Ushanti Colour Chem IPO – Review, Allotment, Subscription, Price, Date & more

Ushanti Colour Chem Ltd is to issue upto 19,26,000 Equity Shares through its IPO, having face value of Rs. 10.00 each. Let’s have a detailed review of the company and analytics of the Ushanti Colour Chem IPO release date, IPO offer price, subscription, Ushanti Colour Chem IPO allotment, grey market price and other details like the company’s background, its financial positions, its promoters and other related things.


Ushanti Colour Chem IPO Review & Ratings

Ushanti Colour Chem IPO Ratings & Review
CriteriaRatings
Industry Sentiments 6.3/10
Industry Ranking 6.5/10
Company Background6.4/10
Company Reputation6.5/10
Competitive Edge6.2/10
Financial Statements6.1/10
Popularity Index6.3/10
Promoters Reputation6.3/10
Retail Appetite 6.4/10
Top Brokers Review6.2/10
Overall Ratings 6.3/10
Star Ratings★★★☆☆

Summary of Ushanti Colour Chem IPO

Ushanti Colour Chem IPOThe Company manufactures Reactive and Direct Dyestuffs also known as Synthetic Organic Dyes with an integrated production process. The company also manufactures Copper Phthalocyanine, Blue Crude which are one of the major raw materials used for manufacturing of Dyestuffs. The company is promoted and managed by Mr. Maunal Gandhi and Mr. Minku Gandhi. With decades of experience in this industry, our promoters along with the team of management are actively involved in the day-to-day affairs of our company’s operations adding valuable knowledge and experience required for sustainable growth.

Review of Operation For the Period Ended December 31, 2017

  • Net revenue from operations (i.e. net of excise duty and GST) for the period ended December 31, 2017 was Rs. 2,724.85 lakhs.
  • Income was Rs. 17.76 lakhs for the period ended December 31, 2017.
  • Total expenses, excluding tax amounted to Rs. 2,738.67 lakhs for the period ended December 31, 2017 which is 90.55% of total revenue.
  • Depreciation and amortization expenses were Rs. 85.65 lakhs which was 3.12% of total revenue out of which depreciation on tangible fixed assets was Rs. 80.79 lakhs and amortization of intangible assets was Rs. 4.86 lakhs for the period ended December 31, 2017.
  • Profit after tax for the period ended December 31, 2017 was Rs. 183.01 lakhs. Our Profit after Tax was 6.67% of our total revenue for the period ended December 31, 2017

The lead manager to the issue is PANTOMATH CAPITAL ADVISORS PRIVATE LIMITED and the Registrar to this issue is BIGSHARE SERVICES PRIVATE LIMITED.


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    Ushanti Colour Chem IPO Date

    The opening and the closing date of IPO is from July 23, 2018 – July 25, 2018 .


    Ushanti Colour Chem IPO Subscription

     Subscription
    Day 1 – July 23, 20180.38x (694000 shares)
    Day 2 – July 24, 20181.21x (2206000 shares)
    Day 3 – July 25, 20186.24x (11414000 shares)
    Day 4 
    Day 5 

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


    Ushanti Colour Chem IPO Allotment Status

    Bigshare Services Private Limited : http://www.bigshareonline.com/bssipoapplicationstatus.aspx


    Ushanti Colour Chem IPO Price Band

    The face value of each share is Rs 10 and the price band of the IPO is Rs 57 – Rs 60 Per Equity Share. So, the Primium price is Rs 47 – Rs 50.


    Ushanti Colour Chem IPO Equity Share Offering

    1,926,000  Equity Shares of Rs 10/- each but Issue Price is yet to be disclosed so it will be aggregated to Rs 11.56 Crores and the Minimum Order Quantity is 2000 Shares.


