Lagnam Spintex IPO – Review, Allotment, Subscription, GMP Price, Date & more

Lagnam Spintex IPO consists of 60,00,000 Equity shares of Rs.10 each. Lagnam Spintex Limited is engaged in the business of manufacture of high quality yarn for domestic and export market ranging from count Ne 4 to Ne 20 which is used in Denim, Terry Towels, Bottom Wears, Home Textiles and Industrial Fabrics etc.

 Let’s have a detailed review of the company and analytics of the Lagnam Spintex IPO release date, IPO offer price, subscription, Lagnam Spintex IPO allotment, grey market price and other details like the company’s background, its financial positions, its promoters and other related things.

 


Lagnam Spintex IPO Review & Ratings

Lagnam Spintex IPO Ratings & Review
CriteriaRatings
Industry Sentiments 6.3/10
Industry Ranking 6.3/10
Company Background6.1/10
Company Reputation6.4/10
Competitive Edge6.4/10
Financial Statements6.5/10
Popularity Index6.2/10
Promoters Reputation6.3/10
Retail Appetite 6.2/10
Top Brokers Review6.3/10
Overall Ratings 6.3/10
Star Ratings★★★☆☆

Summary of Lagnam Spintex IPO

Lagnam Spintex IPOLagnam Spintex Limited is engaged in the business of manufacture of high quality yarn for domestic and export market ranging from count Ne 4 to Ne 20 which is used in Denim, Terry Towels, Bottom Wears, Home Textiles and Industrial Fabrics etc. 

The Issue comprises of a Public Issue of 60,00,000 Equity shares of face value of Rs.10.00 each fully paid (the “Equity Shares”) for cash at a price of Rs.41.00 (including a premium of Rs.31.00 per Equity Share) aggregating to Rs.2460.00 lakhs

From FY 2014-15 to FY 2017-2018, as per the Restated Financial Statements:

From fiscal 2016 to 2017, company’s revenue from operations and net profit has increased at a growth rate of 11.82 % and 27.62%, respectively.

  • In the past five years revenues have increased from INR 4,983.41 lakhs in F. Y. 2014-15 to INR 5,656.41 lakhs in F.Y. 2015-16, INR 7,538.43 lakhs in F.Y. 2016-17 and to INR 8,454.47 lakhs in F.Y. 2017-18 showing a CAGR of almost 19% over the three years.
  • Also the Net Profit after tax for the above-mentioned periods are INR 157.82 lakhs, INR 208.50 lakhs, INR 367.09 lakhs and INR 468.49 lakhs, respectively, showing that the profit after tax of the Company for the last three years has grown at a CAGR of almost 43%.

The Promoter of this company is Mr. Dwarka Prasad Mangal, Anand Mangal & Lagnam Infotech Solutions Private Limited . The lead manager to the issue is HOLANI CONSULTANTS  PRIVATE LIMITED and the Registrar to this issue is BIGSHARE SERVICES PRIVATE LIMITED.


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    Lagnam Spintex IPO Date

    The opening and the closing date of IPO of Lagnam Spintex is from Sep 2018 – 7 Sep 2018.


    Lagnam Spintex IPO Subscription

    Day / DateQIBNIIRIITotal Subscription
    Day 1 – Sep 20180.29x0.25x0.27x
    Day 2 – 5 Sep 20180.36x0.85x0.61x
    Day 3 – 6 Sep 20180.38x1.47x0.93x
    Day 4 – 7 Sep 2018
    Total offered shares2,850,0002,850,0005,700,000

    The shares subscribed by the public will be updated herein on a daily basis, once the IPO is open for subscription.


    Lagnam Spintex IPO Allotment Status

    Here, you can find the Allotment Status of this IPO. The Issue is being made through the Fixed Price Process wherein up to 60,00,000 Equity Shares shall be reserved for Market Maker upto 3,00,000 and 57,00,000 for the net public issue. The Issue and the Net Issue will constitute 33.96 % and 32.26%, respectively of the post Issue paid up equity share capital of the Company. Equity shares will be allocated on a proportionate basis to Retail Individual Applicants, 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.


    Lagnam Spintex IPO Price Band

    The face value of each share is Rs 10, at a price of Rs. 41/- per Equity Share.


    Lagnam Spintex Equity Share Offering

    60,00,000 Equity Shares of Rs 10/- each with the Issue Price of Rs. 41 including the premium of Rs.31, so it will be aggregated to Rs 2460 lakhs. The Minimum Order Quantity is 3000 Shares.


