Fusion Industries IPO – Review, Allotment, Subscription, GMP Price & more
Last Updated Date: Aug 31, 2023Fusion Industries Limited is recognized for delivering Quality Products and bringing Innovative Products in the Market. They are positioned as an end-to-end Air and Water Piping System Solution Provider and have over 14 years of experience in manufacturing. Fusion Industries IPO comprises of 26,52,000 Equity shares of Rs.10 each.
Let’s have a detailed review of the company and analytics of the Fusion Industries IPO release date, IPO offer price, subscription, Fusion Industries IPO allotment, grey market price and other details like the company’s background, its financial positions, its promoters and other related things.
Fusion Industries IPO Review & Ratings
| Fusion Industries IPO Ratings & Review | |
| Criteria | Ratings |
| Industry Sentiments | 6.3/10 |
| Industry Ranking | 6.3/10 |
| Company Background | 6.1/10 |
| Company Reputation | 6.4/10 |
| Competitive Edge | 6.4/10 |
| Financial Statements | 6.5/10 |
| Popularity Index | 6.2/10 |
| Promoters Reputation | 6.3/10 |
| Retail Appetite | 6.2/10 |
| Top Brokers Review | 6.3/10 |
| Overall Ratings | 6.3/10 |
| Star Ratings | ★★★☆☆ |
Summary of Fusion Industries IPO
Fusion India Limited is a part of the specialty chemicals industry which is one of the fastest growing manufacturing sectors in India. Specialty chemicals have penetrated in industries such as packaging, agriculture, healthcare, aerospace, electronics, automotive, consumer goods and other industries. The Issue comprises of a Public Issue of 26,52,000 Equity shares of face value of Rs.10.00 each fully paid (the “Equity Shares”) for cash at a price of Rs.40.00 (including a premium of Rs.30.00 per Equity Share) aggregating to Rs.1060.8 lakhs
From FY 2015-16 to FY 2017-2018, as per the Restated Financial Statements,
- Total revenue increased by Rs. 89.57 Lakhs i.e. 0.98% from Rs. 9,187.18 Lakhs in the fiscal year ended March 31, 2017 to Rs. 9,097.61 Lakhs in the fiscal year ended March 31, 2018. The revenue has increased mainly due to increase in other income, offset by a minor reduction of Rs. 37.80 lakhs i.e. 0.42% in sales of the manufactured products as compare to last financial year.Total revenue increased by Rs. 594.48 Lakhs i.e. 6.99% from Rs. 8,503.13 Lakhs in the fiscal year ended March 31, 2016 to Rs. 9,097.61 Lakhs in the fiscal year ended March 31, 2017. The revenue has increased due to increase in sales of manufactured products in domestic as well in international market i.e. 2.87% & 6828.05% respectively, as compare to last financial year.
- Net Profit has increased by Rs. 20.97 Lakhs i.e. 9.42 % from Rs. 222.52 Lakhs in the fiscal year ended March 31, 2017 to profit of Rs. 243.49 Lakhs in the fiscal year ended March 31, 2018. Net profit after tax has increased due to increase in overall income of the Company.
The Promoters of this company are MR. TRILOK CHAND CHANDANA AND TARUN CHANDNA. The lead manager to the issue is KHAMBATTA SECURITIES LIMITED and the Registrar to this issue is BIGSHARE SERVICES PRIVATE LIMITED.
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Fusion Industries IPO Date
The opening and the closing date of IPO of Fusion Industries is not known yet.
Fusion Industries IPO Subscription
| Subscription | |
| Day 1 | X |
| Day 2 | X |
| Day 3 | X |
| Day 4 | X |
| Day 5 | X |
The shares subscribed by the public will be updated herein on a daily basis, once the IPO is open for subscription.
Fusion Industries IPO Allotment Status
The Issue is being made through the Fixed Price Process wherein up to 1,38,000 Equity Shares shall be reserved for Market Maker upto 25,14,000 Equity shares will be allocated on a proportionate basis to Net public Issue, subject to valid applications being received from Retail Individual Applicants at the Issue Price. The balance of the Net Issue will be available for allocation on proportionate basis to Non Retail Applicants.
Fusion Industries IPO Price Band
The face value of the Equity Shares is Rs. 10/- and the Issue Price is 4.00 times of the face value but the price band of the IPO is not yet disclosed.
Fusion Industries IPO Equity Share Offering
26,52,000 Equity Shares of Rs 10/- each at a Issue Price of Rs.40 on a premium of Rs.30 so it will be aggregated to Rs.1060.8 lakhs.
