Kolkata: The initial public offering (IPO) of Kolkata-based Jiwanram Sheoduttrai Industries Ltd. received an overwhelming response from retail investors and, followed by Non-Institutional Bidders (NIB). The SME IPO opened on 8th September for 3 days.
The JSIL’s IPO subscribed 108.38 times. The company has received a total of 89,063 applications. The retail portion was subscribed 151.47 times, while the Non-Institutional Bidders (NIB) portion was subscribed 65.23 times.
Jiwanram Sheoduttrai Industries Ltd. IPO has received bids for 76,41,12,000 shares against 70,50,000 shares on offer. The retail investors’ portion received bids for 53,43,78,000 shares against 35,28,000 shares, and the NIB portion received bids for 22,97,34,000 shares against 35,22,000 on offer for this segment.
Jiwanram Sheoduttrai Industries Ltd. (JSIL) is engaged in the business of manufacturing Industrial garments and Safety Gloves and is a significant player in the global and domestic personal protective equipment (PPE) market. The company is planning to raise Rs. 17.07 crore to meet the working capital requirements, repayment of certain unsecured loans availed by the company, general corporate purpose and to meet the offer expenses as per the Prospectus.
Alok Prakash, Promoter and Managing Director, Jiwanram Sheoduttrai Industries Ltd. said, “We’re thrilled by the overwhelming response to our IPO, with retail and Non-Institutional Bidders showing exceptional confidence. Jiwanram Sheoduttrai Industries Ltd.’s journey is off to an impressive start, reflecting trust in our vision and dedication to the safety sector. We look forward to a promising future.”
Jiwanram’s issue is being managed by Affinity Global Capital Market Private Limited (AGCMPL), a Category I Merchant Banker registered with SEBI. The company’s shares will be listed on the NSE EMERGE Platform. Registrar to the offer is Cameo Corporate Services Limited, and Giriraj Stock Broking Pvt. Ltd. is the market maker to the Issue. Mrs. Anupama Prakash is the Chief Financial Officer.
The initial public offering comprises a fresh issue of 74,22,000 and no offer for sale (OFS) at a fixed price of Rs. 23/- per equity share, aggregating up to Rs 17.07 crore. The face value of the equity shares is Rs 10 each, and the issue price is 2.30 times of the face value of the equity share. The company is offering a minimum of 6,000 equity shares and in multiples of 6,000 equity shares thereafter, which translates into Rs 1.38 lakh per application.
Out of the issue proceeds, the company will utilize Rs 2 crore for repayment/prepayment of certain borrowings, Rs 9.1 crore for working capital, and Rs 3.2 cr. for general corporate purposes. Post-issue, the share capital of the company will increase to Rs 24.74 crores from Rs 17.32 crore before the public issue. Promoters and Promoters Group holds a 99.996 per cent stake in the company. Post-IPO promoter group holding will be 70.01 per cent.
The initial public offering of up to 74,22,000 equity shares of face value of Rs. 10 each (“EQUITY SHARES”) of the company for cash at a price of Rs. 23 per equity share (including a share premium of Rs. 13 per equity share) (“OFFER PRICE”) aggregating upto Rs. 1,707.06 lakhs (THE “OFFER”) comprising totally as fresh issue aggregating up to Rs. 1,707.06 lakhs by the company (THE “FRESH ISSUE”) of which up to 3,72,000 equity shares of Rs 10 each will be reserved for subscription by market maker to the issue (THE “MARKET MAKER RESERVATION PORTION). The issue less market maker reservation portion, i.e. issue of upto 70,50,000 equity shares of Rs. 10/- each, is hereinafter referred to as the “NET ISSUE”. THE OFFER AND THE NET OFFER will constitute 29.99 % and 28.48% of the post-issue PAID-UP EQUITY SHARE CAPITAL of the company.
The promoters of the company are Mr. Alok Prakash – MD, Mrs. Anupama Prakash – CFO, Mr. Gyan Prakash and Alok Prakash (HUF). Growing at 20%, the company’s current turnover is INR 42 crore with a PAT of INR 4 crore and 9.5% PAT Margin for FY21-22 company reported revenues of Rs 34.2 crore and Net Profit of Rs 1.5 crore.
Jiwanram Sheoduttrai Industries Limited began producing PPEs when it first began business in 1997. The company built a cutting-edge production plant and began exporting to the United States, Spain, Germany, and Belgium. JSIL has distinguished itself in the market as it has grown, notably in Europe, America, and the Middle East, with its high-quality products. JSIL has more than 20 years of experience in the industrial safety sector. Its geographic reach extends to more than 20 nations. The company first produced industrial safety gloves before progressively expanding its offering in the industrial garment industry. The company has expanded into one of the top exporters and technology-driven safety solutions providers in India, 10 other countries, and 6 other states, with 3 manufacturing facilities.
The personal protective equipment market (PPE Market) was valued at USD 68.5 billion in 2022 and is projected to shrink by 1.3% between 2022 and 2027 to reach USD 64.2 billion. The manufacturing and construction sectors’ rising need for personal protection equipment is one of the key drivers fuelling market expansion.
The company has registered with the Government e-Marketplace (GeM) under the Quality Council of India as an Original Equipment Manufacturer (OEM). The purpose of this action was to strengthen the company’s position in the domestic market. For some of the brand owners in the work and casual clothing market, JSIL has been giving employment opportunities.
