|Issue Date||18/06 - 22/06|
|Issue Size||₹2.46 Cr|
|Market Lot||3000 Shares|
|Shares on Offer||666,000|
|Subject to Sauda||N/A|
|Listing Date||30 Jun 2020|
For Billwin, it all began with manufacture of protective and waterproof wears, reinforced with a deep seated commitment towards quality and price-efficiency. Initially, the products manufactured by us included Slicker Suits, Rain Jackets, Rain Suits and raincoats for industries and individuals. Subsequently, due to the demand for other products, Billwin expanded its portfolio to include, winter garments like padded and fleece lined jackets, overcoats and windcheaters.
Given the growth in popularity of adventure sports, protective gears, wears and accessories became but a natural choice for extending our manufacturing expertise. Soon, our products such as Rucksacks, sleeping bags etc. grabbed the attention of the markets. We also introduced inflatable boats, and life jackets, and artificial water ponds.
Today, with immense industry experience and quality consciousness, our company is recognized as one of the largest manufacturers, exporters and suppliers of such products.
Mumbai based Billwin Industries Ltd is engaged in the manufacturing of protective gear which are life jackets, inflatable boats, and rainwear. The raw material for manufacturing protective gear (called Coated Fabric) is purchased by the company from domestic and international markets.
The product range of the company includes rainwear coat, rucksack, life jackets, winter jacket, inflatable boats dinghys, river raft boat, sleeping bags, facial mask, and pulsar jacket.
The manufacturing unit of the company is located at Bhandup West Mumbai Maharashtra with approximately 5190 sq. ft area. This facility is equipped with semi-automatic and automated equipment. The company sells products through tenders and distributors & retailers. The distribution channel of the company covers Maharashtra, Kerala, Gujrat, Chattisgarh, Tamilnadu, Assam, Haryana, and Trivandrum Tripura.
The company also sells products through e-commerce platforms such as Amazon, Flipkart, Shopcules Xerve, and Buy Hatke.
Mrs. Smita Subrata Dey and Mr. Subrata Dey are the promoters of the company.
To part finance its needs for working capital (Rs. 1.92 cr.), BIL is coming out with a maiden IPO of 666000 shares of Rs. 10 each at a fixed price of Rs. 37 per share to mobilize Rs. 2.46 cr. The issue opens for subscription on 18.06.20 and will close on 22.06.20. Minimum application is to be made for 3000 shares and in multiples thereon, thereafter. Post allotment, shares will be listed on BSE SME. Issue constitutes 31.26% of the post issue paid-up capital of the company.
The issue is solely lead managed by Gretex Corporate Services Pvt. Ltd., while Bigshare Services Pvt. Ltd. is the registrar to the issue. Gretex Share Broking Pvt. Ltd. is acting as a market maker for this IPO. BIL is spending Rs. 0.54 cr. for this IPO process. From the issue expenses point of view, this issue is fully structured with funding arrangements.
Post issue BIL's current paid-up equity capital of Rs. 1.46 cr. will stand enhanced to Rs. 2.13 cr. It mulls a market cap of Rs. 7.88 cr. post this issue.
Having issued initial equity at par, BIL has also converted equity shares in the price range of Rs. 38 in March 2020. It has also issued bonus shares in the ratio of 5 shares for every 1 share held in March 2019 and 1 share for every 1 share held in March 2020. The average cost of acquisition of shares by the promoters is Rs. 0.83 and Rs. 18.24 per share.
On the financial performance front, for the last three fiscals, BIL has reported turnover/net profits of Rs. 0.46 cr. / Rs. 0.01 cr. (FY17), Rs. 1.85 cr. / Rs. 0.11 cr. (FY18) and Rs. 0.61 cr. / Rs. 0.11 cr. (FY19). For the period ended on 05.03.2020 of FY20, it has earned a net profit of Rs. 0.03 cr. on a turnover of Rs. 0.38 cr. Thus the company has shown inconsistency in turnover/profits.
On a consolidated basis, KIL has earned a net profit of Rs. 0.68 cr. on a turnover of Rs. 10.14 cr. for the financial year 2019-20. For the last three fiscals, KIL has posted an average EPS of Rs. 8.16 and an average RoNW of 69.90% (on a weighted average basis).
For the last three fiscals, BIL has posted an average EPS of Rs. 1.17 and an average RoNW of 67.70%. RONW as at 05.03.2020 is 1.27% and will further decline if we consider it on a post-issue equity basis.
The issue is priced at a P/BV of 0.99 based on its NAV of Rs. 37.44 as on 05.03.2020 and at a P/BV of 1.51 on the basis of post-issue NAV of Rs. 24.43.
If we annualize latest earnings and attribute it on fully diluted equity post issue, then asking price is at a P/E of 264+ making it exorbitantly priced offer. BIL has not declared any dividend in the past five financial years.
As per offer documents, BIL has shown Mallcom (India) as its listed peers. It is currently trading at a P/E of around 9.44 (as on 12.06.2020). However, they are not strictly comparable on an apple to apple basis.
On merchant banker's front, this is the 20th mandate from its stable since FY 2016-17. Out of the last 10 mandates listed one opened at par and the rest opened with premiums ranging from 1.32% to 8% on the day of listings. Thus it has an average track record.
BIL has shown miniscule top line so far compared to its post issue equity base. Issue is exorbitantly priced. Investors may stay away from this fully structured highly priced IPO.
|Total Assets (In ₹ Millions)||733.16||33.78||217.10|
|Total Revenue (In ₹ Millions)||38.42||60.72||184.61|
|Profit After Tax (PAT) (In ₹ Millions)||3.47||10.78||11.47|
|Date & Time||QIB||NII||RII||Total|
|Day 2 - 19 Jun 2020||1.67||0.07||0.87|
|Day 3 - 22 Jun 2020||2.15||0.58||1.37|
Please click the link below to check the IPO allotment status.IPO Allotment Status
Billwin Industries Ltd IPO will open on 18/06 and close on 22/06.
Billwin Industries Ltd IPO will list on 30 Jun 2020.
The offer price of Billwin Industries Ltd IPO is ₹37.
The lot size of Billwin Industries Ltd IPO is 3000.
The Grey Market Premium (GMP) price of Billwin Industries Ltd IPO is Not Available at the moment.
The Kostak price of Billwin Industries Ltd IPO is Not Available at the moment.
The Subject to Sauda price for Billwin Industries Ltd IPO is Not Available at the moment.
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