Swaraj Suiting Limited was founded in 2003. Initially, the company started its business operation as a cotton and synthetic fabrics manufacturer. Later on, it turned its business operation to trading in the category of synthetic fabrics in 2009. The company carried out this action by selling off its subsidiary company Sulzer weaving looms to an associate, Swaraj Sulz Private Limited. In this article, we take a closer look at the Swaraj Suiting IPO Review and its possible future prospects.
Swaraj Suiting Limited, in 2011 again entered into the manufacturing business of Cotton and Synthetic fabrics and started it on a commercial and operational basis in January 2013. It is also engaged in producing the Grey Fabric, Weaving on a Job work basis, and Finished fabric production. The company’s manufacturing facility has been located at the Bhilwara, Rajasthan, which is the place of the registered office of the company. The company holds 123 Air-jet looms with a production capacity of around .50 million meters of cotton & synthetic fabric every month. It also holds a capacity of around 225 Lakh Meters Per Annum (LMPA).
Swaraj Suiting Limited also has a vision of setting up a new production facility at Neemuch, Madhya Pradesh, to produce premium quality denim fabric with an annual capacity of 21.75 million metric meters of denim fabric.
The main business verticals of the company are as follows:
- Manufacturing of the Grey Fabric
- Weaving on Job Work basis
- Trading of the Yarn, Fabrics under finished fabrics, and grey fabrics.
OBJECTS OF THE IPO ISSUE:
- Prepayment of all the company’s loans, which be availed on a consolidated basis.
- To meet the general corporate targets.
- To fund the working capital requirements along with the expenditures.
- The company also has an objective to fund their CAPEX Plan to expand their existing manufacturing unit at the Neemuch, Madhya Pradesh.
SWARAJ SUITING IPO DETAILS:
A textile company, Swaraj Suiting, recently got SEBI’s approval to float their IPO in the market. The company’s IPO is a Pure Issue of new equity shares of the company of 1,908,000 equity shares, which aggregates up to Rs. 10.68 Crores. The company has fixed the lot size for the IPO to be 2000 equity shares.
The company’s listing will be at the NSE- SME platform. The company’s IPO offer is a fixed price issue offer where half of the issue is for the Retail Category, and the other half is for HNI (NII) category. The company has yet to declare the other dates regarding the listing date initiation of the funds and the credit of the Demat Account.
The company also stated it would utilize Rs. 9.55 crores for working capital requirement and another Rs. 0.63 crores for general corporate purposes. The IPO issue of the company constitutes around 26.50% of the post-issue paid-up capital. Check Day by Day IPO Subscription Details (Live Status)
| IPO Opening Date | March 15, 2022 |
| IPO Closing Date | March 17, 2022 |
| Issue Type | Fixed Price Issue IPO Offer for Book Building Purpose |
| Face Value | Rs. 10 per equity share |
| IPO Price | Rs. 56 per equity share |
| Market Lot | One market lot of 2000 equity shares |
| Minimum Order Quantity | One market lot of 2000 equity shares |
| Minimum Order Price | Rs. 112,000 |
| Maximum Order Quantity | One market lot of 2000 equity shares |
| Maximum Order Price | Rs. 112,000 |
| Listing At | NSE – SME |
| Issue Size | 1,908,000 equity shares of the company which, aggregates up to Rs. 10.68 Crores |
| Fresh Issue | 1,908,000 equity shares of the company which, aggregates up to Rs. 10.68 Crores |
| Retail Shares Offered | 50% quota of the IPO offer |
| NII (HNI) Shares Offered | 50% quota of the IPO offer |
| Finalisation of Basis of Allotment | Coming soon |
| Initiation of refunds | Coming soon |
| The Transfer of shares to Demat accounts | Coming soon |
| Listing Date | Coming soon |
| Opening Price on BSE | Coming soon |
| Closing Price on BSE | Coming soon |
COMPETITIVE STRENGTHS OF THE COMPANY:
- Swaraj Suiting Limited has a solid promoter base and a team of experienced management, technical and operational teams.
- The company holds a pedigree of an experienced promoter base. The company’s promoters in the Textile Industry have very sound knowledge of production, operation, processing, marketing, and finance activities.
- The company has a very well-defined organizational structure and a very smooth flow of business operation.
- Swaraj Suiting Limited has a solid association with its supplier base for sourcing raw materials required for the production of the finished goods of the company.
- The company’s business model is based on Customer-Centric services with scalable operation and quality assurance.
- The IPO offer of the company is lucratively priced based on the company’s financials. The company will be highly benefitted by the growth of the textile sector and an increase in the trend of the incoming flow of funds and PLI scheme initiatives in the sector.
- Swaraj Suiting Limited has carried out strategical planning of the vertical integration for upgradation of their supply chain to achieve a lower production cost and boost up the efficiency of the company.
- The company plan of setting up a new manufacturing unit is also an integration of the backward and forward activity of the company.