    Ushanti Colour Chem Limited – Company Overview

    Company was originally incorporated as ‘Ushanti Colour Chem Private Limited’ on May 12, 1993. Later on February 19, 2018 and the name of our Company was changed to ‘Ushanti Colour Chem Limited’. The Company manufactures Reactive and Direct Dyestuffs also known as Synthetic Organic Dyes with an integrated production process. The company also manufactures Copper Phthalocyanine, Blue Crude which are one of the major raw materials used for manufacturing of Dyestuffs. The pigment and dyestuffs manufactured by us caters to the raw material requirement of textile, garment, cotton, leather, nylon, paper, wool, ink, wood, plastic and paint industries. We concentrate in manufacturing “Turquoise Blue” Dyestuffs and Pigments.

    The company has 3 manufacturing facilities situated together at Vatva GIDC in Gujarat. The facilities are spread over 2,739 sq. meters in total area.

    The focus on “Turquoise Blue” Dyestuffs has assisted us to be become a niche player in the segment. The company generates most of its revenue from export operations and has received from Certificate of Recognition as Export House, products of the company are exported to countries like, Turkey, Egypt, Bangladesh, Pakistan, Indonesia, China etc. We have a dedicated Research & Development and Quality Control Team, which looks after the quality of the product we manufacture.

    Competitive Strengths of Ushanti Colour Chem Limited:

    • Focus on quality and innovation
    • Experienced Promoters and Management
    • Intermediates Production
    • Locational Advantage leading to reduction of cost
    • Established relationship with clients

    Business strategies of Ushanti Colour Chem Limited:

    • Business expansion
    • Reduction of costs
    • Vertical integration of production process
    • Expanding customer base
    • Capacity expansion

    Ushanti Colour Chem 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-1731-Mar-1631-Mar-1531-Mar-1431-Mar-13
    Total Assets2,273.942,238.702,022.311,889.781315.76
    Total Revenue2,962.102,511.312,970.963,541.982,414.66
    Total Expense2755.052463.572924.493203.602336.57
    Profit After Tax127.7326.2228.36222.0051.01

     

    Earnings per Equity Share (in Lakhs)

    31-Dec-1731-Mar-1731-Mar-16
    Basic 3.402.380.49
    Diluted 3.402.380.49

    From the above statements, one could find that the Ushanti Colour Chem Limited may perform well.


    Ushanti Colour Chem IPO – Promoters

    The Promoter of this company are:

    Promoter
    Maunal Shantilal Gandhi
    Minku Shantilal Gandhi
    Promoter Group 
    Shantilal Bhailal Gandhi
    Mona M. Gandhi
    Sheafali M. Gandhi
    Maunal Shantilal Gandhi HUF
    Shantilal Bhailal Gandhi HUF
    Minku Shantilal Gandhi HUF
    Aadit Gandhi

    INTEREST OF PROMOTERS

    The individual Promoters who are also the Joint Managing Directors of the Company may be deemed to be interested to the extent of fees, if any payable to them for attending meetings of the Board or a committee thereof as well as to the extent of remuneration, commission and reimbursement of expenses payable to them as per the terms of the Articles of the Company and relevant provisions of Companies Act. The individual Promoters may also be deemed to be interested to the extent of Equity Shares held by them in The Company and also to the extent of any dividend payable to them and other distributions in respect of the said Equity Shares in the Company.

    LITIGATION INVOLVING THE PROMOTERS
    For details of legal and regulatory proceedings involving the Promoters, please refer “Outstanding Litigation and Material Developments” on page 199 of this Draft Red Herring Prospectus.

    OTHER VENTURES OF THE PROMOTERS
    Save and except as disclosed in the chapter titled “Our Promoter and Promoter Group” and “Our Group Companies” beginning on page 171 and 175, of this Draft Red Herring Prospectus, there are no ventures promoted by the Promoter in which they have any business interests / other interests.

    DEFUNCT/ STRUCK OFF COMPANY
    None of their group Company has struck off.


