Review By Dilip Davda on September 24, 2011
Flexituff International Ltd. (FIL):
The company originally incorporated as Saurabh Potteries and Ceramics has changed its name to Flexituff and is currently engaged in the business of manufacturing 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. It has has three integrated and self-sufficient manufacturing units located in Pithampur (M.P.) and Kashipur (Uttrakhand). FIL also has a recycling and reprocessing plant at Kandla which is used for recovering polypropylene and making various compounds of plastic. The company has its 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. Thus it is a multi product, multi location and multi market company exporting to over 30 countries world wide and has many first innovative products to its credit. Now the company is expanding its manufacturing facility at SEZ and DTA unit at Pithampur and setting up of a Dripper project at Kashipur along raising general corpus fund.
To part finance this, the company is coming out with a book building process issue of 6750000 equity share of Rs. 10 each within a price band of Rs. 145-155. The issue consists of offer for sale of 2250000 shares by Clearwater Capital Partners (Cyprus) Ltd. The issue opens for subscription on 29.09.11 and closes on 04.10.11 for QIB bidders and on 05.10.11 for other categories of bidders. Collins Stewart Inga Pvt. Ltd. is the sole BRLM to the offer and Link Intime India Pvt. Ltd. is the registrar to the issue. CARE has assigned IPO Grade 3 to this issue indicating at average fundamentals of the company. Shares will be listed on BSE and NSE. Minimum application is to be made for 40 shares and in multiples thereafter.
Collins brought 3 IPOs in the past and all of them have given positive returns on the debut day. On the financial performance front for company, it has posted an average EPS of Rs. 12.13 on consolidated basis. As for fiscal 2010-11 it has earned net profit of Rs. 30.97 crore on a turnover of Rs. 579 crore giving an EPS of Rs. 14.26 on fully diluted equity post this issue. Thus the offer is being made at a P/E of around 10.5 and at 1.6 P/BV which is justified.
Apply for medium to long term returns.
Review By Dilip Davda on September 24, 2011
Dilip Davda is a veteran financial journalist associated with the Indian stock market since 1978. He has been contributing to print and electronic media on capital markets, insurance, and finance since 1985.
He is widely recognized for reviewing public issues and non-convertible debentures (NCDs) in the primary market. Drawing on over three decades of market experience and close interaction with merchant bankers, his reviews focus on detailed fundamental and financial analysis of companies, with a special emphasis on SME public issues.
Dilip Davda
SEBI Registered Research Analyst – Mumbai
Registration No.: INH000003127 (Perpetual)
Email: dilip_davda@rediffmail.com
Disclaimer: The information provided herein is solely for educational and informational purposes and does not constitute an offer, solicitation, or recommendation to buy or sell any securities. Readers are advised to consult a qualified financial advisor before making any investment decisions. Investments in the securities market are subject to market risks. The author does not intend to invest in the securities discussed.
The initial public offer (IPO) of Flexituff International Ltd. offers an early investment opportunity in Flexituff International Ltd.. A stock market investor can buy Flexituff International IPO shares by applying in IPO before Flexituff International Ltd. shares get listed at the stock exchanges. An investor could invest in Flexituff International IPO for short term listing gain or a long term.
Read the Flexituff International IPO recommendations by the leading analyst and leading stock brokers.
Flexituff International IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Flexituff International IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Flexituff International IPO?"
Our recommendation for Flexituff International IPO is to subscribe.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe to the Flexituff International IPO.
The Flexituff International IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Flexituff International IPO allotment status to check.
