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Emami Cement IPO – Review, Allotment, Live Subscription, GMP & DRHP

Emami 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
CriteriaRatings
Industry Sentiments8.5/10
Industry Ranking7.8/10
Company Background7.9/10
Company Reputation7.9/10
Competitive Edge7.7/10
Financial Statements7.8/10
Popularity Index8.4/10
Promoters Reputation7.7/10
Retail Appetite7.9/10
Top Brokers Review7.9/10
Overall Ratings8.1/10
Star Ratings★★★★☆

Summary of Emami Cement IPO

Emami Cement IPOEmami 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 CommerceThe 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 / DateQIBNIIRIITotal 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-1831-Mar-1831-Mar-1731-Mar-16
Total Assets38,598.8835,983.0129,426.9520,549.43
Total Revenue4,735.2710,270.331,896.78318.35
Total Expense4,150.409,568.402,227.9951.62
Profit After Tax179.42(785.68)(380.54)75.48

Earnings per Equity Share (in Millions)

31-June-1831-Mar-1831-Mar-1731-Mar-16
Basic & Diluted0.74(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 PortionAt 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 PortionUpto [●] Equity Shares of face value of Rs. 10 /- each  
 Equity Shares outstanding prior to the Issue242,075,000 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

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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 EPSRONW (%)NAV (Rs.)
31-Mar-160.41(1.09)
31-Mar-17(1.65)(4.46)
31-Mar-18(3.25)(10.13)
32.05
  • Industry P/E Ratio:
ParticularsP/E ratio
Highest64.79
Lowest14.13
Average42.03
  • Competitive Peers:
Sr. No. ParticularsFace Value  (in Rs.)Basic EPS (In Rs.)Diluted EPS (In Rs.)P/E RatioRONW (%) NAV (In Rs.)
1Emami Cement10(3.25)(3.25)NA(10.13)32.05
2Ultratech Cement
Limited
1080.9480.9250.128.4960.66
3Dalmia Bharat
Limited
260.1159.8738.7616.4672.70
4Star Cement
Limited
17.897.8914.1322.435.22
5JK Lakshmi Cement
Limited
54.694.6964.793.8122.68
6Shree Cement
Limited
10397.32397.3242.3715.62553.78

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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:
Website: www.karisma.karvy.com
Investor Grievance E-mail: 
Contact Person: Murali Krishna M
SEBI Registration No.: INR000000221

Other Details:

  • Statutory Auditor – M/sAgrawal Sanjay & Company, Chartered Accountants
  • Peer Review Auditor – M/sAgrawal 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 ReviewCompany ReputationCompetitive EdgeFinancial StatementPopularity IndexPromoters Reputation
Angel Broking7.5/107.4/108.5/108.1/107.1/10
Sharekhan7.2/107.1/108.6/108.1/107.2/10
Kotak Securities7.3/107.5/108.4/108.1/107.3/10
ICICI Direct7.3/107.3/108.7/108.1/107.1/10
IIFL7.5/107.2/108.8/108.0/107.1/10
Edelweiss7.5/107.4/108.4/108.3/107.2/10
Zerodha7.4/107.1/108.5/108.1/107.0/10
5Paisa7.1/107.1/108.4/108.1/107.1/10
Karvy7.4/107.3/108.2/108.1/107.1/10
Motilal Oswal7.1/107.1/108.6/108.3/107.2/10

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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