FINANCIAL TRENDS:
| Particulars | For the year ending with the amount in millions | ||||
| 30-Sep-21 | 31-Mar-21 | 31-Mar-20 | 31-Mar-19 | ||
| Total Assets | 916.23 | 917.17 | 970.45 | 937.34 | |
| Total Revenue | 817.19 | 602.16 | 806.53 | 764.17 | |
| Profit After Tax | 19.10 | 26.75 | 35.43 | 21.86 |
| PARAMETERS | MARCH 21 | MARCH 22 | YoY % |
| Earnings Per Share (Rs) | 11.99 | 16.85 | -28.83 |
| CEPS (Rs) | 14.93 | 27.04 | -44.80 |
| DPS (Rs) | 0.00 | 0.00 | 0.00 |
| Book NAV/Share (Rs) | 171.46 | 158.61 | 8.10 |
| Tax Rate (%) | 17.78 | 17.27 | 2.92 |
| Core EBITDA Margin (%) | 16.43 | 20.29 | -19.02 |
| EBIT Margin (%) | 10.36 | 11.99 | -13.60 |
| Pre – Tax Margin (%) | 5.43 | 5.33 | 1.98 |
| PAT Margin (%) | 4.47 | 4.41 | 1.36 |
| Cash Profit Margin (%) | 11.12 | 13.04 | -14.72 |
| ROA (%) | 2.83 | 3.71 | -23.71 |
| ROE (%) | 7.75 | 12.46 | -37.79 |
| ROCE (%) | 7.75 | 11.91 | -34.90 |
| Asset Turnover (x) | 0.63 | 0.84 | -24.73 |
| Sales/Fixed Asset (x) | 0.81 | 1.02 | -21.23 |
| Working Capital/Sales (x) | 3.21 | 5.28 | -39.25 |
| Fixed Capital/Sales (x) | 1.24 | 0.98 | 26.95 |
| Receivable days | 81.65 | 60.45 | 35.07 |
| Inventory Days | 186.24 | 121.48 | 53.32 |
| Payable days | 95.24 | 69.75 | 36.54 |
| EV/Net Sales (x) | 0.74 | 0.63 | 16.14 |
| EV/Core EBITDA (x) | 4.33 | 3.07 | 40.78 |
| EV/EBIT (x) | 7.11 | 5.29 | 34.42 |
| EV/CE (x) | 0.48 | 0.52 | -8.48 |
| Net Sales Growth (%) | -25.52 | 5.39 | -573.32 |
| Core EBITDA Growth (%) | -38.56 | 14.12 | -373.06 |
| EBIT Growth (%) | -35.65 | 36.74 | -197.05 |
| PAT Growth (%) | -24.51 | 62.09 | -139.48 |
| EPS Growth (%) | -28.83 | 60.19 | -147.89 |
| Total Debt/Equity (x) | 1.10 | 1.60 | -31.48 |
| Current Ratio (x) | 1.65 | 1.43 | 14.95 |
| Quick Ratio (x) | 0.58 | 0.57 | 3.00 |
| Interest Cover (x) | 2.10 | 1.80 | 16.86 |
The valuations of the company are as follows:
Total equity shares of the company outstanding before IPO offer = 52,92,130
Total equity shares of the company to be issued in IPO offer = 19,08,000
Total equity shares of the company outstanding after IPO offer = 72,00,130
PAT as in FY21 = 3.8 Crores
As per the IPO pricing, the company’s market value is around Rs. 40.32 crores
EPS of the company = 5.2
P/E ratio= 10.76
Earnings Per Share/ EPS: Rs. 6.00
Pre-IPO Price/Earnings or the PE ratio: 9.34
Return on Net Worth/ RONW: 6.99%
Net Asset Value / NAV: Rs. 85.73 per equity share
Also Read : List of Mainboard IPO’s in India.
Also Read : List of Upcoming SME IPO’s in India.
PROMOTERS OF THE COMPANY:
The Promoters of the company, Swaraj Suiting are:
- Mr. Mohammed Sabir Khan
- Mrs. Samar Khan
- Mr. Nasir Khan
| Pre – Issue Share Holding | 99.74% |
| Post Issue Share Holding | 73.31% |
SWARAJ SUITING CONTACT DETAILS:
Swaraj Suiting Limited
F-483 To F-487,
RIICO Growth Centre
Hamirgarh-311025, Bhilwara
Phone: +91 9660630663
Email: cs@swarajsuiting.com
Website: www.swarajsuiting.com
SWARAJ SUITING OFFER REGISTRAR:
Bigshare Services Private Limited
1st Floor, Bharat Tin Works Building,
Makwana Road, Marol,
Andheri East, Mumbai – 400 059, Maharashtra
Phone: +91 22 6263 8200
Fax. No.: +91 22 6263 8280
Email: ipo@bigshareonline.com
Website: www.bigshareonline.com
SWARAJ SUITINGs IPO LEAD MANAGER(S):
Finshore Management Services Ltd.
