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  • Writer's pictureJatin Agarwal

Agarwal Float Glass IPO


Company and IPO Overview


The Company Agarwal Float Glass is engaged in the business of trading of glass and specialized glass products by acquiring quality products from manufacturers and selling it either through its sales managers or directly to its customers, as a wholesaler of glass and glass products.


The customer base is wide and is spread across the country and work across varied industry segments such as, office buildings, hotels, institutions, banks, insurance companies, shopping malls, diplomatic residences, etc. Its products cater to a range of end use industries including construction, automotive, and industrial sectors, with a variety of applications such as exterior and interior spaces of residential and commercial buildings.


The product portfolio is quite large and consists clear glass, different kinds of value-added glass products and processed glass products, of varying thickness. It also trades a range of value added glass products including clear frosted glass, clear sheet glass, mirror, tinted glass, reflective glass which have a wide range of applications.


The company also offers processed glass, which includes, toughened glass, frosted glass, frosted design glass, leaguered glass, figure glass, heat-strengthened glass, insulated glass, PVB laminated glass, and bullet-resistant glass and all building glasses among others.


Agarwal Float Glass IPO date is fixed, The IPO will open on February 10 and will close on February 15, 2023. Agarwal Float Glass is an NSE SME IPO to raise ₹9.20 crores via IPO. The Agarwal Float Glass IPO price band is fixed at ₹42 with a market lot of 3000 shares. The company has reserved a quota of 50.00% for NII and 50.00 % for Retail Investors in this IPO.


Financials (rounded off)

Date

Total Revenue (₹ in cr)

​​​PAT (₹ in cr)

​31/03/2020

32.27

0.09

31/03/2021

31.88

0.25

31/03/2022

42.17

1.02

Objectives of the Issue

· Funding its working capital requirements.

· Funneling excess funds in other general corporate issues.



IPO Details

IPO Date

10/02/2023-15/02/2023

Face Value

₹10 per share

IPO Price Band

₹42 per share

IPO Lot Size

3000 Shares

Listing at

NSE SME

Basis of Allotment

20/02/2023

Credit of Shares in Demat

22/02/2023

Listing Date

23/02/2023

Pre-Issue Shareholding

99.99%

Post-Issue Shareholding

69.77%

Retail Minimum Lot Size

3000 shares (₹1,26,000)


Valuations and Margins:

FY20

FY21

FY22

EPS (Rs.)

0.44

1.22

5.03

P/E

-

-

8.35

ROCE (%)

12.82

10.85

16.26

EBITDA (%)

5.67

4.81

5.28

Important things to note about the company:

Positives :

1. Experienced Management team having knowledge to scale up and expand and create new opportunities.


2. Wide product portfolio catering the needs of varied customers across the industry.


3. Dedicated technical & functional team to provide solutions to its customers.


4. Multi-year relationships with most customers.


5. Improving operational efficiency.


Negatives:

1. Company is coming with 22 Lac shares IPO Market Cap comes to 30 Crores Putting Promoter stake below 70%. Company is into “Trading” of glass.


2. Company has a market cap of Rs. 30 crores and Loan disclosed on books is Rs. 11 crores which is of great concern. They have Taken Huge loans from Various Banks out of which 7.5 crores is mortgaged against Property Raw material Stock and Director’s Personal Residence.


3. Stagnant Revenue but Profit Surprisingly Increasing. Profit in 2020 is something around Rs. 8-9 lac which with almost same revenue went to Rs. 2 crores in HY2023 which is eye Opener how promoter is making Profit in order to Get IPO and make Healthy Valuation .


4. Change of CA. The company has changed 4 CA’s in last Year. (As per report they asked CA to window Dress balance sheet many of them Refused to Do so then they appointed a CA in Ahmedabad ). Strange to see company having changed 4 CA’s is eye opening and a Jaipur Company Appointing a CA firm in Ahmadabad.


5. Debt Equity 4X, taken unsecured loan @13%.


6. Most Importantly Issue Expenses is Rs. 2.22 crores,this is 25 % of IPO size.



Crisp Insights:

  • Adani Stocks have made the broader markets weak, hence, any negative news there can severely impact these small IPOs

  • Grey Market Premium is negative currently.


Disclaimer: All information is provided for educational and informational purpose only. Data is fetched from publicly available sources such as the DRHP filed by the company. The website or the author takes no guarantee for the accuracy of the data however, we have tried our best to present accurate data to out readers. Please consult a financial advisor or do your own analysis before investing/trading in the stock market.

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