Sylvan Plyboard (India)
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 24 Jun 2024 – 26 Jun 2024
- Listing date
- 01 Jul 2024
- Face value
- ₹10 per share
- Issue price
- ₹55 per share
- Lot size
- 2,000 shares
- Issue type
- Fixed Price issue
- Total issue size
- ₹28.05 Cr
- Market cap at offer price
- ₹107 Cr
- Promoter holding
- 99.80% → 71.23% pre-issue → post-issue
- ISIN
- INE01IH01015
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Finshore Management Services Ltd.
- Registered office
- NH-2, Delhi Road, Champsara, Chinnamore, Baidyabati, Hooghly, West Bengal
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 | 2,56,000 | — | — |
Application size
Minimum 2,000 shares per lot, in multiples, at ₹55
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 2,000 | ₹1,10,000 |
| S-HNI (min) | 2 | 4,000 | ₹2,20,000 |
| S-HNI (max) | 9 | 18,000 | ₹9,90,000 |
| B-HNI (min) | 10 | 20,000 | ₹11,00,000 |
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 (₹) | 2.47 | 3.08 |
| P/E (×) | 22.27 | 17.86 |
| Price to book (×) | 0.83 | — |
| Market cap | — | ₹107 Cr |
Key performance indicators
- Return on net worth
- 4.74%
- ROCE
- 7.56%
- Debt / equity
- 0.68
- PAT margin
- 2.77%
- NAV per share
- ₹66.25
- Price to book
- 0.83
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Sylvan Plyboard (India)
Incorporated in 2002 and converted to a public limited company in 2018, Sylvan Plyboard (India) Limited is engaged in manufacturing various wood products such as plywood, block board, flush door, veneer, and sawn timber across various grades and thickness. The company operates a single manufacturing facility spread over approximately 11.61 acres (5,05,732 sq. ft.) located at NH-2, Delhi Road, Champsara, Chinnamore, Baidyabati, Hooghly, West Bengal, equipped with latest machinery and technology. The company markets its products under the brand name 'Sylvan' through a network of 223 Authorized Dealers across 13 states. Revenue generation is primarily from domestic sales, with the bulk of sales concentrated in West Bengal and the top 5 states (West Bengal, Odisha, Uttar Pradesh, Maharashtra, and Andhra Pradesh) accounting for 81-87% of revenue. The company imports a majority of its raw material, particularly timber logs, and maintains significant working capital requirements for inventory and receivables.
Company Analysis
from RHPSylvan Plyboard (India) Limited manufactures wood-based products including plywood, block board, flush door, veneer, and sawn timber for the construction and home furnishing sectors.
Incorporated in 2002 and converted to a public limited company in 2018, Sylvan Plyboard (India) Limited is engaged in manufacturing various wood products such as plywood, block board, flush door, veneer, and sawn timber across various grades and thickness. The company operates a single manufacturing facility spread over approximately 11.61 acres (5,05,732 sq. ft.) located at NH-2, Delhi Road, Champsara, Chinnamore, Baidyabati, Hooghly, West Bengal, equipped with latest machinery and technology. The company markets its products under the brand name 'Sylvan' through a network of 223 Authorized Dealers across 13 states. Revenue generation is primarily from domestic sales, with the bulk of sales concentrated in West Bengal and the top 5 states (West Bengal, Odisha, Uttar Pradesh, Maharashtra, and Andhra Pradesh) accounting for 81-87% of revenue. The company imports a majority of its raw material, particularly timber logs, and maintains significant working capital requirements for inventory and receivables.
