Shakun Polymers Limited has filed its Draft Red Herring Prospectus (DRHP) with the capital market regulator SEBI, seeking permission to launch its IPO. The Vadodara-based company is one of the leading players in the field of compounding for the Wire & Cable market.
Shakun Polymers IPO will include a fresh issue of equity shares aggregating up to INR75 crore (INR750 million) and these funds are proposed to be used towards setting up of new unit for manufacturing Halogen Free Flame Retardant (HFFR) compounds and general corporate purpose.
In addition, there will be an Offer for Sale (OFS) of up to 1,800,000 equity shares by existing shareholders. These funds will not be available to the company.
Shakun Polymers IPO: Business Background
Incorporated in 1995, Shakun is ISO-9001 certified company and has two manufacturing facilities at Halol district in Gujarat and at Daman. Its aggregate annual installed capacity at both plants is over 25,000 metric tonnes (MT). The company makes wire and cable compounds of over 80 grades, thereby enabling it to supply products for wide range of applications. The compounds manufactured by Shakun are used for insulation and sheathing of wire and cables across a major spectrum of applicationssuch as power cables, building wires, telecommunication & fibre optic cables, instrumentation cables and photovoltaic cables.
Shakun is one of the first movers in India for manufacturing of HFFR compounds and one of the leading exporters for HFFR compounds from India.
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In addition to having an established presence in India, Shakun has established its presence in various countries in Asia, Middle East, Africa and South America. The company exports over 50% of its products to international markets. Some of its domestic and international customers includes Polycab Wires, KEI Industries, KEC International, RR Kabel, Apar Industries, Dubai Cable Company, Alfanar Cables, Tekab Company, Nuhas Oman, Moghan Wire & Cable and Abhar Wire & Cable.
Shakun Polymers IPO: Financial performance on a strong footing
The family-owned company, promoted by Rajesh Bansal, Rakesh Bansal, Geetesh Bansal and Dhanraj Bansal, has seen a smooth growth in its business and revenues have doubled over the last five years. According to the draft prospectus, the company posted a top-line of INR280.8 crore for the year ended 31 March 2017 while its profits stood at nearly INR16 crore.