Jiwanram Sheoduttrai Industries Limited, established in 1997, specializes in manufacturing and exporting industrial safety gloves and garments. With manufacturing units located in Baruipur, Nandankanan, and Falta SEZ in West Bengal, the company serves a diverse range of safety wear needs, including headtotoe protection, workwear, and more. Their business encompasses three key verticals:
- Industrial Leather Gloves: These gloves are customized to meet specific customer requirements, including varieties such as Canadian, Welder, Driver, Mechanical, Combi, and HiVis. They feature Thinsulate lining and kevlar stitching for added safety.
- Industrial Garments: The company produces a wide range of industrial garments designed to cater to various needs, such as fire retardant, high visibility, water repellent, U.V protection, oil and soil repellent, and antibacterial garments, among others. These garments are manufactured as per customer specifications.
- Work and Casual Wear: Jiwanram Sheoduttrai Industries also provides customized solutions for Hospital Garments, Hotel Industry Garments, shirts, trousers, jeans, jackets, and Tshirts based on customer orders.
Clientele
JSI’s clientele extends across countries like the United States of America, Spain, Germany, and Belgium, highlighting its global presence in the safety wear industry.
Financial Snapshot
In the fiscal years 2021, 2022, and 2023, the company recorded total revenues of Rs. 29.25 Lacs, Rs. 32.48 Lacs, and Rs. 40.69 Lacs, respectively.
 DETAILS OF JIWANRAM SHEODUTTRAI INDUSTRIES IPO
Issue Size: The total issue size for the IPO is Rs. 17.07 Crores.
Issue Price: Each share is priced at Rs. 23.
IPO Period: The IPO is open for subscription from September 8, 2023, to September 12, 2023.
Listing: The IPO will be listed on NSE SME.
Face Value: The face value of each share is Rs. 10.
Lot Size: The minimum lot size is 6000 shares, requiring an investment of Rs. 138,000.
Allocation: Retail investors are allotted 47.53% of the offered shares, while Non Institutional Investors (NII) get 47.45%. Market Maker portion is 5.01%.
Promoter Holding: Post issue, the promoter holding will be reduced from 100% to 70.01%.
COMPANY FINANCIALS (RESTATED)
For the fiscal years ending March 31, 2021, 2022, and 2023:
 Assets: Rs. 12,104.17 Lacs, Rs. 11,377.25 Lacs, and Rs. 12,112.36 Lacs, respectively.
Revenue: Rs. 3,281.34 Lacs, Rs. 3,414.89 Lacs, and Rs. 4,598.41 Lacs, respectively.
Profit After Tax: Rs. 2.98 Lacs, Rs. 149.69 Lacs, and Rs. 402.65 Lacs, respectively.
 Net Worth: Rs. 4,307.14 Lacs, Rs. 4,428.27 Lacs, and Rs. 4,802.36 Lacs, respectively.
KEY PERFORMANCE INDICATORS
P/E (PricetoEarnings Ratio): 9.91
Return on Equity (ROE): 8.38%
Return on Capital Employed (ROCE): 7.29%
Debt/Equity: 1.1
Earnings per Share (EPS): Rs. 2.32
Return on Net Worth (RoNW): 8.38%
OBJECTIVES OF THE ISSUE
The net proceeds from the IPO will be used for the following purposes:
- Working capital requirements.
- Prepayment and repayment of unsecured loans.
- General corporate purposes and offer expenses.
JIWANRAM SHEODUTTRAI INDUSTRIES IPO GREY MARKET PRICE (GMP) ANALYSIS
The Grey Market Price (GMP) is an unofficial and informal market where shares of an IPO are traded before the official listing on stock exchanges. GMP can provide valuable insights into the demand and potential listing price of an IPO. Several factors influence GMP, including market conditions and the level of investor interest in the IPO. It’s important to note that GMP is not an official price point but is often a reliable indicator of market sentiment.
GMP TRENDS FOR JIWANRAM SHEODUTTRAI INDUSTRIES IPO
Here’s a summary of the GMP trend for the Jiwanram Sheoduttrai Industries IPO in recent days:
September 8, 2023: GMP of ₹15.
September 7, 2023: GMP of ₹15.
September 6, 2023: GMP of ₹8.
September 5, 2023: GMP of ₹8.
September 4, 2023: GMP of ₹6.
The GMP trend indicates that the grey market premium initially opened at around ₹6 and has seen a significant increase over the last few days, reaching ₹15. This suggests growing interest and demand for the IPO in the grey market. However, it’s important to note that GMP can change dynamically and is subject to market conditions and investor sentiment.
IMPLICATIONS FOR LISTING PRICE
Assuming the fixed IPO price for Jiwanram Sheoduttrai Industries Ltd is ₹23 per share, the GMP indicator on September 5, 2023, suggests a potential listing price of approximately ₹29 per share. This would imply a listing premium of approximately 26.09% over the IPO price. Keep in mind that these are approximate figures, and actual listing prices may vary.
WATCHING SUBSCRIPTION NUMBERS
The subscription numbers when the IPO opens for subscription on September 8, 2023, will be a critical factor in determining the GMP’s course. Historically, oversubscribed IPOs have seen more significant positive shifts in grey market pricing. Therefore, monitoring the subscription trend will provide valuable insights into the IPO’s potential listing status.
The GMP for Jiwanram Sheoduttrai Industries IPO has shown positive momentum, indicating growing demand and a potential listing premium. However, GMP is dynamic and can change, so investors should keep a margin of safety and closely follow the trend as it provides valuable hints about the listing status. Focus on the time series trend rather than specific numbers to gauge market sentiment.
CONCLUSION
Jiwanram Sheoduttrai Industries Limited is a player in the industrial safety wear market, manufacturing and exporting gloves and garments. The company has shown growth in its financial performance, particularly in the fiscal year 2023. However, potential investors should carefully consider the pricing of the IPO, which appears to be fully structured based on the company’s recent earnings performance. It is advisable for well in formed investors to assess this offering for potential medium to long term gains.