Objects of the Issue
- Funding Capital Expenditure towards purchase of additional plant and machinery ₹ 371.34 Lakhs p.20
- Working Capital Requirements ₹ 1,693.46 Lakhs p.20
- Issue Related Expenses ₹ 310.20 Lakhs p.20
- General Corporate Expenses ₹ 430.00 Lakhs p.20
- Funding Capital Expenditure towards purchase of additional plant and machinery ₹371.34 Lakhs p.85
- Working Capital Requirements ₹1,693.46 Lakhs p.85
- Issue Related Expenses ₹310.20 Lakhs p.85
- General Corporate Purposes ₹430.00 Lakhs p.85
- Not explicitly stated in Part 5 of the document
Issue Structure
- Total Issue
- ₹ 2,805.00 Lakhs
- Fresh Issue
- 51,00,000 Equity Shares aggregating to ₹ 2,805.00 Lakhs
- Offer for Sale
- Nil
- Lot Size
- 2,000 Equity Shares
- Face Value
- ₹ 10/- each
Business Model
The company manufactures wood-based products (plywood, block board, flush door, veneer, sawn timber) at its West Bengal facility and sells primarily through a dealer network. Revenue is generated from sales to retail household customers and other buyers, with the company relying on purchase orders from dealers and customers. The company imports timber logs from various countries and domestic suppliers, with imports accounting for 33-51% of total purchases in recent fiscal years.
Business Segments
SWOT Analysis
- • Established manufacturing facility with modern machinery and technology(p.18)
- • Strong brand presence through established dealer network(p.18)
- • Improving profitability trend(p.20)
- • Positive net worth and capital base(p.20)
- • Established manufacturing facility with modern equipment and significant installed capacity(p.85)
- • Strong brand presence with established dealer network across multiple states(p.85)
- • Consistent revenue growth and improving profitability metrics(p.88)
- • Diversified product portfolio across plywood, blockboard, and related products(p.85)
- • Experienced management with proven track record since incorporation in 2002(p.85)
- • Diversified manufacturing capability across plywood, blockboard, flush doors, and veneers(p.212)
- • Long operational history with established market presence since 2002(p.212)
- • ISO certifications demonstrating quality and environmental management standards(p.173)
- • Strong promoter backing with 96.67% shareholding(p.191)
- • Vertically integrated operations combining manufacturing and trading(p.212)
- • Integrated manufacturing facility with in-house production capabilities(p.244)
- • Strategic location near Kolkata Port Trust for easier imports(p.244)
- • Quality compliance with multiple international standards and certifications(p.244)
- • Diverse product range catering to multiple customer segments(p.244)
- • Experienced promoter with 25+ years in timber industry(p.244)
- • Extensive dealer network across 13 states(p.244)
- • High inventory requirements straining working capital(p.24)
- • History of negative cash flows in recent years(p.26)
- • Single manufacturing facility concentration risk(p.29)
- • High dependence on few major customers(p.29)
- • High dependence on limited suppliers(p.30)
- • Significant outstanding litigation and legal exposure(p.24)
- • Group companies incurring losses(p.27)
- • Corporate governance discrepancies and filing irregularities(p.30)
- • High financial leverage and significant dependence on working capital borrowings(p.88)
- • Modest profitability margins relative to peer companies in the industry(p.96)
- • Limited scale and turnover relative to listed peer companies(p.96)
- • No dividend history and uncertain dividend policy going forward(p.44)
- • Heavy inventory requirements tied up in working capital(p.89)
- • Significant reliance on working capital borrowings from multiple banks(p.222)
- • High short-term debt burden relative to long-term borrowings(p.209)
- • Limited cash reserves and heavy reliance on bank credit facilities(p.209)
- • Concentration of promoter shareholding creates governance concentration risk(p.221)
- • Personal guarantees from promoters securing bank facilities(p.222)
- • High debt burden relative to equity(p.237)
- • Significant aging of trade receivables(p.230)
- • Low profitability margins(p.237)
- • Contingent liabilities from tax disputes(p.235)
- • Multiple pending litigation matters(p.252)
