Jiwanram Sheoduttrai Industries Ltd. IPO - Review, Valuation & GMP

Jiwanram Sheoduttrai Industries Limited - Complete Overview

Established in 1997, Jiwanram Sheoduttrai Industries Limited specializes in the manufacturing and export of industrial safety gloves and garments, offering customized solutions in the field of industrial safety. 

The company operates its manufacturing facilities in Baruipur, Nandankanan, and Falta SEZ, West Bengal. JSIL is a globally recognized manufacturer and exporter of head-to-toe safety wear, workwear, and related products.

Over the past two decades, JSIL has built a strong presence worldwide, particularly in Europe, America, and the Middle East, and has expanded its reach to more than twenty countries. It exports its product to countries including the United States of America, Spain, Germany, and Belgium.

The company classifies its business into three main product verticals:
1. Industrial Leather Gloves, which are further categorized as Canadian, Welder, Driver, Mechanical, Combi, Hi-Vis, etc. These gloves are customized with features like Thinsulate lining and Kevlar stitching to meet customer requirements.
2. Industrial Garments, which include Fire retardant, high visibility, water repellent, U.V protection, oil and soil repellent, anti-bacterial, and anti-peeling garments, tailored according to customer specifications.
3. Work and Casual wear, where the company has ventured into manufacturing Hospital Garments, Hotel Industry Garments, shirts, trousers, jeans, jackets, and T-shirts, all produced on an order basis.

In terms of financial performance, the company generated total revenues of Rs. 40.69 Lacs, Rs. 32.48 Lacs, and Rs. 29.25 Lacs in Fiscal Years 2023, 2022, and 2021, respectively.

 

What does the company do? 

Jiwanram Sheoduttrai Industries Limited is engaged in the manufacturing and export of Industrial Safety Gloves and Garments.

 

 

Company Products

Industrial Leather Gloves, Garments, Work and Casual wear.

 

IPO Overview 

The Jiwanram Sheoduttrai Industries IPO date is set to run from September 8 to September 12, 2023. The IPO share price has been fixed at Rs. 23 per share. 

The total issue size for this upcoming SME IPO is Rs. 17.07 Crores, with 50% of the shares allocated to retail investors and the remaining 50% allocated to other investors.

 

Jiwanram Sheoduttrai Industries Limited IPO timetable (Tentative)

Events	Date
IPO Opening Date	8 September 2023
IPO Closing Date	12 September 2023
IPO Allotment Date	15 September 2023
Refund initiation	18 September 2023
IPO Listing Date	21 September 2023

 

Jiwanram Sheoduttrai Industries Limited IPO Details

IPO Opening & Closing Date	8 September to 12 September 2023
Face value	Rs.10 per share
Issue Price	Rs. 23 per share
Lot Size	6000 Shares
Price of 1 lot	Rs.138,000
Issue Size	7,422,000 Shares (aggregating up to Rs. 17.07 Cr)
Offer for sale	NA
Fresh issue	7,422,000 Shares (aggregating up to Rs. 17.07 Cr)
Listing at	NSE SME
Issue Type	Fixed Price Issue IPO
Registrar	Cameo Corporate Services Ltd.

 

Jiwanram Sheoduttrai Industries Limited IPO Lot Details

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

 

Jiwanram Sheoduttrai Industries Limited IPO Reservation

Other Investors Share Portion	50%
Retail Investors Share Portion	50%

 

Company Financial

Amount in Lakhs

Period	FY - 21	FY - 22	FY - 23
Total Assets	12104.47	11377.25	12112.36
Total Revenue	3281.34	3414.89	4598.41
PAT	2.98	149.69	402.65
Net Worth	4307.14	4428.27	4802.36
Reserve & Surplus	3812.11	3933.24	3069.74
Total Borrowings	4883.69	5230.92	5258.99

 

The contribution of the top five and top ten customers of the Company

(Amount in Thousands)

Particulars	FY 23	FY 22	FY 21
Top 5	2,59,123.34	1,32,216.63	1,61,611.08
Top 10	2,99,941.45	1,98,042.18	2,13,259.89

 

Revenue contributed from the Baruipur and Falta Facility of the Company 

* Baruipur

(Amount in Crores)

Product	FY 21	FY 22	FY 23
Gloves	21.19	20.03	29.69
Industrial Garments	8.06	12.03	8.92
Total	29.25	32.06	38.60

 

* Falta

(Amount in Crores)

Product	FY 21	FY 22	FY 23
Gloves	-	0.42	1.56
Industrial Garments	-	-	0.52
Total	-	0.42	2.09

 

Details of Export and Domestic Sales of the company

(Amount in Thousands)

Particulars	FY 23	FY 22	FY 21
Export	2,41,109	2,35,890	2,42,115
Domestic	1,65,806	88,953	50,428
Total	4,06,915	3,24,843	2,92,543

 

Objective of the Issue 

The company intends to utilize the raised funds for the following purposes:

• Meeting working capital needs.
• Prepaying and repaying all or a portion of certain unsecured loans obtained by the company.
• Addressing general corporate objectives.
• Covering the expenses related to the offering.

 

Promoters and Management of Jiwanram Sheoduttrai Industries Limited

The Promoters of our Company are Alok Prakash, Anupama Prakash, Gyan Prakash and Alok Prakash HUF.

Pre-issue Promoter Shareholding	100%
Post-issue Promoter Shareholding	70.01%

 

Peer Comparison 

According to Jiwanram Sheoduttrai Industries' DRHP, there are no comparable peer companies listed in India that operate in the same line of business and are of the same size as the Company.

 

IPO's Valuations

With Jiwanram Sheoduttrai Industries' IPO price set at Rs. 23 per share and the company's EPS at Rs. 2.32, the IPO valuation, based on the issue price, results in a P/E ratio of 9.91.

 

Dividend Policy 

The company has not established a formal dividend policy, and there is no assurance of any dividends being declared or distributed by the Company in the future.

 

IPO's Strengths

• Global Reach and Extensive Distribution Network.
• Efficient and Economical Production with Timely Order Fulfillment.
• Long-standing Manufacturing Facilities with Decades of Experience.
• Products Holding National & International Certifications.
• Experienced Promoters and a Robust Senior Management Team with Extensive Industry Expertise.
• The company places a strong emphasis on upholding rigorous quality standards for its products.

 

IPO Weaknesses 

• The Company and its Directors are currently involved in certain legal proceedings.
• The Company relies significantly on its Top 10 suppliers to ensure a continuous supply of raw materials.
• The company's business is substantially reliant on specific key customers.
• An application was submitted by the company to the NSE on September 19, 2022, seeking in-principle approval for its IPO, which was subsequently declined by the Stock Exchange in a letter dated December 7, 2022.
• The primary raw materials for the company are leather and fabrics, the prices of which are subject to fluctuations, potentially increasing production expenses.
• The company primarily relies on exports for the sale of its products.
• The company operates in a competitive industry with numerous competitors, including well-established ones.
• The company lacks offshore offices to oversee its international operations.
• The company's manufacturing facilities are exclusively located in West Bengal.
• The nature of the company's business necessitates obtaining and renewing various licenses and permits from government authorities, regulatory bodies, and international organizations.
• No monitoring agency has been appointed by the Company.
• The Company has experienced delays in making payments for government dues.

 

 

IPO GMP Today

Latest GMP of Jiwanram Sheoduttrai Industries SME IPO is Rs. 10.

 

Conclusion

JSIL has established a robust international presence and an extensive distribution network. Additionally, the company has demonstrated consistent growth in both its revenue and profit. Seasoned investors may consider the IPO after conducting a thorough analysis.

 

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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