Priti International IPO Review-Should You Invest?

A sharp decline in the domestic stocks has diminished the investors sentiment and poured cold water over the companies that want to raise money through the IPO route. But it seems the same is not applicable for the SME industries. The NSE SME IPOs like Accuracy Shipping and  Priti International IPO are proving that the bulls are not yet out of the town. Here are the details.

Priti International Business Profile

Priti International is a Jodhpur based company that started its operations in the year 2017. The company is engaged in manufacturing and exporting the handicraft products. It is also engaged in manufacturing wooden, textile, metal- based furniture and articles. Priti International IPO has been rolled on the charts of NSE Emerge so that the company can be the part of India’s growth story.

Apart from that, the company also  deals in recycling and up-cycling the waste products to make the most out of it.

The company’s product range from handicraft to home furnishing items to textile based products like cushions, pillow covers, pet products, rugs, and a lot more. The company has the staff strength of 45 employees and other temporary staff is also employed as per the requirement.

Company Promoters

The promoters of the company include- Goverdhan Das Lohiya, Priti Lohiya, Ritesh Lohiya. The promoters hold 18,87,832 shares representing 99.70% of the pre-issue paid- up share capital.

Objectives of the IPO

The company has planned to raise an IPO

• to expand its existing operations,
• to purchase additional plant and machinery related to the civil work,
• to pump in the working capital requirements and
• for the general corporate purpose.

Priti International IPO Details

The company is planning to raise an IPO of 5.26 crore face value of Rs 10 per equity share. The minimum bid is for 16 shares and the retail allocation is 50%

Issue Open: Jun 11, 2018 – Jun 13, 2018
Issue Type: Fixed Price Issue IPO
Issue Size: 700,800 Equity Shares of Rs 10 aggregating up to Rs 5.26 Cr
Issue Price: Rs 75 Per Equity Share
Minimum Order Quantity: 1600 Shares
Listing At: NSE SME

Priti International Valuation

The company has reported the total revenues of 323.6 lakhs, expenses of 302.1 lakhs and profit after tax of 16 lakhs. Valuations for 9M FY2018 below:

Earnings Per Share (EPS): INR3.47

P/E ratio: 21.61

Return on Net Worth (RONW): 3.99%

Net Asset Value (NAV): INR21.13 per share

Should you invest?

What makes the company unique and distinct from its peers is- the company is self-funded and has not taken loans from other financial institutions and. The company is nurtured by its core team comprises of only two people Hritesh and his wife Priti.

The Priti International IPO has been launched on 11 June, 2018 and has been subscribed by 0.23 times as at 05 pm on Day 2 whereas Accuracy Shipping IPO got subscribed by 0.10 times.

The business looks promising on the face of it and has a good demand of products in the European market, but the investor should invest in this IPO at his own risk because the company doesn’t seem to have rock-solid fundamentals to bank upon.