Sorich Foils IPO – Review, Allotment Status, Subscription, Price, Date & more

Sorich Foils IPO opens on 24th May 2018 with 25,00,000 equity shares & issue size of Rs.400 Lakhs. The issue entirely constitutes fresh issue and no secondary sale is taking place i.e. none of the current investors or shareholders will be liquidating their holding. The offer constitutes 30% of the post issue paid up capital of the company.

In this article, more details about this small and mid cap company IPO are discussed like the Sorich Foils IPO offer price, IPO release date, Sorich Foils IPO objective, company background, financials and the potential.


Sorich Foils IPO Review & Ratings

Sorich Foils IPO Ratings & Review
CriteriaRatings
Industry Sentiments 6.5/10
Industry Ranking6.3/10
Company Background6.6/10
Company Reputation6.5/10
Competitive Edge 6.1/10
Financial Statements6.5/10
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 Sorich Foils IPO

Sorich Foils IPOSorich Foils is engaged in manufacturing and supplying a varied range of Aluminium Foils for Blister, Strip Foils, Cold Forming Foil, Coated Glassine Paper for Blister, Laminated Glassine Paper for Strip Pack, Child Resistant (CR) Foils, Aluminium Lid Foils, Triple Laminates, Flexible Packaging for Pharma & Food Industries, also FMCG packaging materials.

Sorich Foils plans to issue  25,00,000 equity shares at an issue price of Rs. 16 per share which means a premium of Rs. 6 per share. Out of this,  25,00,000 shares, certain proportion has been reserved for the market makers. The further details of the issue and reservations in issue have been discussed in the subsequent section of this article.

Sorich Foils have appointed M/s Saffron Capital Advisors Private Limited as their book running lead managers for this IPO and the registrar to the IPO is Link Intime.


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Sorich Foils IPO Date

The Company IPO is releasing on May 24th 2018 & closing on May 28th 2018.

Sorich Foils IPO Subscription

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

The details of shares subscribed by the public would be updated on a daily basis upon release of the IPO.

Sorich Foils IPO Allotment Status

Once the subscription and the allotment process is completed, the details of allotment of shares will be updated in this section of the article.

Sorich Foils IPO Price Band

The company has decided the offer price in consultation with the lead managers vide the book building process. The shares have been currently priced at Rs. 16 per share which means a premium of Rs. 6 per share.

Sorich Foils IPO Issue Size

The company is to raise a fund of Rs.400 lacs. This constitutes 30% of the post issue paid up capital of the company. Also, out of this Rs.400 lacs,  Rs.32 lacs will be from the market makers.

Sorich Foils IPO Equity Share Offerings

Sorich Foils is offering  25,00,000 equity shares under fresh offer. However, the company has reserved 2 lac shares for the market makers.


Sorich Foils Limited – Company Overview

Sorich Foils Limited was incorporated as ‘Sorich Foils Private Limited’ on January 19, 2011 and the  Company is an ISO 9001: 2015 certified company engaged in manufacturing and supplying a varied range of Aluminium Foils. The product range includes – printed & plain aluminium foil, blister pack, child resistance oils, strip pack, lid aluminium foil, confectionery packaging, extrusion lamination, polyster/BOPP based laminates, FMCG packing material, preformed pouches etc.

These products are manufactured using quality raw material, which is sourced from reliable vendors of the market. This range is designed & developed utilizing advanced machinery and latest technology in complete adherence with the industry laid norms and standards.

They offered range is appreciated among the clients for its features such as Water Vapor Resistance, Moisture & chemical barrier properties. These products are widely applicable in different industries such as Pharmaceutical Industries, FMCG packaging, Food and dairy industries, Confectionery / Chocolate industries & Personal Care Packaging.

There is in house quality check department to check the entire range on different parameters to maintain its authenticity throughout the manufacturing process.

The manufacturing facilities of our Company is currently located at Valsad Gujrat.

Key members of Sorich Foils Limited:

  • Chandrahas Kotian, Managing Director & CEO
  • Rajkumar Mishra, Non-executive Director
  • Priya Kotian, Non-executive Director
  • Mayur Jain, Independent Director

Competitive Strengths of Sorich Foils Limited:

  • Experienced Management Team
  • Quality Products
  • Wide range of products catering to various industries
  • Research and Development
  • History of repeat orders

Business strategy of Sorich Foils Limited:

  • Focus on Pharma Sector
  • Introduction of new printing machines
  • Pursue international growth opportunities
  • Improving functional efficiencies
  • Improving marketing strategies
  • Quality process to be made more stringent

Sorich Foils – Financial Statements

A snapshot of the important figures of the company for last 5 years has been provided here for your quick glance and analysis;

Assets of the Company

Assets (in INR & Lakhs)
 Mar’17Mar’16Mar’15Mar’14Mar’13
Non-Current Asset91132155111108
Current Asset1,5091,5311,373849848
Total Asset1,5991,6631,528960956

Revenue & PAT of the Company

Revenue & Profits (in INR & Lakhs)
 Mar’17Mar’16Mar’15Mar’14Mar’13
Total Revenue2,6592,6902,5072,2861,963
Profit after Tax (PAT)3319222024

Earnings per Equity Share

Earning per Equity Share (in INR)
 Mar’17Mar’16Mar’15Mar’14Mar’13
Basic5.964.756.190.690.81
Diluted5.964.756.190.690.81

The company has seen quite a growth in its revenue but the PAT growth appears to be a bit limited in comparison to the growth in revenue. The EPS indicates a good growth overall for the shareholders.


