Goldstar Power IPO: GMP, Issue Size & Price

Goldstar Power IPO is about to debut on 27 September 2017, with an issue size of 7.25CR. Goldstar Power Ltd is a battery manufacturing company that was incorporated in 1999. The company has its flagship brand called “Star Gold” under which it markets its products. Goldstar Power procures battery scrap and discarded batteries from dealers and retailers and then converts them into finished products. The company’s product range comprises different types of batteries, including automotive batteries, tubular batteries, SMF series batteries, VRLA batteries, solar batteries, pure lead, and alloy batteries.

The batteries produced by Goldstar Power are generally used as replacements by car owners rather than as stock batteries by car manufacturers. The company caters to all three segments of the market, including exports, the domestic/after-sales market, and OEM. Goldstar Power has a widespread customer base with its domestic customers located in various regions of the country, and its international customers spread across different countries like Uganda, Nepal, and Lebanon.

Industry Overview 

India’s economy is on a path of rapid growth, with a target GDP growth rate of 8-9%. However, to achieve this growth, it is crucial that the country’s power infrastructure is up to par. As of January 31, 2013, India has the fifth-largest generation capacity in the world, with over 211 GW installed. While the industrial sector currently has the highest demand for electricity, the domestic and commercial sectors are also expected to experience an increase in demand. The government is planning to increase the share of power generated from renewable sources to meet this demand.

To achieve its power generation and transmission capacity addition targets, along with the growth of infrastructure and other industrial sectors, it is important that India’s electrical equipment industry maintains a high rate of growth and responds to domestic and global changes effectively. This can be achieved by enhancing employee productivity, upgrading manufacturing practices, and product innovation, among other initiatives. Government participation is necessary to accelerate this growth process and provide a level playing field for domestic equipment manufacturers to compete in both domestic and international markets with other multinational players.

Goldstar Power IPO Details

IPO Date	Sep 27, 2017 to Sep 29, 2017
Listing Date	Oct 10, 2017
Face Value	₹10 per share
Price	₹25 per share
Lot Size	6000 Shares
Total Issue Size	2,900,000 shares(aggregating up to ₹7.25 Cr)
Issue Type	Fixed Price Issue IPO
Listing At	NSE SME

Company Financials 

	FY2013	FY2014	FY2015	FY2016	FY2017
Total revenue		62.0	49.2	41.3	40.5	55.0
Total expenses		60.8	50.0	42.1	41.0	54.2
Profit after tax		0.7	0.3	-0.7	-0.4	0.9

Objects of the Issue

The object of the issue are:

1. Funding the working capital requirements of the Company
2. General Corporate Purpose

Goldstar Power IPO Prospectus

•   ›  Goldstar Power IPO RHP

Company Contact Information

Goldstar Power Ltd
Behind Post-Hapa,
Ravi Petrol Pump High-Way Road,
Jamnagar – 361120
Phone: +91-0288-2571120
Email: cs@goldstarpower.com
Website: http://www.goldstarpower.com

Goldstar Power IPO Registrar

Link Intime India Private Ltd

Phone: +91-22-4918 6270
Email: goldstar.ipo@linkintime.co.in
Website: https://linkintime.co.in/

Goldstar Power IPO Lead Manager(s)

1. Pantomath Capital Advisors Pvt Ltd (Past IPO Performance)