Emami Cement IPO – Review, Allotment, Live Subscription, GMP & DRHP
Last Updated Date: Nov 16, 2022Emami Cement Limited are among the leading cement manufacturing companies in Eastern India. Emami Cement IPO comprises Offer of Public Issue of [●] Equity Shares aggregating up to Rs. 10,000 million for cash at price of Rs. [●] per share including a premium of Rs. [●] aggregating to Rs. [●] lakhs.
Let’s have a detailed review of the company and analytics of the Emami Cement IPO release date, IPO offer price, subscription, Emami Cement IPO allotment, grey market price and other details like the company’s background, its financial positions, its promoters and other related things.
Emami Cement IPO Review & Ratings
| IPO Ratings & Review | |
| Criteria | Ratings |
| Industry Sentiments | 8.5/10 |
| Industry Ranking | 7.8/10 |
| Company Background | 7.9/10 |
| Company Reputation | 7.9/10 |
| Competitive Edge | 7.7/10 |
| Financial Statements | 7.8/10 |
| Popularity Index | 8.4/10 |
| Promoters Reputation | 7.7/10 |
| Retail Appetite | 7.9/10 |
| Top Brokers Review | 7.9/10 |
| Overall Ratings | 8.1/10 |
| Star Ratings | ★★★★☆ |
Summary of Emami Cement IPO
Emami Cement Limited are among the leading cement manufacturing companies in Eastern India. They established an installed manufacturing capacity of 5.60 million metric tonne per annum (“MMTPA”) in their first two years of commercial operations, making us one of the fastest growing cement companies to achieve such feat amongst cement manufacturers operating in Eastern India. The Offer comprises a Fresh Issue of [●] Equity Shares by the Company aggregating up to Rs. 5,000.00 million and an Offer for Sale of [●] Equity Shares aggregating up to Rs. 5,000.00 million by the Selling Shareholders.
From FY 2013-14 to FY 2016-2017, as per the Restated Financial Statements,
- For the three months ended June 30, 2018 and Fiscals 2018 and 2017, the total income was Rs. 4,735.27 million, Rs. 10,270.33 million and Rs. 1,896.78 million, respectively.
- The net worth as on June 30, 2018 and March 31, 2018, as per the Restated Financial Statements included in this Draft Red Herring Prospectus is Rs. 7,936.84 million and Rs. 7,758.47 million, respectively.
- The net asset value per Equity Share as on June 30, 2018 and March 31, 2018, as per the Restated Financial Statements included in this Draft Red Herring Prospectus is Rs. 32.79 and Rs. 32.05, respectively.
- For the three months ended June 30, 2018 and Fiscals 2018 and 2017, they sold an aggregate of 1,107,796 MT, 2,302,518 MT and 375,798 MT of cement, respectively.
The Promoters of this company are Dr. Radhe Shyam Agarwal, Dr. Radhe Shyam Goenka, Manish Goenka, Aditya Vardhan Agarwal, Harsh Vardhan Agarwal, Mohan Goenka, Bhanu Vyapaar, Diwakar Viniyog and Suntrack Commerce. The lead manager to the issue are IIFL Holdings Limited, Axis Capital Limited, CLSA India Private Limited; Edelweiss Financial Services Limited, and Nomura Financial Advisory and Securities (India) Private Limited and the Registrar to this issue is Karvy Computershare Private Limited.
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Emami Cement IPO Date
The opening and the closing date of Emami Cement Limited IPO is not known yet.
Emami Cement IPO Subscription
| Day / Date | QIB | NII | RII | Total Subscription |
| Day 1 | ||||
| Day 2 | ||||
| Day 3 | ||||
| Day 4 | ||||
| Day 5 | ||||
| Shares Offered or Net Issue |
The shares subscribed by the public will be updated herein on a daily basis, once the IPO is open for subscription.
Emami Cement IPO Allotment Status
Here, you can find the Allotment Status of this IPO.