    Lagnam Spintex Limited – Company Overview

    Lagnam Spintex Private Limited was originally incorporated on June 11, 2010 as a Private Limited under the name and style of Lagnam Spintex Ltd under the provisions of the Companies Act, 1956 with the Registrar of Companies, Jaipur Rajasthan. Later,on January, 22, 2018 and the name of the company was converted into Lagnam Spintex Limited.

    Lagnam Spintex Limited is engaged in the business of manufacture of high quality yarn for domestic and export market ranging from count Ne 4 to Ne 20 which is used in Denim, Terry Towels, Bottom Wears, Home Textiles and Industrial Fabrics etc. Company has at present an installed capacity of 1,920 rotors for cotton yarn having capacity to produce 16.5 tonnes per day of high quality yarn.They have continuously expanded and modernized our facilities in line with the industry trend. Their plant is equipped with modern and automatic plant and machinery.

    The company has been recognized as “One Star Export House” by the Director General of Foreign Trade with a certificate valid from 2017 to 2022. They have also received OEKO Tex certification. They have a dedicated in-house Testing and Quality Control Team which undertakes rigorous testing and quality management.

    The Company is presently exporting cotton yarns to countries like Portugal, Italy, Germany, Belgium, South Africa, Slovenia, Columbia, China, Pakistan, Bangladesh and others. It is one of the few cotton yarn manufacturers globally who have received certification from USTER Technologies AG.

    Competitive Strengths of Lagnam Spintex Limited:

    • Focus on Quality and Innovation.
    • Experienced Management.
    • Cost effective production and timely fulfilment of orders.
    • Existing relationship with the clients.
    • Strong Technological Capabilities.

    Business strategies of Lagnam Spintex Limited:

    • Deepening the presence in the rice processing segment by expansion of product range
    • Expansion of geographical footprint
    • Diversification of product.
    • Facilitate equipment financing for its customers.
    • Pursue inorganic growth through acquisitions.

    Lagnam Spintex 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-Mar-1831-Mar-1731-Mar-1631-Mar-1531-Mar-14
    Total Assets8371.17187.537053.15398.854140.96
    Total Revenue8454.477538.435656.414983.414205.99
    Total Expense7881.636987.205338.354796.884029.39
    Profit After Tax468.49367.09208.50157.82144.71

    Earnings per Equity Share (in Lakhs)

    31-Dec-1731-Mar-1631-Mar-15
    Basic /Diluted0.440.49(0.08)

    From the above statements, one could find that the Lagnam Spintex Limited may perform well.


    Lagnam Spintex IPO – Promoters

    The Promoter of this company are:

    1. Dwarka Prasad Mangal
    2. Anand Mangal
    3. Lagnam Infotech Solutions Private Limited

    List of Related Parties (Key Managerial Personnel)

    • Devi Lal Mundra
    • Rajeev Parashar

    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.


    Lagnam Spintex IPO Offer Details or Issue Details

     Particulars No. Of Equity Shares
     Equity Shares Offered Public Issue of 60,00,000 Equity Shares of face value of Rs. 10/- each of the Company for cash at a price of Rs. 41/- per Equity Share (including a share premium of Rs. 31/- per equity share) (“Offer Price”) aggregating Rs. 2,460.00 Lakhs,
     Of which:
     Reserved for Market Makers 3,00,000 Equity Shares of face value of Rs. 10/- each fully paid up of the Company for cash at price of Rs. 41 /- per Equity Share aggregating Rs. 123.00 lakhs
     Net Issue to the Public 57,00,000 Equity Shares of face value of Rs.10/- each fully paid up of the Company for cash at price of Rs.41/- per Equity Share aggregating Rs. 2,337.00 lakhs
     Of which:
     Retail Investors Portion 28,50,000 Equity Shares of face value of Rs. 10/- each fully paid up of the Company for cash at price of Rs. 41/- per Equity Share aggregating Rs. 1,168.50 lakhs will be available for allocation for allotment to Investors of up to Rs. 2 lakhs
     Non-Retail Investors Portion28,50,000 Equity Shares of face value of Rs. 10/- each fully paid up of the Company for cash at price of Rs. 41/- per Equity Share aggregating Rs. 1,168.50 lakhs will be available for allocation to investors above Rs. 2 lakhs
     Equity Shares outstanding prior to the Issue1,16,69,000 Equity Shares
     Equity Shares outstanding after the Issue1,76,69,000 Equity Shares

    Lagnam Spintex IPO Issue Object

    These are the IPO Issue Objects of the company

    • Part finance the setting up of additional cotton yarn manufacturing facility.
    • Issue Expenses

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    Lagnam Spintex 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:

    • Focus on Quality and Innovation.
    • Experienced Management.
    • Cost effective production and timely fulfilment of orders.
    • Existing relationship with the clients.
    • Strong Technological Capabilities.

