Business description – SKS Textiles manufactures various fabrics like 100% Cotton – Lycra and Non-Lycra, Blended Cotton Suiting – Chief Value Cotton, Polyester Cotton, 100% Cotton Yarn Dyed , Polyester Viscose, Terry Rayon Suiting and Mock Linen under its brand names – Pierricarrlo, Cotbbelly’s and Earthen Belly. The company also undertakes corporate orders for Finished Fabrics and Grey Fabrics for corporate brands such as Raymond, Arvind, Siyaram’s, Digjam Limited, etc. Some of its manufactured products require certain processing like dyeing, value additions etc. which are outsourced to third parties and the finished goods from such third parties are directly sent to its Packing and Storage unit. The manufacturing unit is located at Sonale, Bhiwandi in Maharashtra and majority of the manufactured goods are dispatched from this unit itself. It also has a Packing and Storage unit at Kalher, Bhiwandi in Maharashtra and it dispatches the traded goods and certain outsourced processed goods from this unit.
It has a dedicated in-house Testing and Quality Control Team which undertakes rigorous testing and quality management. SKS Textiles has dedicated semi-automatic and manual testing machines.
Promoters of SKS Textiles – Mr Sukanraj Shah, Mr Vicky Shah, Mr Sahil Shah and Sukanraj Bhabhutmal Shah HUF
| SKS Textiles IPO details | |
| Subscription Dates | 9 – 11 January 2018 |
| IPO Price band | INR150 per share |
| Fresh issue | 438,000 shares (INR6.57 crore) |
| Offer for sale | 450,000 shares (INR6.75 crore) |
| Total IPO size | 888,000 shares (INR13.32 crore) |
| Minimum bid (lot size) | 1,000 shares |
| Face Value | INR10 per share |
| Retail Allocation | 50% |
| Listing On | NSE Emerge SME platform |
Use of funds
- Funding Long Term Working Capital Requirement – INR5.28 crore
- Expenditure for General Corporate Purposes – INR0.93 crore
| SKS Textiles’ consolidated financial performance (in INR crore) | ||||||
| FY2013 | FY2014 | FY2015 | FY2016 | FY2017 | H1 FY2018 | |
| Total revenue | 112.9 | 120.4 | 131.8 | 147.8 | 158.7 | 75.2 |
| Total expenses | 111.4 | 118.8 | 130.2 | 145.2 | 156.1 | 73.5 |
| Profit after tax | 0.8 | 1.1 | 1.1 | 1.4 | 1.6 | 1.1 |
SKS Textiles Limited
Gala No. 431, Kewal Industrial Estate
4th Floor, Senapati Bapat Marg
Lower Parel (W), Mumbai – 400 013
Phone: +91 22 6120 6222
Email: [email protected]
Website: www.groupsks.com
| Day | Subscription (no. of times) |
| Day 1 | 0.59 |
| Day 2 | 1.78 |
| Day 3 | 14.19 |
Earnings Per Share (EPS): INR5.71
Price/Earnings (P/E) ratio: 26.27
Return on Net Worth (RONW): 5.46%
Net Asset Value (NAV): INR104.5 per share
Sharex Dynamic (India) Private Limited
Unit- 1, Luthra Industrial Premises, Safed Pool,
Andheri Kurla Road, Andheri (E),
Mumbai- 400 072
Phone: +91 22 2851 5606
Fax: +91 22 2851 2885
Email: [email protected]
Website: www.sharexindia.com
SKS Textiles IPO allotment status will be available on Sharex Dynamic’s website. Click on this link to get allotment status.
IPO Opening Date: 9 January 2018
IPO Closing Date: 11 January 2018
Finalisation of Basis of Allotment: 16 January 2018
Initiation of refunds: 18 January 2018
Transfer of shares to demat accounts: 18 January 2018
Listing Date: 19 January 2018
Listing Price on NSE SME: INR149.9 per share (down 0.1% from IPO price)
Closing Price on NSE SME: INR133.35 per share (down 11.1% from IPO price)
Impressive growth but stock is very very costly at 26 PE. Low return on net worth means there is high debt in its books. I invested in Jhandewalas and planning to rotate the funds but this one doesn’t look like a good choice.
I also thought investment in this IPO is not very worthful
Business is reasonable. Price is stiff !!