Emami Cement IPO Price Band
The face value of each share is Rs 10, but the price band of the IPO is not yet disclosed.
Emami Cement IPO Equity Share Offering
The Offer is of up to [●] Equity Shares, at an Offer Price of Rs. [●] per Equity Share for cash, including a premium of Rs. [●] per Equity Share, aggregating up to Rs. 10000 million.
Emami Cement Limited – Company Overview
Emami Cement Limited are among the leading cement manufacturing companies in Eastern India. They established an installed manufacturing capacity of 5.60 million metric tonne per annum (“MMTPA”) in their first two years of commercial operations, making us one of the fastest growing cement companies to achieve such feat amongst cement manufacturers operating in Eastern India.
Emami Cement Limited currently operate three manufacturing plants and are in the process of setting up another plant, which subject to receipt of necessary approvals is expected to result in an aggregate installed capacity of 9.30 MMTPA of cement and 3.20 MMTPA of clinker by April 2019. have an integrated cement manufacturing plant situated at Risda in Chhattisgarh, which has an installed capacity of 3.20 MMTPA of clinker and 2.50 MMTPA of cement. They are currently in the process of setting up a cement grinding plant at Kalinganagar, Odisha, which will have an installed capacity of 2.50 MMTPA and subject to the receipt of necessary approvals, they expect this plant to commence commercial operations by April 2019.
They have a wide portfolio of products which includes Portland Pozzolana Cement (“PPC”), Portland Slag Cement (“PSC”), 43 and 53 Grade Ordinary Portland Cement (“OPC”) and composite cement. They primarily sell their 51 cement to retail and institutional customers in the states of West Bengal, Chhattisgarh, Odisha, Jharkhand, Bihar, Maharashtra and Madhya Pradesh.
Company was awarded the ‘Brand of the Decade 2018’ award in the cement category by ERTC Media and the ‘Brand of the Year – Cement Segment’ award for excellence in building and construction at the National Awards for Marketing Excellence by the Times Network in 2018.
The Company is promoted by Dr. Radhe Shyam Agarwal, Dr. Radhe Shyam Goenka, Manish Goenka, Aditya Vardhan Agarwal, Harsh Vardhan Agarwal, Mohan Goenka, Bhanu Vyapaar, Diwakar Viniyog and Suntrack Commerce and are the guiding force behind the growth and strategic decisions of the Company.
Competitive Strengths of Emami Cement Limited:
- One of the leading cement manufacturing companies in Eastern India with ability to scale-up quickly
- Strategically located and well connected manufacturing plants
- Modern plants and cost-efficient manufacturing capabilities
- Strong parentage and established brand
- Experienced management team
Business strategies of Emami Cement Limited:
- Capitalize on the Growth in the Demand for Cement in East India
- Grow and Optimize Existing Manufacturing Capacity
- Promote the Brand and Strengthen and Expand Distribution Network
- Improve Cost Efficiency
- Grow Through Acquisitions and Expand Operations to Other Geographies
Emami Cement Limited – Financial Statements
A quick look into the past financial performance of the company to understand its performance of business and evaluate the growth prospectus:
Financial Summary:
| Amount (in INR & millions) | ||||
| 31-June-18 | 31-Mar-18 | 31-Mar-17 | 31-Mar-16 | |
| Total Assets | 38,598.88 | 35,983.01 | 29,426.95 | 20,549.43 |
| Total Revenue | 4,735.27 | 10,270.33 | 1,896.78 | 318.35 |
| Total Expense | 4,150.40 | 9,568.40 | 2,227.99 | 51.62 |
| Profit After Tax | 179.42 | (785.68) | (380.54) | 75.48 |
Earnings per Equity Share (in Millions)
| 31-June-18 | 31-Mar-18 | 31-Mar-17 | 31-Mar-16 | |
| Basic & Diluted | 0.74 | (3.25) | (1.65) | 0.41 |
From the above statements, one could find that the Emami Cement Limited may perform well.
