Archit Nuwood Industries is set to launch its IPO with an issue size of ₹168.48 crores, entirely consisting of a fresh issue of 62.4 lakh shares. The exact dates for the IPO are yet to be announced. The IPO will be a book-built issue, and the price band is set between ₹257 and ₹270 per share. Below are the key details of the IPO:
| IPO Details | Information |
|---|---|
| IPO Date | To be announced |
| Issue Size | 6,240,000 shares (₹168.48 Cr) |
| Price Band | ₹257 to ₹270 per share |
| Lot Size | 400 Shares |
| Issue Type | Book Built Issue |
| Listing Exchange | BSE SME |
| Face Value | ₹10 per share |
| Pre-Issue Shareholding | 17,415,460 shares |
| Post-Issue Shareholding | 23,655,460 shares |
IPO Reservation Details
The IPO has a reservation for different investor categories as per the following structure:
| Investor Category | Shares Offered |
|---|---|
| QIB | Not more than 50.00% of the Net Offer |
| Retail Investors | Not less than 35.00% of the Offer |
| NII (HNI) | Not less than 15.00% of the Offer |
IPO Lot Size and Investment Requirements
Investors can bid for a minimum of 400 shares. Below is a table summarizing the minimum and maximum investment requirements:
| Application | Lots | Shares | Amount (₹) |
|---|---|---|---|
| Retail (Min) | 1 | 400 | ₹108,000 |
| Retail (Max) | 1 | 400 | ₹108,000 |
| HNI (Min) | 2 | 800 | ₹216,000 |
Promoter Holding
Archit Nuwood Industries’ promoters include Mr. Prem Chand, Mr. Vinod Kumar Singla, and Mr. Vineet Kumar. The promoter holding details are as follows:
| Shareholding | Pre-Issue (%) | Post-Issue (%) |
|---|---|---|
| Promoter Holding | 93.92% | 69.15% |
About Archit Nuwood Industries
Founded in 2017, Archit Nuwood Industries Limited specializes in manufacturing MDF (Medium Density Fiberboard) and HDF (High-Density Fiberboard) boards, as well as pre-laminated boards. The company offers a diverse product portfolio that includes MDF, HDF, and High-Pressure Laminates (HPL). As of April 2024, the company had 149 employees.
Financial Performance
The company’s financial performance has seen significant growth over the past few years. Below is a table summarizing key financial metrics:
| Financial Information (₹ Lakhs) | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 | 31 Mar 2021 |
|---|---|---|---|---|
| Assets | 16,649.44 | 11,972.79 | 8,139.79 | 5,215.65 |
| Revenue | 18,540.13 | 15,368.58 | 13,432.03 | 3,963.77 |
| Profit After Tax (PAT) | 3,692.53 | 2,127.9 | 443.36 | 304.95 |
| Net Worth | — | 3,633.95 | 1,551.33 | 1,107.97 |
| Reserves & Surplus | 7,488.68 | 2,465.56 | 382.94 | -60.42 |
| Total Borrowing | — | 576.91 | 1,472.79 | 1,785.58 |
Key Performance Indicators (as of March 31, 2023)
| KPI | Value |
|---|---|
| ROE | 57.41% |
| ROCE | 40.38% |
| RoNW | 57.41% |
| PAT Margin (%) | 20.07 |
IPO Pricing & Valuation
The market capitalization of Archit Nuwood Industries IPO is ₹638.7 crore. The Earnings Per Share (EPS) and Price-to-Earnings (P/E) ratios pre and post-IPO are summarized below:
| Metric | Pre IPO | Post IPO |
|---|---|---|
| EPS (₹) | 12.22 | 14.16 |
| P/E (x) | 22.1 | 19.06 |
Objects of the Issue
The IPO proceeds will be utilized for:
- Investment in Archit Panels Private Limited, the wholly-owned subsidiary.
- General corporate expenses.
Review & Recommendation
According to market experts, Archit Nuwood Industries has shown robust growth in recent years, particularly due to the rising demand for MDF and HDF boards in the realty sector. The company’s strong financial performance and reasonable pricing make it a good medium-to-long-term investment.