Ushanti Colour Chem Limited IPO Review

Ushanti Colour Chem

Ushanti Colour Chem Limited is engaged in the business of manufacturing and trading of Dyestuffs. It is Gujarat based company. This company manufactures Reactive and direct Dyestuffs also known as Synthetic Organic Dyes. First of all, we are going to cover the issue details of the company. Ushanti Colour Chem Limited IPO Review is significant to every investor to get a supportive viewpoint.

About Ushanti Colour Chem Limited IPO :

  • IPO Opens on – July 23, 2018.
  • IPO Closes on – July 25, 2018.
  • Face Value – Rs. 10 Per Equity Share.
  • Issue Price – Rs.57 – Rs.60 Per Equity Share.
  • Issue Type – Book Built Issue IPO.
  • Market Lot – 2000 shares.
  • Minimum Order Quantity – 2000 shares.
  • Issue Size – 1,926,000 Equity Shares of Rs 10 aggregating up to Rs. 11.56 Cr.
  • Listing Exchange – NSE SME Exchange.
  • Draft Prospectus – Click Here.

Objectives of the issue :

  • To finance setting up of Vinyl Sulphone manufacturing facility at GIDC Saykha Industrial Estate, Bharuch.
  • Repayment/pre-payment of certainly secured borrowings availed by this company.
  • General corporate purposes.

About The Company –

  • Ushanti Colour Chem Limited is incorporated in 1993.
  • This company is manufactures Copper Phthalocyaine, Blue Crude which is one of the major raw materials used for manufacturing of dyestuffs.
  • The pigment and dyestuffs manufactured by this company cater to the raw materials requirement of textile, garment, cotton, leather, nylon, paper, wool, ink, wood, plastic and paint industries.
  • Ushanti Colour Chem Limited was used to give any guarantee on goods produced by it.
  • This company’s efforts to maintain the objective and the motto of never compromising in company’s products quality.
  • Ushanti Colour Chem Limited takes a big, bold and pioneering step, to increase its customers confidence.

Ushanti Colour Chem Limited

Promoters of the company :

  • Maunal Gandhi, aged 48 years, is the Promoter and Joint Managing Director of this company.
  • Minku Gandhi, aged 48 years, is the Promoter and Joint Managing Director of this company

Company Financials :

Ushanti Colour Chem Limited IPO Review

Ushanti Colour Chem Limited IPO Review :

From the above financial statement, we can get financial data of the last 6 FY. It shows an abrupt progress report in the last few years. Now, Let’s move on to the other data, taken from DRHP or draft red herring prospectus. According to the last financial year 2016-17 Basic and Diluted Earnings per Share (EPS) stands at 2.38 which is better than the last two years. P/E ratio is not available here. So, let’s focus on the (RoNW) return on net worth that is 19.54 as per the FY 2016-17. NAV/share data is 15.56 based on the last 3 quarters in 2017. As we can see that their last year data in almost every aspect is much higher than the previous year, therefore, the sudden increase may question on the authenticity of data. However, based on the available data, Ushanti Colour Chem Limited IPO Review carries NEUTRAL view. Before the opening date, we will get back to you with the updated version of the IPO.