Sirca Paints India Limited (SPIL) is a company who is engaged in the marketing and trading/distribution of paints and also allied products. It is Delhi based company. This is also the first company to launch wood filler in India. This company has opened its wholly owned branches in Mumbai and Chennai. SPIL will soon launch its initial public offering as their first step in the stock exchanges. So, we looked into the DRHP of SPIL and checked the issue date, issue price and other issue details to present our Sirca Paints India Limited IPO Review for interested investors.
About Sirca Paints India Limited IPO :
- IPO Opens on – May 16, 2018.
- IPO Closes on – May 22, 2018.
- Face Value – Rs. 10 Per Equity Share.
- Issue Price – Rs. 151 – Rs. 160 Per Equity Share.
- Issue Type – Book Built Issue IPO.
- Market Lot – 800 Shares.
- Minimum Order Quantity – 800 Shares.
- Issue Size – 4,870,000 Equity Shares of Rs 10 aggregating up to Rs 77.92 Cr.
- Listing Exchange – NSE SME Exchange.
- Draft Prospectus – Download.
Objectives of the issue:
- To finance the expenditure of site development and purchase of Plant and Machinery of this company.
- To part finance incremental working capital requirements of this company.
- To meet General corporate purposes.
- To meet the expenses of the Issue.
About The Company –
- Sirca Paints India Limited is incorporated in 2017.
- This company procures the products majorly from SIRCA SPA ITALY through Import and sells them in India through its Distributors.
- Sirca Paints India Limited also procures the products (Thinner, Abrasives and Buffing Cream) from other suppliers based in India.
- Except for Thinner and Abrasives which are purchased from domestic suppliers, all other 100% Purchases are made from Outside India and the products which are purchased from domestic suppliers and sold out in India Only.
- Sirca Paints India Limited has entered into a distributorship contract with SIRCA SPA ITALY.
- This company also got the Exclusive Right to promote the sale of PU and Metal Coating under the trademark SIRCA in the territory of India, Sri Lanka, Bangladesh and Nepal.
- Sirca Paints India Limited has entered into a Manufacturing License Agreement with SIRCA S.P.A. Italy for manufacturing the products likes Paints NC, Paints AC, Thinner, Polyurethane Products in India, under the mark “SIRCA”.
- This company has 128 employees on its payroll.
Promoters of the company :
- Mr. Sanjay Agarwal, aged 57 years, is Promoter and Managing Director of this company.
- Mr. Apoorv Agarwal, aged 30 years, is Promoter and Managing Director of this company.
- Mr. Gurjit Singh Bains, aged 50 years, is Promoter and Non-Executive Director of this company.
Sirca Paints India Limited IPO Review:
The draft red herring prospectus of SPIL shows a nice and increasing profitability graph. As per the last financial year the earnings per share are at 7.19. The company’s PE Ratio is coming at 14.36 which is also on the lower side considering the inductry PE. So far, our Sirca Paints India Limited IPO Review has a NEUTRAL view on this issue. Still, long-term risk savvy investors can think of investing in SPIL.
Ankita has done her Diploma Engineering in Computer Science & Technology. She is pursuing her degree in Engineering and also well experienced in the equity market and real estate related content writing. She is the one who has developed the technical indicators section of our site.