Sonam Clock Limited is engaged in clock manufacturing. It is Gujarat based company. This company offers a wide range of table and wall clocks at various price points across the budget, mid-level and premium styles. Before step into the main financial analysis part, it is essential to view the issue details of the company including issue open, close time, face value, issue price, issue type etc. For investing it is advisable to check Sonam Clock Limited IPO Review once.
About Sonam Clock Limited IPO Review :
- IPO Opens on – June 1, 2018.
- IPO Closes on – June 6, 2018.
- Face Value – Rs. 10 Per Equity Share.
- Issue Price – Rs. 36 Per Equity Share.
- Issue Type – Fixed Price Issue IPO.
- Market Lot – 3000 Shares.
- Minimum Order Quantity – 3000 Shares.
- Issue Size – 2,808,000 Equity Shares of Rs 10 aggregating up to Rs 10.11 Cr.
- Listing Exchange – NSE SME Exchange.
- Draft Prospectus – Click Here.
Objectives of the issue :
- Funding the Working Capital Requirements of this company.
- Repayment of Unsecured Loan availed by this company.
- General Corporate Expenses.
- Issue Expenses.
About The Company –
- Sonam Clock Limited is incorporated in 2001.
- This company is offering LED digital clocks, LCD clocks, light sensor clocks, pendulum clocks, musical clocks, rotating pendulum musical clocks, sweep clocks, office clocks, designer clocks, alarm clocks, table clocks and regular clocks.
- Sonam Clock Limited is also offers customized corporate clocks in bulk quantities for corporate gifting purpose.
- The products of this company are sold mainly to clock dealers, retailers, corporates, gifts and novelties stores, through which it reaches to the end-consumers.
- Sonam Clock Limited’s products are sold under the brand name of Sonam, ampm, and Lotus.
- This company’s Manufacturing facility is located in Morbi, Gujarat and has at present installed production capacity of approximately 72 lakhs p.a. for clocks and 240 lakhs p.a. for clock movements.
- Sonam Clock Limited is also engaged in the sale of clock parts which includes clock movements, clock cases etc.
- This company has employed 304 permanent full-time employees (including senior Management) at various levels of the Organization.
Promoters of the company :
- Mr Jayeshbhai Chhabildas Shah, aged 51 years is the Promoter of this company.
- Mrs Deepaben Jayeshbhai Shah, aged 49 years is the other Promoter of this company.
Company Financials :
Sonam Clock Limited IPO Review:
Besides Sonam’s financial statement, we are able to get other information from draft red herring prospectus or DRHP. According to their financial data, 2017 last three quarters’ net profitability 225.90 is quite visible than the previous financial year. In the year 2016, they had highest profit 268.11. Now, let’s have a look at the other details from DRHP. Lat financial year 2016-17 EPS was at 1.28 while last 2017 three quarters EPS is 3.14. The company’s P/E ratio is not available here. So, move on to the RoNW which stands at 8.63 as per FY 2016-17. RoNW is lower in 2016-17 in comparison to previous FY 2015-16 which was 15.79. Sonam’s NAV according to the last FY 12.98 and last 3 quarters of 2017 is 16.12 which is pretty good in comparison to previous FY. As the company is in emerging process, it is predictable that their shock might generate a good amount of profit in future. Hence, it is suggested that the long-term investors can take a chance by investing their money in it. Therefore Sonam Clock Limited IPO Review carries a NEUTRAL to POSITIVE view for long-term investment.
Categories: IPO Review