Wednesday, September 21, 2011

Flexituff International Ltd IPO

Flexituff International Ltd, previously called Saurabh Potteries & Ceramics, polymer products company has come out with an IPO of 67.5 lakh equity shares. The issue comprises of a fresh issue of 45 lakh equity shares and an offer for sale of up to 22.5 lakh shares by Clearwater Capital Partners (Cyprus) Limited. The company is engaged in manufacturing of Flexible Intermediate Bulk Containers (FIBC), Geo-Textile Fabric and Ground Cover, Reverse Printed Biaxially Oriented Polypropylene (BOPP) Woven Bags, Special Polypropylene (PP) Bags including Leno Bags. Company has three integrated and self-sufficient manufacturing units located in Pithampur (M.P.) and Kashipur (Uttrakhand). Flexituff also has a recycling and reprocessing plant at Kandla which is used for recovering polypropylene and making various compounds of plastic. Flexituff International have a Research and Development centre at Kashipur which is engaged in the research and development of various compounds for plastic products including engineering plastic, bio-degradable plastic and other new product developments. Company received 4 Top Exporter Awards from Ministry of Commerce for exporting FIBC and woven products from India in recent years.

The IPO shall open on 29 September and shall close on 5 October, 2011. The company has fixed a price band of Rs 145 to Rs 155 per share.

The company plans to utilize the proceeds of the IPO for expansion of manufacturing facilities at SEZ and DTA units at Pithampur; setting up of Dripper Project at Kashipur; working capital requirements; general corporate purposes; and to meet Issue expenses.

For the year ended March 31, 2011, the company reported net profit of Rs 30.97 crore on total income of Rs 618.39 crore.

Collins Stewart Inqa Pvt Ltd is the lead manager to the issue. Link Intime India Private Ltd is the registrar to the issue.

Recommendation:
CARE has assigned Grade 3 to the IPO indicating average fundamentals. We would not recommend this IPO to investors as it is overpriced.

Subscription:
Flexituff International Ltd IPO got subscribed 1.1 times at the close.

At the close of the IPO,
QII segment got subscribed by 0.51 times
NII segment got susbcribed by 2.35 times
Retail segment got subscribed by 1.60 times

Allotment:
Click here to check Flexituff IPO Allotment status!

Listing:
Flexituff International listed on 19 October 2011. It closed with 7% premium at Rs 165.55 a share on listing day, before touching an intra-day high of Rs 187.70 and low of Rs 142 on the NSE.