Shree Pushkar Chemicals and Fertilisers Ltd, which is engaged in manufacturing and trading of dyes intermediates, has raised a small sum in its pre-IPO round of funding, according to its red herring prospectus.
Unifi, a domestic hedge fund registered under SEBI's AIF norms, among few other entities including those related to Unifi and its managing team, also participated. The company raised Rs 5 crore ($760,000) in the process.
The company which filed its draft red herring prospectus (DRHP) with market regulator SEBI last September, has fixed the price band of the IPO at Rs 61-65 per equity share. The overall issue is worth Rs 70 crore including a fresh issue that would raise around Rs 57 crore for the company besides an offer for sale that would fetch another Rs 13 crore to the selling shareholder IFCI Venture Capital Fund managed India Enterprise Development Fund (IEDF).
The issue opens on August 25 and closes on August 27.
As on the date, RHP, the promoters of the company and promoter group hold 84.81 per cent stake in Shree Pushkar Chemicals with 11.3 per cent held by IEDF. Rest is with Unifi and others.
Here's a snapshot of the IPO:
Overall issue worth around Rs 57 crore through sale of fresh shares ranging between 8.7 million- 9.45 million shares. IFCI VC managed SME fund would sell around 2 million shares.
Banker: Keynote Corporate Services
The company started its operations in 1993 as a trading business and later started manufacturing its own dye intermediates in India.
It manufactures products in four major verticals- dye intermediates, acid complex (comprising sulphuric and its derivative acids), cattle feed supplement and fertilisers (single super phosphate & soil conditioner). The firm has a manufacturing facility at Lote Parshuram, Maharashtra.
Shree Pushkar Chemicals is also amongst large manufacturers of K-Acid in the country, a dye intermediate used to manufacture reactive dyes for dying of textiles, with an installed capacity of 960 MTPA as on March 31, 2015.
It markets, sells and distribute the products to the customers based in India and abroad. Some of its international clients include US-based Huntsman Corporation and Archroma Management LLC, a global colour and speciality chemical company in Switzerland. Besides these, it also exports to Brazil, Thailand, Pakistan and Mexico.
As on date, the company employs around 529 people.
Its operation revenues more than doubled in the four years between FY11 and FY15. The company closed the year ended March 31, 2015 with net revenues of Rs 266.5 crore as compared with Rs 130.6 crore in FY11.
Its EBITDA grew to Rs 31.5 crore from Rs 9.4 crore at a CAGR of 35.29 per cent in the same period. The company's net profit was Rs 18.7 crore in FY15, up almost seven-fold from Rs 2.8 crore in FY11.
The company's revenue rose 26 per cent last year while EBITDA rose over 16 per cent and net profit jumped 80 per cent over FY14.
Bulk of its revenues came from dye intermediates, followed by fertilisers, acid complex and cattle feed supplements.
Use of IPO proceeds
The money from the fresh issue will be used for expanding manufacturing facility, effluent treatment plant and godown.
IEDF, a fund managed by IFCI Venture Capital Funds Ltd, had invested Rs 15 crore in the company for 27 per cent stake between 2009-2011. It had sold over half of this through a series of buybacks by the promoter over the last two years almost doubling its money in the part exit.
It has taken out little more than what it had invested and currently holds 2.42 million shares. It is encashing around Rs 13 crore in the IPO and its remaining stake would be worth Rs 2.6 crore at the upper end of the price band. It would make 2.4x its investment in the part-exit. Overall it is expected to make around 2x the original investment cost through the various part-exits, as per VCCircle estimates.