Jai Hanuman Irrigation IPO – Review, Allotment Status, Subscription, Price, Date & more

Lets read this article to understand the company business, financial performance, Jai Hanuman irrigation IPO size, IPO offering, Jai Hanuman IPO price and the details of promoters of the company. Jai Hanuman Irrigation, a Rajasthan based company, is in the process of floating an IPO to raise to the tune of Rs. 7.86 crores. The company has been recently set up by acquiring the promoter’s long run proprietor business. The funds being raise represent almost 42% of the post issue paid up capital of the Company.


Jai Hanuman Irrigation IPO Review & Ratings

Jai Hanuman Irrigation IPO Ratings & Review
CriteriaRatings
Industry Sentiments 6.3/10
Industry Ranking6.7/10
Company Background6.8/10
Company Reputation6.3/10
Competitive Edge 6.2/10
Financial Statements6.4/10
Popularity Index6.3/10
Promoters Reputation6.7/10
Retail Appetite6.2/10
Top Brokers Review6.3/10
Overall Ratings6.5/10
Star Ratings★★★☆☆

Summary of Jai Hanuman Irrigation IPO

Jai Hanuman IPOThe foundation of Jai Hanuman Irrigation’s business was laid by Kailash Chand Choudhary who ventured into  Plasticulture industry in 2011 through a proprietorship firm named as M/s. Jai Hanuman Enterprises. After managing the business for almost six years as a proprietor, the Promoter decided to take the plunge for the next level growth and incorporated the Company in 2017. The Company then acquired the business of “Jai Hanuman Enterprises”, Proprietorship firm of Promoter Kailash Chand Choudhary, through Business Succession Agreement in October 2017.

Jai Hanuman IPO constitutes of 45,92,000 equity shares of face value of Rs. 10 each. The company has reserved 2,40,000 such equity shares for subscription by the market makers and the balance is for the public to subscribe. The company has quoted offer price at a premium and is aiming to raise funds Rs. 7.86 crores. The IPO is being managed by Pantomath Capital Advisors and the registrar to the offer is Bigshare Services.


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Jai Hanuman Irrigation IPO Date

The company has not decided on the IPO date yet. Once the company finalises the same, the details will be posted herein.

Jai Hanuman Irrigation IPO Subscription

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

Once the IPO releases, the details of subscription made by public will be updated on a daily basis.

Jai Hanuman Irrigation IPO Allotment Status

Once the subscription is completed and the company concludes with the allotment, the details of allotment will be posted in this section.

Jai Hanuman Irrigation IPO Price Band

The Company has fixed up the IPO offer price at Rs. 17 i.e. a premium of Rs. 7 per share has been fixed by the company in consultation with the lead managers. The details of how the same was arrived has been discussed in the later sections of this article.

Jai Hanuman Irrigation IPO Issue Size

Jai Hanuman Irrigation IPO is worth Rs. 7.86 crores. This is basis the premium plus face value of the equity shares being offered under the IPO. This represents 44% of the post issue paid up capital of the company.

Jai Hanuman Irrigation IPO Equity Share Offerings

The number of shares under this IPO is 45,92,000 out of which 2,40,000 have been reserved for the market makers and the balance 43,52,000 equity shares are available for the public to subscribe.


