Hi, Today we will tell you about 2 IPOs that are going to open on Groww App on Monday 1st November.
These 2 IPOs are SJS Enterprises and Sigachi Industries.
We will give you all the important details related to IPO in today's video.
So let's talk about SJS Enterprises.
This IPO is opening on Groww App on 1st November and you can do IPO till 3rd November.
The price band of IPO is Rs 531 to 542 per share and one lot is of 27 shares.
This company is working in the decorative aesthetics industry.
SJS is a design to delivery solutions provider engaged in design development and manufacturing for a wide range of OEM customers.
It mostly manufactures decorative parts for plastic & metal surfaces like decals & body graphics, 2D/3D dials, aluminum, plastic badges, etc.
Their products are used in the auto industry, consumer equipment, medical equipment, agricultural equipment, and sanitary ware.
They have 6,000+ SKUs and serve 170 customers from more than 20 countries.
Whether 66% of the company's sales come from OEMs and 58% from two-wheeler OEMs.
The IPO company is simply selling its existing shareholders to an exit and wants to take advantage of the listing gains.
There is no fresh issue happening in this, so no one is coming ahead of the IPO with the company.
India has many well-known auto OEMs customers- Maruti Suzuki, M&M, Volkswagen, Ashok Leyland, Honda, Bajaj Auto, Royal Enfield & TVS.
Whirlpool, Panasonic, Samsung, Eureka Forbes, and Godrej are also his customers in consumer durables.
If we talk about profitability, the company's Return on Equity is 15.15% and Net Profit Margin is 18.98%.
The Debt to equity ratio of the company is 0.3 times. SJS has a PE ratio of 34.54.
Before investing in an IPO, you should know that it is an auto-dependent business where ups and downs are associated with the auto industry.
And the company's largest customer is responsible for 21.49% of its sales and also has a high customer concentration risk.
After all, it takes time for a company to expand, interact with new customers, and get their approval, so their growth is slow and steady.
Another company is Sigachi Industries.
This IPO is also opening on Groww App on 1st November and you can do IPO till 3rd November.
The price band of IPO is Rs 161 to Rs 163 per share and one lot is of 90 shares.
Sigachi Industries aims to manufacture microcrystalline cellulose or MCC for the pharmaceutical industry.
MCC is a non-reactive and free-flowing material used as a dry binder, tablet disintegrant, absorbent, filler, and lubricant.
These are used in pharmaceuticals, food, nutraceuticals, tablets, and cosmetics.
Sigachi produces moss grades of MCC whose thickness varies from 15 microns to 250 microns.
They have their own 2 major grades which are better than the brand names of Highsell and Essel.
Sigachi has 2 manufacturing units in Hyderabad and Gujarat with a capacity of 11,880 tonnes per annum.
The company sells its products in 41 countries and 73% of its revenue came from exports in FY 2011.
The capital rise generated from the IPO will be used for the capacity expansion of the existing facility of that company.
Sigachi is looking to increase the capacity for MCC at its 2 plants in Gujarat.
And set up manufacturing of CCS at their plants in Andhra Pradesh.
If we talk about profitability, then the company has a Return on equity of 32.12% and a Net profit margin of 15.4%.
The debt to equity ratio of the company is 0.46. Sigachi has a PE ratio of 14.98.
To invest in an IPO you must know that 74% of its raw materials are imported from 5 countries and the cost is at 45% of the total revenue.
Sigachi uses wood pulp as its raw material.
Due to the depletion of forests around the world, its prices are going up, which can have a huge impact on the company's profits in the long term.
The customer concentration risk in Sigachi is also very high as 48% of the revenue from their top 5 customers is met in FY21.
Ultimately, Sigachi's customers are in a highly regulated industry that is subject to strict quality standards and regulations.
Any change can cause a huge loss to the company.
Subscribe to the Groww channel for more IPO-related updates. Bye-bye.