Hindcon Chemicals Ltd, engaged in manufacturing wide range of chemical
products, proposes to open its initial
public offer (IPO) of up to 27,60,000 Equity
Shares of face value of Rs. 10 each for cash at price of Rs. 28 per Equity
Share, aggregating up to 7.73
Cr, on 26 February 2018 at the NSE Emerge platform. The issue
will close on 28 February 2018.
The net proceeds from the IPO will be utilized for
meeting working capital requirements, general corporate and issue
expenses. The
Lead Manager to the Issue is Hem Securities Limited, a leader in SME IPOs and
the Registrar to the Offer is Link Intime India Private Limited.
Hindcon Chemicals, incorporated in 1998, has been
in the business of construction chemicals for the last 20 years. The Company
has over 100 products in its portfolio with main foray into sodium silicate,
waterproofing additives, plasticizers etc. The Company has its manufacturing
facility located in Howrah which has an installed capacity of 30,000 MT per
year. The total revenue of the Company for the half year ended on
September 30, 2017 stood at Rs. 1812.55 lakhs, for F.Y. 2016-17 – Rs. 3424.97
lakhs, for F.Y. 2015-16 - Rs. 3345.37 lakhs, and for F.Y. 2014-15 Rs. 3496.44
lakhs. Further, the Company’s Profit after tax for the half year ended on September
30, 2017 stood at Rs. 218.87 lakhs, for F.Y. 2016-17 – Rs. 205.95 lakhs, for
F.Y. 2015-16 - Rs. 86.20 lakhs and for F.Y. 2014-15 Rs. 34.48 lakhs.
Mr. Sanjay Goenka, Managing Director and
Promoter, Hindcon
Chemicals Ltd said, “Hindcon
Chemicals with its
comprehensive construction chemicals range is dedicated in its quest to attain
the highest level of qualitative production in the industry. The Company is focused
on modifying its products to eliminate any harmful ingredient and serve the
consumer, community and country with eco-friendly finished materials. With several decades of concrete experience in the field,
wide range of products and strong R&D back-up, the Company is poised for
strong growth and well positioned to become a leader in the segment, increase
its market share & profitability. In F.Y. 2016-17, our net revenue of operations comprised of
Rs. 33.94 Crore of which 32.14% contributes to export sales to Nepal, Bhutan
and Bangladesh. Our key product portfolio includes Protective waterproofing
coatings, Sodium Silicates, Concrete & mortar admixtures, Epoxy grouts
& mortars, Waterproofing compounds, Shot crete aids, Remover cleaning
compounds, Sealants, Tile adhesives, among others”
Mr Gaurav Jain & Mr Prateek Jain, Directors,
Hem Securities Ltd., highlighting the offer and investment rational said “Hindcon
Chemicals has developed a wide portfolio of products with
variety of applications and which have made them one- stop- shop provider of
construction chemicals. The Company is bringing the issue at P/E multiple
of 6.55 on post issue annualized H1FY18 EPS at a price of Rs 28/- per Share as
against industry P/E multiple of more than 30. As a leading merchant banker in
the SME IPO space, Hem Securities has been consistently acknowledged by BSE, NSE and independent agencies for our strong
focus on fundamentally good quality companies that
are poised for accelerated growth and long
term wealth creation for the investors”
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