Nandan Terry Pvt Ltd IPO

Upcoming DRHP

IPO Synopsis

IPO Synopsis
Ahmedabad-based Nandan Terry has filed the draft red herring prospectus (DRHP) with market regulator Sebi to launch its initial public offering. The company plans to raise Rs 255 crores through its public issue.
The Chiripal Group company is going to consider fund raising of Rs 40 crore in a pre-IPO placement which will reduce the initial issue
Promoters hold 79.65% stake in the company and the rest of shareholding is held by the public. Promoters Devkinandan Corporation LLP and Chirpal Exim LLP hold 26.35% stake each in the company.
Holani Consultants and BOI Merchant Bankers are the book running lead managers for the issue, while Link Intime is the registrar.

Objective of the Issue
The issue proceeds will be utilised for 
•    Repaying debt
•    Working capital requirements
•    General corporate proposes
 

About Nandan Terry Pvt Ltd

Ahmedabad based company, Nandan Terry Limited, belongs to Chiripal group, a textile conglomerate, is engaged in manufacturing of terry towels and toweling products in Gujarat. 
Chiripal Group enjoys presence in industries such as textiles, education, real estate, packaging and chemicals and offers a wide spectrum of manufacturing, contract manufacturing, trading, distribution and service-related activities in sectors like textiles, education, packaging, infrastructure, petrochemical etc. for more than 3 decades.
Cotton bales are procured from domestic and international markets while the cotton yarn is manufactured by the company which is used as a raw material in manufacturing of terry towels & toweling products.
 The cotton yarn manufactured at the company’s units and woven fabric cloth is sold as per the demand and to boost sales.
The company has five (5) manufacturing units and facilities are situated in the state of Gujarat, India and caters to manufacturing products for business – to – business (B2B) segment.
Additionally, designs and manufactures wide portfolio of terry towels & toweling products for various domestic and international brand along with having an in-house research and design facility to cater to all kind of designs and trends as per customer's need. The strictly compliant internal quality control and international standards of quality has allowed the company to expand internationally to countries including United States of America, Canada, Israel, Germany, Hong Kong, Sweden, United Kingdom, Australia etc.
 

 

Peer Comparison

Name of the company

Total Revenue (in Rs. crores)

Basic EPS

NAV Rs. per share

PE

RoNW %

Nandan Terry Limited

538.94

5.11

25.56

NA

19.99%

Welspun India Ltd

7,407.95

5.37

37.26

26.13

14.71%

Trident Limited

4,546.70

0.61

6.53

80.98

9.15%

Himatsingka Seide Limited

2,272.53

-5.42

133.58

NA

-4.06%

 

Financials

Particulars (in Rs. Crores)

FY21

FY20

FY19

Revenue

538.52

429.39

322.17

EBITDA

86.83

61.84

50.55

PAT

23.38

1.22

-0.50

EPS (basic in Rs.)

5.11

0.27

-0.11

ROE

19.99%

1.32%

-0.54%

 

Particulars (in Rs. Crores)

FY21

FY20

FY19

Total Assets

679.70

655.29

657.84

Share Capital

15.25

15.25

15.25

Total Borrowings

523.19

515.38

529.03

 

Particulars (in Rs. Crores)

FY21

FY20

FY19

Net cash generated from / (used in) operating activities

423.28

697.00

165.86

Net cash from / (used in) investing activities

-39.29

-206.46

94.56

Net cash flow from / (used in) financing activities

-216.15

-455.03

-260.05

Net increase (decrease) in cash and cash equivalents

167.83

35.51

0.37


The Key points are- 

Key Points

  • Strengths

    1. Strong Technological Capabilities with availability of latest technology and machinery procured from major suppliers/distributors in India and abroad
    2. Strategic location of existing Manufacturing Facilities that are well connected by rail, roads and air with the rest of the country
    3. Has strong customer base in both domestic and export markets over a long period 
    4. Has a fully equipped Quality Control facility with experienced and qualified staff to carry out quality checks and inspections 
    5. Enjoy the benefits of incentives under the “Gujarat Textile Policy- 2012”
       
  • Risks

    1. Outstanding legal proceedings involving the company, promoters, directors and group companies  
    2. Company’s listed group company CIL Nova Petrochemicals Limited, earlier was banned by SEBI from accessing the capital markets for violation of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003.
    3. To the operation running, it is required to obtain, renew or maintain certain statutory and regulatory permits and approvals.
    4. Has contingent liabilities which may affect the financial condition of the Company
    5. The license agreements for the corporate office and registered office may be inadequately stamped
    6. Has availed certain interest free unsecured loans from different companies and limited liability partnerships
    7. Has allotted some Equity Shares to the promoters before receiving the entire amount of share application money
       

How to apply for an IPO?

  • Login to your 5paisa account and select the issue in the current IPO section

  • Enter the number of lots and price at which you wish to apply for

  • Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange

  • You will receive a mandate notification to block funds in your UPI app

  • Approve the mandate request on your UPI and funds will be blocked

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