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Lagnam Spintex to raise Rs 24.6 Cr through NSE SME IPO

Published on Saturday, July 28, 2018 by

Lagnam Spintex to raise Rs 24.6 Cr through NSE SME IPO

Lagnam Spintex IPO Detail

Incorporated in 2010, Lagnam Spintex is Bhilwara, Rajasthan based manufacturer of cotton yarn for the domestic & international market.

Lagnam Spintex IPO

Lagnam Spintex is coming up with an IPO of Rs 24.60 Cr to raise funds for its upcoming manufacturing facility at Bhilwara, Rajasthan. The Issue price of the public offer is set at Rs 41 (FV Rs 10). The company is proposed to list at NSE Emerge platform. The promoters are selling 34.02% of the company shares through this IPO.

The dates of the IPO are yet to be announced.

Key Highlights

  • Promoters Experience - Promotes of the company have rich experience which helps in faster growth and in quickly resolving the technical and regulatory issues.
  • Low-Interest Cost - Company has a low-interest financial cost of around 3.5% after taking into account subsidy by the Government of Rajasthan.
  • Land Bank - Company has a land bank adjacent to existing facility to accommodate future project extensions.
  • ICRS BBB- Rating - Company is rated BBB- which means the company has a moderate degree of safety regarding timely servicing of financial obligations.
  • Advance Technology - Lagnam Spintex is a technology-driven company with maximum possible automation and high level of quality controls. The plant operates at 99% of capacity.
  • Raising Funds for a Project - Unlike most other SME IPO's, the company is raising funds for an upcoming project. Promoters are not utilizing any fund from proceeds of IPO towards existing Operations.
  • Strong Track record of Performance : The Turnover, Exports, PAT, EPS of the company has been growing every year.

Promoters

Lagnam Spintex is founded by Mr. D P Mangal who is the chairman and whole-time director of the company. Mr. Mangal is a retired executive director of RSWM Limited (NSE: RSWM), the largest manufacturer and exporter of synthetic and blended spun yarns from India with over 60 years in business and export to 76 countries. Mr. Mangal has over 38 years of experience in the textile industry.

Mr. Anand Mangal, son of Mr. D P Mangal is the Managing Director of the company. Mr. Anand has over 7 years of experience. He manages the company on the day-to-day basis along with Mr. D P Mangal.

Manufacturing Facility

Lagnam Spintex has the most advanced and automated manufacturing facility to manufacture cotton yarn. The facility is located at Bhilwara, Rajasthan. The manufacturing facility uses machines made in Germany and Switzerland.

Lagnam Spintex is a USTER Certified cotton yarn manufacturer which represents the high quality of yarn produced. The company uses advanced machines like AFIS Pro 2, UT5, UTR 4 and Classimat 5 for quality teasing.

Lagnam Spintex is raising funds for a new manufacturing facility. This additional plant will increase the capacity from 16.5 MT to 35.1 MT. The project cost is Rs 125.40 Cr out of which Rs 94.0 Cr is approved by the banks as a loan. The company is adding Rs 9.40 Cr from its internal funds and raising remaining funds from the public.

The development of the new project is in progress and expected to be commissioned by Sept 2019.

Company Financials

The snapshot of company's financial performance:

Lagnam Spintex Financial Performance

Particular

FY 2018 (Rs Cr)

FY 2017

FY 2016

FY 2015

FY 2014

Sales

83.91

75.03

56.17

49.46

41.88

EBITDS

11.19

11.54

9.05

6.53

5.93

PAT

4.68

3.67

2.08

1.57

1.44

Lagnam Spintex Key Ratios

Particular

FY 2018

FY 2017

FY 2016

FY 2015

FY 2014

Debt-Equity Ratio

1.70

2.04

2.79

2.37

2.12

EPS

4.15

3.27

1.86

1.41

1.43

Note that the company commissioned its 2nd expansion (increased capacity by double) in late 2015 which resulted in faster growth in the last 2 years.

Lead Manager

Holani Consultants Private Limited is the lead manager of this IPO.

Lagnam Spintex IPO Detail:

 

lagnam_Spintex_upcoming_plant

 

lagnam_Spintex_investor_meet

 

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User Comment

avatar
7. Raghav Agarwal  Aug 24, 2018 11:20 Reply
Lagnam is also gathering some positive momentum among investors...
avatar
6. Logical Investor  Aug 14, 2018 11:05 Reply
Worthy investment window. Waiting for further details.
avatar
5. Shivam Sharma  Aug 7, 2018 12:38 Reply
Financials seems good. Waiting for the opening date.
avatar
4. Vikas somani  Aug 7, 2018 11:04 Reply
EPS continuously increasing. Looking growth oriented Company. ??
avatar
3. Rashmi Singh  Aug 6, 2018 12:18 Reply
A must Invest Company finally
avatar
2. Mr. Daivik  Jul 31, 2018 13:32 Reply
Finally a Good opportunity to invest and build good portfolio right from the EMERGE.
Company meant to reach new heights having experienced heads leading it.
Looking forward to good and Long term association.
All the Best Lagnam Spintex and Holani consultants.
avatar
1. Jatin shah  Jul 30, 2018 21:33 Reply
Exalant profit making Co. Very well experienced promoters, well established business with future expantion project .public offer lead by Holani consalants p Ltd.
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