Type | Equity | Shares on offer | 3.6 m |
---|---|---|---|
Size | Rs 145 m | Face Value | Rs 10 per share |
Offer Price | Rs 40 (Rs 10 face value + Rs 30 premium) | Pre/Post-issue promoter holding | 65% |
Minimum subscription | 200 shares | Promoters | Mr. Jatin H. Shah and Mrs. Nayanaben J. Shah |
Listing | Vadodara, Mumbai and National Stock Exchanges | Lead Managers | Fedex Securities Limited |
Bid/Issue opens | 19th Ocotober 2000 | Bid/Issue closes | 21st October 2000 |
Vision Organics was incorporated in 1994. The company is presently engaged in the manufacturing of whole range of PVC plasticizers and is one of the largest manufacturers of PVC plasticizers in India.
The production range of the company is Di Octyl Phthalate (DOP), Di Iso Octyl Phthalate (DIOP), Di Butyl Phthalate (DBP), Tri-Octyl Tri Mellitet (TOTM) and 2ISO Phthalate. The end customers for the company's products are the manufacturers of PVC Rexines, PVC Cables, PVC Pipes, PVC Films and PVC Shoes.
The company has taken up an expansion project with a view to increase the installed capacity of PVC plasticizers from 21,600 MT per annum to 45,900 MT per annum. The expansion project has been located at Naroli, Silvassa and has already commenced commercial production from FY99.
The main objectives of the issue are
Mr. Jatin H. Shah, aged 41 years, is a postgraduate in Science with Organic Chemistry and has about 16 years experience in the chemical industry. He promoted this company and is its Chairman and Managing Director.
Mrs. Nayanaben J. Shah, aged 41 years, is an Arts graduate and has about 8 years experience in the administration of the Company. She is also a Director of M/s. Aims Chemicals P. Ltd.
The market of PVC plasticizers is directly connected with the market growth of PVC rexins and PVC plastics. At present the demand of PVC plasticizers in India is approx. 1,05,000 MTPA while manufacturing capacities available in India are 1,00,000 MTPA. Plasticizers market is growing at the rate of 8 to 10% per annum.
The flexible PVC sector is the largest consumer of plasticizers. PVC itself enjoys the largest market share (28%) amongst all the commodity thermoplastics. The present demand of 500 KT of PVC is estimated to reach approximately 820 KT by FY01. Based on a low per capita consumption, a growth of 11-13% on PVC consummations can be projected in India over the next five years.
The flexible PVC sector accounts for about 41% of the total PVC market. This includes products segments such as wires and cables, calendered sheets, footwear etc. In view of such high growth, it is expected that the plasticizer industry will experience a concomitant increase in demand especially phthalates, considering their wide spread usage both in general purpose as well as special applications.
(Rs m) | FY98 | FY99 | FY00 |
---|---|---|---|
Sales | 440.0 | 614.2 | 777.0 |
Other Income | 3.1 | 0.5 | 8.3 |
Total Income | 443.1 | 614.6 | 785.3 |
Expenditure | 406.1 | 537.9 | 651.7 |
EBIDTA | 37.0 | 76.8 | 133.6 |
GPM (%) | 8.4% | 12.5% | 17.2% |
Depreciation | 0.7 | 0.9 | 4.6 |
Interest | 12.4 | 39.7 | 64.4 |
Profit before tax | 23.8 | 36.2 | 64.6 |
Extraordinary item | 1.7 | - | - 0.3 |
Less: Tax | - | - | - |
Net Profit | 25.5 | 36.2 | 64.3 |
NPM (%) | 5.8% | 5.9% | 8.3% |
Issued shares (m) | 6.0 | 6.0 | 6.0 |
EPS (Rs) | 4.2 | 6.0 | 10.7 |
P/E (x) | 9.4 | 6.0 | 10.7 |
Please note:
* The estimates of financial performance are those provided in the Issue Offer
Document and are not those of www.equitymaster.com.
Where the money comes from... | ||
---|---|---|
(Rs m) | (%) | |
Share capital | ||
–Promoters | 7 | 2% |
–Public | 36 | 11% |
Share premium | 131 | 39% |
Term loan from bank | 68 | 20% |
Internal accruals | 66 | 20% |
Unsecured loans and deposits | 16 | 8% |
Total | 334 | 100% |
Where the money will go... | ||
---|---|---|
(Rs m) | (%) | |
Fixed assets | 125 | 38% |
Preliminary, pre-operative and issue expenses | 18 | 5% |
Margin for working capital | 191 | 57% |
Total | 334 | 100% |
Particulars | Pre-Offer | Post-Offer |
---|---|---|
Promoters and Associates | 100.0 | 65.0 |
NRIs/OCBs | - | 3.4 |
Indian mutual funds | - | 3.3 |
Indian and multinational financial institutions | - | 3.3 |
Public | - | 25.0 |
Total | 100.0 | 100.0 |
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Disclaimer:
We would like to inform our readers that this IPO note is just a one-time view on the company and in no way implies that there will be regular coverage on the company's performance or any other development. Should we decide to bring the company under research coverage in the future, it will be available exclusively to subscribers of the respective subscription.
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