Active Clothing Co Limited (ACCL) is engaged in manufactures and sells readymade garments for men, women, kids, boys, and girls in India. This is an integrated apparel company which manufacturer with the comprehensive capability to design and manufacture high-quality readymade garments at competitive prices. Active Clothing Co is coming up with their initial public offering to get listed on the stock exchanges. I will check the DRHP of ACCL and consider the issue price to post the Active Clothing Co Ltd IPO Review for my readers.
About Active Clothing Co Limited IPO :
- IPO Opens on – March 12, 2018.
- IPO Closes on – March 14, 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 – 4,086,000 Equity Shares of Rs 10 aggregating up to Rs 26.56 Cr.
- Listing Exchange – BSE SME Exchange.
- Draft Prospectus – Download.
Objectives of the issue:
- To meet the incremental working capital requirements.
- To meet the Issue Expenses.
- For general corporate purposes.
About The Company –
- Active Clothing Co Limited is incorporated in 2002.
- This company offers sweaters, T-shirts, knitted T-shirts, fashion shirts, designer T-shirts, V-neck T-shirts, round neck T-shirts, printed round neck T-shirts, full knitted polo T-shirts, and knitted bottom wears as well as hooded, sleeveless, designer jackets under the AAGAIN brand name.
- Active Clothing Co Limited is also operates a multi branded store for fashion products.
- This company has a total capacity 12,58,810 pieces of sweaters, 242,190 pieces of jackets and 7,80,000 T-Shirts and Sweatshirts.
- Active Clothing Co Ltd’s key customer base of includes Levi Strauss (India) Pvt. Ltd., U.S Polo, Arrow, Izod, United Colours of Benetton, Numero Uno, Basics, Aero staple, Elle, Iconic, Pepe Jeans, impulse buying house among others.
- This company has more than 200 retailers in Upper North of India for the states of Punjab, Himachal Pradesh, Jamoo and Kashmir, and Chandigarh.
- The international brands such as Levis, Celios, Arvind owned licensee brands Ed Hardy, Flying Machine are distributing of this company.
Promoters of the company :
- Rajesh Mehra, aged 54 years, is Managing Director and Promoter of this company.
- Renu Mehra, aged 49 years, is one of the promoter of this company.
- Rajesh Mehra (HUF), is one of the promoter of this company.
Active Clothing Co Ltd IPO Review: The company has posted steady profits spirally over the financial years 2013 to 2017. At the current issue price of Rs. 65 per equity share the earnings per share is 1.62. The PE ratio is just above 40. So far our Active Clothing Co Ltd IPO Review is NEUTRAL on this issue. However, cash rich investors can invest in ACCL IPO at their own risk only if they have a long-term perspective.