Gabriel Pet Straps LTD IPO: Review, Valuation, Date & GMP

Gabriel Pet Straps Limited IPO  - Complete Overview

Gabriel Pet Straps, founded in 2020, manufactures and sells PET straps under the brand "Gabriel" for heavy material packaging. The company, based in Rajkot, Gujarat, produces straps ranging from 9mm to 32mm in width and 0.70mm to 1.30mm in thickness, utilizing a sustainable approach with a blend of raw materials, including recycled materials from used PET straps.

Gabriel operates nationwide with a distribution network in 10 states, serving various industries such as cotton, packaging, and paper. Their eco-friendly production addresses environmental concerns. As of October 31, 2023, the company employs 26 people in its factory and office, emphasising its commitment to sustainable manufacturing and a broad market presence.

 

1- Pet Straps -

Pet strap is their major products, replacing steel strap and widely used by most steel, aluminium, chemical fibre,

cotton, bricks, paper, timber, construction, metal industries for medium and heavy load strapping.

 

Gabriel Pet Straps Limited IPO Overview

Gabriel Pet Straps Limited IPO date is slated to be open for subscription from January 31, 2024, to February 2, 2024. This BSE SME IPO follows a Fixed Price Issue IPO.

Gabriel Pet Straps Limited IPO price is fixed at Rs. 101 per share. 

The total issue size of this IPO amounts to Rs.8.06 CR. The company has reserved 50% for retail investors and 50% for other investors.

 

Gabriel Pet Straps Limited IPO timetable (Tentative)

Events	Date
IPO Opening Date	31 January 2024
IPO Closing Date	2 February 2024
IPO Allotment Date	5 February 2024
Refund initiation	6 February 2024
IPO Listing Date	7 February 2024

 

 

Gabriel Pet Straps Limited IPO Details

IPO Opening & Closing Date	31 January to 2 February 2024
Face value	Rs.10 per share
Issue Price	Rs.101 per share
Lot Size	1200 Shares
Price of 1 lot	Rs. 1,21,200
Total Issue Size	798,000 shares (aggregating up to Rs.8.06 Cr)
Fresh issue	798,000 shares (aggregating up to Rs.8.06 Cr)
Listing at	BSE SME
Issue Type	Fixed Price Issue IPO
Registrar	Bigshare Services Pvt Ltd

 

Gabriel Pet Straps Limited IPO Lot Details

Application	Lot	Shares	Amount
Minimum Lot Investment (Retail)	1 lot	1,200	Rs.1,21,200
Maximum Lot Investment (Retail)	1 lot	1,200	Rs.1,21,200
Minimum Lot Investment (HNI)	2 lot	2,400	Rs.2,42,400

 

Gabriel Pet Straps Limited IPO Reservation

Retail Shares Offered	50%
Other Shares Offered	50%

 

 

Company Financial

Gabriel Pet Straps Limited's financial overview for FY23 highlights positive growth in financials compared to FY22.

(Amount in Lakhs)

Period	Oct 31, FY 23	Mar 31, FY 23	Mar 31, FY 22
Total Assets	1,067.69	742.16	491.96
Total Revenue	451.90	1,500.60	968.57
PAT	17.30	51.96	-3.68
Net worth	203.30	249.41	183.74
Reserve & Surplus	18.42	-	-
Total Borrowings	630.91	297.48	273.06

 

Revenue Distribution Segment-wise          

Gabriel Pet Straps Limited's revenue is primarily derived from the Cotton Bales segment with notable contributions from Packaging and Waste Cloth in FY23.

(in % age)

Particulars	Oct 15, FY 23	Mar 31, FY 23	Mar 31, FY 22
Cotton Bales	94.20%	90.47%	95.15%
Ceramic	0.00%	0.50%	0.51%
Fiber	0.68%	0.09%	0.00%
Furniture	0.00%	0.01%	0.02%
Monofilament	0.00%	0.09%	1.65%
Metal	0.00%	0.00%	0.07%
Packaging	1.06%	6.25%	1.18%
Paper	0.42%	0.42%	0.48%
Resin	0.00%	0.00%	0.78%
Solar	0.22%	0.11%	0.00%
Waste Cloth	3.43%	2.06%	0.16%
Total	100.00%	100.00%	100.00%

 

 

Revenue Distribution State-Wise

Revenue distribution for Gabriel Pet Straps Limited, as a percentage, shows a major presence in Gujarat followed by significant contributions from Haryana, Madhya Pradesh, Maharashtra, and Telangana in FY23.

