Godha Cabcon Insulation IPO – Review, Allotment Status, Subscription, Price, Date & more

Godha Cabcon Insulation IPO is releasing on 27th April 2018. The Madhya Pradesh based company, engaged in manufacturing of aluminium and alloy conductors. The Company has been incorporated just 2 years back in 2016 and acquired the business from the family proprietorship firm.

The total funds being raised by this IPO is Rs. 900 lakhs to Rs. 990 lacs. This represents 27% of the post issue paid up capital of the company. The other details about the IPO like the IPO price, IPO issue, reservations, key financial figures of the company, background of promoters, objective of the IPO etc. have been discussed in detail in this article.


Godha Cabcon Insulation IPO Review & Ratings

Godha Cabcon & Insulation IPO Ratings & Review
Criteria Ratings
Industry Sentiments 6.4/10
Industry Ranking 6.5/10
Company Background 6.2/10
Company Reputation 6.4/10
Competitive Edge 6.5/10
Financial Statements 6.2/10
Popularity Index 6.4/10
Promoters Reputation 6.4/10
Retail Appetite 6.8/10
Top Brokers Review 6.4/10
Overall Ratings 6.4/10
Star Ratings ★★★☆☆

Summary of Godha Cabcon Insulation IPO

godha cabcon insulation ipoGodha Cabcon & Insulation is one of the leading manufacturer of aluminium and alloy conductors. The founder of this business was Mr. Dilip Godha who started the business in 1987 and due to his health issues, the business underwent quite a few hitches.

The business was initially a sole proprietorship, then a partnership firm and then  again a sole proprietorship, until recently when it was taken over by the company in 2017 for Rs. 587 lacs. The company currently has certain major assignments from the government companies like state board, Power grid corporation etc.

The product profile of the company includes – AAAC Conductor (All Aluminium Alloy Conductor), ACSR Conductor (Aluminium Conductor, Steel Reinforced) and AAC Conductor (All Aluminium Conductor).  The IPO aims to collect Rs. 900 lakhs t0 Rs. 990 lacs. Out of this certain amount has been reserved for the market makers to subscribe.

The IPO is being managed by Mark Corporate Advisors which is based in Mumbai and the registrar to the offer is Karvy Computershare which is based in Hyderabad.


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Godha Cabcon Insulation IPO Date

The IPO for Godha Cabcon & Insulation is to be released on Friday, 27 April 2018 and would be open for subscription till Thursday 03 May 2018.

Godha Cabcon & Insulation IPO Subscription

  Subscription
Day 1  – 27 April ’18 X
Day 2  – 28 April ’18 X
Day 3 – 29 April ’18 X
Day 4 – 30 April ’18 X
Day 5 – 01 May ’18 X
Day 6 – 02 May ’18 X
Day 7 – 03 May ’18 X

The subscription details would be updated herein on a daily basis.

Godha Cabcon & Insulation IPO Allotment Status

After the company completes the allotment process, the allotment details would be updated herein.

Godha Cabcon & Insulation IPO Price Band

Godha Cabcon & Insulation IPO has a price band of Rs. 30 to Rs. 33 per equity share. The face value of the share is Rs. 10, thus a premium ranging from Rs. 20 to Rs. 23 has been floated across the market. The offer price band was decided by the company in consultation with the lad managers. The same has been discussed in detail in the subsequent sections.

Godha Cabcon Insulation IPO Issue Size

Godha Cabcon & Insulation IPO is aimed to raise funds to the tune of Rs. 900 to 990 lacs.

Godha Cabcon & Insulation IPO Equity Share Offerings

The number of shares put up for subscription is 30 lacs. Out of this, 1.60 lacs shares have been reserved for the market makers and the balance is for public subscription.


Godha Cabcon & Insulation Limited – Company Overview

The Company was incorporated as Godha Cabcon & Insulation Private Limited on October 04, 2016 and later went to become a public company.  The Company is one of the leading manufacturer of ACSR/AAAC/AAC Conductors. It is one of the leading company in the State of Madhya Pradesh and has latest machines having best technology.

