Alphalogic Industries Limited IPO - GMP, Review, Price & Valuation

Alphalogic Industries Limited - Complete Overview

Established in 2020, Alphalogic Industries Limited is a subsidiary of M/s. Alphalogic Techsys Limited. The company is dedicated to providing industrial and institutional storage solutions, encompassing design, manufacturing, supply, and installation services.

Their product portfolio includes Compactor Storage Systems, Heavy Duty Storage Racks, Cantilever Racks, Lockers, Mezzanine Floors, School Lockers, Book Supports, and more.

Alphalogic Industries operates a single manufacturing facility situated in Pune, Maharashtra. Their focus lies in creating compact products with simple designs that are user-friendly and require minimal maintenance.

The company has successfully provided storage solutions to various industries, including automobile, e-commerce, food, logistics, engineering, education, IT, and more. In the fiscal year 2023, Alphalogic Industries served over 150 clients from diverse sectors.

 

What does the company do? 

Alphalogic Industries is actively involved in the production, design, supply, and installation of top-notch storage systems for industrial and institutional applications. The company's primary vision is to develop storage solutions that align with the unique requirements of different industries and cater to their specific usage needs.

 

 

Company Products

Alphalogic Industries specializes in manufacturing storage systems tailored to the specific requirements of various industries. Their diverse product lineup encompasses a wide range of storage solutions such as Compactor Storage Systems, Heavy Duty Storage Racks, Cantilever Racks, Lockers, Mezzanine Floors, School Lockers, Book Supports etc

 

IPO Overview 

The Alphalogic Industries IPO is scheduled to be listed on the BSE SME platform from July 3, 2023, to July 6, 2023.

This year, several SME IPOs are being launched, which presents significant benefits for small and medium enterprises looking to raise funds from the general public.

The issue price of the Alphalogic Industries IPO has been fixed at Rs. 96 per share, at the face value of Rs. 10 per share. The one lot of the IPO will consist of 1200 shares, and retail investors can bid for a maximum of 1 lot.

Regarding allocation, 50% of the total issue has been reserved for retail investors. The IPO is scheduled to be listed on the stock market on July 14, 2023, and the allotment process will commence on July 11, 2023.

 

Alphalogic Industries Limited IPO timetable

Events	Dates
IPO Opening Date	03 July 2023
IPO Closing Date	06 July 2023
IPO Allotment Date	11 July 2023
Refund Initiation	12 July 2023
IPO Listing Date	14 July 2023

 

Alphalogic Industries Limited  IPO Details

IPO Opening & Closing Date	03 July 2023 to 06 July 2023
Face Value	Rs 10 per share
Issue Price	Rs 96 per share
Lot Size	1200 Shares Per Lot
Price of 1 Lot	Rs 115,200
Issue Size	1,341,600 Shares
Offer for Sale	NA
Fresh Issue	1,341,600 Shares
Listing at	BSE SME
Issue Type	Fixed Price Issue IPO
Registrar	Cameo Corporate Services Ltd.

 

Alphalogic Industries Limited  IPO Lot Details 

Minimum Lot Investment (Retail)	1 Lot
Maximum Lot Investment (Retail)	1 Lot
Minimum Lot Investment (HNI)	2 Lot

 

Alphalogic Industries Limited IPO Reservation

Retail Portion

50%

 

Company Financial

Amount in Lakhs

Period	FY 21	FY 22	FY 23
Total Assets	76.90	373.94	917.73
Total Revenue	322.33	784.33	1823.14
Net Profit	8.29	30.51	219.41
Net Worth	18.29	85.46	433.58
Reserve & Surplus	8.29	65.85	402.30
Total Borrowing	55.75	168.24	370.83

 

Objective of the Issue

The funds raised through the IPO will be utilized by the company for various purposes, including meeting working capital requirements, covering issue expenses, and addressing general corporate needs. 

 

Promoters and Management of Alphalogic Industries Limited

The company is led by a team of experienced promoters, including Dhananjay Subhash Goel, Krina Gandhi, Anshu Goel, Rohan Kishor Wekhande, Vedant Goel, Montubhai Gandhi, Subhash Tarachand Goel, Neha Anshu Goel, Vandana Sanjay Goel, and Sushiladevi Subhash Goel.

 

Promoters Holding in Alphalogic Industries Limited IPO

Pre issue shareholding	100%
Post issue shareholding	73.67%

 

Peer Comparison

The company operates across multiple business segments, offering a comprehensive range of services that are not available from a single provider. This unique position makes it difficult to make a direct and equitable comparison with other companies in the industry as per the Alphalogic industries drhp.

 

IPO's Valuations

The valuation of the Alphalogic IPO is determined by considering a combination of qualitative and quantitative factors. Some of the quantitative factors include the company's restated EPS of 111.54, a P/E ratio of 0.86, a RoNW of 50.60%, and a NAV of 33.79 per equity share. These quantitative factors play a significant role in assessing the IPO's valuation.

 

Dividend Policy

In the past three financial years, the company has not distributed any dividends. However, after the IPO launch, the company may pay the dividend and the payments will be determined based on various factors, including the company's financial condition, operational performance, profitability, and the interests of its shareholders.

 

IPO's Strengths

• Experienced management team.
• Offering high-quality products and services.
• Diversified product portfolio.
• Smooth flow of operations.
• Organizational stability.

 

IPO's Weaknesses

• Dependency on a few customers poses a risk to the business.
• Reliance on third-party services may have a negative impact.
• Operating in a highly competitive business environment.
• Limited manufacturing facility.
• Experienced negative cash flow in the recent fiscal year.

 

 

IPO GMP

The Last GMP of this IPO was -8.

 

Conclusion

The company's financial performance has been consistently improving over the years, indicating a positive trend. Furthermore, the company's assets exceed its borrowings, implying that it can easily repay its debts. Considering these factors, investing in the Alphalogic Industries IPO may be a wise decision. However, it is essential to conduct a thorough analysis of all relevant factors and also assess the GMP of the share. This helps you make an informed decision.

 

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To Read the Prospectus of the Company Click Here to Download the DRHP

 

 

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