SP Apparels IPO

SP Apparels IPO

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SP Apparels LogoSP Apparels IPO

SP Apparels is a leading manufacturer and exporter of knitted garments for infants and children in India. These products are manufactured at the company’s integrated facilities that allow it to provide end-to-end garment manufacturing services from greige fabric to finished products. The company also manufactures and retails menswear garments in India under the brand ‘Crocodile’.

SP Apparels’ export business for knitted garments for infants and children constitute a significant portion of its business with nearly 86.13%, 84.62% and 79.84% of its total revenues for the FY2016, 2015 and 2014, respectively, were generated by this business line. The company’s international customers include TESCO and Primark.

The company also manufactures and retails menswear garments in India under the brand ‘Crocodile’ through a sub-license. Nearly 6.43%, 3.39% and 3.35% of its total revenues for the FY2016, 2015 and 2014, respectively were generated by the retail business.

SP Apparels operates 21 manufacturing facilities, all within 125 kilometers of its registered office.

 

SP Apparels Promoters – P Sundararajan and S Latha
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Subscription Dates2 – 4 Aug 2016
Price BandINR258-268 per share
Fresh Issue SizeINR215 crore
Offer For Sale900,000 shares
Face Value INR10 per share
Retail Allocation35%
Listing OnBSE, NSE
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Fresh issue sizeINR215 crore
Repayment or prepayment of debt incurred by the companyINR63 crore
Expansion and modernization of manufacturing facility at Valapady, Salem, Tamil NaduINR70.1 crore
Opening of new stores for the sale of ‘Crocodile’ brand productsINR27.8 crore
Addition of balancing machineries for dyeing unit at SIPCOT, PerunduraiINR4.9 crore
General corporate purposes –
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Major shareholders in SP Apparels

Name of shareholderEquity SharesPercentage (%)
P Sundararajan11,980,00069.87
S Latha3,000,00017.50
S Shantha5,0000.03
S Chenduran5,0000.03
P Velusamy5,0000.03
P Ashokaraman5,0000.03
NYLIM (New York Life Investment Management) India Fund II1,800,00010.50
Euro Asia345,2122.01
Total17,145,212100.00
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SP Apparel’s consolidated financial performance (in INR crore)

 FY2012FY2013FY2014FY2015FY2016
Total revenue401.6428.8452.0479.2537.7
Total expenses397.0424.7440.2454.8492.8
Profit after tax9.72.46.710.034.7
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SP Apparels IPO Subscription Details

CategoryShares offeredSubscription (no. of times)
Day 1Day 2Day 3
QIB 1,939,905 0.00 0.992.20
NII 1,385,010 0.070.455.10
Retail 3,231,690 0.210.541.88
Total 6,556,605 0.12 0.652.65
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SP Apparels IPO Allotment Status

SP Apparels IPO allotment status will be available on Link Intime’s website. Click on this link to get allotment status on 10 August 2016.

You can also check your IPO allotment status from your mobile at
http://eipo.linkintime.co.in/ipo/ 
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SP Apparels Contact Details

SP Apparels Ltd
39-A, Extension Street,
Kaikattipudur Avinashi,
Tirupur 641 654

Phone: +91 4296 304 000
Fax: +91 4296 304 280
Email: csoffice@s-p-apparels.com
Website: www.spapparels.com 

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Registrar of SP Apparels IPO

Link Intime India Private Limited
C-13 Pannalal Silk Mills Compound,
LBS Marg, Bhandup West, Mumbai – 400 078
Maharashtra, India

Phone: +91 22 2596 3838
Fax: +91 22 2594 6969
Email: spal.ipo@linkintime.co.in
Website: http://www.linkintime.co.in

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Listing Performance of SP Apparels IPO

IPO Opening Date: 2 August 2016

IPO Closing Date: 4 August 2016

Finalisation of Basis of Allotment: 9 August 2016

Initiation of refunds: 10 August 2016

Transfer of shares to demat accounts: 11 August 2016

Listing Date: 12 August 2016

Listing Price on NSE: INR275 per share (return of 2.6% over IPO price)

Closing Price on NSE: INR288.75 per share (return of 7.7% over IPO price)

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7 COMMENTS

  1. For me, Link intime is the biggest factor to avoid SP Apparels. I have got no allotment in the last four IPOs all managed by link intime, my badluck or coincidence.

  2. Asking price leaves little scope for capital appreciation.The sudden spurt in profits just before IPO needs a careful study.The steady increase in top line appears to be on account of depreciation of the INR to a major extent.The brand crocodile is a ripoff of the Lacoste brand.Earnings in GBP/ Euro are going to face the BREXIT aftermath of currency depreciation.TESCO does not sell top end products . It mainly caters to lower end of the market where margins are already low..Company appears to be mainly selling to Tesco. The sector itself is crowded and China, Taiwan etc are big players. The garment industry survives by exploiting the labor . I feel there are better companies in this sector itself and hence no compelling reasons to put my money in this IPO to enrich the promoters.

    • True, the books look cooked up. Avoid at every cost. Instead of apparels, may be they should get into food business since they are so good at cooking stuff.

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