(in % age)

Particulars	Oct 15, FY 23	Mar 31, FY 23	Mar 31, FY 22
Gujarat	55.81%	56.55%	57.01%
Haryana	2.39%	56.55%	1.71%
Himachal Pradesh	0.00%	0.00%	0.00%
Karnataka	0.44%	2.05%	2.37%
Madhya Pradesh	14.98%	10.26%	12.11%
Maharashtra	8.42%	23.89%	24.40%
Rajasthan	4.67%	3.15%	0.82%
Tamil Nadu	0.00%	0.71%	0.15%
Telangana	13.29%	2.12%	1.30%
Uttar Pradesh	0.00%	0.00%	0.13%
Total	100.00%	100.00%	100.00%

 

Revenue by Operations

Gabriel Pet Straps Limited experienced a substantial revenue increase in FY23 compared to the previous periods.

(Amount in Lakhs)

Particulars	Oct 15, FY 23	Mar 31, FY 23	Mar 31, FY 22
Revenue from operations	424.89	1500.08	966.43
Other Income	27.01	0.52	2.14
Total Revenue	479.23	1500.60	968.57

 

The Objective of the Issue

• Paying back loans taken from banks, financial institutions, and non-banking financial companies, either fully or partially.

• Buying land.

• Funding the company's expenses for setting up a Solar Power Plant.

• Meeting general corporate needs.

 

Promoters and Management of Gabriel Pet Straps Limited IPO

1. Mr. Shah Jay Pareshbhai.

2.  Mr. Varasada Vimal Dayabhai.

3. Mr. Kavathiya Vivek Dharmendrabhai.

Pre-issue Promoter Shareholding	100.00%
Post-issue Promoter Shareholding	69.84%

 

 

Gabriel Pet Straps Limited IPO Lead Managers

•  Shreni Shares Limited

 

Peers of Gabriel Pet Straps Limited IPO

Gabriel Pet Straps IPO seems pricier than Vera Synthetic IPO.

Name of the Company	Face Value (Rs. per Share)	P/ E	EPS (Basic) (Rs.)
Gabriel Pet Straps Limited	10.00	35.94	2.81
Vera Synthetic Limited	10.00		3.69

 

Evaluation

The IPO is priced within the range of Rs. 101 per share.

 

Evaluation of P/E Ratio:

- Considering the FY23 EPS of Rs 2.81 from the last year, the resulting P/E ratio is 35.94x.

- Taking into account the weighted EPS of Rs 0.97 for the last three years, the P/E ratio amounts to 104.12x.

 

Comparative Analysis with Industry Average:

- The industry's average P/E is 28.8 x.

 

As a result, the IPO price range, with a P/E ratio ranging from 2.81x to 104.12x. seems highly overvalued in comparison to the industry average of 28.8x.

 

Dividend Policy

The company hasn't paid dividends in past fiscal years. Whether we can pay them in the future depends on factors like profits, past dividend trends, capital needs, legal restrictions, and other relevant considerations evaluated by our Board.

 

IPO's Strengths

• Location Advantage of Manufacturing Unit.

• Quality of Products.

• Experienced Management.

• Optimum use of resources.

 

IPO's Weaknesses

• Rising of Raw Material Cost.

• Capital Intensive Industry.

• Change in regulatory norms in our country.

 

 

IPO GMP Today

The Latest GMP of Gabriel Pet Straps Limited IPO is Rs. 50.

 

Conclusion

Gabriel Pet Straps Limited, a company specializing in the manufacturing and sale of PET straps for heavy material packaging, is set to launch its IPO. The company's commitment to sustainable practices and its market presence across India, particularly in Gujarat, Haryana, Madhya Pradesh, Maharashtra, and Telangana, showcases its potential for growth. Despite positive financial indicators and strengths such as a strategic manufacturing location, quality products, and experienced management, investors should carefully assess factors like raw material costs, industry capital intensity, and regulatory changes.

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

 

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

 

 

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