Jiwanram Sheoduttrai Industries Ltd. Launches Rs 17.07 Crore SME IPO on September 8, 2023

Newzdaddy Business Updates

Jiwanram Sheoduttrai Industries Ltd. (JSIL), a company specializing in making industrial garments and safety gloves, is all set to open its SME (Small and Medium-sized Enterprises) IPO (Initial Public Offering) for subscription on September 8, 2023. The company aims to raise Rs 17.07 crore through this IPO to meet its various financial needs, including working capital requirements, loan repayments, and general corporate expenses.

Offer Details:

• JSIL’s IPO consists of a fresh issue of 74,22,000 equity shares.
• The shares will be offered at a fixed price of Rs. 23/- per share.
• The minimum application size is 6,000 equity shares (Rs 1.38 lakh per application).

Company Background

JSIL is a key player in the global and domestic personal protective equipment (PPE) market, known for its high-quality products. They’ve been in business since 1997 and have expanded their reach to over 20 countries, including the United States, Spain, Germany, and Belgium. They specialize in producing safety gloves and industrial garments and have gained a strong reputation for their quality and innovation.

Future Plans

Alok Prakash, the Promoter and Managing Director of JSIL expressed the company’s commitment to excellence in the industrial safety and personal protection equipment market. They plan to venture into casual workwear, a natural extension of their product portfolio. JSIL’s focus in recent years has been on acquiring new customers and strengthening their domestic presence. They aim to create value for their stakeholders while delivering top-notch products.

Utilization of Funds

Out of the IPO proceeds, JSIL will allocate Rs 2 crore for loan repayments, Rs 9.1 crore for working capital, and Rs 3.2 crore for general corporate purposes. After the IPO, the company’s share capital will increase to Rs 24.74 crore from Rs 17.32 crore.

Ownership

The Promoters and Promoters Group currently hold a 99.996 percent stake in the company, which will decrease to 70.01 percent after the IPO.

JSIL has been growing at a rate of 20 percent, with a turnover of INR 42 crore and a PAT (Profit After Tax) of INR 4 crore, achieving a PAT margin of 9.5 percent. In FY21-22, the company reported revenues of Rs 34.2 crore and a Net Profit of Rs 1.5 crore.

Market Outlook

The personal protective equipment (PPE) market, in which JSIL operates, was valued at USD 68.5 billion in 2022. While it’s projected to decrease slightly by 1.3 percent between 2022 and 2027, it’s still expected to reach USD 64.2 billion. The demand for PPE in the manufacturing and construction sectors is a key driver for market expansion.

Government Recognition

JSIL has registered with the Government e-Marketplace (GeM) under the Quality Council of India as an Original Equipment Manufacturer (OEM) to strengthen its presence in the domestic market and provide employment opportunities.

JSIL’s IPO is a significant step in its growth journey as it seeks to expand its presence in the personal protective equipment market. With a strong track record and a commitment to quality, the company aims to deliver value to its investors and customers alike.