Cool Caps Industries is a company engaged in the manufacturing business of the different grades and range of plastic bottle caps and closures. The company was founded in 2015. It manufactures plastic soda bottle caps, plastic mineral water bottle caps, plastic soft drink bottle caps and plastic juice bottle caps. The company is also engaged in manufacturing the embossed and printed closures, which are required as per the customer and their client’s modification requirements. In this article, we take a closer look at the Cool Caps IPO details and its possible future prospects.
Cool Caps Industries expanded their business segment and is now operational for manufacturing face masks of different grades such as N95 FFP 2 Mask and normal surgical two-layer and three-layered masks. Cool Caps Industries also engages in the trading of plastic granules. The plastic granules are used to manufacture plastic chairs, tables and mugs in general. It carries out the trading of the Polypropylene Granule, Low-Density Polyethylene, High-Density Polyethylene also known as HDPE Granules and Linear Low-Density Polyethylene or LLDPE Granules.
The company carries out its production work in Continuous Compression and Moulding Machine. The company uses the machines been imported from Sacmi Inc, Italy. The products are packed in corrugated boxes with proper bursting strength inside plastic liners. In addition, overall colour migration test, heavy metal testing and analysis is done to ensure a quality product.
OBJECTS OF THE IPO ISSUE:
- Prepayment of all the company’s loans, which be availed on a consolidated basis.
- To meet corporate targets.
- To fund the working capital requirement.
COOL CAPS INDUSTRIES IPO DETAILS:
Cool Caps Industries recently got approval from Market regulator SEBI to float their IPO in the market. The company has brought forward the IPO is of Book Building type IPO. The listing of the company will be the NSE-SME platform. The IPO is of 3,060,000 equity shares of the company with a face value of Rs.10, which sums up to the total size of the IPO around Rs.11.63 Crores. The price band is fixed at Rs.36 – Rs.38 per equity share with a market lot of 3000 equity shares for one lot.
The company stated that the company would utilize around Rs. 7.94 crores for funding of the working capital requirements. The company has brought forward the IPO issue constitutes 2647% paid-up capital of the company, post issue. It has allocated nearly QIBs quota to 50%, and for HNI’s and Retail Investor, the rest 50%. Check Day by Day IPO Subscription Details (Live Status)
| IPO Offer Opening Date | March 10, 2022 |
| IPO Offer Closing Date | March 15, 2022 |
| Issue Type | Book Building Type Issue IPO |
| Face Value | Rs. 10 per equity share |
| IPO Price | Rs. 36 to Rs. 38 per equity share |
| Market Lot | 1 lot of 3000 equity shares |
| Minimum Order Quantity | 1 lot of 3000 equity shares |
| Maximum Order Quantity | 1 lot of 3000 equity shares |
| Minimum Order Price | Rs. 114,000 |
| Maximum Order Price | Rs. 114,000 |
| Listing At | NSE – SME platform |
| Issue Size | 3,060,000 equity shares of the company which corresponds to Rs. 11.63 Crores |
| Fresh Issue Size | 3,060,000 equity shares of the company which corresponds to Rs. 11.63 Crores |
| Basis of Allotment Date | March 21, 2022 |
| Initiation of Refunds | March 22, 2022 |
| The Credit of Shares to Demat Account | March 23, 2022 |
| IPO Listing Date | March 24, 2022 |
COMPETITIVE STRENGTHS OF COOL CAPS IPO
- Cool Caps Industries Limited has a well-established and functional manufacturing setup at Howrah in West Bengal and Kotdwar, Uttarakhand.
- The company also has a team of highly experienced technical and management workforce.
- The company follows a strategy of Cost leadership in the procurement process. It leads to cost-effective manufacturing along with maximizing the profits for the company.
- Cool Caps Industries Limited has a very client base with a strong relationship. Some of the company’s marquee clients are IRCTC, Bisleri, Patanjali, Kingfisher, Clear.
- The company’s industry sector is a growing sector due to the increased demand for packaged, safe and branded Food and Beverages products. So, for it, every bottle will have a bottle cap that will ensure that the demand for the company’s product is continuous and a strong and expanding client base.