Emami Cement IPO – Promoters
The Promoters of this company are:
- Dr. Radhe Shyam Agarwal
- Dr. Radhe Shyam Goenka
- Manish Goenka
- Aditya Vardhan Agarwal
- Harsh Vardhan Agarwal,
- Mohan Goenka
- Bhanu Vyapaar,
- Diwakar Viniyog and Suntrack Commerce
List of Related Parties (Key Managerial Personnel)
- Rajiv Ranjan Thakur, Chief Financial Officer
- Debendra Banthiya, Company Secretary & Compliance Officer
- Vinit Tiwari , Chief Marketing Office
- Samar Banerjee
Interest in promotion of the Company
Company is currently promoted by the Promoters in order to carry on its present business. Promoters are interested in the Company to the extent of their shareholding and directorship of the Individual Promoter in the Company and the dividend declared, if any, by the Company. The Promoters are interested in the transactions entered into the Company and the Promoter Group.
Property Interest
The promoters along with the promoter group will continue to hold collectively some percentage of the equity share capital of the company. As a result of the same, they will be able to exercise significant influence over the control of the outcome of the matter that requires approval of the majority shareholders vote.
Interest in Intellectual Rights of the Company
Promoters has not shown any interest in acquiring the intellectual rights of the company.
Emami Cement IPO Offer Details or Issue Details
| Particulars | No. Of Equity Shares |
| Equity Shares Offered | [●] Equity Shares aggregating up to Rs. 10,000.00 million |
| Of which: | |
| Fresh Issue | [●] Equity Shares aggregating up to Rs. 5,000.00 million |
| Offer to Sale | [●] Equity Shares aggregating up to Rs. 5,000.00 million |
| Reserved for Market Makers | Upto [●] Equity Shares of face value of Rs. 10/- each |
| Net Issue to the Public | Upto [●] Equity Shares of face value of Rs.10/- each |
| Of which: | |
| QIB Portion | At least [●] Equity Shares |
| Of which | |
| Available for allocation to Mutual Funds only (5% of the QIB portion) (Excluding the Anchor Investor Portion) | [●] Equity Shares of Face Value of Rs. 10/- each |
| Balance for all QIBs including Mutual Funds | [●] Equity Shares of Face Value of Rs. 10/- each |
| Retail Investors Portion | Upto [●] Equity Shares of face value of Rs. 10 /- each |
| Non-Retail Investors Portion | Upto [●] Equity Shares of face value of Rs. 10 /- each |
| Equity Shares outstanding prior to the Issue | 242,075,000 Equity Shares |
| Equity Shares outstanding after the Issue | [●] Equity Shares |
Emami Cement IPO Issue Object
These are the IPO Issue Objects of the company
- Funding the Working Capital requirements of the Company:
- Repayment/ pre-payment of certain unsecured loans availed from banks and financial institutions by the company; and
- General Corporate Purposes
Emami Cement IPO – Basis of the Offer Price
The issue price is determined by the company in consultation with the Lead manager on the basis of the following qualitative and quantitative factors.
