Sunrise Efficient SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 30 Mar 2022 – 05 Apr 2022
- Listing date
- 12 Apr 2022
- Face value
- ₹10 per share
- Issue price
- ₹121 per share
- Lot size
- 1,000 shares
- Total issue size
- ₹16.70 Cr
- Market cap at offer price
- ₹60.50 Cr
- Promoter holding
- 99.99% → 72.40% pre-issue → post-issue
- ISIN
- INE0KPY01017
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- Fedex Securities Pvt.Ltd.
- Registered office
- Sub Plot No.2, block B, Akash Bhumi Complex, 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 | 78,000 | — | — |
Application size
Minimum 1,000 shares per lot, in multiples, at ₹121
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,000 | ₹1,21,000 |
| S-HNI (min) | 2 | 2,000 | ₹2,42,000 |
| S-HNI (max) | 8 | 8,000 | ₹9,68,000 |
| B-HNI (min) | 9 | 9,000 | ₹10,89,000 |
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 |
|---|---|---|
| EPS (₹) | 2.10 | — |
| P/E (×) | 57.62 | — |
| Market cap | — | ₹60.50 Cr |
Key performance indicators
- Return on net worth
- 15.52%
- NAV per share
- ₹11.84
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Sunrise Efficient SME
Sunrise Efficient Marketing Limited, incorporated as a Public Limited Company on July 9, 2020, took over the business of Sunrise Marketing & Services, a sole proprietorship founded by Lejas Hemantrai Desai in 2002. The company started as an authorized dealer for Asian Electronics Limited's energy-saving lighting products and expanded into textile machinery through a dealership with Bharat Bijlee Limited. In 2011, it diversified into FMCG as a distributor for PepsiCo in Surat. The company is ISO 9001:2015 certified and operates as a trader, distributor, super stockist, retailer, wholesaler, and agent for industrial machinery, spare parts, electrical and electronic items, motors, pumps, generators, oils, lubricants, and FMCG products. As of September 30, 2021, it is an authorized dealer for 138 manufacturers.
Company Analysis
from RHPSunrise Efficient Marketing Limited is a trader and distributor of industrial machinery, electrical equipment, and FMCG products across multiple sectors including textiles, motors, pumps, and consumer goods.
Sunrise Efficient Marketing Limited, incorporated as a Public Limited Company on July 9, 2020, took over the business of Sunrise Marketing & Services, a sole proprietorship founded by Lejas Hemantrai Desai in 2002. The company started as an authorized dealer for Asian Electronics Limited's energy-saving lighting products and expanded into textile machinery through a dealership with Bharat Bijlee Limited. In 2011, it diversified into FMCG as a distributor for PepsiCo in Surat. The company is ISO 9001:2015 certified and operates as a trader, distributor, super stockist, retailer, wholesaler, and agent for industrial machinery, spare parts, electrical and electronic items, motors, pumps, generators, oils, lubricants, and FMCG products. As of September 30, 2021, it is an authorized dealer for 138 manufacturers.
Objects of the Issue
- Funding the incremental working capital requirements of our Company ₹ 1118.77 Lakhs p.20
- General corporate purposes ₹ 417.45 Lakhs p.20
- Meeting incremental working capital requirements ₹1,118.77 lakhs p.75
- General corporate purposes ₹417.45 lakhs p.75
- Not specified in Part 3 of the document
Issue Structure
- Total Issue
- ₹ 1669.80 Lakhs
- Fresh Issue
- 13,80,000 Equity Shares
- Offer for Sale
- N.A.
- Price Band
- Fixed Price of ₹ 121 per Equity Share
- Lot Size
- 1000 Equity Shares and in multiples thereof
- Face Value
- ₹ 10.00 per Equity Share
Business Model
The company operates as a trading and distribution business, earning revenue through the distribution and sale of industrial products (motors, pumps, gearboxes, VF drives, industrial oils), lighting products, textile machinery components, and FMCG products. It acts as an intermediary between manufacturers and end customers, sourcing products from authorized manufacturers and selling them to customers on a purchase order basis without long-term supply agreements.
