Fine Organics IPO – Details, Price Band, Analysis
Fine Organics – the largest manufacturer of oleochemical-based additives in India and a strong player globally in this industry is planning to raise INR 597.9 – 600.2 Cr (all OFS) via initial public offer (IPO)
Fine Organics – Company Profile
Started in the year 2002, Mumbai based Fine Organic Industries Limited is a company engaged in manufacturing of oleochemical-based additives.
Fine Organics – Working Area
- Fine Organics produce a wide range of specialty plant derived oleochemicals-based additives used in the cosmetics, food, plastic, paint, ink, coatings and other specialty application in various industries.
- As per CRISIL Research Report, Fine Organics are the first company to introduce slip additives in India and the company is the largest producer of slip additives in the world.
- As at December 31, 2017, Fine Organics had a range of 387 different products sold under the Fine Organics Brand
Production Facilities & Installed Capacity
- The company currently has three production facilities; (1) Ambernath, (2) Badlapur, and (3) Dombivli in Maharashtra.
- As of December 31, 2017, these three production facilities have a combined installed capacity of approximately 64,300 tonnes per annum.
R&D Centre
- The Company has a dedicated research and development (R&D) Centre located in Mahape, Navi Mumbai. The R&D activities are focused on improving company’s production processes, improving the quality of its present products, creating new additives and creating downstream products.
- The Company has developed several new products, such as Acetem, Datem and Lactem, and processes, such as in-house technology for the production of fatty amides for the polymer industry.
Client List
- In the 12 months ended December 31, 2017, Fine Organics had 603 direct customers (i.e., end-users of its products) and 127 distributors (who sold company’s products to more than 5,000 customers) from 67 countries.
- The Company’s direct customers are multinational, regional and local players manufacturing consumer products, such as Hindustan Unilever and Parle Products, and petrochemical companies and polymer producers globally.
Employees
The Company has 596 full-time employees on its payroll.
Promoters of Fine Organics
Prakash Damodar Kamat, Mukesh Maganlal Shah, Jyotsna Ramesh Shah, Jayen Ramesh Shah, Tushar Ramesh Shah and Bimal Mukesh Shah
Lead Managers / BRLMs
The book running lead managers are JM Financial Limited and Edelweiss Financial Services Limited
IPO Opening / Closing Date
IPO Details – Price, Minimum Bid and Other
Financial Performance
Revenues
Fine Organics Limited shows a steady revenue growth (10% to 12% on an average) in last 5 years. Top-line has been increasing regularly for the last five years and jumped from INR 498 Cr in FY 2013 to INR 789 Cr for the period ended FY 2017. (593 Cr till DEC 2017)
Profits
Though the company has shown steady growth in revenue, the company has also registered growth in profits in these four years. Starting from INR 21 Cr of profits in FY 2013, the company’s earnings improved to INR 79 Cr for the period ended FY 2017. (62.59 Cr till DEC 2017)
CONCLUSION –
Considering company’s valuation and financial parameters, FinBlab recommends SUBSCRIBE ratings on Fine Organics Industries Limited IPO
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1) Finblab’s Valuepick Stock for the month of June – Sundram Fasteners Limited (7.90% returns in 11 days)
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