Sorich Foils Promoters

The company Sorich Foils has been promoted majorly by Mr. Chandrahas Kotian.

Promoter Interest in the company

The Promoter is interested in the Company to the extent of the shareholding in the Company and any dividend or other distribution payable, if any, by the Company.

Promoter Interest in property of the company

The 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.


Sorich Foils IPO Offer Details or Issue Details

Issue of Equity SharesUp to 25,00,000 Equity Shares of Rs. 10 each fully paid-up of the Company for cash at a price of Rs. 16 per Equity Share aggregating to Rs. 400 Lacs.
Of which:
A) Issue reserved for market makersUp to 2,00,000 Equity Shares of Rs. 10 each fully paid-up of the Company for cash at a price of Rs. 16 per Equity Share aggregating to Rs. 32 Lacs.
B) Net issue to the publicUp to 23,00,000 Equity Shares of Rs. 10 each fully paid-up of the Company for cash at a price of Rs. 16 per Equity Share aggregating to Rs. 368 Lacs.
Of which:
Allocation to Retail Individual Investors for upto Rs. 2.00 lakhsUp to 1150000 Equity Shares of Rs. 10 each fully paid-up of the Company for cash at a price of Rs. 16 per Equity Share aggregating to Rs. 184 Lacs
Allocation to other than Retail Investors for above Rs. 2.00 lakhsUp to 1150000 Equity Shares of Rs. 10 each fully paid-up of the Company for cash at a price of Rs. 16 per Equity Share aggregating to Rs. 184 Lacs.
Pre and Post-Issue Equity Shares
Equity Shares outstanding prior to this Offer58,33,334 Equity Shares of face value of Rs.10/- each
Equity Shares outstanding after this Offer83,33,334 Equity Shares of face value of Rs.10/- each

Sorich Foils IPO Issue Object

Sorich Foils Limited intends to use the funds for the following purposes after setting of the issue related expenses:

  • Part Repayment / prepayment of Unsecured Loans availed by the Company; and
  • General corporate purposes

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Sorich Foils IPO – Basis of the Offer Price

The Issue Price has been determined by the Company in consultation with the Lead Manager, on the basis of the
assessment of market demand for the offered Equity Shares through the Fixed Price Process and on the basis of
quantitative and qualitative factors as described below. The face value of the Equity Shares is Rs.10 each and
the Issue Price is 1.60 times of the face value.

Qualitative factors influencing the offer price:

  • Experienced Management Team
  • Quality Products
  • Wide range of products catering to various industries
  • Research and Development
  • History of repeat orders

Quantitative factors influencing the offer price:

  • Earning per share – Sorich Foils has a weighted average EPS of Rs. 4.17.
  • Price/earning ratio – Considering the EPS of Rs. 4.17, the PE ratio turns out to be 3.84. The industry average PE ratio is 7.25.
  • Return on Net Worth – The weighted average RoNW for the three latest years is 10.83. The minimum RoNM after Issue needed to maintain Pre-Issue EPS for the year ended March 31, 2017 is 20.08%
  • Net Asset Value – NAV per Equity Share – The net asset value per equity share for FY 2016-17 is Rs. 29.28. Post the issue, the NAV per share would be Rs. 16.36
  • Comparison of Accounting ratios with Industry peers – The peer group includes Sysco Industries Limited and PG Foils Limited.

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Sorich Foils IPO Lead Managers

Lead Managers
Saffron Capital Advisors Private Limited

Sorich Foils IPO Registrar to offer

Registrar of the Offer
Link Intime India Private Limited

Sorich Foils IPO Review by Top 10 Stock Brokers

Top Stock Brokers ReviewCompany Repu-tationCompe-titive EdgeFinan-cial State-mentPopu-larity IndexPromo-ters Repu-tation
Angel Broking6.2/106.3/106.2/106.1/106.1/10
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

Sorich Foils IPO Grey Market Premium

Sorich Foils IPO grey market would open 15 days before the launch of the IPO. The grey market is an unofficial market wherein the upcoming IPOs are dealt. This means, before the shares get listed, they are traded in the grey market. The grey market prices are generally at a premium. The grey market price or the kostak rates are generally available with the broker agents 15 days before the IPO is released.


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