Milestone Furniture IPO – Review, Allotment Status, Subscription, Price, Date & more

A Mumbai based company of Milestone Group i.e. Milestone Furniture is all set to float out an IPO to raise funds worth Rs. 15 crores almost. Milestone Furniture is making fresh equity issue to fund its business expansion plans. The total offer made also includes certain reservation for the market makers. Let us read the article to understand Milestone Furniture IPO offer, the IPO offer price, basis of fixing price, company financials and background and other details about this IPO.


Milestone Furniture IPO Review & Ratings

Milestone Furniture IPO Ratings & Review
CriteriaRatings
Industry Sentiments 6.3/10
Industry Ranking 6.6/10
Company Background6.2/10
Company Reputation6.3/10
Competitive Edge6.7/10
Financial Statements6.1/10
Popularity Index6.7/10
Promoters Reputation6.3/10
Retail Appetite 6.7/10
Top Brokers Review6.4/10
Overall Ratings 6.4/10
Star Ratings★★★☆☆

Summary of Milestone Furniture IPO

Milestone Furniture IPOMilestone Furniture was set up in the year 2014 by the promoters Mr. Mr. Digambar S. Songhare & Mr. Ganeshkumar S. Patalikadan with an aim of running manufacturing and marketing of Interior and Modular furniture business. Company & its executives have developed the skill and expertise in Space & work station Management, designing and innovation in Furniture used in Education, Healthcare and Corporate organisation. Milestone Furniture IPO is releasing for subscription on 7 May 2018 and will be open for 4 days. The company has fixed the price at Rs. 35 per share which implies 3.5 times the face value of the share. The article discusses in details the basis of fixing this price by the company. The IPO is being managed by Monarch Networth Capital and the registrar to the offer is Karvy Computershare.


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Milestone Furniture IPO Date

The company will be opening the IPO for public subscription on 07 May 2018 and will be open till 11 May 2018.

Milestone Furniture IPO Subscription

 Subscription
Day 1 – 7 May ’18X
Day 2 – 8 May ’18X
Day 3 – 9 May ’18X
Day 4 – 10 May ’18X
Day 5 – 11 May ’18X

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

Milestone Furniture IPO Allotment Status

The details of allotment of shares made by the company to the public will be updated herein once the company is through with the allotment process.

Milestone Furniture IPO Price Band

Milestone Furniture has been through with the book building process along with their lead managers and have come up with an offer price of Rs. 35 per share. The details of how the price has been decided, is discussed in the later sections of this article.

Milestone Furniture IPO Issue Size

The total IPO of Milestone Furniture is of about Rs 14.83 crores of which certain share will be coming in from the market makers.

Milestone Furniture IPO Equity Share Offerings

The IPO holds 32.97 lac equity shares of face value Rs. 10 each. Out of the said number, the company has reserved 1.65 lacs for the market makers. The number of shares offered under this IPO constitutes 35% of the post issue paid up capital of the company.


Milestone Furniture Limited – Company Overview

Milestone Furniture was originally incorporated as Milestone Furniture Private Limited‖ on March 12, 2014 by the Promoters- Mr. Digambar S. Songhare & Mr. Ganeshkumar S. Patalikadan with an aim of running manufacturing and marketing of Interior and Modular Furniture business. The Company & its executives have developed the skill and expertise in Space & work station Management, designing and innovation in Furniture used in Education, Healthcare and Corporate organisation. Milestone Furniture have also developed the In house technical & Design team to provide turnkey solution and implementation of interior and work space in Commercial, Residential and Institutions. The company’s aim is to develop Interiors and Designs in Modular furniture and developed the technique to make all products as ― Make in India‖ and provide competition to China and other Markets. Under the guidance of promoters, the company has successfully executed turnkey projects for design, supply & implementation of Interiors and Modular furniture in Education, healthcare and corporate organisation. The company has regular business from existing clients such as Poddar International School, Architect and Contractors. The company has developed the regular clients for supply of office furniture and fittings. It has developed the In house team of professionals for Design, drawing and space management interiors suitable and specification of client needs.

Key members of Milestone Furniture Limited:

  • Digamber Sudam Songhare, Managing Director
  • P.S. Ganeshkumar, CEO & Executive Director

Competitive Strengths of Milestone Furniture Limited:

  • Experienced promoters and Management Expertise
  • Quality projects and committed operations
  • Independent Execution capabilities
  • Networking strength

Business strategies of Milestone Furniture Limited:

  • Leveraging Market Skills
  • Long Term Relationship with Clients
  • Achieving Operational Efficiencies
  • Expand Distribution Network & Customer Base
  • Brand Building
  • Expand the Business in new location

Milestone Furniture – Financial Statements

A quick look into the past financial performance of the company to understand its performance of business and evaluate the growth prospectus:

Assets of the Company

Assets (in INR & Lakhs)
 Mar’17Mar’16Mar’15Mar’14Mar’13
Non-Current Asset90383334NA
Current Asset44219218449NA
Total Asset53223021783NA

Revenue & PAT of the Company

Revenue & Profits (in INR & Lakhs)
 Mar’17Mar’16Mar’15Mar’14Mar’13
Total Revenue89555233238NA
Profit after Tax (PAT)322053NA

Earnings per Equity Share

Earning per Equity Share (in INR)
 Mar’17Mar’16Mar’15Mar’14Mar’13
Basic93.90198.9054.20NANA
Diluted93.90198.9054.20NANA

Based on the financials above, the company has certainly seen a growth in the revenue base and the earnings as well. The EPS indicator also gives a good picture though there appears to be small bump in one of the years, but that does not make the company a bad venture.