- • Dependence on limited customer base(p.245)
- • Expanding plywood consumption in tier 3 and rural markets(p.18)
- • Growing demand driven by construction and home furnishing sector(p.18)
- • Geographic expansion across India(p.28)
- • Capacity expansion with IPO proceeds(p.19)
- • Growing acceptance of plywood in organized construction(p.18)
- • Capacity expansion to meet growing demand for plywood and blockboard products(p.86)
- • Enhanced market access and visibility through stock exchange listing(p.85)
- • Improved operational efficiency and cost reduction through new machinery(p.86)
- • Attraction of institutional and foreign investors post-listing(p.85)
- • Growth in working capital capacity to support revenue expansion(p.88)
- • Expansion of manufacturing capacity and product range through capital investment(p.209)
- • Growth in domestic market for plywood and timber products(p.225)
- • Vertical integration potential through acquisition of upstream timber sourcing(p.212)
- • Market consolidation opportunity in fragmented plywood and timber industry(p.212)
- • Capacity for product range expansion(p.244)
- • Growing demand for affordable plywood alternatives(p.244)
- • Strategic equipment upgrades for operational efficiency(p.244)
- • Listing on NSE EMERGE Platform for capital raising(p.244)
- • R&D capabilities for product innovation(p.244)
- • Volatile raw material prices, especially timber(p.26)
- • Restricted raw material availability from logging bans(p.31)
- • Foreign exchange rate fluctuations affecting import costs(p.32)
- • Competition from MDF and particleboard products(p.18)
- • Intense competition from organized and unorganized players(p.42)
- • Economic slowdown affecting construction and consumer spending(p.18)
- • Dependence on West Bengal geography with high revenue concentration(p.28)
- • Power supply disruptions affecting production(p.34)
- • Economic slowdown in India could reduce demand for plywood and related products(p.47)
- • Exposure to currency fluctuation risk from rupee volatility(p.49)
- • High inflation may increase costs without proportional revenue increase(p.48)
- • Regulatory uncertainty and potential adverse tax law interpretations(p.47)
- • Impact of COVID-19 pandemic and future health emergencies on operations and demand(p.46)
- • Exposure to fluctuating timber and raw material prices(p.209)
- • Dependency on bank credit with potential covenant restrictions(p.222)
- • Regulatory compliance requirements for environmental, labor, and safety standards(p.166)
- • Seasonality and cyclicality risks in construction and real estate sectors(p.225)
- • Foreign exchange risk from timber import and export operations(p.214)
- • COVID-19 pandemic impact on business(p.245)
- • Increased competition in the sector(p.245)
- • Rapid technological advancement requiring continuous adaptation(p.245)
- • Changes in laws and regulations affecting operations(p.245)
- • Political instability impacting business(p.245)
- • Natural or man-made disasters(p.245)
- • Market fee levies on plywood products(p.255)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| M/s. Singh Suppliers Private Limited | Promoter | 72.69% | — |
| Mr. Anand Kumar Singh | Promoter | 0.87% | — |
| Mr. Jai Prakash Singh | Promoter | 16.01% | — |
| Mrs. Shakuntala Singh | Promoter | 5.74% | — |
| Mrs. Kalyani Singh | Promoter | 1.37% | — |
| M/s. Singh Suppliers Private Limited | Promoter | 72.69% | 53.55% |
| Jai Prakash Singh | Promoter | 16.01% | 11.79% |
| Shakuntala Singh | Promoter | 5.74% | 4.23% |
| Anand Kumar Singh | Promoter | 0.87% | 0.64% |
| Kalyani Singh | Promoter | 1.37% | 1.01% |
| Anand Kumar Singh | Promoter | — | — |
| Jai Prakash Singh | Whole Time Director/Father of Promoter | — | — |
| Anand Kumar Singh | Promoter | 0.87% | 0.64% |
| Jai Prakash Singh | Promoter | 16.01% | 11.79% |
| Shakuntala Singh | Promoter | 5.74% | 4.23% |
| Kalyani Singh | Promoter | 1.37% | — |
| Singh Suppliers Private Limited | Promoter | 72.69% | — |
| Anand Kumar Singh | Promoter | — | — |
| Kalyani Singh | Promoter Group | — | — |
| Jai Prakash Singh | Promoter/Whole Time Director | — | — |
| Shakuntala Singh | Promoter Group/Non Executive Director | — | — |
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.