The manufacturing unit is located at 36-D, Sector B, Industrial Area, Sanwer Road, Indore(M.P.). The company is all set to continue its growth momentum with higher installed capacity and good order book position. The prospects are even brighter in view of future procurement plan of state electricity companies. The company is also targeting Power Grid Corporation of India Limited to bring its products at national level.

The business was initially set up by Dilip Godha in 1987 but was closed down on account of his health issues. Thereafter, the business was re-set up in 2006 as a partnership firm by Dilip Godha, his wife and his son.

Later in 2008, the partnership was dissolved due to founder’s death and the business became a proprietorship with Madhu Godha (wife of Dilip Goda) as the proprietor.

Recently in 2017, the proprietorship was taken over by the company w.e.f. July 16, 2017 on a total consideration of ₹587.11 Lacs and company had issued its Equity Shares at Par against the said consideration to Mrs. Madhu Godha Sole Proprietor of Godha Cabcon & Insulation and one of the promoters of company. The valuation of the concern was equivalent to the capital of the proprietor as on July 15, 2017.

Key members of Godha Cabcon & Insulation Limited:

  • Mrs. Madhu Godha, Executive Director
  • Mrs.Rupali Godha, Executive Director
  • Mr. Dipesh Godha, Executive Director & CEO
  • Mr. Ankit Vijayvargiya, Non-Executive Independent Director

Competitive Strengths of Godha Cabcon & Insulation Limited:

  • Experienced Management Team
  • Quality assurance and standards
  • Leveraging on Marketing skills
  • Established relationship with customers and employees

Business strategy of Godha Cabcon & Insulation Limited:

  • Further widening of our customer base
  • Reduction of operational costs and achieving efficiency
  • To build-up a professional organization
  • Focus on cordial relationship with our Suppliers, Customer and employees
  • Optimal Utilization of Resources

Godha Cabcon & Insulation – Financial Statements

As mentioned above, the company has been incorporated recently in 2016 and has acquired a proprietorship business in 2017. Accordingly, the financial details have been presented for only till October 2017.

Assets of the Company

The non current assets of the company comprises of only fixed assets amounting to Rs. 180.7 lacs. The current assets aggregate to 2,479.89 lacs taking the total asset base to Rs. 2,660.66 lacs.

Revenue & PAT of the Company

The company earned a revenue of Rs. 2,123.40 lacs in the period Apr to October 2017 and the PAT was Rs. 93.40 lacs.

Earnings per Equity Share

The company made up an EPS of Rs. 3.17 for the period Apr to October 2017.


Godha Cabcon & Insulation Promoters

The promoters of Godha Cabcon & Insulation are :

  • Mrs. Madhu Godha
  • Mrs. Rupali Godha
  • Mr. Dipesh Godha

Promoter Interest in the company

Promoters are interested in the Company to the extent that they have promoted the Company, to the extent of their shareholding, for which they are entitled to receive the dividend declared, and other distribution in respect of Equity Shares if any, by the Company. Also, Promoters who are also Directors may be deemed to be interested to the extent of fees, remuneration and/or reimbursement of expenses payable to them for services rendered to the company in accordance with the provisions of the relevant statutes.

Promoter Interest in property of the company

Promoters do not have any interest in any property acquired by or proposed to be acquired by the Company two years prior to filing of the latest Prospectus.


