Lagnam Spintex to launches its IPO to raise funds
The Company was incorporated in the year 2010 and commenced its commercial operations in the year 2012. The company is a profit-making company since incorporation and the sales and PAT figures for the last three years are Rs. 56.56 Cr/ Rs. 2.08 Cr in FY 2016, Rs.75.38 Cr/ Rs. 3.67 Cr in FY 2017, Rs.84.54 Cr/Rs. 4.68 Cr in FY 2018.
The Company is setting up an additional manufacturing unit at Bhilwara to Manufacture Ring spun cotton yarn with 25,536 spindles under make in India initiative of Government of India for a total investment of Rs. 125.40 Cr. Out of the total Project cost of Rs. 125.40 Cr, Consortium of State Bank of India & Punjab National Bank has granted term loan of Rs.94 Cr for a period of 10 years, Rs.9.40 Cr is funded by the Company from its internal accruals and balance amount of Rs. 22 Cr is being raised from net IPO Proceeds. The net rate of interest for the Term Loan of Rs. 94 Cr is 3.50% to 4.15% which is one of the lowest in the industry.
Chairman of Company, Dwarka Prasad Mangal, said that the Company is manufacturing open end yarn of 16.50 MT per day and operating at 99% of its installed capacity. The products of the company are best known for its quality and finish and company is exporting its yarn to Europe, South America and certain South Asian Countries as well as selling in domestic markets to big textile companies such as Arvind Ltd, Sangam India Ltd, RSWM Limited, Nandan Denim Limited, Welspun India Limited De-décor etc.
Managing Director of company, Anand Mangal, said that after commencement of production of their new plant, the Company will have capacity to manufacture all types of yarn and their production capacity shall more than double from present 16.50 MT yarn per day to 35.10 MT yarn per day.
The issue is Lead Managed by Holani Consultants Private Limited; a Jaipur based SEBI Registered - Category I Merchant Banking Company along with BOI Merchant Bankers Limited. The IPO will be opening for subscription on September 04, 2018 and will be closing on September 07, 2018.
CA Ashok Holani, Director Holani Consultants Private Limited informed that the share of the Company will be in a lot size 3,000 shares and its multiple thereof and the issue price per share is Rs. 41/- (Face Value Rs.10/- per share). The PE ratio on basic/ diluted EPS for FY 2017-18 is 9.88 and P/E Ratio based on weighted average basic/ diluted EPS is 11.78 for last three years.
