Seven Hills Beverages Limited (SHBL) was incorporated in 2009. It manufactures packaged drinking water for Bisleri International Pvt. Ltd. The company is coming up with fixed price issue IPO. Seven Hills Beverages IPO review will delve into the draft prospectus and provide information about the new issue.
About the Issue – Seven Hills Beverages IPO review finds the following details about the issue from DRHP submitted to SEBI.
- Issue opens on – 18 August 2017
- Issue closes on – 23 August 2017
- Issue type – Fixed price issue IPO
- Issue price – Rs 26 per equity share
- Lot size – 4000 equity shares or in multiples thereof
- Face value – Rs 10 per equity share
- Issue size – 1,600,000 nos. of equity shares aggregating up to 4.16 crores
- Listing Exchange – NSE SME exchange
Issue objectives – The proceeds from the issue will be used to fulfill; a) working capital requirements, b) to meet issue expenses and c) to fulfill general corporate expenses.
About the company – Seven Hills Beverages Limited has fully equipped manufacturing plant for manufacturing drinking water. It operates as co-packer for Bisleri. In its manufacturing plant, Seven Hills Beverages manufactures drinking water, bottled water and seals the bottles in one go to complete the process. The company manufactures drinking water in 5 different sizes – 250 ml, 500ml, 1 ltr, 2 ltr and 20 ltr as per requirement from Bisleri.
In a recent move to expand the business, SHBL has acquired 50.49% stake in Palwe Pest Control Private Limited (PPCPL). PPCPL provides pest control and related services to corporates, societies, and houses. PPCPL is a recognized brand and is expected to make positive effects of the financials of SHBL.
Company Financials – Seven Hills Beverages IPO review finds the company performed as shown below. Except fiscal 17 the EPS and PAT have been in the negative zone since fiscal 13.
Conclusion – SHBL has not been performing well in the past, though the company has assured market. Bisleri is a very popular product in India. But the company has to perform well. Therefore Seven Hills Beverages IPO review has a neutral view on the issue, though in the long run investment in the company may bear fruit, provided SHBL can rectify its balance sheet in future.
Disclaimer – Views expressed in this review is an educated guess made on the basis of available data from open source expressed for the purpose of knowledge sharing. By no means, it should be taken as an investment advice or recommendation. Investor/trader should invest money at their own risk.
Partha, an engineer by education, is theoratically actively following the stock and commodity markets since 1990. He is an active trader since 2003. He has received formal education in future and options and quantum analysis. He is presently working on research oriented projects using Python and data analytics.