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Fusion Industries Limited – Company Overview
Company was incorporated as Yeekay Technocrat Private Limited under the provisions of the Companies Act, 1956 vide certificate of incorporation dated December 12,2002.Subsequently, upon conversion into a Public Limited Company pursuant to Shareholders Resolution dated December 20, 2012, the name of the Company was changed to “Fusion Industries Limited” and a fresh Certificate of Incorporation dated January 23, 2013 having CIN U34300HR2002PLC035006 issued by the Registrar of Companies, NCT of Delhi & Haryana.
Fusion Industries Limited is recognized for delivering Quality Products and bringing Innovative Products in the Market. They are positioned as an end-to-end Air and Water Piping System Solution Provider and have over 14 years of experience in manufacturing.
Company was started by Mr. Trilok Chand Chandana and Mrs. Tarun Chandna in the year 2002. After seeing the growth in their trading of pipes they decided to manufacture PPR Pipes and due to technical know-how of Mr. Trilok Chand Chandana they became one of the few manufacturers of PPR pipes in the year 2004.
They manufacture polymer pipes and fittings using four different polymers: PVC; CPVC; PPR; and PP. They also manufacture Blow Water Storage Tanks using Polymer HDPE and Roto Water Storage Water Tanks using Polymer LLDPE. As at June 30, 2018, they have a product range of more than 4,000 SKUs. Company’s products are used for varied applications in Air, Plumbing, Irrigation, Sewage disposal & Water Storage. its product range meets the requirements of both the rural and urban markets for domestic and industrial puposes.
The plants are located at the following locations: Roorkee (Uttarakhand), Malanpur (Gwalior, Madhya Pradesh), Bangalore (Karnataka). The total installed capacity of their three existing plants is 22581 tonnes per annum as at June 30, 2018.
Competitive Strengths of Fusion Industries Limited:
- Strong brand in the pipes, fittings & tank segment with over 14 years of experience and focus on quality.
- Comprehensive product portfolio across polymers serving diverse end-use applications.
- Strategically located manufacturing facilities with a core focus on customer satisfaction.
- Large and growing distribution network.
- Experienced promoters and management with long track record of operation.
Business strategies of Fusion Industries Limited:
- Continue to optimize the product mix to improve margins.
- Increase the focus on building their brands.
- Expansion .
- Increasing Operational efficiency.
- Increase sales of the products by reaching out to more retailers and expanding their distribution network both in new areas as well as in areas where we already have a strong presence.
- Focus on special product development for Exports.
- Fusion House Concept to tap bigger market share and Brand Building.
Fusion Industries 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 & Lakhs) | |||||
| 31-Dec-17 | 31-Mar-17 | 31-Mar-16 | 31-Mar-15 | 31-Mar-14 | |
| Total Assets | 7307.10 | 6583.52 | 5833.75 | 5129.34 | 4441.10 |
| Total Revenue | 9187.19 | 9097.61 | 8503.13 | 6719.51 | 4521.28 |
| Total Expense | 8892.72 | 8892.01 | 8236.90 | 6513.89 | 4368.51 |
| Profit After Tax | 243.51 | 222.52 | 173.91 | 169.7 | 118.48 |
Earnings per Equity Share (in Lakhs)
| 31-Mar-18 | 31-Mar-17 | 31-Mar-16 | 31-Mar-15 | 31-Mar-14 | |
| Basic /Diluted | 3.31 | 3.09 | 2.42 | 2.36 | 1.97 |
From the above statements, one could find that the Fusion Industries Limited may perform well.
Fusion Industries IPO – Promoters
The Promoters of this company are:
- Mr. Trilok Chand Chandana
- Tarun Chandna
List of Related Parties (Key Managerial Personnel)
- Mr. Trilok Chand Chandana
- Vinita Matta
- Aditya Gupta
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.
Fusion Industries IPO Offer Details or Issue Details
| Particulars | No. Of Equity Shares |
| Equity Shares Offered | 26,52000 Equity Shares of Rs 10/- each at an Issue Price (yet to be disclosed). |
| Of which: | |
| Reserved for Market Makers | 1,38000 Equity Shares of Rs 10/- each |
| Net Issue to the Public | 25,14000 Equity Shares of Rs 10/- each |
| Of which: | |
| Retail Investors Portion | 12,57,000 Equity Shares of face value of Rs. 10/- each fully paid of the Company for cash at price of Rs. 40/- per Equity Share will be available for allocation to investors up to Rs. 2.00 Lakhs |
| Non-Retail Investors Portion | 12,57,000 Equity Shares of face value of Rs. 10/- each fully paid of the Company for cash at price of Rs. 40/- per Equity Share will be available for allocation to investors above Rs. 2.00 Lakhs |
| Equity Shares outstanding prior to the Issue | 7348230 Equity Shares of Rs 10/- each |
| Equity Shares outstanding after the Issue | 10000230 Equity Shares of Rs 10/- each |
Fusion Industries IPO Issue Object
These are the IPO Issue Objects of the company
- Funding of working capital requirements of the Company
- General Corporate Purpose
- To purchase additional plant and machinery and build a shed & mezzanine floor in our existing manufacturing facility.
