A and M Jumbo Bags Limited is engaged in manufacturing and supply of Polyethylene Jumbo Bags and FIBC (Flexible Intermediate Bulk Container) used in industrial and commercial packaging units. It is an Ahmadabad-based company. The manufacturing facility of this company is well equipped with required facilities including machinery, other handling equipment to facilitate the smooth manufacturing process. A and M Jumbo Bags are coming up with their initial public offering to hit the bourses and the application phase is starting tomorrow. This article will go through the draft red herring prospectus and will post the A and M Jumbo Bags Limited IPO Review for investors.
About A and M Jumbo Bags Limited IPO :
- IPO Opens on – January 29,2018.
- IPO Closes on – February 2,2018.
- Face Value – Rs. 10 Per Equity Share.
- Issue Price – Rs 65 Per Equity Share.
- Issue Type – Fixed Price Issue IPO.
- Retail Allocation – 50%
- Market Lot – 2000 shares.
- Minimum Order Quantity – 2000 shares.
- Issue Size – 616,000 Equity Shares of Rs 10 aggregating up to Rs 4.00 Cr .
- Listing Exchange – NSE SME Exchange.
- Draft Prospectus – Download.
Objectives of the issue:
- Working Capital requirements.
- General Corporate Purpose.
About The Company –
- A and M Jumbo Bags Limited is incorporated in 2011.
- Their Polyethylene Jumbo Bags are mainly used in the packing of various industries like chemicals, pharmaceuticals, fertilizers, cement, polymers, minerals, food grains, as well as human consumption items etc.
- Flexible Intermediate Bulk Container’s of this company are widely used for bulk transportation of industrial raw material, semi finished and finished product.
- A and M Jumbo Bags are actually giant sized bags in a drum or a box shape and these are internationally used as bulk packaging bags or mega-sized bags for Flexible Intermediate Bulk Containers.
- These bags which is the product of this company are made out of PP UV stabilized nylon or polypropylene or HDPE fabric with four corner loops for easy handling.
- This company’s top and bottom spouts are provided for easy filling and discharge of material and also a provision for controlled discharge of the material at required rates.
- A and M Jumbo Bags Limited’s manufacturing unit is located at Jabalpur, Ahmadabad.
- This company has installed facility to manufacture 2,00,000 Pieces and mainly in year 2017-18 this company produced around 1,25,744 bags.
Promoters of the company :
- Mr Pratish Shah, aged 52 years, is the Chairman, Managing Director and Promoter of the company.
- Gita Patel, aged 48 years, is the Director and Promoter of the company.
A and M Jumbo Bags Limited IPO Review: The financial data reveals that the company has little or no profitability till FY 2016. They have even posted net losses during the financial years of 2015 and 2016. However, they have posted decent profits on the FY 2017. The promoters are holding equity shares at as low as Rs. 15 and there is a disparity between the promoter’s price and issue price. Hence, our A and M Jumbo Bags Limited IPO Review are NEUTRAL on this issue. Only long-term investors can consider small investment in this issue.