Avon Moldplast IPO – Review, Allotment Status, Subscription, Price, Date & more

Avon Moldplast IPO is a new SME IPO coming in 2018. Avon Moldplast Limited, formerly known as Nira Investments Private Limited, a plastic molded furniture manufacturer, is coming out with an IPO in calendar year 2018. The IPO size is Rs. 450 lacs. The other details like the IPO offer price, IPO release date, IPO size, IPO objective, the company background, the company financial positions have been discussed in this article.


Avon Moldplast IPO Review & Ratings

Avon Moldplast IPO Ratings & Review
CriteriaRatings
Industry Sentiments 6.2/10
Industry Ranking6.3/10
Company Background6.1/10
Company Reputation6.3/10
Competitive Edge6.2/10
Financial Statements6.4/10
Popularity Index6.1/10
Promoters Reputation6.2/10
Retail Appetite6.3/10
Top Brokers Review6.3/10
Overall Ratings6.2/10
Star Ratings★★★☆☆

Summary of Avon Moldplast IPO

avon moldplast ipoAvon Moldplast has been engaged in manufacturing of quality plastic molded furniture under the brand name of “AVON” since 2002. The product profile of the company includes molded chairs, molded stools, molded tables etc.

The Company has a fully functional manufacturing facility located at G.T. Road Industrial Area, Electrosteel Casting Compound, Ghaziabad , Uttar Pradesh. The said facility is also housed as the Registered and Corporate Office of the Company.

The plastic manufacturing company has an IPO size of Rs. 450 lacs under the SME IPO list. The issue is entirely primary issue i.e. none of the existing shareholders will be liquidating their current investments. Though, out of this amount of IPO, certain amount has been reserved for the market makers of the IPO. The details have been discussed in the subsequent sections.

The lead manager appointed by Avon Moldplast for this IPO is Turnaround Capital Advisors and the registrar to the offer is Mas services.


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Avon Moldplast IPO Date

The company is yet to decide on the release date of the IPO. However, it is expected that the IPO will be out by August or September 2018. The exact date of release will be updated herein upon finalisation by the company.

Avon Moldplast IPO Subscription

 Subscription
Day 1 X
Day 2 X
Day 3 X
Day 4 X
Day 5 X

The details of shares subscribed for this IPO will be updated herein on a daily basis upon release of the IPO.

Avon Moldplast IPO Allotment Status

Once the shares are allotted to the public, the allotment status would be updated under this section.

Avon Moldplast IPO Price Band

The offer price for Avon Moldplast has been mutually decided between the company and the lead manager.

The offer price is fixed at Rs. 51 per equity share. The shares carry a face value of Rs. 10 each and thus the offer price includes a premium of Rs. 41 per share.

Avon Moldplast IPO Issue Size

The Avon Moldplast IPO is sized at Rs. 450 lacs. This represents 27% odd of post issue paid up capital of the company. Out of this, certain shares have been reserved for the market makers. The details of such reserved shares has been discussed in the later sections of this article. 

Avon Moldplast IPO Equity Share Offerings

The total number of equity shares being offered under this IPO are 884,000. Out of this, 46,000 equity shares have been reserved for the market makers.


Avon Moldplast Limited – Company Overview

The Company was originally incorporated as “Nira Investments Private Limited” on July 01, 1996. Thereafter, in August 2002, the name of the Company was changed from “Nira Investments Private Limited” to “Nira Marketing Appliances Private Limited”.

Subsequently in November 2002 the name of the Company was changed from “Nira Marketing Appliances Private Limited” to “Avon Moldplast Private Limited”. The registered office of the Company was initially located in the State of Karnataka.

The registered office of the Company was shifted from State of Karnataka to State of Uttar Pradesh. Subsequently in 2018 the Company was converted into a Public Limited Company. Our Company has been engaged in manufacturing of quality plastic molded furniture under the brand name of “AVON” since 2002.

The Company is currently primarily engaged manufacturing quality plastic molded furniture under the brand name of “AVON”. The Company’s Product Portfolio are classified as – Molded Chairs, Molded Stools, Molded Tables and Molded Baby Chairs and Baby Desks.

Key members of Avon Moldplast:

  • Sushil Kumar Aggarwal, Chairman & Whole time Director
  • Sahil Aggarwal, Promoter director
  • Anita Aggarwal, Promoter director
  • Naubahar Singh, Independent director

Competitive Strengths of Avon Moldplast

  • Experienced Promoters having almost 2 decades of experience in manufacturing of molded furniture
  • Strong network of Distributors spread PAN India
  • Manufacturers of wide range of molded furniture
  • Consistent delivery of quality products
  • Competitive Prices

Business strategy of Avon Moldplast

  • Scaling up the production and increasing the design portfolio of the existing products
  • To strengthen the relationships with existing distributors network and to develop relationships with new distributors
  • To strengthen the competitive position
  • Increase Market Share in the Domestic Market
  • To make optimal utilization of resources

Avon Moldplast – Financial Statements

In this section, the key financial figure of the company have been collated for ready reference and analysis:

Assets of the Company

Assets (in INR & Lakhs)
 Mar’17Mar’16Mar’15Mar’14Mar’13
Non-Current Asset396363315185168
Current Asset623442363295286
Total Asset1,019804678480454

Revenue & PAT of the Company

Revenue & Profits (in INR & Lakhs)
 Mar’17Mar’16Mar’15Mar’14Mar’13
Total Revenue1,3851,000 804618607
Profit after Tax (PAT)9.975.553.664.890.27

Earnings per Equity Share

Earning per Equity Share (in INR)
 Mar’17Mar’16Mar’15Mar’14Mar’13
Basic0.420.230.150.210.01
Diluted0.420.230.150.210.01

There appears to be an increasing trend in the EPS of the company. Also, the PAT and the revenue of the company have been constantly increasing. Hence, this may be a good equity to put money in.


Avon Moldplast Promoters

  • Mr. Sushil Kumar Aggarwal;
  • Mrs. Anita Aggarwal; an
  • Mr. Sahil Aggarwal

Promoter Interest in the company

The Promoters of the Company are interested to the extent of their shareholding in the Company. Accordingly, they would be interested in the dividend and other related pay outs as well. Also, the promoters who hold position as director etc, would be interested in the company to the extent of their remuneration and related payouts.

Promoter Interest in property of the company

The Promoters have no interest in any property acquired by the Company within two years of the date of the latest
Draft Prospectus of the IPO.


Avon Moldplast IPO Offer Details or Issue Details

Offer884,000 Equity Shares Rs. 10 each for cash at a price of Rs. 51 per equity share (including a share premium of Rs. 41 per Equity Share), aggregating Rs. 450.84 Lacs.
Of which:
A) Issue reserved for market makers46,000 Equity Shares of Rs. 10 each for cash at a price of Rs. 51 per Equity Share (including a share premium of Rs. 41 per Equity Share), aggregating Rs. 23.46 Lacs
B) Public issue838,000 Equity Shares of Rs. 10 each for cash at a price of Rs. 51 per equity share (including a share premium of Rs. 41 per Equity Share), aggregating Rs. 427.38 Lacs
Of which:
For Retail Individual InvestorsMinimum of 419,000 Equity Shares of Rs. 10 each for cash at a price of Rs. 51 per equity share (including a share premium of Rs. 41 per Equity Share), aggregating Rs. 213.69 Lacs
For Individual applicants other than
retail individual investors; andOther investors including corporate bodies or institutions, irrespective of the number of Equity Shares
applied for.
419,000 Equity Shares of Rs. 10 each for cash at a price of Rs. 51 per equity share (including a share premium of Rs. 41 per Equity Share), aggregating Rs. 213.69 Lacs
Equity Shares outstanding prior to this Offer2,370,000 Equity Shares of face value of Rs.10/- each
Equity Shares outstanding after this Offer3,254,000 Equity Shares of face value of Rs.10/- each

Avon Moldplast IPO Issue Object

  • To acquire additional molds of chair, cupboard, table etc. at the existing manufacturing facilities
  • To meet the incremental working capital requirements
  • General Corporate Purpose

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Avon Moldplast IPO – Basis of the Offer Price

The Issue Price has been determined by the Company in consultation with the Lead Manager on the basis of the
key business strengths. The face value of the Equity Shares is Rs. 10 and Issue Price is Rs. 51 per Equity Share
and is 5.10 times of the face value.

Qualitative factors influencing the offer price:

  • Experienced Promoters having almost 2 decades of experience in manufacturing of molded furniture
  • Strong network of Distributors spread PAN India
  • Manufacturers of wide range of molded furniture
  • Consistent delivery of quality product
  • Competitive Prices

Quantitative factors influencing the offer price:

  • Earning per share – On a standalone basis, the weighted average EPS for the latest three years is Rs. 0.31
  • Price/earning ratio – The PE ratio for FY 2016-17 is Rs. 121.43. The industry average PE is 27.68
  • Return on Net Worth – The RoNW on a weighted average basis on a standalone basis is 2.80%. Minimum Return on Total Net Worth after Issue needed to maintain Pre-Issue EPS for the year ended March 31, 2017 is 1.90%
  • Net Asset Value – NAV per Equity Share – The net asset value per equity share for FY 2016-17 is Rs. 11.37. Post the issue, the NAV per share would be Rs. 22.14
  • Comparison of Accounting ratios with Industry peers – The peer group includes Nilkamal, Supreme, Prima and Wim.

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Avon Moldplast IPO Lead Managers

Lead Managers
Turnaround Corporate Advisors Private Limited

Avon Moldplast IPO Registrar to offer

Registrar of the Offer
Mas Services Limited

Avon Moldplast IPO Review by Top 10 Stock Brokers

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Avon Moldplast IPO Grey Market Premium

Grey market for Avon Moldplast IPO will open a fortnight before the release of the IPO. The kostak rate or the grey market price would also be available herein once the grey market is up and working.


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