- Issue Expenses
List of Upcoming IPOs in 2018
| Pommys Garments IPO | Indo US Biotech IPO | Medibios Laboratories IPO | Shree Vasu Logistics IPO |
| R R Industrial IPO | Sorich Foils IPO | 20 Microns IPO |
Fusion Industries 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:
- Experienced Promoters and proficient management team with low attrition rates;
- Established and proven track record;
- Leveraging the experience of the Promoters;
- Long standing relationship with the customers & Suppliers;
- Location of Manufacturing units
- Quality Assurance & Control.
The relevant quantitative factors are:
| Basic & Diluted EPS | RONW (%) | |
| 31-Mar-16 | 2.42 | 12.6% |
| 31-Mar-17 | 3.09 | 13.88% |
| 31-Mar-18 | 3.31 | 12.94% |
- NAV:
| Particulars | On Restated basis in Rs. |
| Net Asset Value per Equity Share as of March 31, 2018 | 25.6 |
| Net Asset Value per Equity Share after the Issue | 29.42 |
Industry P/E Ratio:
| Particulars | P/E |
| P/E ratio based on Basic EPS for FY 2017-18 | 12.08 |
| P/E ratio based on Weighted Average EPS | 12.94 |
- Competitive Peers:
| Particulars | Face Value (in Rs.) | EPS (In Rs.) | P/E Ratio | CMP in Rs. |
| Fusion Industries | 10 | 3.31 | 12.08 | 40.00. |
| Supreme Industries Limited | 2 | 32.24 | 37.09 | 1195.35 |
| Astral Poly Technik Limited | 1 | 9.94 | 107.70 | 1070.55 |
| Finolex Industries Limited | 10 | 24.06 | 23.25 | 559.40 |
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Fusion Industries IPO Lead Managers
| Lead Managers |
| KHAMBATTA SECURITIES LIMITED C-42, South Extension Part II, New Delhi-110049 Tel: 011-41645051, Fax: 011-41644896 Email: ipo@khambattasecurities.com Investor Grievance Email: mbcomplaints@khambattasecurities.com Website: www.khambattasecurities.com Contact Person: Mr. Vipin Aggarwal SEBI Registration No.: INM000011914 |
Fusion Industries IPO Registrar to offer
| Registrar to the Offer |
| BIGSHARE SERVICES PRIVATE LIMITED
1st Floor, Bharat Tin Works Building, Opp. Vasant Oasis |
Other Details:
- Statutory Auditor –SATISH GUPTA & ASSOCIATES
- Peer Review Auditor -SANMARKS & ASSOCIATES
- Bankers to the Company – Bank Of India
Fusion Industries IPO Review by Top 10 Stock Brokers
| Top Stock Brokers Review | Company Reputation | Competitive Edge | Financial Statement | Popularity Index | Promoters Reputation |
| Angel Broking | 6.5/10 | 6.6/10 | 6.6/10 | 6.4/10 | 6.4/10 |
| Sharekhan | 6.7/10 | 6.4/10 | 6.6/10 | 6.1/10 | 6.2/10 |
| Kotak Securities | 6.7/10 | 6.7/10 | 6.7/10 | 6.4/10 | 6.3/10 |
| ICICI Direct | 6.6/10 | 6.3/10 | 6.7/10 | 6.5/10 | 6.5/10 |
| IIFL | 6.4/10 | 6.7/10 | 6.8/10 | 6.4/10 | 6.7/10 |
| Edelweiss | 6.7/10 | 6.4/10 | 6.4/10 | 6.3/10 | 6.7/10 |
| Zerodha | 6.5/10 | 6.4/10 | 6.7/10 | 6.4/10 | 6.5/10 |
| 5Paisa | 6.7/10 | 6.4/10 | 6.3/10 | 6.7/10 | 6.5/10 |
| Karvy | 6.8/10 | 6.3/10 | 6.7/10 | 6.4/10 | 6.0/10 |
| Motilal Oswal | 6.6/10 | 6.4/10 | 6.6/10 | 6.6/10 | 6.4/10 |
Fusion Industries IPO Grey Market Premium
The Fusion Industries 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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