Shrenik Limited is an Ahmedabad, Gujarat based company involved in the trading business of various kinds of paper products. Through Shrenik Limited IPO review we would like to find how the IPO is going to perform.
About the Shrenik Limited IPO Issue –
- Issue opens on – 6th July, 2017
- Issue closes on – 10th July, 2017
- Issue type – Fixed price IPO
- Issue price – Rs 40 per equity share
- Face value – Rs 10 per equity share
- Lot size – 3000 and in multiples thereof
- Issue size – 5,400,000 nos of equity share aggregating up to a value of Rs 2.16 crores.
- Listing Exchange – NSE SME
Issue objective –
- Capital expenditure
- General corporate requirement
- Fulfil working capital requirement
About the company –
Shrenik Limited was incorporated in 2012. The company earns its revenue from trading of paper and paper boards. Shrenik Limited runs its business operations mainly in the two neighbouring states of Gujarat and Rajasthan through a network of distributors and dealers. The company also manufactures Sticker Sheets on job work basis under the Shrenik brand. These products are in high demand in Pharma industries, soap industries and as stationary items. They primarily started the business as distributors of Ballarpur Industries Limited. They still retain the business and making progress in that path which has been rewarding both financially and as leading performer in that sector. Besides selling all products of Ballarpur Industries they also sell products of Tamilnadu Newsprints and Papers Limited (TNPL) as their authorised distributor. Packaging paper and paper boards comprise the list of products from TNPL. Shrenik Limited has acquired distributorship of Asia Paper and Pulp (APP). APP is an international giant in this sector having many manufacturing units in Chiana and Indonesia. APP is famous as “One Stop Solution for Packaging, Graphical and Tissue Applications.” The inclusion of products from APP in Shrenik’s product portfolio has immensely benefitted the company in terms of business growth and prestige.
Shrenik Limited offer the following in their product portfolio:
- Notebook papers
- Coated papers
- Folding box boards
- Photocopy Papers
- Sticker sheets
Company financials – Shrenik Limited IPO review finds the following pros and cons as per Draft Prospectus.
- The company has no peer industry in the sector it operates
- Good Customer base
- EPS is on steady growth
- The company experienced cash outflows in operational activities, financial activities and investing activities.
- Low operating margin
Shrenik Limited IPO review has a neutral view on this IPO. For more information on other IPOs kindly visit our IPO review page.
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.