Avon Moldplast Limited IPO Review (Date, Price, DRHP)

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Under the companies act 1956, Avon Moldplast Limited was incorporated in the year 1996. The company is basically engaged in manufacturing and supplying plastic moulded furniture. Among the variety of furniture, there are chairs, stools, tables, baby chairs and baby desks. The article will cover Avon Moldplast Limited IPO Review along with issue details and company’s background so that investors can take a correct decision before buying its IPO.

About Avon Moldplast Ltd-Issue Details

  • The issue opens on- Jul 12, 2018
  • The issue close on- Jul 18, 2018
  • Issue Type: Fixed Price Issue IPO
  • Face value: Rs 10 Per Equity Share
  • Issue size: 884,000 Equity Shares of Rs 10 that aggregating up to Rs. 4.51 Cr
  • Issue price: Rs 51 Per Equity share
  • Market lot: 2000 Shares
  • Listing At: NSE SME exchange
  • Minimum order quantity: 2000 Shares
  • DRHP: Click here

Objectives of Issuing Stock

Reasons behind issuing stock in the market are very important. Let’s have a look at the objectives of issuing stock of the company.

  • In order to fulfil the capital requirements of the company, Avon decides to issue stocks.
  • Issuing stocks enhance the brand name, corporate image.
  • Provide enough liquidity to shareholders
  • The listing will give the public market for the equity in India.

About the Company

  • Under the brand name of Avon, the company not only manufactures and supplies normal furniture but also usable furniture for babies like baby chairs, baby desks etc.
  • Their manufactured products are supplied to its distributor network spread PAN India.
  • The company sells manufactured products in the retail market.
  • More than 100 distributors are attached to this group, the network is established and long-standing.
  • This well-established retail network works out to 10,000 direct selling agents.

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Avon Moldplast Ltd Management Group

  • Managing Director: Sahil Aggarwal
  • Independent Director: Vandana Gupta
  • Director: Anita Aggarwal

Financial Information

Now, come to the most important part of the company, financial details.

avon moldplast limited ipo review

Avon Moldplast Limited IPO Review:

From the above financial statement, we can get the last 5 FY data along with the last 10 months. Last 5 FY profit has grown positively but there is a sudden jump in the last 10 months profit level. Therefore, the profit amount is quite unreasonable. Let’s focus on the fundamental details of the company. The details are taken from DRHP or draft red herring prospectus. In the FY 2016-17, basic EPS or earnings per share stands at 0.42. P/E ratio is not available here. RoNW is 3.70% as per 2016-17 FY and NAV/Share is 11.37. Hence, based on the overall availability and analysis of the company’s data, Avon Moldplast Limited IPO Review carries a NEGATIVE view. Investors can invest for the IPO but at their own risk.

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