Lagnam Spintex Limited IPO Review (Date, Price, DRHP)

Lagnam Spintex Limited IPO Review

Lagnam Spintex Limited’s business consists of manufacturing of high-quality yarn (Ne 4 to Ne 20). This yarn is used in denim, terry towels, bottom wears, home textiles and industrial fabrics etc. It is mainly Rajasthan based company. In this article, you will get to know every detail of Lagnam Spintex Limited IPO Review along with issue details of the company.

About Lagnam Spintex Limited IPO Issue Details :

  • IPO Opens on – September 4, 2018.
  • IPO Closes on – September 7, 2018.
  • Face Value – Rs. 10 Per Equity Share.
  • Issue Price – Rs. 41 Per Equity Share.
  • Issue Type – Fixed Price Issue IPO.
  • Market Lot – 3000 Shares.
  • Minimum Order Quantity – 3000 Shares.
  • Issue Size – 6,000,000 Equity Shares of Rs 10 aggregating up to Rs 24.60 Cr.
  • Listing Exchange – NSE SME Exchange.
  • Draft Prospectus – Click Here.

Objectives of the issue :

  • Part finance the setting up of the additional cotton yarn manufacturing facility (2,200 lakhs).
  • Meet Issue expenses (260 lakhs).

About The Company –

  • Lagnam Spintex Limited is incorporated in 2010.
  • The manufacturing facility of this company is situated at Bhilwara District in Rajasthan State.
  • Lagnam Spintex Limited is spread over 10,000 square meters, and the facility has the capacity to produce 16.5 tonnes of high-quality yarn per day.
  • This company is currently exporting its products to countries like Germany, Belgium, Portugal, Italy, Columbia, South Africa, Slovenia, China, Pakistan, Bangladesh, and others.
  • Lagnam Spintex Limited exports account for 18.90% of the manufacturing sales.
  • This company has 79 permanent employees on its payroll.

Lagnam Spintex Limited

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The promoters of the company :

  • Mr. Dwarka Prasad Mangal, aged 69 years, is the Chairman and Promoter of this company.
  • Mr. Anand Mangal, aged 35 years, is the Managing Director and Promoter of this company.
  • Lagnam Infotech Solutions Private Limited is also the Promoter of this company.

The Shareholders of the company :

  • Shubh Mangal.
  • Veena Mangal.
  • Kavita Mangal.

Company Financials :

lagnam spintex limited ipo review

Lagnam Spintex Limited IPO Review :

The above attachment is the last 5FY statement. The profit growth level is gradually increasing. Last FY PAT (Profit After Tax) is quite high than the previous years. Now, let’s move on to the prospectus of the company. The company’s fundamental details are taken from the draft red herring prospectus. According to the FY 18, basic and diluted Earnings Per Share stands at 4.15. Price to Earnings Ratio or P/E ratio based on basic and diluted EPS of the FY18 is at 9.88 which is lower than the average P/E. Return on Net Worth or RoNW is at 17.72 and NAV/Share is 23.42 as per the FY18. Based on the data, Lagnam Spintex Limited IPO Review carries a NEUTRAL view. Investors can put money in it. It could be beneficial for them in long-term.

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