Sahaj Fashions IPO – Review, Allotment, Subscription, GMP & DRHP

Sahaj Fashions Limited are engaged in manufacturing of international standard fabric which is used for various purposes such as Garments, Home Furnishings, and Industrial Applications, etc. Sahaj Fashions IPO comprises of 26,70,000 Equity shares, face value of Rs.10 each.

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


Sahaj Fashions IPO Review & Ratings

IPO Ratings & Review
Criteria Ratings
Industry Sentiments 8.5/10
Industry Ranking 7.8/10
Company Background 7.9/10
Company Reputation 7.9/10
Competitive Edge 7.7/10
Financial Statements 7.8/10
Popularity Index 8.4/10
Promoters Reputation 7.7/10
Retail Appetite 7.9/10
Top Brokers Review 7.9/10
Overall Ratings 8.1/10
Star Ratings ★★★★☆

Summary of Sahaj Fashions Limited IPO

 Sahaj Fashions IPOSahaj Fashions Limited are engaged in manufacturing of international standard fabric which is used for various purposes such as Garments, Home Furnishings, and Industrial Applications, etc. The Public Issue of 26,70,000 Equity Shares of face value of Rs. 10/- each fully paid for cash at a price of Rs. 42/- per Equity Share aggregating Rs. 1,121.40 Lakhs (“the Issue”). Issue of Equity Shares will constitute 26.48% of the fully diluted Post-Issue paid up capital of the Company. The face value of the Equity Shares is Rs. 10/- and the Issue Price is 4.2 times of the face value.

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

  • As per restated financials the revenues have continuously increased from Rs. 3,264.01 lakhs in FY 2013-14 to Rs. 3,814.93 lakhs in FY 2014-15 to Rs. 6,278.38 lakhs in FY 2015-16 to Rs. 8,349.74 lakhs in FY 2016-17 and further to Rs. 11,197.82 lakhs in FY 2017-18, showing an increase of 16.88%, 64.57%, 32.99% and 34.11%.
  • During the financial year 2017-18 the Other Income of the company increased to Rs. 87.31 Lakhs as against Rs. 14.69 Lakhs for the financial year 2016-17, representing increase by 494.34% due to increase in interest income & insurance claim in FY 2017- 18.
  • Their Net Profit After Tax (PAT) for the above mentioned periods were Rs. 26.01 lakhs, Rs. 27.58 lakhs, Rs. 51.76 lakhs, Rs. 57.35 lakhs and Rs. 293.80 lakhs, respectively, showing an increase of 6.05%, 87.64%, 10.80% and 412.33%. The total revenue of the Company in these 5 financial years has grown at a CAGR of 36.12% and the profit after tax for the same period has grown at a CAGR of 83.33%.

The Promoter of this company is Mr. Rohit Toshniwal, Mr. Norat Mal Choudhary and Mrs. Prabha Lakhotia. 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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Sahaj Fashions IPO Date

The opening and the closing date of Sahaj Fashions Limited IPO is not known yet.


Sahaj Fashions IPO Subscription

Day / Date QIB NII RII Total Subscription
Day 1 
Day 2
Day 3
Day 4
Day 5
Shares Offered or Net Issue

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


Sahaj Fashions IPO Allotment Status

Here, you can find the Allotment Status of this IPO.


Sahaj Fashions IPO Price Band

The face value of each share is Rs 10, but the price band of the IPO is not yet disclosed. 


Sahaj Fashions IPO Equity Share Offering

26,70,000 Equity Shares of Rs 10/- each but Issue Price each fully paid for cash at a price of Rs. 42/- per Equity Share aggregating Rs. 1,121.40 Lakhs.


Sahaj Fashions Limited – Company Overview

Sahaj Fashions Limited was incorporated as Sahaj Fashions Private Limited under the provisions of the Companies Act, 1956 vide certificate of incorporation dated May 20, 2011 in Kishangarh, Rajasthan. Thereafter, the name of the Company was changed to “Sahaj Fashions Limited” vide fresh Certificate of Incorporation dated April 17, 2018.

Sahaj Fashions Limited are engaged in manufacturing of international standard fabric which is used for various purposes such as Garments, Home Furnishings, and Industrial Applications, etc. They have expertise in manufacturing of primarily cotton suiting fabric and cotton shirting fabric apart from polyster based and cotton-polyster blended fabrics. They also manufacture cotton yarn dyed fabrics which are almost always in demand by the garment manufacturing industry.

They have penetrated the home state of Rajasthan as well as some other states like Gujarat, Maharashtra & Delhi.

The Company is promoted by Mr. Rohit Toshniwal, Mr. Norat Mal Choudhary and Mrs. Prabha Lakhotia  and is the guiding force behind the growth and strategic decisions of the Company.

Competitive Strengths of Sahaj Fashions Limited:

  • Experienced Promoters and proficient management team with low attrition rates;
  • Established growth since the beginning of operations;
  • Ability to cater huge demands;
  • Long standing relationship with the customers & Suppliers;
  • In House Preparatory;
  • World Class Technology

Business strategies of Sahaj Fashions Limited:

  • Continue to optimize the product mix to improve margins
  • Increase the focus on building the brands
  • Geographical Expansion
  • Focus on special product development for Exports
  • Increase sales of the products by reaching out to finished whole sellers and expanding the export markets
  • Increasing Operational efficiency

Sahaj Fashions 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-18 31-Mar-17 31-Mar-16 31-Mar-15 31-Mar-14
Total Assets 7,618.91 5,907.20 5,414.12 3,920.28 1,993.17
Total Revenue 11,197.82 8,349.74 6,278.38 3,814.93 3,264.01
Total Expense 10,114.37 7,509.77 5,618.43 3,439.30 2,940.40
Profit After Tax 293.80 57.35 51.76 27.58 26.01

Earnings per Equity Share (in Lakhs)

31-Mar-18 31-Mar-17 31-Mar-16
Basic & Diluted 6.54 0.83 0.58

From the above statements, one could find that the Sahaj Fashions Limited may perform well.


