Latteys Industries Limited IPO Review (Date, Price, DRHP)

Latteys Industries

Latteys Industries Limited (LIL) was incorporated in 2013. It is Gujrat based, mainly working in the domestic market. Latteys is a pumping solution manufacturing company. As its portfolio, the company manufactures more than 700 pumps’ model. Latteys is quite popular in manufacturing and distributing pumps which are widely used by Domestic and Industrial sectors. However, here is some general information on Latteys’ issue price, face value, issue type, issue size etc for their forthcoming issue. So, we feel, our Latteys Industries Limited IPO Review will be vital and important for the investors. The list is as follows:

About Latteys Industries Ltd-Issue Details

  • Issue open on- May 23, 2018
  • The issue close on- May 28, 2018
  • Issue type: Book Built Issue IPO
  • Face value: Rs 10 Per Equity Share
  • Issue size: 1,222,000, Equity Shares of Rs 10 that aggregating up to Rs. 8.06 Cr
  • Issue price: Rs 66 Per Equity share
  • Market lot: 2000 Shares
  • Listing At: NSE SME exchange
  • Minimum order quantity: 2000 Shares
  • DRHP: Click here

Purpose of Issuing Stock

However, the purpose of issuing stock is also an important point to discuss.

  • To fulfill the working capital requirements of the company
  • It will enhance the brand name
  • Provide liquidity to shareholders
  • The listing will provide the public market for the equity shares in India
  • Listing of equity shares will enhance company’s corporate image, brand name.

About the Company

So, in addition to the previous concept, company history have more or less the same importance.

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  • Latteys is engaged in manufacturing and distributing pumps which include Submersible, self-priming, centrifugal, shallow and horizontal pumps.
  • The promoters hold a huge amount of shares, in aggregate 31,03,760 shares which are representing 91.89% of the pre-issue paid-up capital of the company.
  • Latteys is registered as a non-govt company in Ahmedabad.
  • The authorized share capital of the company is 32,500,000
  • Paid up capital of the company is 15,864,330

Latteys Industries Limited IPO Review

Latteys Industries Ltd Management Group

  • Managing Director: Kapoor Chand Garg
  • Wholetime Director: Pawan Garg
  • Director: Saroj Garg

Financial Information

Therefore, for Latteys Industries Limited IPO Review, here is another important overview of financial information of the company. So, the financial details are as follows:

Latteys Industries Limited

Latteys Industries Limited IPO Review:

The draft red herring prospectus reveals that after two timid years on FY 2014 and FY 2015, the profitability has taken off on FY 2017 and also on FY 2017. On the last financial year, LIL has clocked an earnings per share of 1.72. The DRHP also tells us that the P/E Ratio based on the basic and diluted EPS of FY 2016-2017 stands at 38.37. This price to earnings ratio is lower than the average industry PE of 50.88. In the last FY, the return on net worth (RoNW) stands at 18.22. LIL has a NAV/share of 9.45 as per the last financial year. One of the major drawbacks of this issue is that the company does not have any comparable peer. Hence, based on the data our Latteys Industries Limited IPO Review has a NEUTRAL view on this issue. However, long-term players can try investing in LIL on their own risk.

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