Published on Sunday, June 10, 2018 by Dilip Davda
Fine Organics Industries Ltd. (FOIL) was established in 1970 by Mr. Ramesh Shah, a business man and Mr. Prakash Kamat, a skilled technocrat from Institution of Chemical Technology. Fine Organics introduced the Indian market to high-quality additives for specialty applications with raw materials from locally-grown plant sources and quality levels on par with international standards.
Today, Fine's range of innovative additives have expanded their reach into several specialty applications in food, plastics, cosmetics, textiles, paints, inks, rubber and many more. Company's products are appreciated and accepted globally due to their consistent quality and competitiveness.
Fine Organics owes its growth and success to its expertise on oleochemistry, in-house manufacturing technology, customer-centric research and development and a techno-commercial mindset with maximum automation of process.
FOIL has filed its DRHP for offer for sale of 7664994 equity shares of Rs. 5 each via book building route to list its shares on BSE and NSE and unlock the value for its stakeholders. Company is expecting to hit the market before this month end with its maiden IPO for which other details will be announced very soon. JM Financial and Edelweiss Financial Services are the merchant bankers managing the IPO.
Today, Fine Organics is the largest manufacturer of oleochemical-based additives in India and a strong player globally in the industry. The company's products are used in specialty applications across end-user industries, such as food, plastics, cosmetics, textiles, paints, inks and rubber.
FOIL sold 387 different types of products as of December last year. It is the first company to introduce slip additives and it claims to be the world's largest producer. The company has three production facilities — one each in Ambernath, Badlapur, and Dombivli. The cumulative installed capacity of three facilities was 64,300 tonnes per annum as of December 2017. It is in the process of setting up new facility at Patalganga in Maharashtra and expansion at its Ambernath facility with internal accruals.
As per DRHP for nine months of FY18 ended on 31.12.17 (on a consolidated basis) it posted net profit of Rs. 58.54 crore on a turnover of Rs. 594.71 cr. and for FY17 it earned net profit of Rs. 77.68 crore on a turnover of Rs. 792.66 crore. Approx. 70% of its products caters to plastic industry and 30% to Food and other industry.
DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor prior to making any actual investment decisions, based on information published here. Any reader taking decisions based on any information published here does so entirely at own risk. Above information is based on RHP and other documents available as of date coupled with market perception. Author has no plans to invest in this offer.
(SEBI registered Research Analyst-Mumbai).
About Dilip Davda
Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.
Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detail fundamental and financial analysis of companies coming up with IPO helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.
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