Anuroop Packaging BSE SME RI review - (May apply)

•    APL is engaged in the corrugated packaging solutions segment. 
•    The company has posted profits for the reported periods.
•    Its IPO was also at the same price in November 2019.
•    Post this RI, chances of migration to the mainboard will widen. 
•    Risk seekers/cash surplus investors may consider investment for the long term.

ABOUT COMPANY:
Anuroop Packaging Ltd. (APL) is a corrugated box manufacturer based out of Wada, Thane. It provides quality fixed packaging products such as corrugated boxes, sheets, boards to clients from various industries such as pharmaceutical, stationery, metals, water treatment etc. APL's products can be classified into the following categories: a) Corrugated Boxes and b) Corrugated Sheets/Boards. 

The company caters to a wide variety of industries for corrugated packaging solutions; however, it has a strong grip in catering to clients from the stationery industry where it works with industry leaders such as Kokuyo Camlin, A.W. Faber-Castell (India). Other prominent clients are Himalaya Organics, Ion exchange India, Mattel Toys India, FDC, Pepe Jeans London etc. Manufacturing of corrugated boxes is main line of business but apart from the manufacturing of the corrugated box the company is also involved in the trading of Gum (Turpentine and Dipentene). The trading of Gum was started in the year 2017-2018 but it got the boast in the year 2018-2019.

ISSUE DETAILS:
The company came with its maiden IPO of Rs. 2.64 cr. in November 2019 and offered shares at the same price of Rs. 13 per share. IPO was lead managed solely by Gretex Corporate Services Pvt. Ltd. and spent Rs. 0.61 cr. to mobilize IPO funding. Now it is coming out with a rights issue (RI) of 3064400 equity shares of Rs. 10 each at a fixed price of Rs. 13 per share to mobilize Rs. 3.98 cr. It is offering 2 shares for every 5 shares held on the record date of November 05, 2021. The RI opens for subscription on November 22, 2021, and will close on December 06, 2021. Post allotment, shares will be listed on BSE SME. This issue is managed by the company itself and has no Lead Manager for the same. KFin Technologies Pvt. Ltd. is the registrar to the issue. APL is spending Rs. 0.50 cr. for this RI process. From the residual portion, it will spend Rs. 2.68 cr. for working capital and Rs. 0.80 cr. for general corporate purposes. 

Post RI, APL's current paid-up equity capital of Rs. 7.66 cr. will stand enhanced to Rs. 10.73 cr. Based on the RI pricing, the company is looking for a market cap of Rs.13.94 cr. 

FINANCIAL PERFORMANCE:
On the financial performance front, the company has (on a consolidated basis) posted turnover/net profits of Rs.21.40 cr. / Rs. 2.45 cr. (FTY20) and Rs. 15.02 cr. / Rs. 1.49 cr. (FY21).  Its NAV as of March 31, 2021, stood at Rs. 17.81. Perhaps being an SME company, it has not given any info for its Q1 FY22 financial performance.

As of September 30, 2021, promoters were holding 67.63% of the total paid-up equity capital of the company

SCRIP PERFORMANCE: Based on BSE Website data (Scrip code: 542865)
The scrip last closed on cum-rights basis at Rs. 15.00 on NOVEMBER 2021, and opened at Rs. 15.00 on an ex-rights basis on November 02, 2021. Since then it has posted a high/low of Rs. 15.00 / Rs. 13.01. Perhaps the market maker is doing a good job of maintaining the price around or above the RI pricing. The scrip last closed at Rs. 13.01 on November 18, 2021, and based on this closing price, its market cap comes to Rs. 13.95 cr. The scrip has marked the last 52 weeks high/low of Rs. 18.28 / Rs. 6.83.