Vera Synthetic Limited IPO Review (Date, Price, DRHP)

Vera Synthetic Limited (VSL) is manufacturing Fishing Nets, PP/HDPE Ropes, PP Yarns, Niwar and PP Twines. The company is based in Gujarat. VSL manufactures and market their products under their flagship brand “Sujlon”. As VSL is coming up with their IPO on 28th March, let us check the draft prospectus of the company and based on that let us post our Vera Synthetic Limited IPO Review.

About Vera Synthetic Limited IPO :

  • IPO Opens on – March 28, 2018.
  • IPO Closes on – April 4, 2018.
  • Face Value – Rs. 10 Per Equity Share.
  • Issue Price – Rs. 40 Per Equity Share.
  • Issue Type – Fixed Price Issue IPO.
  • Market Lot – 3000 Shares.
  • Minimum Order Quantity – 3000 Shares.
  • Issue Size – 1,335,000 Equity Shares of Rs 10 aggregating up to Rs 5.34 Cr .
  • Listing Exchange – NSE SME Exchange.
  • Draft Prospectus – Click Here.

Objectives of the issue:

  • Funding the working capital requirements of this company.
  • General corporate purposes.

About The Company –

  • Vera Synthetic Limited is incorporated in 2000.
  • This company’s products are primarily used in fishing sector and other allied use thereon.
  • At present Vera caters only to domestic markets.
  • Vera Synthetic Limited has dealers, traders and distributors spread across different regions of the Country.
  • VSL sells their products either directly to the traders or the fishermen or through their distribution network in the states of Gujarat, Kerala, Maharashtra, Andhra Pradesh, Karnataka, West Bengal, Bihar, Delhi, Rajasthan etc.
  • Vera Synthetic Limited’s manufacturing facility is divided into two units namely Division I and Division II (situated at Mamsa, Gujarat).
  • This company had 88 employees on its payroll.

Vera Synthetic Limited

Vera Synthetic Limited

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Vera Synthetic Limited

Vera Synthetic Limited

Promoters of the company :

  • Sunil Makwana, aged 31 years is the Promoter and Chairman and Managing Director of this company.
  • Nagin Makwana, aged 38 years is the Promoter and Whole Time Director of this company.

Company Financials:

Vera Synthetic Limited IPO

Vera Synthetic Limited IPO Review:

VSL’s financial statement suggest that the company does not have a smooth profitability graph. Profits have increased and declined several times during the financial years 2013 to 2017. In the current financial year, the company has even posted a net loss to the tune of Rs. 103.1 Lacs in the first 6 months. The last financial year’s earnings per share are at 0.96 and the price to earnings ratio is 41.67. The PE ratio of the current FY is negative due to the loss posted in the first 6 months of this FY. Hence, our Vera Synthetic Limited IPO Review has a NEGATIVE view on this new issue. Invest in VSL IPO at your own risk.

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