Jiwanram Sheoduttrai Industries IPO sees robust demand, subscribed 108.38 times

Jiwanram Sheoduttrai Industries IPO: Kolkata-based Jiwanram Sheoduttrai Industries Ltd (JSIL) has witnessed a remarkable response from retail investors and Non-Institutional Bidders (NIB) during its Initial Public Offering (IPO). 

The SME IPO, which opened  on September 8 for a three-day window, garnered significant attention from the investment community.

JSIL's IPO subscription rate stood at 108.38 times, reflecting strong investor confidence. The company received a total of 89,063 applications, with the retail portion being oversubscribed at 151.47 times, and the Non-Institutional Bidders (NIB) portion at 65.23 times.

Investors have shown keen interest in Jiwanram Sheoduttrai Industries, with bids received for 76,41,12,000 shares against the offering of 70,50,000 shares. The retail investors' portion saw bids for 53,43,78,000 shares, surpassing the available 35,28,000 shares, while the NIB segment received bids for 22,97,34,000 shares against the 35,22,000 shares offered.

JSIL, a prominent player in the global and domestic personal protective equipment (PPE) market, primarily engages in manufacturing industrial garments and safety gloves. The company aims to raise Rs 17.07 crore through this IPO to meet working capital requirements, repay certain unsecured loans, address general corporate needs, and cover offer expenses as outlined in the Prospectus.

Alok Prakash, the Promoter and Managing Director of Jiwanram Sheoduttrai Industries Limited expressed his excitement about the robust response, emphasising the trust in the company's vision and commitment to the safety sector. "JSIL's journey is off to an impressive start," he stated, looking forward to a promising future.

Jiwanram's issue is being managed by Affinity Global Capital Market Private Limited (AGCMPL), a Category I Merchant Banker registered with SEBI. 

The company's shares will be listed on the NSE EMERGE Platform, with Cameo Corporate Services Limited serving as the Registrar to the offer, and Giriraj Stock Broking Pvt Ltd acting as the market maker for the Issue. Anupama Prakash holds the position of Chief Financial Officer.

All about the IPO

The IPO comprises a fresh issue of 74,22,000 equity shares at a fixed price of Rs. 23 per equity share, totaling Rs 17.07 crore. The face value of the equity shares is Rs 10 each, and the issue price represents 2.30 times the face value. Investors can apply for a minimum of 6,000 equity shares, with multiples of 6,000 equity shares thereafter, equivalent to Rs 1.38 lakh per application.

The utilisation of the IPO proceeds includes Rs 2 crore for the repayment/prepayment of certain borrowings, Rs 9.1 crore for working capital, and Rs 3.2 crore for general corporate purposes. 

Post-IPO, the company's share capital will increase to Rs 24.74 crores from the previous Rs 17.32 crore, with Promoters and Promoters Group holding a 99.996 per cent stake, which will be reduced to 70.01 per cent post-IPO.

JSIL's IPO offering consists of up to 74,22,000 equity shares of face value Rs 10 each, amounting to Rs 1,707.06 lakhs. The promoters of the company include Alok Prakash, Anupama Prakash, Gyan Prakash, and Alok Prakash (HUF). With a growth rate of 20 per cent, the company currently has a turnover of Rs 42 crore and a PAT of Rs 4 crore, maintaining a 9.5 per cent PAT Margin. In FY22, the company reported revenues of Rs 34.2 crore and a net profit of Rs 1.5 crore.

Jiwanram Sheoduttrai Industries Limited, with over two decades of experience in the industrial safety sector, initially specialised in producing PPEs since its inception in 1997. It has evolved into a top exporter and technology-driven safety solutions provider across India, 10 other countries, and 6 states. The company's product range spans industrial safety gloves and garments, catering to diverse markets in Europe, America, and the Middle East.

The personal protective equipment market (PPE Market) was valued at $68.5 billion in 2022. It is projected to shrink by 1.3 per cent to $64.2 billion between 2022 and 2027. However, the manufacturing and construction sectors' growing demand for personal protection equipment continues to drive market expansion.