Srivasavi Adhesive Tapes IPO comprises of entirely an offer of fresh shares aggregating to ₹15.50 Cr. The company will be selling its shares at fixed price of Rs. 41. Srivasavi Adhesive Tapes Limited is engaged in manufacturing, coating, converting, and Die cuts of industrial Specialty self-adhesive tapes.
| IPO opens | 23-Feb-23 |
| IPO Closes | 28-Feb-23 |
| IPO Size (Rs.) | ~ ₹15.50 Cr |
| IPO Size (shares) (100% fresh isue) | 3,780,000 |
| Face Value: | ₹10 |
| IPO Pricebin Rs : | 41 |
| Minimum Lot | 3000 |
| Listing At | NSE SME |
| NII Quota | 50% of Net Issue |
| Retail Quota | 50% of Net Issue |
| Lead Manager | Sherni Shares |
| Registrar | BIGSHARE SERVICES |
- Company has manufacturing facilities located at Bengaluru, Karnataka
- Srivasavi Adhesive Tapes is an ISO 9001:2015 certified company certified by TUV Nord and engaged in manufacturing/ coating, converting and Die cuts of industrial Specialty self-adhesive tapes, customized die cutes of Films, Foams and allied products catering to various industries such as Automotive, Locomotives, Aerospace, Defence, Electrical & Electronics, Renewable Energy, Print & Paper, Food & Pharma, FMCG, White & Brown Goods, Furniture, Retail, Construction, Infrastructure, Sports & Fitness Equipment, Textiles & Leather Industries.
- It serves wide range of pressure sensitive adhesive tapes, , BOPP tapes, Eco Friendly paper Tapes, Filament tapes, Double Side tapes, Packaging tapes, Specialty Protection tapes, Surface Protection tapes, Masking tapes, Specialty Foams/ Films.
- Srivasavi Adhesive Tapes has two business divisions (i) domestic sales; and (ii) exports.
- It has presence in 23 states for domestic market and Internationally it supplies products in 13 countries such as Egypt, France, Indonesia, Kuwait, Poland, Qatar, Spain, Australia, Italy, South Africa, Sri Lanka, United State of America and UAE.
- As of September 30, 2022, it had an employee base of 96 employees.
- Promoters of Company are D N Anilkumara and Ashwini DA.
Srivasavi Adhesive Tapes IPO: Financials
Salient Points
- The India adhesives and sealants market was valued at more than USD 1,100 million in 2021, and it is expected to register an estimated CAGR of over 8% over the forecast period (2022-2027).
- The top 10 and top 5 customers contributed 58.10%, 49.32%, 56.40% and 60.58% of the total revenue for the period ended September 30, 2022 and for the financial year ended March 31, 2022, 2021 and 2020, respectively and top 5 customers contributed 47.64%, 61.46%, 43.87% and 47.05% of our total revenue for the period ended September 30, 2022 and for the year ended March 31, 2022, 2021 and 2020.
- Exports: For the period ended September 30, 2022 and for the Fiscals 2022, 2021 and 2020 the revenue from exports was Rs 39.45 lakhs, Rs. 288.58
- lakhs, Rs. 341.55 lakhs and Rs. 217.85 lakhs contributed 1.29%, 4.55%, 6.18%, and 4.74% respectively of the revenue from operations.
- Social media reports indicate a low GMP of about Rs. 2-4 on the issue price.
- PE ratio is 16x (fy22 earnings) and 16x (fy23 annualized)
- Srivasavi Adhesive Tapes financial performance has been average and consistent.\
- Debt-Equity Ratio is < 0.5
- The comp-any has available major term loans from Kotak Mahindra Bank.
- Srivasavi Adhesive Tapes IPO could see average subscription.
- I have a neutral view on Srivasavi Adhesive Tapes IPO. There are several SME coming in next few days.
- SME IPO are more volatile and I generally exit on the listing day, many times in pre open session.
- Shreni Shares Pvt. Ltd. is the sole lead manager as well as the market maker for this company. They have a reasonable track record with most of the SME IPOs lead managed by them have listed with some gains.
- Please do your own diligence as SME IPOs are more volatile and risky than mainboard IPOs and need more funds.
- Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . Also Certified in some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.