- The company’s production occurs in a quality environment and a highly enclosed dust-proof environment. The company also focuses on regular testing for its product quality.
- Over some years now, Cool Caps Industries Limited has established itself as a distinguished medium-scale organization with an expanding outlook. The company has also achieved specialization in pet bottle caps. Bottle caps of various shapes, colours and sizes.
WEAKNESS AND THREATS OF COOL CAPS INDUSTRIES IPO:
- Cool Caps Industries Limited is engaged in a highly competitive and fragmented business segment.
- Another major threat to the company is its bottom line. The company’s top-line marked growth, but its bottom line has witnessed a lot of pressure on margins.
- The company’s IPO offer on their current financial performance and ratios looks fully priced with no listing gain aspects.
FINANCIAL PARAMETERS OF COOL CAPS IPO:
| Particulars | For the year ending with the amount in lakhs | ||||
| 30-Sep-21 | 31-Mar-21 | ||||
| Total Assets | 5,691.53 | 4,996.78 | |||
| Total Revenue | 1,910.61 | 3,129.84 | |||
| Profit After Tax | 134.41 | 286.68 |
| PARAMETER | MARCH 2021 |
| Earnings Per Share (Rs) | 3.37 |
| CEPS (Rs) | 5.07 |
| DPS (Rs) | 0.00 |
| Book NAV/Share (Rs) | 19.18 |
| Tax Rate (%) | 28.42 |
| Core EBITDA Margin (%) | 21.49 |
| EBIT Margin (%) | 17.65 |
| Pre-Tax Margin (%) | 12.02 |
| PAT Margin (%) | 8.60 |
| Cash Profit Margin (%) | 12.95 |
| ROA (%) | 5.74 |
| ROE (%) | 17.59 |
| ROCE (%) | 13.52 |
| Asset Turnover (x) | 0.67 |
| Sales/Fixed Asset (x) | 1.14 |
| Working Capital/Sales (x) | 5.85 |
| Fixed Capital/Sales (x) | 0.88 |
| Receivable days | 104.11 |
| Inventory Days | 68.90 |
| Payable days | 50.81 |
| EV/Net Sales (x) | 1.14 |
| EV/Core EBITDA (x) | 4.84 |
| EV/EBIT (x) | 6.03 |
| EV/CE (x) | 0.71 |
| Total Debt/Equity(x) | 1.67 |
| Current Ratio(x) | 1.36 |
| Quick Ratio(x) | 0.96 |
| Interest Cover(x) | 3.14 |
- In the last three financial years, the company has recorded a growth of around CAGR 27.68%, while the company’s profit after tax, PAT, increased by nearly 46 %. The company also registered an EBITDA growth of 46.2%.
- The average EPS of the company for the same period is around Rs. 4.08 with an average RoNW around 21.00%. The company has priced its IPO offer at a P/B value of 1.83 based on these valuations and a NAV of Rs. 20.76. The P/E ratio at these valuations comes up around 16.38, making it a full-priced offer.
COMPARISON WITH LISTED PEERS:
Cool Caps Industries doesn’t have any competitive peers as per the companies listed at NSE – SME platform. Check out the list of SME IPOs here.
PROMOTERS OF THE COMPANY:
The promoters of the company are as follows:
- Purv Flexipack Private Limited
- Mr. Rajeev Goenka
- Mr. Vanshay Goenka
| Pre-Issue Share Holding | 100% |
| Post Issue Share Holding |
COMPANY CONTACT INFORMATION:
Cool Caps Industries Limited
23 Sarat Bose Road, Flat No. 1C,
1st Floor, Kolkata – 700020
Phone: +91– 9903921338
Email: cs@coolcapsindustries.in
Website: http://www.coolcapsindustries.in/
COOL CAPS IPO REGISTRAR:
Link Intime India Private Ltd
Phone: +91-22-4918 6270
Email: coolcaps.ipo@linkintime.co.in
Website: https://linkintime.co.in/
Positives of CoolCaps
Return on Net Worth: 17.9%
Price to Earnings Ratio: 11
Strong Revenue Growth
and Much More….