Qualitative factors are:
- One of the leading cement manufacturing companies in Eastern India with ability to scale-up quickly
- Strategically located and well connected manufacturing plants
- Modern plants and cost-efficient manufacturing capabilities
- Strong parentage and established brand
- Experienced management team
The relevant quantitative factors are:
| Basic & Diluted EPS | RONW (%) | NAV (Rs.) | |
| 31-Mar-16 | 0.41 | (1.09) | – |
| 31-Mar-17 | (1.65) | (4.46) | – |
| 31-Mar-18 | (3.25) | (10.13) |
32.05 |
- Industry P/E Ratio:
| Particulars | P/E ratio |
| Highest | 64.79 |
| Lowest | 14.13 |
| Average | 42.03 |
- Competitive Peers:
| Sr. No. | Particulars | Face Value (in Rs.) | Basic EPS (In Rs.) | Diluted EPS (In Rs.) | P/E Ratio | RONW (%) | NAV (In Rs.) |
| 1 | Emami Cement | 10 | (3.25) | (3.25) | NA | (10.13) | 32.05 |
| 2 | Ultratech Cement Limited |
10 | 80.94 | 80.92 | 50.12 | 8.4 | 960.66 |
| 3 | Dalmia Bharat Limited |
2 | 60.11 | 59.87 | 38.76 | 16.4 | 672.70 |
| 4 | Star Cement Limited |
1 | 7.89 | 7.89 | 14.13 | 22.4 | 35.22 |
| 5 | JK Lakshmi Cement Limited |
5 | 4.69 | 4.69 | 64.79 | 3.8 | 122.68 |
| 6 | Shree Cement Limited |
10 | 397.32 | 397.32 | 42.37 | 15.6 | 2553.78 |
Emami Cement IPO Lead Managers
| Lead Managers |
| IIFL Holdings Limited
Axis Capital Limited CLSA India Private Limited Edelweiss Financial Services Limited Nomura Financial Advisory and Securities (India) Private Limited |
Emami Cement IPO Registrar to offer
| Registrar to the Offer |
| Karvy Computershare Private Limited Karvy Selenium Tower – B Plot 31 and 32, Gachibowli Financial District, Nanakramguda Hyderabad 500 032 Telangana, India Tel: +91 40 6716 2222, Fax: +91 40 2343 1551 E-mail: einward.ris@karvy.com Website: www.karisma.karvy.com Investor Grievance E-mail: emamicement.ipo@karvy.com Contact Person: Murali Krishna M SEBI Registration No.: INR000000221 |
Other Details:
- Statutory Auditor – M/s. Agrawal Sanjay & Company, Chartered Accountants
- Peer Review Auditor – M/s. Agrawal Sanjay & Company, Chartered Accountants
- Bankers to the Company – Indian Overseas Bank, Bank of Baroda, The South Indian Bank Limited, ICICI Bank Limited, Union Bank of India – IFB Branch, IndusInd Bank Limited, HDFC Bank Limited.
Emami Cement Limited IPO Review by Top 10 Stock Brokers
| Top Stock Brokers Review | Company Reputation | Competitive Edge | Financial Statement | Popularity Index | Promoters Reputation |
| Angel Broking | 7.5/10 | 7.4/10 | 8.5/10 | 8.1/10 | 7.1/10 |
| Sharekhan | 7.2/10 | 7.1/10 | 8.6/10 | 8.1/10 | 7.2/10 |
| Kotak Securities | 7.3/10 | 7.5/10 | 8.4/10 | 8.1/10 | 7.3/10 |
| ICICI Direct | 7.3/10 | 7.3/10 | 8.7/10 | 8.1/10 | 7.1/10 |
| IIFL | 7.5/10 | 7.2/10 | 8.8/10 | 8.0/10 | 7.1/10 |
| Edelweiss | 7.5/10 | 7.4/10 | 8.4/10 | 8.3/10 | 7.2/10 |
| Zerodha | 7.4/10 | 7.1/10 | 8.5/10 | 8.1/10 | 7.0/10 |
| 5Paisa | 7.1/10 | 7.1/10 | 8.4/10 | 8.1/10 | 7.1/10 |
| Karvy | 7.4/10 | 7.3/10 | 8.2/10 | 8.1/10 | 7.1/10 |
| Motilal Oswal | 7.1/10 | 7.1/10 | 8.6/10 | 8.3/10 | 7.2/10 |
Emami Cement Limited IPO Grey Market Premium
The Emami Cement Limited IPO Grey Market Premium price is Rs X, the Kostak rate is Rs X and the Subject to Sauda is X.
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Emami Cement Limited IPO News
News 1 – IPO ISSUE OPENS SOON (Download Prospectus)
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