Sahaj Fashions IPO – Promoters

The Promoter of this company are:

  1. Mr. Rohit Toshniwal,
  2. Mr. Norat Mal Choudhary
  3. Mrs. Prabha Lakhotia

List of Related Parties (Key Managerial Personnel)

  • Norat Mal Choudhary
  • Mr. Mukul Lakhotia (Chief Financial Officer)
  • Nikita Daga (Company Secretary & Compliance Officer)

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.


Sahaj Fashions IPO Offer Details or Issue Details

 Particulars  No. Of Equity Shares
 Equity Shares Offered 26,70,000 Equity Shares of face value of Rs. 10/- each fully paid of the Company for cash at price of Rs. 42/- per Equity Share aggregating Rs. 1,121.40 lakhs.
 Of which:
 Reserved for Market Makers 1,38,000 Equity Shares of face value of Rs. 10/- each fully paid of the Company for cash at price of Rs. 42/- per Equity Share aggregating Rs. 57.96 lakhs.
 Net Issue to the Public 25,32,000 Equity Shares of face value of Rs. 10/- each fully paid of the Company for cash at price of Rs. 42/- per Equity Share aggregating Rs. 1,063.44 lakhs.
 Of which:
 Retail Investors Portion 12,66,000 Equity Shares of face value of Rs. 10/- each fully paid of the Company for cash at price of Rs. 42/- per Equity Share will be available for allocation to investors up to Rs. 2.00 Lakhs
 Non-Retail Investors Portion 12,66,000 Equity Shares of face value of Rs. 10/- each fully paid of the Company for cash at price of Rs. 42/- per Equity Share will be available for allocation to investors above Rs. 2.00 Lakhs
 Equity Shares outstanding prior to the Issue 74,12,160 Equity Shares of face value of Rs.10 each
 Equity Shares outstanding after the Issue 1,00,82,160 Equity Shares of face value of Rs.10 each

Sahaj Fashions IPO Issue Object

These are the IPO Issue Objects of the company

  • Funding the Working Capital requirements of the Company:
  •  Repayment/ pre-payment of certain unsecured loans availed from banks and financial institutions
    by the company; and
  •  General Corporate Purposes

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Sahaj Fashions 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 growth since the beginning of operations;
  • 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 (%) NAV (Rs.)
31-Mar-16 0.75 5.61
31-Mar-17 0.79 5.63
31-Mar-18 4.05 22.39 18.08
  • Price to Earnings (P/E) ratio in relation to Issue Price of Rs. 42/- per Equity Share of face value of Rs. 10/- each:
Particulars P/E ratio
P/E ratio based on Basic EPS for FY 2017-18 10.37
P/E ratio based on Weighted Average EPS 17.43
  • Competitive Peers:
Particulars Face Value (in Rs.) EPS     (In Rs.) P/E Ratio
Sahaj Fashions Limited 10.00 4.05 10.37
Arvind Limited 10.00 9.67 41.52
Nahar Industrial Enterprises Limited 10.00 4.32 15.00
Sangam India Limited 10.00 7.72 10.80

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Sahaj Fashions IPO Lead Managers

Lead Managers
KHAMBATTA SECURITIES LIMITED
C-42, South Extension Part II,
New Delhi-110049
Tel: 011-41645051
Fax: 011-41644896
Email:
Investor Grievance Email:

Website: www.khambattasecurities.com
Contact Person: Mr. Vipin Aggarwal
SEBI Registration No.: INM000011914

Sahaj Fashions 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
Tel: (022) 62638200
Fax: (022) 62638299
Email:
Website: www.bigshareonline.com
Contact Person: Mr. Vipin Gupta
SEBI Registration No: INR000001385

Other Details:

  • Statutory Auditor –  Bng & Associates LLP Chartered Accountants
  • Peer Review Auditor – M/s Patel Shah & Joshi, Chartered Accountants
  • Bankers to the Company –  HDFC Bank Limited

Sahaj Fashions IPO Review by Top 10 Stock Brokers

Top Stock Brokers Review Company Reputation Competitive Edge Financial Statement Popularity Index Promoters Reputation
Angel Broking 7.5/10 7.4/10 8.5/10 8.1/10 7.1/10
Sharekhan 7.2/10 7.1/10 8.6/10 8.1/10 7.2/10
Kotak Securities 7.3/10 7.5/10 8.4/10 8.1/10 7.3/10
ICICI Direct 7.3/10 7.3/10 8.7/10 8.1/10 7.1/10
IIFL 7.5/10 7.2/10 8.8/10 8.0/10 7.1/10
Edelweiss 7.5/10 7.4/10 8.4/10 8.3/10 7.2/10
Zerodha 7.4/10 7.1/10 8.5/10 8.1/10 7.0/10
5Paisa 7.1/10 7.1/10 8.4/10 8.1/10 7.1/10
Karvy 7.4/10 7.3/10 8.2/10 8.1/10 7.1/10
Motilal Oswal 7.1/10 7.1/10 8.6/10 8.3/10 7.2/10

Sahaj Fashions IPO Grey Market Premium

The Sahaj Fashions 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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Sahaj Fashions IPO News

News 1 – IPO ISSUE OPENS SOON (Download Prospectus)


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