Jakharia Fabric Limited IPO Review (Date, Price, DRHP)

Jakharia Fabric Limited IPO Review

Jakharia Fabric Limited is mainly engaged in dying and processing of fabrics, Maharashtra based company. Now, we will discuss IPO details of the company. It is important to discuss the issue details before step into the Jakharia Fabric Limited IPO Review.

About Jakharia Fabric Limited IPO :

  • IPO Opens on – June 29, 2018.
  • IPO Closes on – July 3, 2018.
  • Face Value – Rs. 10 Per Equity Share.
  • Issue Price – Rs. 180 Per Equity Share.
  • Issue Type – Fixed Price Issue IPO.
  • Market Lot – 800 shares.
  • Minimum Order Quantity – 800 shares.
  • Issue Size – 1,092,000 Equity Shares of Rs 10 aggregating up to Rs 19.66 Cr.
  • Listing Exchange – NSE SME Exchange.
  • Draft Prospectus – Download.

Objectives of the issue :

  • Part finance the setting up of processing unit through M/s. Jakharia Industries at Tarapur, MIDC.
  • Funding Expenditure for General Corporate Purposes.

About The Company –

  • Jakharia Fabric Limited is incorporated in 2007.
  • This company’s group is into the business of textiles since 1987.
  • This company manufactures and processes the fabric especially suitable for Shirtings.
  • Jakharia Fabric Limited has positioned ourselves as a multi-product, multi-fibre and multi-market player ensuring that our products include a diverse mix of fabrics mainly catering to the domestic market and also to the international market at certain times.
  • Wide ranges of fabric which are processed at this company of their processing house which includes cotton, polyester, viscose and manmade and blended fabrics.
  • Jakharia Fabric Limited has set-up two processing units located at MIDC Area of Saravali, Bhiwandi in Maharashtra and MIDC Area of Tarapur, Bhiwandi in Maharashtra.
  • The plant of this company has the facilities for dyeing and processing wide range of fabrics.

Jakharia Fabric LimitedJakharia Fabric Private Limited

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Promoters of the company :

  • Mr Jignesh Shah.
  • Mr Nitin Shah.
  • Mr Dixit Shah.

Company Financials :

Jakharia Fabric Limited IPO

Jakharia Fabric Limited IPO Review :

If you notice the last five-year financial data of the company, you can see the last FY 2016-17 profit is much lower than in the previous three years. Therefore, the company’s financial track record is not so good. Let’s move to the other fundamental data, taken from the DRHP or draft red herring prospectus. In the last FY, 2016-17 EPS stands at 12.37 which is lower than the previous years. P/E ratio is not available here. RoNW according to the last FY is 16.97 and NAV/share is 67.20. Based on the company’s financial data, Jakharia Fabric Limited IPO Review carries a neutral view. If you want to invest safely without taking any risk then this IPO is not for you. Those who want to take a risk may take a chance and invest at their own risk for long-term.

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