Jai Hanuman Irrigation Limited – Company Overview

Jain Hanuman Irrigation Limited came into existence in 2017 by acquisition of business of “Jai Hanuman Enterprises”, Proprietorship firm of Promoter Kailash Chand Choudhary. The Company is primarily engaged in setting up of different types of Green Houses and Shade Net Houses to cater to diverse needs of farmers. They have also ventured into manufacturing of mulching films.
The Company has also been certified with ISO 9001:2015 certified by TNV UK Ltd. The Plasticulture industry  is working capital intensive and subsidy driven industry. The subsidy schemes provide for subsidy of about 70% to 95% of the approved cost of project.
The disbursement of the subsidy portion to the farmer is typically phased over a period of 40 days to 60 days and is dependent on certain prescribed conditions under the respective subsidy schemes. At present, the company is empanelled with Government of Rajasthan under the Schemes of National Horticulture Mission and other Horticulture Schemes for producing poly house and shade net house.
The industry can be categorized broadly into two categories – project markets and open market sales. Being a subsidy driven business, Jai Hanuman Irrigation operates only under the project markets model in the states of Rajasthan and Telangana.
The company generally subscribe to tenders offered by the government. Once they  are awarded with a tender and subsidy eligibility approval from respective authority, the company installs Poly House, Shade net house and mulching film at the customer / Farmer’s place.
Irrigation company generally executes an integrated project wherein they provide end to end services i.e from procurement of raw material to installation of Fogger & Top Sprinkler and Drip Sprinkler services. The company also provides warranty of their projects for a range of three years by obtaining insurance policies against these projects. Such warranty ensures customer satisfaction and results in long term customer relationships. The company aims to expand our business operations by increasing awareness among farmers.
Key Members of Jai Hanuman Irrigation Limited:
  • Ashok Hanuman Choudhary, Chairman and whole-time Director
  • Kailash Chand Choudhary, Managing Director
  • Urmila Choudhary, Whole-time Director
  • Mohan Lal Kadwa, Additional Independent Director

Competitive Strengths of Jai Hanuman Irrigation Limited:

  • Experienced Management
  • Integrated and qualitative services
  • Government Subsidies
  • Non conventional Business

Business strategy of Jai Hanuman Irrigation Limited:

  • Expand domestic geographical reach
  • Improve and increase operational efficiencies
  • To increase brand visibility

Jai Hanuman Irrigation – Financial Statements

As discussed above, the company was incorporated in 2017 itself and acquired the promoter’s proprietor business in October 2017, hence the financial figures would be available for only a part of this year.

Assets of the Company

As on 31 December 2017, the non current assets of the company amounted to Rs. 74 lacs and the current asset base was Rs. 939 lacs.

Revenue & PAT of the Company

Till December 2017, the company earned revenue to the tune of Rs. 231 and the PAT was Rs. 37.14 lacs.

Earnings per Equity Share

Accordingly, the EPS works out to be Rs. 4.43. This is an non-annualised EPS.

The financial performance (based on the audited financials of M/s. Jai Hanuman Enterprises i.e. the erstwhile
proprietorship of Our Promoter Kailash Chand Choudhary) reflects increase in the revenue from operations from
Rs. 191.73 lakhs in the FY 2014-15 to Rs. 1225.96 lakhs in the FY 2016-17 representing a CAGR of 152.55%. Further, the  EBITDA has increased from Rs. 11.33 lakhs in the FY 2014-15 to Rs. 89.71 lakhs in the FY 2016-17, representing a CAGR of 180.99%. Also, the EBITDA margin has increased from 5.91% in FY 2014-15 to 7. 32% in the FY 2016-
17 and  profits for the year has increased from Rs. 8.90 lakhs in the FY 2014 – 15 to Rs. 55.96 lakhs in the FY 2016
-17, representing a CAGR of 150.44%.

Jai Hanuman Irrigation Promoters

The company has been promoted by the following:

  • Ashok Hanuman Choudhary, Chairman and Whole Time Director
  • Kailash Chand Choudhary, Promoter and Managing Director

Promoter Interest in the company

Promoters are interested in the Company to the extent that they have promoted our Company and to the extent of
their shareholding and the dividend receivable, if any and other distributions in respect of the equity shares held by them. Promoters may also be deemed to be interested in the Company to the extent of their shareholding in the Group Company with which the company transacts during the course of its operations. Promoters are the Directors and KMP of the Company and may be deemed to be interested to the extent of remuneration and/ or reimbursement of expenses payable to them for services rendered to the company.

Promoter Interest in the property of the company

Promoters do not have any other interest in any property acquired or proposed to be acquired by the Company from the date of incorporation i.e. July 07, 2017 till March 2018.

