Strong track record with prestigious clients across multiple sectors and geographies(p.194)
- • Positive financial performance with consistent profitability(p.200)
- • Strong net worth and current ratio demonstrating financial health(p.186)
- • Single supplier dependency with no long-term formal supply agreements(p.30)
- • Negative operating cash flows in recent periods(p.33)
- • Heavy reliance on outsourced job work and third-party labour(p.32)
- • Manpower-intensive business dependent on external labour availability(p.38)
- • Limited geographic market presence and small company size relative to competitors(p.31)
- • Regulatory non-compliance history and pending statutory obligations(p.36)
- • Most properties leased rather than owned; renewal risk on lease agreements(p.37)
- • Inadequately stamped and unregistered rental and business agreements(p.37)
- • High dependence on single strategic partner(p.133)
- • Limited employee base(p.117)
- • Reliance on contract and temporary labour(p.118)
- • No proprietary intellectual property registered(p.119)
- • Significant adverse impact from COVID-19 lockdown(p.111)
- • Project delays and time overruns(p.132)
- • Heavy dependence on single supplier SK Kaken Ltd. comprising 85.94% of purchase volumes(p.203)
- • Top 10 clients represent 45.02% of revenue—high customer concentration risk(p.203)
- • Limited capital base and relatively small scale compared to larger paint manufacturers(p.216)
- • Declining profitability trend—PAT fell 15.74% from FY2019 to FY2020(p.200)
- • Minimal profit margins in H1 FY2021 with PAT margin of only 3.25%(p.198)
- • Growing Indian paint market with strong projected growth(p.23)
- • Expansion into new geographical markets for project execution(p.31)
- • IPO-funded expansion and working capital enhancement(p.23)
- • Expansion into untapped specialized coatings services sector(p.113)
- • Growing paint industry market size(p.108)
- • Development of Total Maintenance System (TMS) business model(p.117)
- • Increasing demand from organized sector clients(p.117)
- • Growth in industrial paints segment(p.106)
- • Expansion into new product categories and supplementary services(p.113)
- • Setup of own training facility to enhance competitive positioning(p.113)
- • Expansion of geographic reach through PAN-India branch network already established(p.194)
- • Growing demand for specialized architectural coatings and pigments in India(p.194)
- • Development of new product offerings and business segments(p.202)
- • Potential to diversify customer base beyond current top-10 concentration(p.203)
- • High market concentration among four dominant competitors(p.33)
- • Intense competition and market entry barriers(p.33)
- • Heavy dependence on imported materials with foreign exchange risk(p.34)
- • Vulnerability to import policy changes affecting product availability and costs(p.35)
- • Business subject to seasonal fluctuations affecting execution capacity(p.37)
- • Exposure to supply chain disruptions and logistics challenges(p.32)
- • COVID-19 pandemic impact on operations and market demand(p.31)
- • Industrial cycle downturn affecting corporate capex plans and demand(p.39)
- • Stringent environmental and health regulations and enforcement(p.36)
- • Government regulation changes affecting business operations(p.46)
- • COVID-19 pandemic disruption to business operations(p.111)
- • Supply chain and material availability constraints(p.111)
- • Competition from organized and unorganized paint applicators(p.118)
- • Raw material price volatility tied to crude oil(p.105)
- • Regulatory changes in paint industry standards(p.122)
- • Risk of client project delays affecting revenue realization(p.111)
- • Business is seasonal with lower sales during monsoon season(p.202)
- • Intense competition from organized and unorganized paint industry players(p.203)
- • Dependence on imported raw materials subject to foreign exchange and supply chain risks(p.172)
- • Exposure to economic cycles and general economic slowdown affecting construction sector(p.195)
- • No owned trademark or copyright creating brand vulnerability(p.214)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Siddhika Business Applications Private Limited | Promoter | 64.00% | — |
| Charitra Maheshwari | Promoter Group | 19.20% (including HUF holding of 7.81%) | — |
| Rashi Maheshwari | Promoter Group | 0.44% | — |
| Siddhika Consulting and Investment OPC Private Ltd | Promoter Group | — | — |
| Siddhika Business Applications Private Limited | Promoter | 64.00% | 46.93% |
| Charitra Maheshwari | Promoter Group | 11.39% | 8.35% |
| Charitra Maheshwari (H.U.F.) | Promoter Group | 7.81% | 5.73% |
| Rashi Maheshwari | Promoter Group | 0.44% | 0.32% |
| Siddhika Business Applications Private Limited | Promoter | 64% | — |
| Charitra Maheshwari | Promoter Group | — | — |
| Rashi Maheshwari | Promoter Group | — | — |
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.