    The relevant quantitative factors are:

    Basic & Diluted EPSRONW (%)NAV in Rs.
    31-Mar-161.8612.2161.29
    31-Mar-173.2717.6980.85
    31-Mar-184.1517.72105.52
    • NAV in Rs.:
    ParticularsNAV in Rs
    Net Assets Value per Equity Share as at March 31, 201823.42
    Net Assets Value per Equity Share after the Issue27.42
    • Industry P/E Ratio:
    ParticularsP/E ratio
    P/E ratio based on the Basic & Diluted EPS, as restated for FY 2016-179.88
    P/E ratio based on the Weighted Average EPS, as restated11.78
    • Competitive Peers:
    CompanyCMP*EPSP/E ratioNAV per shareRoNWFace value per share
    Lagnam Spintex Limited41.004.159.8823.4217.7210
    PBM Polytex Ltd85.558.789.13131.176.7210
    KPR Mills621.3030.4420.41177.1317.495
    Sambandam Spinning Mills124.008.0915.38130.776.1410
    VippySpinpro44.105.847.3654.7010.6310
    Shiva Texyarn383.108.7444.15125.486.9410

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    Lagnam Spintex IPO Lead Managers

    Lead Managers
    HOLANI CONSULTANTS PRIVATE LIMITED

    401-405 & 416-418, 4th Floor, Soni Paris Point,

    Jai Singh Highway, Bani Park, Jaipur-302016
    Tel.: +91 0141-2203995
    Fax: +91 0141-2201259
    Website: www.holaniconsultants.co.in
    Email: ipo@holaniconsultants.co.in
    Investor Grievance Id: complaints.redressal@holaniconsultants.co.in
    Contact Person: Mr. Bharat Mantri
    SEBI Registration No.: INM000012467

    Lagnam Spintex IPO Registrar to offer

    Registrar to the Offer
    BIGSHARE SERVICES PRIVATE LIMITED

    1st Floor, Bharat Tin Works Building, Opp. Vasant Oasis, Makwana Road, Marol, Andheri East, Mumbai -400059 Maharashtra
    Tel: +91 -22- 6263 8200
    Fax: +91 -22- 6263 8299 Website: www.bigshareonline.com
    Email: ipo@bigshareonline.com
    Investor Grievance id:[●]
    Contact Person: Mr. Ashok Shetty
    SEBI Registration Number: INR000001385


    Other Details:

    • Statutory Auditor –M/s. SSMS & ASSOCIATES
    • Peer Review Auditor –M/s. SSMS & ASSOCIATES
    • Bankers to the Company –STATE BANK OF INDIA

    Lagnam Spintex IPO Review by Top 10 Stock Brokers

    Top Stock Brokers ReviewCompany ReputationCompetitive EdgeFinancial StatementPopularity IndexPromoters Reputation
    Angel Broking6.5/106.6/106.6/106.4/106.4/10
    Sharekhan6.7/106.4/106.6/106.1/106.2/10
    Kotak Securities6.7/106.7/106.7/106.4/106.3/10
    ICICI Direct6.6/106.3/106.7/106.5/106.5/10
    IIFL6.4/106.7/106.8/106.4/106.7/10
    Edelweiss6.7/106.4/106.4/106.3/106.7/10
    Zerodha6.5/106.4/106.7/106.4/106.5/10
    5Paisa6.7/106.4/106.3/106.7/106.5/10
    Karvy6.8/106.3/106.7/106.4/106.0/10
    Motilal Oswal6.6/106.4/106.6/106.6/106.4/10

    The ratings would be updated once the financials and the other details of the IPO are released.


    Lagnam Spintex IPO Grey Market Premium

    The Lagnam Spintex 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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      Lagnam Spintex IPO News

      News 1 – IPO ISSUE OPENS SOON (Download Prospectus)


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