Jai Hanuman Irrigation IPO Offer Details or Issue Details

ParticularsNo. of Equity Shares
Public Issue of Equity Shares by Our
Company
45,92,000  Equity  Shares  of  face  value  of  Rs.  10/- each  fully paid  up  of  the  Company  for  cash  at  a  price  of  Rs.  17/- per Equity share aggregating to Rs. 7.80 crores
Of Which:
Market Maker Reservation Portion2,40,000   Equity  Shares  of  face  value  of  Rs.  10/- each  fully paid  up  of  the  Company  for  cash  at  a  price  of  Rs.  17/- per Equity share aggregating to Rs. 40.80 Lakh
Net Issue to the Public*43,52,000   Equity  Shares  of  face  value  of  Rs.  10/- each  fully paid  up  of  the  Company  for  cash  at  a  price  of  Rs.  17/- per Equity share aggregating to Rs. 7.39 crores
Of which:
21,76,000 Equity  Shares  of  face  value  of  Rs.  10/- each  fully paid  up  of  the  Company  for  cash  at  a  price  of  Rs.  17/- per Equity share aggregating to Rs.3.70 crores will  be  available  for allocation to Investors up to Rs. 2.00 Lakhs
21,76,000 Equity  Shares  of  face  value  of  Rs.  10/- each  fully paid  up  of  the  Company  for  cash  at  a  price  of  Rs.  17/- per Equity share aggregating to Rs.3.70 crores will  be  available  for allocation to Investors above Rs. 2.00 Lakhs
Pre and Post Issue Equity Shares
Equity Shares outstanding prior to the Issue57,64,710 Equity Shares of Face Value of Rs. 10/- each
Equity Shares outstanding after the Issue1,03,56,710 Equity Shares of Face Value of Rs. 10/- each

Jai Hanuman Irrigation IPO Issue Object

The company plans to use the funds firstly to set off the issue related expenses and then use the balance funds which may be approx Rs. 6.96 crores for the following objectives:

  • Funding the working capital requirements of the Company
  • General Corporate Purposes

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Jai Hanuman Irrigation IPO – Basis of the Offer Price

The Issue Price is determined by the Company in consultation with the Lead Manager, on the basis of an assessment of the quantitative and qualitative factors as described below. The face value of the Equity Shares is Rs. 10 each and the Issue Price is 1.7 times of the face value.
Qualitative factors influencing the offer price:
  • Experienced Management
  • Integrated & qualitative services
  • Government Subsidies
  • Non conventional business

Quantitative factors influencing the offer price:

  • Earning per share – The non-annualised EPS for December 2017 is Rs. 4.43.
  • Price/earning ratio – PE ratio is one of the key indicators used for analysing the performance of a company. However, since this is the first year post incorporation for the company, the PE ratio computation is not carried out.
  • Return on Net Worth – The non-annualised RoNW for December 2017 is 11.29%.
  • Net Asset Value – NAV per Equity Share – The net asset value per equity share as on 31 March 2017 is Rs. 11.27. The NAV after the issue Rs. 10.71
  • Comparison of Accounting ratios with Industry peers – The company believes hat there are no listed companies in India which are purely engaged in the business of setting up of green house, shade net house and mulching film. Further, there are no listed entities which are having comparable turnover and are focused exclusively in the segment in which the company operates.

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Jai Hanuman IPO Lead Managers

Lead Managers
Pantomath Capital Advisors Priavte Limited

Jai Hanuman Irrigation IPO Registrar to offer

Registrar of the Offer
 Bigshare Service Private Limited

Jai Hanuman IrrigationIPO Review by Top 10 Stock Brokers

Top Stock Brokers ReviewCompany Repu-tationCompe-titive EdgeFinan-cial State-mentPopu-larity IndexPromo-ters Repu-tation
Angel Broking6.2/106.3/106.2/106.1/106.1/10
Sharekhan6.2/106.1/106.6/106.1/106.2/10
Kotak Securities6.3/106.2/106.3/106.1/106.3/10
ICICI Direct6.3/106.3/106.7/106.1/106.1/10
IIFL6.2/106.2/106.8/106.0/106.1/10
Edelweiss6.2/106.3/106.3/106.3/106.2/10
Zerodha6.3/106.1/106.2/106.1/106.0/10
5Paisa6.1/106.1/106.3/106.1/106.1/10
Karvy6.3/106.3/106.2/106.1/106.1/10
Motilal Oswal6.1/106.1/106.6/106.3/106.2/10

 


Jai Hanuman IPO Grey Market Premium

The grey market for Jain Hanuman Irrigation IPO will open 15 days before the IPO is released. The traders will be dealing on the IPO. The grey market works on grey market premium and kostak rates. The kostak rates are also usually out a fortnight before the release of the IPO.


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