R M Drip & Sprinklers Systems Ltd (RMD) is engaged in manufacture and sale of Micro Irrigation System (MIS) consisting of drip irrigation system. RMD’s revenue mix comprises of open market and project market models. Majority of its revenue comes from open market with the help of channel partners. The company is going to launch their first ever public issue shortly. We will check the R M Drip IPO review and also check the return opportunity from this issue.
About R M Drip & Sprinklers Systems Ltd IPO :
- IPO opens on – September 19, 2017
- IPO closes on – September 25, 2017
- Face value – Rs. 10 per equity share
- Issue price – Rs.53 – Rs.57 Per Equity Share.
- Issue type – Book Built Issue IPO.
- Minimum lot – 2000 shares.
- Minimum order quantity – 2000 Shares.
- Issue size – Rs.10.65 to Rs.11.46 Cr.
- Listing exchange – NSE SME Exchange.
- Download DRHP – Click Here.
Objectives of the issue :
- Funding the working capital requirements of the Company.
- General Corporate Purpose.
About The Company-
RMD has offices in the states of Maharashtra, Gujarat, Karnataka and MP. Company’s product range include HDPE Pipes, Pipes Fittings and Irrigation Equipment including drip/sprinkler systems, Disc filters, Screen filters, Hydro-Cyclone filters, Sand (Gravel) filters, Compression fittings, valves (Electric and Mechanical), Fertilizer Tanks etc.
- RM Drip & Sprinkler Systems Pvt Ltd. provide customers with irrigation products that consistently with quality requirements in all respects, providing training for customers, technical services for installation and post installation.
- The company was engaged in the Job Work and later, evolved as OEM Supplier to Big Irrigation Companies.
- Company believes on the principle “Quality comes from within”.Considering this as motive, employees of the company are trained and accustomed to working strategically to improve the quality and maintain the standards.
- The company started working as a component manufacturer as well as service provider to different micro and small irrigation companies.
- The company’s manufacturing and distribution system is established for better access to the dealers and farmers in the various parts of India and Abroad.
- Their operations team ensures that all the orders get executed in shortest time to ensure a timely delivery.
- The company has achieved a Sales Turnover of Rs. 30 Crores in the year FY 2016-17 and they are poised to grow to 60 Crores in the next financial year.
Name of the top shareholders :
- Vijaykumar Kshirsagar.
- Shyam Sundar Dash.
- Arjun Makani.
- Nivrutti Kedar.
- Shubhangi Kshirsagar.
- Lilaben Makani.
- Surekha Kedar.
- Shivlal Makani.
- Vinod Makani.
- Anuja Kedar.
- M/s Nivrutti Pandurang Kedar (HUF).
Promoter of the company :
- Vijay Kshirsagar is the Promoter, Chairman & Director of the company.
- Mr. Nikhil Kulkarni is the Promoter, Vice President & Executive Director of the company.
- Arjun Makani is the Promoter & Executive Director of the company.
- Shubhangi Kshirsagar is the Promoter of the company.
- Surekha Kedar is the Promoter of the company.
- Lilaben Makani is the Promoter of the company.
R M Drip IPO Review : The company has shown steady growth in its turnover as well as in profits year after year. The sudden dip in the profit after tax (PAT) on FY 2014 indicates payment of cumulative tax on that year. Apart from that, the company has shown steady growth in the PAT too. The issue is fully priced. Considering the strong and steady financial data this R M Drip IPO review posts a POSITIVE view on this issue. Investors who are sitting on excess cash can invest for medium to long term.