Godha Cabcon Insulation IPO Offer Details or Issue Details

Issue of Equity Shares 30,00,000 Equity Shares of Rs. 10/- each at an Issue Price of Rs. 30/- to Rs. 33/- each aggregating to Rs. 900 lacs to Rs. 990 lacs
Of which:
A) Issue reserved for market makers 1,60,000 Equity Shares of Rs. 10/- each at an Issue Price of Rs. 30/- to Rs. 33/- each aggregating to Rs. 48 to 52.8 lacs
B) Net issue to the public 28,40,000 Equity Shares of Rs. 10/- each at an Issue Price of Rs. 30/- to Rs. 33/- each aggregating to Rs. 852 to 937.2 lacs
Of which:
[.] Equity shares shall be available for allocation to QIB
[.] Equity Shares of face value of ₹10 each fully paid of the Company
for cash at price of ₹30 to 33 per Equity Share will be available for
allocation to investors up to ₹2,00,000.
[.] Equity Shares of face value of ₹10 each fully paid of the Company
for cash at price of ₹30 to 33 per Equity Share will be available for
allocation to investors above ₹2,00,000.
Pre and Post-Issue Equity Shares
Equity Shares outstanding prior to this Offer 81,00,000 Equity Shares of Rs. 10/- each
Equity Shares outstanding after this Offer 1,11,00,000 Equity Shares of Rs. 10/- each

 


Godha Cabcon & Insulation IPO Issue Object

The objective of raising funds by Godha Cabcon & Insulation are:

  • To meet the Working Capital Requirements
  • To meet General Corporate Expenses

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Godha Cabcon Insulation IPO – Basis of the Offer Price

The issue price has been fixed by the Company in consultation with the book running lead managers. The issue price has been fixed 3 to 3.3 times higher than the face value of the equity shares of the company. The Company and the lead managers have considered the following qualitative and quantitative factors in deciding on the offer price.

Qualitative factors influencing the offer price:

  • Experienced Management Team
  • Quality assurance and standards
  • Leveraging on Marketing skills
  • Established relationship with customers and employees

Quantitative factors influencing the offer price:

  • Earning per share – The EPS for the first year of the company i.e. FY 16-17 Rs. 3.17
  • Price/earning ratio
  • Return on Net Worth – The RoNW for is (25.29%). The minimum RoNM after Issue needed to maintain Pre-Issue EPS for the year ended March 31, 2017 is 15.69% to 16.35%
  • Net Asset Value – NAV per Equity Share – The net asset value per equity share as on 31 October 2017 is Rs. 15.42
  • Comparison of Accounting ratios with Industry peers – The peer group includes Apar Industries Limited

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Godha Cabcon Insulation IPO Lead Managers

Lead Managers
Mark Corporate Advisors Private Limited

Godha Cabcon Insulation IPO Registrar to offer

Registrar of the Offer
Karvy Computershare Private Limited

Godha Cabcon Insulation IPO Review by Top 10 Stock Brokers

Top Stock Brokers Review Company Repu-tation Compe-titive Edge Finan-cial State-ment Popu-larity Index Promo-ters Repu-tation
Angel Broking 6.6/10 6.7/10 6.6/10 6.5/10 6.5/10
Sharekhan 6.6/10 6.5/10 6.6/10 6.5/10 6.6/10
Kotak Securities 6.7/10 6.6/10 6.7/10 6.5/10 6.7/10
ICICI Direct 6.7/10 6.7/10 6.7/10 6.5/10 6.5/10
IIFL 6.6/10 6.6/10 6.8/10 6.0/10 6.5/10
Edelweiss 6.6/10 6.7/10 6.7/10 6.7/10 6.6/10
Zerodha 6.7/10 6.5/10 6.6/10 6.5/10 6.0/10
5Paisa 6.5/10 6.5/10 6.7/10 6.5/10 6.5/10
Karvy 6.7/10 6.7/10 6.6/10 6.5/10 6.5/10
Motilal Oswal 6.5/10 6.5/10 6.6/10 6.7/10 6.6/10

Godha IPO Grey Market Premium

The grey market for Godha Cabcon & Insulation opened in mid March. Just like any other security, the IPO for Godha Cabcon & Insulation was also traded for in the grey market 15 days before the same was to be launched. The grey market is usually conducted by the sub-brokers. The kostak rate or the grey market price for this IPO has also been floating around in market at good rates.


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