Shree Ram Proteins Ltd IPO Review
Shree Ram Proteins Ltd is engaged in the de-linting and de-hulling of cotton seeds. The mechanical process of this company is oil extraction from cotton seeds and solvent extraction from cotton seeds oil cake and ground nuts. It is Rajkot Gujarat based company. Soon they are coming up with their initial public offering or IPO. Hence, let me quickly take you through the Shree Ram Proteins Ltd IPO Review on the basis of the issue date, issue price and DRHP.
About Shree Ram Proteins Ltd IPO :
- IPO Opens on – January 23,2018.
- IPO Closes on – January 25,2018.
- Face Value – Rs 10 Per Equity Share.
- Issue Price – Rs 27 – Rs 31 Per Equity Share.
- Issue Type – Book Built Issue IPO.
- Retail Allocation – 50%
- Market Lot – 4000 shares.
- Minimum Order Quantity – 4000 shares.
- Issue Size – 6,420,000 Equity Shares of Rs 10 aggregating up to Rs 19.90 Cr.
- Listing Exchange – NSE SME Exchange.
- Draft Prospectus – Click Here.
Objectives of the issue:
- Funding the working capital requirements of the company.
- General corporate purposes.
About The Company –
- Shree Ram Proteins Ltd is incorporated in 2008.
- The raw materials of this company are cotton linter can be use in manufacturing of papers and as raw materials for manufacture of cellulose, this can be further process for medical and cosmetic purpose.
- Shree Ram Proteins Ltd have perfected our solvent extraction process by applying state-of-the-art automated technology and innovation to every phase of our oil expander and solvent process.
- The manufacturing process of this company is divided in 3 stages –
1) De-linting, as well as de-hulling of Cotton seeds and this process, results in the manufacture of shot fiber (linter) and De-linted cotton Seeds.
2) The cotton seeds oil extraction process that results in pre refine cotton seeds oil and cotton seeds oil cake.
3) Solvent extraction process that results in manufacture of pre refine wash oil and de-oil cotton seeds cake.
Promoters of the company :
- Lavjibhai Valjibhai Savaliya, aged 52 years, is the promoter and whole-time Director of this company.
- Lalitkumar Chandhulal Vasoya, aged 36 years, is the promoter and Managing Director of this Company.
Shree Ram Proteins Ltd IPO Review: Starting from a net loss in the financial year 2013 the company has managed to post profits in the coming years. However, on the financial year 2016, the profits have declined again. Hence the financial record of the company is not at all steady. Based on the current earnings the issue price of Rs. 27 – Rs. 31 also looks like on the higher side. Hence, our Shree Ram Proteins Ltd IPO Review has a fully NEUTRAL view on this issue.