Suumaya Lifestyle, based in Mumbai, is backed up by Indiacredit Risk Management LLP and the promoters. The company now wishes to come with an IPO sized Rs. 13.83 crores. The Suumaya Lifestyle IPO also consists certain offer for sale component i.e. secondary issue wherein the existing promoters will be liquidating their stake in the capital. Lets read the article to know more about Suumaya Lifestyle IPO like the IPO offer price, IPO reservation, IPO objective, company background, promoters background and the financial figures of the company.


Suumaya Lifestyle IPO Review & Ratings

Suumaya Lifestyle 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 Ratings6.4/10
Star Ratings11★★★☆☆

 


Suumaya Lifestyle IPOSummary of Suumaya Lifestyle IPO

Suumaya Lifestyle is engaged in the manufacturing of designer wear of women like kurtis, ethnic tops, salwar suits etc. and deals in designer women apparels. The company was established in 2011 when it was into real estate business. Thereafter, in April 2017, the company was acquired by Richway International Trade Limited, through Business Transfer Agreement between Suumaya Fashions a proprietary firm of Mr. Ushik Gala and Suumaya Lifestyle Limited (Formerly known as Richway International Trade Limited).

The company has been promoted by Ms. Ishita Mahesh Gala and Indiacredit Risk Management LLP. The IPO holds 76,88,000 equity shares with face value of Rs. 10 each out of which only 18,88,000 equity shares are freshly offered i.e. the balance is on account of secondary sale. Of the total issue, the company has reserved 3,92,000 equity shares for subscription by the market makers. The book running lead manager for this IPO is Gretex Corporate Services and the registrar to the offer is Bigshare Services.


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    Suumaya Lifestyle IPO Date

    The IPO for Suumaya Lifestyle is still under process and the company is yet to finalise the release date. However, it is expected to be released by the third quarter of this calendar year. Once the company finalises the date, this section will be updated with the details.

    Suumaya Lifestyle IPO Subscription

     Subscription
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    Day 4 X
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    The subscription details will be updated herein on daily basis once the IPO is released.

    Suumaya Lifestyle IPO Allotment Status

    The allotment will be done once the subscription is completed. Hence, these details will be updated post the subscription date.

    Suumaya Lifestyle IPO Price Band

    Summaya Lifestyle has fixed up a price in consultation with the lead managers via the book building process. The company has an offer price of Rs. 18 per share which means a premium of Rs. 8 per share. To understand the factors involved in fixing the price, please read the subsequent sections of the article.

    Suumaya Lifestyle IPO Issue Size

    The total size of Suumaya Lifestyle IPO is Rs. 13.83 crores, of which Rs. 10.44 crores is by way of secondary sale and Rs. 3.39 crores is by way of fresh shares. This would represent 33% of the post issue paid up capital of the company.

    Suumaya Lifestyle IPO Equity Share Offerings

    The number of shares being offered under the IPO is 76,88,000. Out of this, only 18,88,000 equity shares are fresh issue and the balance i.e. 58,00,000 equity shares are under offer for sale. Further, the company has reserved 3,92,000 equity shares for the market makers and the shares available to the public will be 72,96,000 equity shares.


    Suumaya Lifestyle Limited – Company Overview

    Established in the year 2011, initially the Company was engaged into real -estate business and was listed into ITP segment and the current management with experience of around 30 years into the textile business started dealing in cotton and other fabrics used in manufacturing of women apparels. Suumaya Lifestyle is engaged in the manufacturing of designer wear of women like kurtis, ethnic tops, salwar suits etc. and deals in designer women apparels.  On April 16, 2017, Suumaya Fashions was acquired by Richway International Trade Limited, through Business Transfer Agreement entered between Suumaya Fashions a proprietary firm of Mr. Ushik Gala and Suumaya Lifestyle Limited (Formerly known as Richway International Trade Limited). Pursuant to the business transfer agreement the Company acquired assets and liabilities of Suumaya Fashions and all the manufacturing operations was consolidated in the Company. Suumaya Fashions was earlier engaged in the business of  manufacturing and trading of dress materials, women and men apparels etc. The Company has its own design and production house with expertise and dedicated team. It is involved in business of  manufacturing and trading of dress materials, suits, sarees, kurtis and other allied goods made from cotton, denim, silk, synthetics, jute, velvet, woollen, leather, rexin, or with any combination thereof and to participate in local, national and international trade fairs, sales exhibitions, seminars, fashion shows or any other sales promotion scheme. Company markets products under the brand name “ekka”, “ira” and “tag 9” and is both in retail and wholesale business. The Company has to acquire fabric and accessories from several suppliers and have worked with them for a long time. The company has its  own designer who develops new styles, fits, finishes to meet the latest fashion trends.
    Key Members of Suumaya Lifestyle Limited:
    • Ishita Mahesh Gala, Managing Director
    • Jayantilal Valchand Khimavat, Non-Executive Independent Director
    • Paras Hansraj Desai, Non-Executive Independent Director
    • Sneha Dutta, Non-Executive Independent Director

    Competitive Strengths of Suumaya Lifestyle Limited:

    • Rich management experience
    • Quality Assurance
    • Existing relationship with suppliers
    • Customer Centric Business Model

    Business strategy of Suumaya Lifestyle Limited:

    • Expanding Clientele Network by Geographic expansion
    • Reduction of operational costs and achieving efficiency
    • Focus on cordial relationship
    • Enhancing our trading capacities and venture into the manufacturing stream
    • Creativity and trending designer idea

    Suumaya Lifestyle – Financial Statements

    To evaluate the growth prospects of the company, it is very important to look into the past performance of the company. Accordingly, we have collated the key figures of the company on a restated basis for your analysis:

    Assets of the Company

    Assets (in INR & Lakh)
     Mar’17Mar’16Mar’15Mar’14Mar’13
    Non-Current Asset64441,150
    Current Asset3,3142,7133,1032,1975
    Total Asset3,3192,7163,1072,2011,155

    Revenue & PAT of the Company

    Revenue & Profits (in INR & Lakh)
     Mar’17Mar’16Mar’15Mar’14Mar’13
    Total Revenue21,2069,0533,7161,5471
    Profit after Tax (PAT)4532512-1

    Earnings per Equity Share

    Earning per Equity Share (in INR)
     Mar’17Mar’16Mar’15Mar’14Mar’13
    Basic0.200.140.020.21-1.09
    Diluted0.200.140.020.07-0.01

    The company’s financial show an increasing trend for the revenue and the PAT, though there appears to be some glitch in one of the years but has been able to cope up decently in the subsequent years.


    Suumaya Lifestyle Promoters

    The promoters of Suumaya Lifestyle are:

    • Ms. Ishita Mahesh Gala
    • Indiacredit Risk Management LLP – partners being Amisha Sanjay Shah and Ushik Mahesh Gala

    Promoter Interest in the company

    Promoters are interested in the Company to the extent that they have promoted the Company, to the extent of their respective Equity shareholding in the Company and to such extent any dividend distribution that may be made by the Company in the future. None of the Directors also interested to the extent of being Directors on the company’s Board, as well as any remuneration, sitting fees and reimbursement of expenses payable to each of them.

    Promoter Interest in the property of company

    Our Promoters do not have any interest in any property acquired by or proposed to be acquired by our Company
    two years prior to March 2018.

    Suumaya Lifestyle IPO Offer Details or Issue Details

    ParticularsNo. of Equity Shares
    Public Issue of Equity Shares by Our
    Company
    Upto 76,88,000 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. 13.83 crores
    Of Which:
    (A) Fresh issueUpto 18,88,000 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. 3.39 crores
    (B) Offer for saleUpto 58,00,000 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. 10.44 crores
    The offer consists of:
    Market Maker Reservation PortionUpto 3,92,000  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. 70.56 Lakh
    Net Issue to the Public*Upto 72,96,000  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. 13.13 crores
    Of which:
    Allocation  to  Retail  Individual  Investors  for  upto Rs. 2 Lakh:
    36,48,000 Equity Shares of Rs. 10 each fully paid-up of the Company  for  cash  at  a  price  of Rs. 18 per  Equity  Share aggregating to Rs. 6.56 crore.
    Allocation  to  other Investors  for above Rs. 2 Lakh:
    36,48,000 Equity Shares of Rs. 10 each fully paid-up of the Company  for  cash  at  a  price  of Rs. 18 per  Equity  Share aggregating to Rs. 6.56 crore.
    Pre and Post Issue Equity Shares
    Equity Shares outstanding prior to the Issue2,21,20,000 Equity Shares of Face Value of Rs. 10/- each
    Equity Shares outstanding after the Issue2,40,08,000 Equity Shares of Face Value of Rs. 10/- each

    Suumaya Lifestyle IPO Issue Object

    As mentioned above, the IPO offer consists of a fresh issue of 18,88,000 Equity Shares and an offer for sale of upto 58,00,000 Equity Shares of aggregating to Rs. 13.83 crores by the Selling Shareholders. Thus, the company will not receive any proceeds from the Offer for Sale. The funds that the company will be receiving will be used to fund the working capital requirements of the company.

    List of Upcoming IPOs in 2018


    Suumaya Lifestyle IPO – Basis of the Offer Price

    The Offer Price is determined by the Company and the Selling Shareholder, in consultation with the lead managers
    on the basis of assessment of market demand for the Equity Shares through the Fixed Issue price method and on the basis of the following qualitative and quantitative factors for the Equity Shares. The face value of the Equity Shares is
    Rs. 10 each and the Offer Price is 1.8 times the face value.

    Qualitative factors influencing the offer price:

    • Rich management experience
    • Quality Assurance
    • Existing relationship with suppliers
    • Customer Centric Business Model

    Quantitative factors influencing the offer price:

    • Earning per share – The EPS of the company for March 2017 is Rs. 0.20 and the weighted average EPS forthe latest three years is Rs. 0.15.
    • Price/earning ratio – PE ratio is one of the key indicators used for analysing the performance of a company. The PE ratio for FY 17 is 88.65 and on the basis of weighted average, it works out to be 120. The average industry PE ratio is 35.8
    • Return on Net Worth – The RoNW for March 2017 is 1.29% and on the basis of weighted average is 1.46%. The minimum RoNW required to maintain the current EPS post the issue is 6.56%
    • Net Asset Value – NAV per Equity Share – The net asset value per equity share as on 31 March 2017 is Rs. 10.56. The NAV after the issue Rs. 11.57
    • Comparison of Accounting ratios with Industry peers – The listed industry peer are Jey Knitwears, Manomay Tex India and Ashapura Intimates Fashion.

    List of Latest IPOs of 2018


    Suumaya Lifestyle IPO Lead Managers

    Lead Managers
    Gretex Corporate Services Private Limited

    Suumaya Lifestyle IPO Registrar to offer

    Registrar of the Offer
     Bigshare Service Private Limited

    Suumaya Lifestyle IPO Review by Top 10 Stock Brokers


    Suumaya Lifestyle IPO Grey Market Premium

    Suumaya Lifestyle grey market will be opened a fortnight before the release of the IPO. Since the date of IPO is not yet finalised, even the grey market date cannot be estimated. The grey market operates on the basis of kostak rates which includes a part of grey market premium.


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