A part of Chiripal Group, Nandan Terry has filled its initial documents with SEBI to raise Rs.255 crore through Initial Public Offering. However, the company has decided to raise Rs.40 crore through a pre-IPO placement. If this is undertaken, the value of the IPO will be reduced.
Nandan Terry mainly deals with a vast range of production, contract manufacturing, trade, distribution and service-related operations for textiles, education, packaging, infrastructure and petrochemical industries.
Established in 2005, that brand has developed into a totally vertically integrated company specialising in making terry towels and toweling products. They make the purchase of cotton bales from domestic and foreign markets to convert them to cotton yarn for making all the toweling items.
The company makes a huge variety of towels for a wide range of domestic and international brands. They have established their global presence by increasing their sales to nations like the US, Canada, Israel, Germany, Hong Kong, UK and Australia.
Nandan Terry PVT LTD IPO Objectives:
- The money will be used in repayment of debts taken for different corporate purposes.
- A part of the fund will be utilised for general corporate purposes.
Why should you invest in Nandan Terry PVT LTD IPO:
- The company has an amazing global presence in about 18 countries and a chunk of the revenue is generated from the international market
- The company’s total income for the years 2019, 2020, and 2021 was – Rs. 322.43 crores, Rs. 429.69 crores, and Rs. 538.94 crores.
IPO Financials
| Name of the company | PE | Total Income Total Revenue (in Rs. crores) | Basic EPS |
|---|---|---|---|
| Nandan Terry Limited | NA | 538.94 | 5.11 |
| Welspun India Ltd | 26.13 | 7,407.95 | 5.37 |
| Trident Limited | 80.98 | 4,546.70 | 0.61 |
| Himatsingka Seide Limited | NA | 2,272.53 | -5.42 |
Know before investing
Strengths
3The company has strong technological capabilities with having the latest technology and machinery.
Nandan Terry has strategically made their manufacturing facilities in locations that are well connected by rails, road and air.
The company has a fully equipped quality control facility.
Risks
3There is a possibility of the firm getting a higher tax rate, which could hamper their business in the long run.
One of the company’s listed group CIL NOVA Petrochemical Limited was banned by SEBI from accessing the capital market due to the violation of Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003.
The brand has contingent liabilities that may affect the financial condition of the business.
Peer Comparison
| Particulars (in Rs. Crores) | FY21 | FY20 | FY19 | Dividend Yield |
|---|---|---|---|---|
| Revenue | 538.52 | 429.39 | 322.17 | - |
| EBITDA | 86.83 | 61.84 | 50.55 | - |
| PAT | 23.38 | 1.22 | -0.50 | - |
| EPS (basic in Rs.) | 5.11 | 0.27 | -0.11 | - |
| ROE | 19.99% | 1.32% | -0.54% | - |
