Essen Speciality Films Limited is a prominent manufacturer and exporter of specialised plastic products in the home improvement and home furnishing industry. The company has established itself as a reliable supplier to renowned multinational modern trade retailers, including IKEA, Walmart, Kmart, Bed Bath & Beyond, Rusta, Runsven, Kohl's, Kroger, and others. With its high-quality products and commitment to excellence, Essen Speciality Films has earned recognition and accolades in the industry.
The Ministry of Commerce & Industry, Government of India, has acknowledged Essen Speciality Films as a 'two-star export house,' highlighting its contribution to international trade. The company's exclusive global supplier status for certain products with IKEA since its inception showcases its strong partnership and reliability.
Operating from a fully-integrated, sustainable, and technologically advanced manufacturing unit, Essen Speciality Films ensures compliance with ISO 9001:2015 requirements. This certification attests to the company's commitment to maintaining international standards and delivering superior products to its customers. The opening date for Essen Speciality Films Limited IPO is Friday, 23 June 2023 and the closing date is Tuesday, 27 June 2023.
Essen Speciality Films Limited IPO Details
Essen Speciality Films Limited IPO is an SME IPO of 6,199,200 equity shares aggregating up to ₹66.33 Cr. The offer has its price band set between ₹101 to ₹107 per share, and the lot size is 1200. The IPO will list on the NSE SME.
Essen Speciality Films Limited IPO Objective
The objectives of Essen Speciality Films Limited's IPO are listed below:
- Prepayment or repayment of all or a portion of certain outstanding borrowings availed by the company
- Funding the working capital requirements and
- General corporate purposes
Should you invest in Essen Speciality Films Limited?
Here are a few important factors to consider before investing in the IPO:
- It is the leading manufacturer and exporter of specialised plastic products to internationally renowned multinational modern trade retailers.
- Essen Speciality Films has experienced considerable growth over the past 3 years and simultaneously it has expanded their operations and product portfolio. The total revenue grew at a CAGR of 17.30% between fiscals 2020 and 2022. But please note, the company claims that it cannot assure that its growth strategies will continue to be successful or that it will be able to continue to expand further, or at the same rate.
- There are outstanding litigations involving the company, promoters and directors which, if determined adversely, may affect the company’s business and financial condition.
Competitive Peers
Shaily Engineering Limited and Supreme Industries Limited are the listed peer companies operating in the same business line.
Highlights of Essen Speciality Films Ltd
- Essen Speciality Films has also been recognised as a 'two-star export house' by the Ministry of Commerce & Industry, Government of India. The company's exclusive global supplier status for specific products with IKEA since its inception showcases its strong partnership and reliability.
- Driven by product innovation, research and development, and a keen understanding of changing trends and technological advances, Essen Speciality Films delivers cost-effective and customised solutions to its clients. The company's ability to offer affordable products even during economic downturns due to its entry-level price points makes it well-positioned in the market.
Company Financials
| Particulars | FY 2022-23 (₹ lakhs) | Total ExpenFY 2021-22 (₹ lakhs) |
|---|---|---|
| Return on Net Worth | 15.62 | 7.15 |
| EBITDA | 2,067.65 | 1,365.91 |
| EPS | 8.36 |
Know before investing
Strengths
2Operating from a fully-integrated, sustainable, and technologically advanced manufacturing unit, Essen Speciality Films ensures compliance with ISO 9001:2015 requirements. This certification attests to the company's commitment to maintaining international standards and delivering superior products to its customers.
With the help of the long-standing market presence and integrated business model, the company has created a widespread domestic and international market presence, thereby catering to various manufacturers functioning in various industries.
Risks
2The commercial success of the company’s products depends, to a large extent, on the success of its customers. If the industry or the business in which the customers are engaged in does not perform well, it could have a material adverse effect on Essen Speciality Films’ business, financial condition and results of operations.
Any inability to pass on the increased price of the raw material used for manufacturing the company’s products may affect Essen’s profitability.
