Nandan Terry Pvt Ltd, based in Ahmedabad, has filed the draught red herring prospectus (DRHP) with market regulator Sebi in preparation for its first public offering. The company intends to raise Rs. 255 crore through a public offering.
The Chiripal Group may consider raising Rs 40 crore in a pre-IPO placement to minimize the initial issue size. The promoters own 79.65% of the corporation, with the rest owned by the general public. Devkinandan Corporation LLP and Chirpal Exim LLP both own 26.35% of the company. The issue’s book-running lead managers are Holani Consultants and BOI Merchant Bankers, while the registrar is Link Intime.
Objective of the Issue
The proceeds of the issue will be utilised for
- Repaying debt
- Working capital requirements
- General corporate proposals
About Nandan Terry Pvt Ltd
A part of Chiripal Group, Nandan Terry has filed its initial documents with SEBI to raise Rs. 255 crore through an 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 the petrochemical industries.
Established in 2005, that brand has developed into a totally vertically integrated company specializing in making terry towels and toweling products. They purchase 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, the UK, and Australia.
Nandan Terry Pvt Ltd IPO Financials
| Name of the company | PE | Total Income Total Revenue (in Rs. crores) | Basic EPS | NAV Rs. per share |
|---|---|---|---|---|
| Nandan Terry Limited | NA | 538.94 | 5.11 | 25.56 |
| Welspun India Ltd | 26.13 | 7,407.95 | 5.37 | 37.26 |
| Trident Limited | 80.98 | 4,546.70 | 0.61 | 6.53 |
| Himatsingka Seide Limited | NA | 2,272.53 | -5.42 | 133.58 |
Nandan Terry Pvt Ltd IPO Key Points
Strengths:
- The company has strong technological capabilities with the latest technology and machinery.
- Nandan Terry has strategically placed their manufacturing facilities in locations that are well connected by rail, road, and air.
- The company has a fully equipped quality control facility.
Risks :
- There 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 groups, CIL NOVA Petrochemical Limited, was banned by SEBI from accessing the capital market due to a violation of the 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.
Nandan Terry Pvt Ltd Peer Comparison
| Particulars (in Rs. Crores) | FY21 | FY20 | FY19 |
|---|---|---|---|
| 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% |
Nandan Terry’s IPO FAQs:
Q1. What is Nandan Terry’s Initial Public Offering?
Ans. Nandan Terry has filled its initial documents with SEBI to raise Rs.255 crore through Initial Public Offering.
Q2. When will allotments for the Nandan Terry IPO become available?
Ans. Nandan Terry IPO will finalize the allotment by < >.
Q3. What will the IPO lot size for Nandan Terry be?
Ans. Each Nandan Terry IPO lot has <> shares.
Q4. When will Nandan Terry IPO be available to buy?
Ans. The IPO of Nandan Terry will be open for subscription from <>
Q5. What is Nandan Terry’s smallest lot size available to retail investors?
Ans. The minimum market lot size for the Nandan Terry IPO is <> shares.
Q6. Which exchanges will Nandan Terry list on?
Ans. Nandan Terry shares will be listed on both BSE as well as the National Stock Exchange (NSE).
Q7. What is the IPO size of Nandan Terry?
Ans. The IPO size of Nandan Terry is Rs <> crore.
Q8. How will I get my Nandan Terry stock?
Ans. Following allotment, the Nandan Terry shares will be credited to the Demat account.
Q9. Can I use one PAN to submit multiple applications for the public issue of Nandan Terry?
Ans. No, you cannot use the same PAN to make multiple applications for this Nandan Terry IPO or any other public offering.
Q10. Is it necessary to give immediate approval to a UPI mandate request?
Ans. Yes, immediately approving a UPI mandate request is preferable. Accepting it as soon as you receive it is much better.
Q11. Who is the CEO of Nandan Terry?
Ans. Ronak Chiripal is the CEO of Nandan Terry.