Milestone Furniture Promoters

The company has been promoted by the following

  • Digamber Sudam Songhare
  • P.S. Ganeshkumar

Promoter Interest in the company

The Promoters are interested in the Company to the extent that they have promoted the 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. Individual Promoter is also the Director and Key Managerial Personnel of the Company and may be deemed to be interested to the extent of remuneration and/ or reimbursement of expenses payable to him for  services rendered to the company in accordance with the provisions of the Companies Act and in terms of the agreements entered into with the Company.

Promoter Interest in property of the company

Promoter does 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. Further, the Promoters are not currently interested in any transaction with the Company involving acquisition of land, construction of building or supply of any machinery.


Milestone Furniture IPO Offer Details or Issue Details

Issue of Equity Shares32,97,000 Equity Shares of Face Value of Rs. 10/- each for Cash
at a Price of Rs. 45/- Per Equity Share (Including a Share Premium of Rs. 35/- per Equity Share) aggregating to Rs.1483.65 lakhs.
Consisting of:
A) Issue reserved for market makers1,65,000 Equity Shares of Rs.10/- each for cash at a price of Rs. 45/-per share aggregating Rs.74.25lakhs
B) Net issue to the public31,32,000 Equity Shares of Rs.10/- each for cash at a price of Rs. 45/- per share aggregating Rs. 1409.40 lakhs
Of which:
15,66,000 Equity Shares of Rs.10/- each for cash at a price of Rs. 45/-per share ( including a premium of Rs. 35/- per Equity Share) will be available for allocation for allotment to Retail Individual Investors of up to Rs.2.00 Lakhs
15,66,000 Equity Shares of Rs.10/- each for cash at a price of Rs. 45/- per share ( including a premium of Rs. 35/-per Equity Share)will be available for allocation for allotment to Other Investors of above Rs.2.00 Lacs
Pre and Post-Issue Equity Shares
Equity Shares outstanding prior to this Offer60,00,000 Equity Shares of Rs. 10/- each
Equity Shares outstanding after this Offer92,97,000 Equity Shares of Rs. 10/- each

 


Milestone Furniture IPO Issue Object

Milestone Furniture intends to use the net proceeds of the issue for the following purposes:

  • To set up the manufacturing facility to manufacture the modular and innovative furniture
  • Working Capital Requirement
  • General Corporate Expenses

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Milestone Furniture 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. The face value of the Equity Share is Rs. 10 and Issue Price is Rs.45/-per Equity Share and is 4.5 times the face value.

Qualitative factors influencing the offer price:

  • Experienced promoters and Management Expertise
  • Quality projects and committed operations
  • Independent Execution capabilities
  • Networking strength

Quantitative factors influencing the offer price:

  • Earning per share – The company has an EPS of Rs. 93.9  for FY 20016-17 and the weighted average EPS for the three latest years is Rs. 122.3
  • Price/earning ratio – PE ratio is the price earning ratio which determines the ratio between the price and the earning of the company. The PE ratio based on the EPS of Rs. 93.9 works out to 0.48 and the industry average PE ratio is 20.28 with highest PE being 33.26 and lowest being 7.30.
  • Return on Net Worth – For FY 2016-17, the company earned a RoNW to the tune of 8% and the weighted average RoNW is 44.76%. The minimum RoNW to maintain the pre-issue EPS of Rs. 93.9 is 208.7%.
  • Net Asset Value – NAV per Equity Share – The net asset value per equity share for FY 2016-17 is Rs. 13.4.
  • Comparison of Accounting ratios with Industry peers -The listed peer companies are Nilkamal Limited, PIL Italica Lifestyle and Omfurm India.

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Milestone Furniture IPO Lead Managers

Lead Managers
Monacrh Networth Capital Limited

Milestone Furniture IPO Registrar to offer

Registrar of the Offer
Karvy Computershare Private Limited

Milestone Furniture IPO Review by Top 10 Stock Brokers

Top Stock Brokers ReviewCompany Repu-tationCompe-titive EdgeFinan-cial State-mentPopu-larity IndexPromo-ters Repu-tation
Angel Broking6.4/106.6/106.0/106.4/106.0/10
Sharekhan6.2/106.1/106.6/106.1/106.2/10
Kotak Securities6.3/106.2/106.3/106.4/106.3/10
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
Zerodha6.3/106.4/106.3/106.3/106.0/10
5Paisa6.1/106.4/106.3/106.1/106.1/10
Karvy6.3/106.3/106.2/106.1/106.0/10
Motilal Oswal6.3/106.4/106.3/106.5/106.4/10

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


Milestone Furniture IPO Grey Market Premium

The grey market has opened up already for the Milestone Furniture IPO. The stock is being dealt on grey market premium i.e. at the kostak rate. The grey market generally opens up 15 days before the release of the IPO. The grey market is traded among the local traders and they are the best lot to go for such deals.


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Milestone Furniture IPO News

News 1 – IPO ISSUES OPEN NOW


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