Review By on March 27, 2017
Focus Lighting & Fixtures Ltd (Focus) is currently providing vide range of products which includes recessed adjustable spotlights, recessed down lights, surface mounted spotlights, surface-mounted / suspended down lights, system based spotlights / wall washer, track-mounted spotlights, etc. each with different working capabilities. The new range of luminaires have been designed and developed by the finest product designers from Germany, proficient in the field of lighting design; supported by a proficient team of Indian Professionals. The products of Focus are designed from Germany, these designs are provided to our supplier in China and the moulds prepared as per the specified designs. The products are imported from China under the brand name of TRIX. Company’s products under brand name of PLUS are manufactured by M/s. Shantilal & Bros (Mfg Dept). Appox. 70-80% of its total purchases are from Shantilal & Bros (Mfg Dept). Even for exports, appx. 90% of the products are manufactured by Shantilal & Bros (Mfg Dept). Now the Company has initiated the process of establishing its own manufacturing unit at Bhiwandi, Mumbai due to growing demand of its products.
To part finance working capital requirements and general corpus fund needs, the company is coming out with a maiden IPO of 900000 equity share of Rs. 10 each at a fixed price of Rs. 45 per share to mobilize Rs. 4.05 crore. Issue opens for subscription on 30.03.17 and will close on 05.04.17. Minimum application is to be made for 3000 shares and in multiples thereon, thereafter. Post allotment, shares will be listed on NSE SME Emerge. Issue is solely lead managed by Sarthi Capital Advisors Pvt Ltd and Bigshare Services Pvt Ltd is the registrar to the issue. After raising initial equity on inception at par, it raised further equity at a price of Rs. 500 per share in March 2010 and then issued bonus shares in the ratio of 50 for 1 in October 2016. Its current paid up equity capital of Rs. 2.48 crore will stand enhanced to Rs. 3.38 crore post issue.
On performance front, the company has posted turnover/net profits of Rs. 18.32 cr./ Rs. 0.44 cr. (FY13), Rs. 34.21 cr. / Rs. 0.76 cr. (FY14), Rs. 42.24 cr. / Rs. 1.10 cr. (FY15) and Rs. 61.16 cr. / Rs. 3.26 cr. (FY16). For first half of the current fiscal it has earned net profit of Rs. 1.52 cr. on a turnover of Rs. 36.66 cr. If we annualize latest earnings and attribute it on fully diluted equity post issue then asking price is at a P/E of around 5 that augurs well. It has no listed peers to compare with.
On merchant banker’s front, this is the 23rd IPO from its stable and previous mandates have shown mixed trends. However, if we consider last12 issues then they have given positive returns on the listing day.
Conclusion: Based on pricing and the performance, one may consider investment for medium to long term.
Review By on March 27, 2017
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 Focus Lighting & Fixtures Ltd. offers an early investment opportunity in Focus Lighting & Fixtures Ltd.. A stock market investor can buy Focus Lighting IPO shares by applying in IPO before Focus Lighting & Fixtures Ltd. shares get listed at the stock exchanges. An investor could invest in Focus Lighting IPO for short term listing gain or a long term.
Read the Focus Lighting IPO recommendations by the leading analyst and leading stock brokers.
Focus Lighting IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Focus Lighting IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Focus Lighting IPO?"
Our recommendation for Focus Lighting IPO is to subscribe.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe to the Focus Lighting IPO.
The Focus Lighting IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Focus Lighting IPO allotment status to check.
