Essen Speciality Films Ltd IPO | Review, GMP, Valuation & Dividend

Essen Speciality Films Limited - Complete Overview

Established in 2002, Essen Speciality Films Limited operates in the manufacturing of plastic products for home improvement and home furnishing purposes.

With a strong emphasis on global reach, the company exports its products to multinational clients, including prominent Fortune 500 companies such as IKEA, Walmart, Kmart, Bed Bath & Beyond, Rusta, Runsven, Kohl's, Kroger, and more.
The company boasts an extensive product range that encompasses bath area and accessories, artificial plants & flowers, kitchen & dining essentials, storage & organization solutions, fitness & lifestyle products, outdoor & utility items, and customized products, etc. 

The company markets its products Under the brand names 'Draperi' specializing in shower curtains, 'Runner' for shelf liners and 'Paperi,' for 88 other artificial plants and placements.

With a global presence, Essen Speciality Films Limited caters to a diverse customer base across various industries. Its products are supplied to approximately 24 different countries, including China, Canada, Germany, Italy, Mexico, and more.

Additionally, the company has been recognized as a 'two-star export house' by the Ministry of Commerce & Industry, Government of India. It has also received the prestigious 'Best Supplier of the Year' award twice from IKEA, further highlighting its excellence in the industry.

 

What does the company do?

The company engages in the manufacturing of a diverse selection of advanced and specialized plastic products within the home improvement and home furnishing industry. Subsequently, the company sells and exports these products to various countries.

 

Company Products

Essen Speciality Films Limited specializes in a diverse array of advanced and specialized plastic products within the home improvement and home furnishing industry.

The company's product portfolio includes a wide range of offerings such as bath area and accessories, artificial plants & flowers, kitchen & dining essentials, storage & organization solutions, fitness & lifestyle products, outdoor & utility items, as well as customized products. These customized products include plastic films, spa slippers, baby shower caps, greenhouse gutter sheets, and more.

 

 

IPO Overview 

Essen Speciality Films Limited meets the criteria for an SME IPO, which allows privately owned small and medium enterprises to make their initial listing on platforms such as BSE SME or NSE Emerge. In India, a company must have a post-issue capital ranging from Rs 1 crore to Rs 25 crores in order to be eligible for an SME IPO.

The IPO of Essen Speciality Films Limited is valued at Rs. 66.33 crore, which includes both the fresh issue of shares and the OFS shares by promoters and early shareholders.

The issue price range per share is set between Rs.101 and Rs.107, with a face value of Rs.10 per share. The lot size for the IPO is 1200 shares, and retail investors are allowed to bid for a maximum of 1 lot. HNIs and NIIs can bid for a maximum of 2 lots.

Investors have a favorable timeframe to invest, as the IPO opens on 23 June 2023 and closes on 27 June 2023. The IPO will be listed on both the NSE and BSE stock exchanges.

Regarding allocation, 50% of the offering is reserved for institutional buyers, 15% for non-institutional buyers, and 35% for retail investors.

 

Essen Speciality Films Limited IPO Timetable

Events	Tentative Dates
IPO Opening Date	23 June 2023
IPO Closing Date	27 June 2023
IPO Allotment Date	3 July 2023
Refund Initiation	4 July 2023
IPO Listing Date	6 July 2023

 

Essen Speciality Films Limited IPO Details

IPO opening & closing date	23 June to 27 June 2023
Face Value	Rs 10 Per Share
Issue Price	Rs 101 - Rs 107 Per Share
Lot Size	1200 Shares Per Lot
Price of 1 lot	Rs 1,28,400
Total Issue Size	6,199,200 Shares
Offer for sale	1,500,1000 Shares
Fresh issue	4,699,200 Shares
Listing at	NSE, BSE
Issue Type	Book Build issue
Registrar	Bigshare Services

 

Essen Speciality Films Limited IPO Lot Details

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

 

Essen Speciality Films Limited IPO Reservation

Institution Portion	50%
Non-institution Portion	15%
Retail Portion	35%

 

Company Financials

Amount in Lakhs

Period	FY 21	FY 22	FY 23
Total Revenue	9680.78	11857.17	12048.09
Net Profit	913.73	516.90	1337.23
Net Worth	6707.76	7224.65	8561.89
Revenue & Surplus	6607.76	5624.66	6961.89
Total Borrowing	1541.36	2583.00	657.40

 

Objective of the Issue

The company's main aim is to secure funding for its operational needs, general corporate matters, and to settle or pay off existing company debts.

 

Promoters And Management of Essen Speciality Films Limited IPO

Essen Speciality Films Limited specializes in the manufacturing and exporting of plastic products within the home improvement and home furnishing industry.

The company is led by a team of experienced women, namely Pallavi Kishorbai Doshi, Khushboo Chandrakant Doshi, and Karishma Rajesh Doshi, who play key roles within the organization.

Currently, they hold a 100% stake in the company, which will be proportionately diluted following the IPO.

 

Peer Comparison

Essen Speciality Films Limited faces competition from various companies operating in the same market. Let's analyze and compare some of its key competitors.

Company Name	EPS Basic	NAV (Per Share)	P/E (x)	RoNW(%)
Essen Speciality Films Limited	8.36	53.51	NA	15.62
Shaily Engineering Plastic Limited	38.32	436.56	40.43	40.14
Supreme Industries Limited	60.18	302.68	46.88	21.14

 

IPO's Valuations

Essen Speciality Films Limited has an overall IPO valuation of Rs 66.33 crore, which comprises the fresh issue of shares as well as the OFS by the promoters and early shareholders. The valuation is based on a face value of Rs 10 per share.

 

Dividend Policy

The company has not announced its dividend policy in recent years. However, it may consider implementing a dividend policy after listing, which would be determined based on the company's financial performance.

 

IPO's Strengths

• The company holds a prominent position as a key leader in the home improvement and home furnishing industry.
• With the trust of its customers, the company has successfully established a strong brand identity.
• The company has been a longstanding leader in manufacturing and exporting specialized plastic products.
• The company specializes in manufacturing a diverse range of advanced and solution-oriented plastic products.
• The company has a robust market presence both domestically and internationally.

 

IPO Weakness

• The company's significant portion of revenue heavily relies on a limited number of key customers. Any decline in their business could have a detrimental impact on the company.
• The director and promoter of the company are currently engaged in an ongoing legal dispute. An unfavorable ruling in this litigation could adversely affect the company's operations.
• Due to the presence of multiple competitors in the market, there is a constant risk of being outperformed or overshadowed by these competitors.

 

 

IPO GMP

The director and promoter of the company are currently engaged in an ongoing legal dispute. An unfavorable ruling in this litigation could adversely affect the company's operations.

 

Conclusion

Essen Speciality Films Limited, a renowned manufacturer and exporter of specialized plastic products, offers an appealing investment opportunity for interested investors. However, it is essential to approach investment decisions with caution and conduct thorough assessments due to the inherent risks involved.

Before making any investment commitments, it is recommended to undertake extensive research and seek guidance from financial experts like Mukul Agrawal. 

 

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

 

 

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