Business Segments
SWOT Analysis
- • ISO certified, diversified product portfolio across multiple industrial sectors(p.20)
- • Established business with 20-year operating history since 2002(p.20)
- • Wide authorized dealer network with 138 manufacturer relationships(p.28)
- • Rapid revenue growth and profitability improvement in recent period(p.21)
- • Authorized dealer of 138 manufacturers with diverse product portfolio(p.111)
- • ISO 9001:2015 certification demonstrating quality management system(p.112)
- • Experienced promoter with 18+ years in the industry(p.112)
- • Established relationships with institutional customers across multiple sectors(p.112)
- • Low capex requirement with manufacturing through leased facilities or job work(p.85)
- • Gold Award for Sales Excellence recognition(p.141)
- • Long operating history with established customer relationships(p.177)
- • ISO 9001:2015 certification(p.212)
- • Established distribution agreements with major manufacturers(p.177)
- • Substantial revenue concentration with top 10 customers representing over 25% of revenues(p.28)
- • Rented premises with no ownership security for office and warehouses(p.28)
- • No registered trademark; pending trademark registration creates brand vulnerability(p.28)
- • High secured debt of ₹882.09 Lakhs as of September 30, 2021(p.29)
- • Promoter and promoter group personal guarantees expose them to invocation risk on default(p.29)
- • Promoter has CIBIL guarantor default from 2014-15 onwards(p.37)
- • Significant litigation involving promoter and directors with substantial amounts(p.22)
- • High concentration in textile sector revenue(p.111)
- • Limited own brand presence with only 2.1% of revenue from own brands(p.111)
- • Significant working capital requirements and reliance on external financing(p.77)
- • Recent incorporation with limited operational history as public company(p.110)
- • High dependence on limited customer base(p.216)
- • Heavy reliance on few suppliers(p.216)
- • Significant debt burden with debt-to-equity ratio of 2.32(p.204)
- • High finance costs relative to operations(p.214)
- • Unsecured borrowings from related parties(p.221)
- • Multiple criminal complaints against the Director for dishonored cheques and debt recovery(p.226)
- • Director involved in multiple pending litigation cases for debt recovery involving dishonored cheques(p.227)
- • Tax compliance issues in group company - service tax liability shortfall(p.229)
- • Show Cause Notice issued against group company for misrepresentation of taxable value(p.229)
- • Outstanding dues to creditors represent 7.45 crores across 157 creditors(p.229)
- • Working capital requirements funding from IPO proceeds to support growth(p.21)
- • Expansion into new geographic regions beyond Surat for revenue growth(p.31)
- • Growth in industrial machinery and FMCG distribution sectors(p.20)
- • Expansion of distribution network beyond Surat into unexplored areas(p.113)
- • Addition of new product lines with market potential in existing verticals(p.113)
- • Growth in technical textiles market expected at 20% CAGR(p.96)
- • Government incentives for technical textiles and PPE manufacturing(p.99)
- • Growth in FMCG sector expected at 14.9% CAGR to reach $220 billion by 2025(p.106)
- • Expansion into new geographic markets(p.142)
- • Economic recovery post-COVID enabling demand(p.179)
- • Growing FMCG distribution business(p.212)
- • Dependency on manufacturer agreements which may not be renewed or could be terminated(p.28)
- • Cyclical demand for industrial products affected by OEM and replacement market cycles(p.28)
- • Intense competition from existing and new competitors with greater resources(p.33)
- • COVID-19 pandemic uncertainty impacts on business continuity and operations(p.32)
- • Inflation may reduce margins if price increases cannot be passed to customers(p.42)
- • Price taker model with limited pricing power per manufacturer price lists(p.31)
- • Geographic concentration in Surat region exposes to local economic and political risks(p.31)
- • Textile industry cyclicality and market volatility affecting core customer base(p.92)
- • Fluctuations in input costs and raw material prices impacting margins(p.105)
- • Foreign exchange and currency fluctuation risks from imports(p.75)
- • Competitive pressure from larger established distributors(p.121)
- • Regulatory changes in GST and import duties affecting business model(p.95)
- • Outstanding litigation with customers for payment default(p.221)
- • Multiple criminal complaints from customers for dishonored cheques(p.224)
- • Continuing COVID-19 pandemic impact(p.213)
- • Default and payment delays from customers(p.213)
- • Tax litigation with directors(p.222)
- • Volatile supply and pricing of products(p.213)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Lejas Desai | Promoter | 56.79% | 41.61% |
| Mitali Desai | Promoter Group | 43.20% | 31.28% |
| Hemantrai Desai | Promoter Group | 0.00% | 0.00% |
| Lejas Desai | Promoter | 56.79% | 41.11% |
| Mitaliben Desai | Promoter | 43.20% | 31.28% |
| Lejas Hemantrai Desai | Promoter | 56.79% | — |
| Mitaliben Lejas Desai | Promoter Group | 43.21% | — |
| Lejas Hemantrai Desai | Promoter | — | — |
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.