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8 October 2023

Jiwanram Sheoduttrai Industries IPO: Protecting Industrial Workforces

Introduction:

Jiwanram Sheoduttrai Industries Limited, established in 1997, specializes in manufacturing and exporting industrial safety gloves and garments. The company is dedicated to ensuring the safety of industrial workers by providing a wide range of protective gear.

IPO Snapshot:

The Jiwanram Sheoduttrai Industries IPO raised ₹17.07 crores through a fresh issue of 74.22 lakh shares. The subscription period took place from September 8, 2023, to September 12, 2023. The allotment of shares was finalized on September 15, 2023, and the shares were listed on NSE SME on September 18, 2023. The IPO was priced at ₹23 per share, with a minimum lot size of 6000 shares, requiring a minimum investment of ₹138,000 for retail investors.

Key Players:

Affinity Global Capital Market Private Limited served as the book running lead manager of the Jiwanram Sheoduttrai Industries IPO, and Cameo Corporate Services Limited acted as the registrar for the issue. Giriraj Stock Broking served as the market maker.

Stock Performance:

As of September 28, 2023, Jiwanram Sheoduttrai Industries Limited's stock was trading at ₹20.00, marking a 4.99% decrease. The stock had an opening price of ₹20.00 and reached a high and low of ₹20.00. The previous closing price was ₹21.05, and the total traded value amounted to 1,14,000 shares.

Ownership Structure:

Pre-issue shareholding was at 100%, and post-issue, it stands at 70.01%.

Financial Performance:

Jiwanram Sheoduttrai Industries Limited has reported consistent growth. As of March 31, 2023, the company's assets were valued at ₹12,112.36 lakhs, with revenue reaching ₹4,598.41 lakhs. The profit after tax stood at ₹402.65 lakhs, and the net worth of the company was ₹4,802.36 lakhs, with reserves and surplus of ₹3,069.74 lakhs. The total borrowing as of that date amounted to ₹5,258.99 lakhs.

Performance Indicators:

Key performance indicators for the Jiwanram Sheoduttrai Industries IPO included a P/E (Price-to-Earnings) ratio of 9.91 and a Market Capitalization of ₹56.92 crores.

Objectives of the Issue:

The net proceeds from the IPO were allocated for the following purposes:

1. Meeting working capital requirements.
2. Prepayment and repayment of unsecured loans availed by the company.
3. General corporate purposes and covering the expenses of the offer.

Expert Opinion:

Suggested that well-informed investors may consider parking funds in this IPO for medium to long-term rewards. He noted that Jiwanram Sheoduttrai Industries Limited had shown growth in both top and bottom lines, with a significant increase in performance in FY23. However, he also highlighted that the issue appeared to be fully priced

Subscription Status:

The Jiwanram Sheoduttrai Industries IPO witnessed strong demand, with a subscription rate of 112.96 times as of September 12, 2023. Retail investors showed significant interest with a subscription rate of 151.47 times. Non-Institutional Investors (NII) also participated actively, with a subscription rate of 69.75 times.

Conclusion:

Jiwanram Sheoduttrai Industries Limited operates in the industrial safety gear sector, specializing in the manufacturing and export of gloves and garments. Investors should carefully assess the company's growth prospects, financials, and business model before considering this IPO. Additionally, it's essential to align your investment decisions with your investment goals and risk tolerance.

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