Bansal Multiflex Limited (BML) was incorporated in 2013. The company is engaged in trading of various kinds of finished and semi-finished fabric, different types of clothes. In addition, the company also trades in chemicals essentially used to make various soaps and detergents. Bansal Multiflex Ltd IPO review will find how attractive the IPO will be to the investors.
Bansal Multiflex Limited, besides trading of fabrics and chemicals, earns revenue from other sources as well. The company takes up jobs from apparel industry. BML takes up third party jobs for processing of grey clothes which include bleaching, dyeing, printing and drying. The company sells these semi-finished fabrics to different companies engaged in the apparel business. MML’s product portfolio comprises of the following.
- Grey fabric
- Dress material
- Cotton fabric
- Twill fabric
- Satin fabric
- Slub cotton fabric
- Slub satin fabric
- Jute fabric
- Dobby fabric
- Meti fabric
- Denim fabric
- Micro cotton fabric
- Rencho fabric
- AOS chemicals
- Caustic soda
- Caustic flakes
About the Bansal Multiflex Ltd IPO issue:
- Issue opens on – 30th June, 2017
- Issue closes on – 4th July, 2017
- Issue type – Fixed price IPO
- Face value – Rs 10
- Issue price – Rs 31 per equity share
- Lot size – 4000 shares
- Listing exchange – NSE SME
- Issue size – 2,000,000 nos. of equity shares
The company proposes to use the cash inflow from IPO for the following purposes.
- General corporate purposes
- Fulfill working capital requirements
Company financials –
Bansal Multiflex Ltd IPO review finds profit after tax is on steady increase. As per draft prospectus submitted, EBITDA was 1.23% in fiscal 15, 1.5% in fiscal 16, and a considerable jump in margin in fiscal 17, which is 5.23%. PAT also increased in tune and PAT increased considerably in fiscal 17.
Conclusion: Bansal Multiflex Ltd IPO review finds that though company has low debt and liability, there is much scope for improvement in EBITDA and PAT. We have neutral view on this IPO.
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Disclaimer – Views expressed in this review is an educated guess made on the basis of available data from open source expressed for the purpose of knowledge sharing. By no means it should be taken as an investment advice or recommendation. Investor/ trader should invest money at their own risk.
Partha, an engineer by education, is theoratically actively following the stock and commodity markets since 1990. He is an active trader since 2003. He has received formal education in future and options and quantum analysis. He is presently working on research oriented projects using Python and data analytics.