The IPO of Delhi based Sirca Paints India will open on May 16, 2018. The offer consisting fresh issue of upto 48,69,600 equity shares of face value of Rs 10 fully paid up for cash at a price band of Rs 151-160 aggregating to Rs 7,353.09 lakhs-Rs 77,91.33 lakhs. The shares will be listed on NSE Emerge Platform of National Stock Exchange. The Book Running Lead Managers to the Issue is Navigant Corporate Advisors. The earliest closing date of the IPO will be May 22, 2018.
Offered at the Price to Earnings (PE) ratio of 19.09 against the industry average of 41.30, the Bids for shares can be made for a minimum of 800 equity shares and in multiples of 800 equity shares. 59.62% of the portion reserved for Qualified Institutional Buyers (QIB) will be offered to Anchor Investors on a discretionary basis. The QIB portion will constitute 49.69% of the Net Issue.
The IPO has been launched with the objectives of financing the expenditure of Site/Plant Development and Purchase of Plant and Machinery, part financing incremental working capital requirements of the company, meeting general corporate purpose and meeting the expenses of the Issue.
Sirca Paints India has entered into a Distributorship Contract with SIRCA SPA ITALY wherein it has got the exclusive right to promote the sale of PU & Metal Coating under trademark 41 SIRCA in the territory of India, Sri Lanka, Bangladesh and Nepal. Sirca Paints India Limited has also entered into a Manufacturing License Agreement with SIRCA S.P.A. Italy for manufacturing the following products that it is currently distributing under the Product Distribution Agreement. Pursuant to this agreement, the Company is having an Exclusive Right to manufacture the following products in India, under the mark ''SIRCA''. Paints NC, Paints AC, Thinner, Polyurethane Products.
Sirca Paints India has shown a tremendous growth in its total revenue, which has more than doubled in last five years. The total revenue in the Financial Year 2012-13 was Rs. 3402.29 Lacs which is Rs 8434.17 Lacs in the financial year 2016-17 and has shown an increment of 147.89 %. The profit after tax also shown as steep rise in last five years from Rs 50.40 lacs in the Financial year 2012- 13 to Rs 1370.34 Lacs in the Financial Year 2016-17 an increment of 2618.93 %. Also, the total revenue for the Six months ended on 30th September, 2017 is Rs 4252.39 lacs with a profit after tax of Rs 964.18 Lacs showing a growing trend in business operations over the previous years.
