Hindcon Chemicals Ltd, engaged in manufacturing a wide range of chemical products, proposes to open its initial public offer (IPO) of up to 27,60,000 Equity Shares of the face value of Rs. 10 each for cash at price of Rs. 28 per Equity Share, aggregating up to7.73 Cr, on 26 February 2018 at the NSE Emerge platform. The issue will close on 28 February 2018.
The net proceeds from the IPO will be utilized for meeting working capital requirements, general corporate and issue expenses. The Lead Manager to the Issue is Hem Securities Limited, a leader in SME IPOs and the Registrar to the Offer is Link Intime India Private Limited.
Hindcon Chemicals, incorporated in 1998, has been in the business of construction chemicals for the last 20 years. The Company has over 100 products in its portfolio with the main foray into sodium silicate, waterproofing additives, plasticizers etc. The Company has its manufacturing facility located in Howrah which has an installed capacity of 30,000 MT per year. The total revenue of the Company for the half year ended on September 30, 2017, stood at Rs. 1812.55 lakhs, for F.Y. 2016-17 – Rs. 3424.97 lakhs, for F.Y. 2015-16 – Rs. 3345.37 lakhs, and for F.Y. 2014-15 Rs. 3496.44 lakhs. Further, the Company’s Profit after tax for the half year ended on September 30, 2017, stood at Rs. 218.87 lakhs, for F.Y. 2016-17 – Rs. 205.95 lakhs, for F.Y. 2015-16 – Rs. 86.20 lakhs and for F.Y. 2014-15 Rs. 34.48 lakhs.
Mr. Sanjay Goenka, Managing Director, and Promoter, Hindcon Chemicals Ltd said, Hindcon Chemicals with its comprehensive construction chemicals range is dedicated in its quest to attain the highest level of qualitative production in the industry. The Company is focused on modifying its products to eliminate any harmful ingredient and serve the consumer, community, and country with eco-friendly finished materials. With several decades of concrete experience in the field, wide range of products and strong R&D back-up, the Company is poised for strong growth and well positioned to become a leader in the segment, increase its market share and profitability. In F.Y. 2016-17, our net revenue of operations comprised of Rs. 33.94 Crore of which 32.14% contributes to export sales to Nepal, Bhutan, and Bangladesh. Our key product portfolio includes Protective waterproofing coatings, Sodium Silicates, Concrete & mortar admixtures, Epoxy grouts & mortars, Waterproofing compounds, Shotcrete aids, Remover cleaning compounds, Sealants, Tile adhesives, among others”
Mr. Gaurav Jain & Mr. Prateek Jain, Directors, Hem Securities Ltd., highlighting the offer and investment rational said Hindcon Chemicals has developed a wide portfolio of products with a variety of applications and which have made them one-stop-shop provider of construction chemicals. The Company is bringing the issue at P/E multiple of 6.55 on post issue annualized H1FY18 EPS at a price of Rs 28/- per Share as against industry P/E multiple of more than 30. As a leading merchant banker in the SME IPO space, Hem Securities has been consistently acknowledged by BSE, NSE, and independent agencies for our strong focus on fundamentally good quality companies that are poised for accelerated growth and long-term wealth creation for the investors”
