The year 2017 has witnessed an unprecedented growth of the IPO market, as a massive of Rs 70,000 crore was raised up through 122 issues. The IPO’s garnered a lot of attention among the investors after the banks continued to cut the interest rates on traditional FD’s and post office savings. After the successful launch of Shalby Hospital IPO, Future Chain Supply and Jio, now Astron Paper IPO launched on December 15, to diversify its business portfolio, here are the details:
Astron Business Overview?
Astron Paper and Board Mill is an Ahmedabad based venture that manufactures kraft paper, used by the packaging industries in manufacturing corrugated boxes, sacks and composite containers. The kraft paper is also used by the textile industries for the products that demand high strength and durability. It caters to various markets like Gujarat, HP and MP.
Details of the Astron Paper IPO
The initial public offering by Astron Paper and Board Mills has got oversubscribed by 1.24 times since its launch on Friday. The ongoing IPO has received the bids of 1,74,08,4440 shares against the issue size of 1,400,00,000 shares offered by the company. The price band fixed by the company is Rs 45-50 per share and the issue will end on December 20. The Qualified Institutional Buyer quota till date has been subscribed by 1.50 times and non institutional investors by 0.09 times and the retail investors by 2.24 times. After this IPO, the promoter’s take will be reduced from 66 percent to 46 percent. Here are the tabulated details
ISSUE TERMS
| Issue price / Floor Price (Rs) | 45-50 |
| Application per share (Rs) | 50.00 |
| Minimum investment amount (Rs) | 14,000.00 |
| Minimum bid (no of shares) | 280 |
| Maximum Shares for Retail | 3920 |
ISSUE DATE AND SIZE
| Issue opens | 15-Dec-17 |
| Issue closes | 20-Dec-17 |
| Listing on | BSE,NSE |
| Issue size (Rs cr) | 63 – 70 |
| Mkt cap at issue price (Rs cr) | N.A. |
LEAD MANAGERS & REGISTRAR
| Lead Manager | |
| Pantomath Capital Advisors Ltd | ipo@pantomathgroup.com |
| Registrar | Link Intime India Pvt Ltd |
| astron.ipo@linkintime.co.in |
Where will it utilize the IPO proceeds?
The company will utilize the 23 crore IPO proceeds to increase the capacity generation. At present, the company has installed 96,000 tonnes per annum in Gujarat and plans to increase the same by 129,000 tonnes using the IPO proceeds. Apart from that, it will utilize the proceeds to meet the working capital requirement of Rs 23.90 crores and to pay unsecured loans taken by the company of Rs 8.10 crore, establish a brand image and to provide liquidity to the existing shareholders.
Financial Details of the company
The company revenue has grown by 20.2 percent between FY 2014 and FY 2017 to 185 crore. The operating profit before depreciation was recorded as 21.7 crore and EBITDA margin has increased from 10.3 percent to 11.7 percent.
Should you invest in it?
The paper stocks in India is zooming upto 20%, thanks to the government’s increased emphasis on education and manufacturing industries. CARE rating experts believe that Indian paper industry will witness a record growth of 7% in the next five years. Moreover, the company is increasing its operation from strength-to-strength to improve its output and revenue, thus we recommend the investor to invest in this issue and remain invested for the medium to long-term.
Recommended for you
Leave a Reply
This site uses Akismet to reduce spam. Learn how your comment data is processed.