    Ushanti Colour Chem IPO Offer Details or Issue Details

    Particulars No. Of Equity Shares
     Equity Shares Offered Upto 19,26,000* Equity Shares of face value of Rs.10/- each
     Of which:
     Reserved for Market Makers Upto [●] Equity Shares of face value of Rs. 10/- each
     Net Issue to the Public Upto [●] Equity Shares of face value of Rs.10/- each
     Of which:
    QIB PortionNot more than [●] Equity shares of face value of Rs. 10/- each fully paid of the Company for cash at a price of Rs. [●]/- per share aggregating Rs. [●] Lakhs; shall be available for allocation to QIB
    Of which
    Available for allocation to Mutual Funds only (5% of the QIB portion) (Excluding the Anchor Investor Portion)[●] Equity Shares of Face Value of Rs. 10/- each
    Balance for all QIBs including Mutual Funds[●] Equity Shares of Face Value of Rs. 10/- each
     Retail Investors Portion Upto [●] Equity Shares of face value of Rs. 10/- each  (available for allotment to Retail Individual Investors of up to Rs. 2.00 Lacs)
     Non-Retail Investors PortionUpto [●] Equity Shares of face value of Rs. 10 /- each  (available for allocation to investors up to Rs. 2.00 Lacs)
     Equity Shares outstanding prior to the Issue53,75,700 Equity Shares
     Equity Shares outstanding after the IssueUpto 73,01,700 Equity Shares of face value of Rs. 10 each

    Ushanti Colour Chem IPO Issue Object

    These are the IPO Issue Objects of the company:

    1. To finance setting up of Vinyl Sulphone manufacturing facility at GIDC Saykha Industrial Estate, Bharuch;
    2. Repayment/pre-payment of certain secured borrowings availed by our Company; and
    3. General corporate purposes.


     

    Ushanti Colour Chem 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 Promoters and management
    • Intermediates Production
    • Wide range of products
    • Locational Advantage
    • Cost reduction initiatives
    • Well established relationship with clients

    The relevant quantitative factors are:

    Basic & Diluted EPSRONW (%)NAV (Rs.)
    31-Mar-172.3819.5412.16
    31-Mar-160.494.99
    31-Mar-150.535.68
    • Industry P/E Ratio:
    ParticularsP/E ratio
    Average26.76
    Highest63.34
    Lowest8.52
    • Competitive Peers


     

    Ushanti Colour Chem IPO Lead Managers

    Lead Managers
    PANTOMATH CAPITAL ADVISORS PRIVATE LIMITED
    406-408, Keshava Premises, Behind Family
    Court, Bandra Kurla Complex, Bandra (East),
    Mumbai – 400051, Maharashtra, India. Tel: +91-22 61946700
    Fax: +91-22 2659 8690
    Website:www.pantomathgroup.com, Email: ipo@pantomathgroup.com
    Investor Grievance Id:ipo@pantomathgroup.com
    Contact Person: Hardik Bhuta/Unmesh Zagade
    SEBI Registration No:INM000012110

    Ushanti Colour Chem 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, India

    Tel: +91 22 6263 8200, Fax: +91 22 6263 8299
    Email: ipo@bigshareonline.com, Website: www.bigshareonline.com
    Investor Grievance Id:ipo@bigshareonline.com
    Contact Person: Jibu John
    SEBI Registration Number: INR000001385


    Other Details:

    • Statutory Auditor – NA
    • Peer Review Auditor – NA
    • Bankers to the Company –  NA
    • Summary:
    Open DateJune 29 2018
    Close DateJuly 04 2018
    Total Shares1,926,000
    Face ValueRs 10 Per Equity Share
    Issue Size11.56 Cr.
    Lot Size2000 Shares
    Issue PriceRs 57-60 Per Equity Share
    Listing AtNSE Emerge
    Listing DateJuly 12 2018

    Ushanti Colour Chem 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

     


    Ushanti Colour Chem IPO Grey Market Premium

    The Ushanti Colour Chem IPO Grey Market Premium is yet to be announced. It will be updated as soon as the premium rates are announced.


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      Ushanti Colour Chem IPO News

      News 1 – IPO ISSUE OPENS SOON (Download Prospectus)

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