Fine Organics IPO

Business description – Fine Organics is the largest manufacturer of oleochemical-based additives in India and a strong player globally in this industry. The company produces a wide range of specialty plant derived oleochemicals-based additives used in the food, plastic, cosmetics, paint, ink, coatings and other specialty application in various industries. As at December 31, 2017, it had a range of 387 different products sold under the ‘Fine Organics’ brand. It is the first company to introduce slip additives in India and is the largest producer of slip additives in the world.

In the 12 months ended December 31, 2017, the company had 603 direct customers and 127 distributors from 67 countries. Its direct customers are multinational, regional and local players manufacturing consumer products, such as Hindustan Unilever and Parle Products, and petrochemical companies and polymer producers globally. Its plastics additives and specialty additives are also used in the packaging of foods and other fast moving consumer goods. The company currently has three production facilities: one in Ambernath (Maharashtra); one in Badlapur (Maharashtra); and one in Dombivli (Maharashtra). As at December 31, 2017, these three facilities have a combined installed capacity of approximately 64,300 tonnes per annum.

Promoters of Fine Organics – Prakash Damodar Kamat, Mukesh Maganlal Shah, Jyotsna Ramesh Shah, Jayen Ramesh Shah, Tushar Ramesh Shah and Bimal Mukesh Shah

Fine Organics IPO details
Subscription Dates	20 – 22 June 2018
Price Band	INR780 – 783 per share
Fresh issue	Nil
Offer For Sale	7,664,994 shares (INR597.9 – 600.2 crore)
Total IPO size	7,664,994 shares (INR597.9 – 600.2 crore)
Minimum bid (lot size)	19 shares
Face Value	INR5 per share
Retail Allocation	35%
Listing On	NSE, BSE

Fine Organics’ financial performance (in INR crore)
	FY2013	FY2014	FY2015	FY2016	FY2017	9M FY2018
Total revenues	497.5	574.2	616.5	667.7	792.7	594.7
Total expenses	466.6	479.6	530.9	550.8	671.8	500.2
Profit after tax	20.9	61.7	57.1	76.2	77.7	58.5
Net margin (%)	4.2	10.7	9.3	11.4	9.8	9.8

Fine Organic Industries Contact Details

Fine Organic Industries Limited
Fine House, Anandji Lane
Ghatkopar (East)
Mumbai 400 077

Phone: +91 22 2102 5000
Fax: +91 22 2102 8899
Email: [email protected]
Website: www.fineorganics.com

Registrar of Fine Organics IPO

Karvy Computershare Private Limited
Karvy Selenium Tower B, Plot 31-32,
Gachibowli, Nanakramguda,
Hyderabad – 500 032, Telangana

Phone: +91 40 6716 2222
Fax: +91 40 2343 1551
Email: [email protected]
Website: www.karvycomputershare.com

Valuation of Fine Organics (Based on latest FY)

Earnings Per Share (EPS): INR25.33

Price/Earnings (P/E) ratio: 30.79 – 30.91

Return on Net Worth (RONW): 26.51%

Net Asset Value (NAV): INR95.57 per share