Ecoline Exim Ltd

About Ecoline Exim Limited IPO

Ecoline Exim Limited IPO is an IPO of 57,21,000 equity shares. It consists of an offer for sale of 10,80,000 equity shares and a fresh issue of 46,41,000 equity shares. The shares will be allotted on TBA. The credit of shares to the demat account will take place on TBA and the initiation of refunds will take place on TBA.

Objective of Ecoline Exim Limited IPO

• Funding the capital expenditure towards construction of building, mechanical and electrical works and procurement of plant and machinery for setting up a new manufacturing facility at Ahmedabad (“Proposed Factory V”).
• General corporate purpose.

Industry Outlook

The rise in sustainable and eco-friendly bags marks a significant trend within the shopping bag market, driven by increasing consumer awareness regarding environmental issues and governmental regulations promoting sustainability. Cotton and jute bags have gained substantial market share due to their durability, biodegradability, and reusability. Government-backed initiatives, especially in South Asia, have spurred the production and export of these alternatives. According to data from India's Ministry of Textiles, the jute industry has seen consistent growth, with India being the largest producer, accounting for over 60% of global jute production. The sustainable packaging market is expected to grow at a 7.69% CAGR globally, and at a CAGR of 5.78% in the Indian Market.

Company Information

Ecoline Exim Limited is primarily engaged in the manufacturing of a wide range of sustainable packaging and promotional bags made out of cotton and jute. They are engaged in the export of these bags globally. During FY 2024, they exported our products to more than 25 countries. They offer a variety of eco-conscious cotton and jute bags like recycled cotton bags, organic cotton bags, fairtrade cotton bags, conventional cotton bags, jute bags and aprons.

Risks of Ecoline Exim Limited IPO

• They do not have long-term agreements for the supply of their raw materials. If they are unable to procure raw materials of the required quality and quantity, at competitive prices, their business, results of operations, and financial condition may be adversely affected. The majority of their raw materials are sourced from few key suppliers. Discontinuation of operations of such suppliers may adversely affect their ability to source raw materials at a competitive price.

• The global scope of their operations exposes them to risks of doing business in foreign countries, including the constantly changing economic, regulatory, social, and political conditions in the jurisdictions in which they operate and seek to operate, which could adversely affect their business, financial condition and results of operations.

• They rely on outsourcing a certain proportion of our production processes and activities to third parties. Any inability to obtain sufficient quantities of processed material of the requisite quality in a timely manner and at acceptable prices, or a slowdown, shutdown or disruption in such third parties’ operations and performance, could adversely affect their business, results of operations and financial conditions.

Peers Comparison

There are no listed companies in India that are engaged in a business similar to that of our company accordingly, it is not possible to provide an industry comparison in relation to our company

Anchor Investor Information

The Anchor Investor Bid/Offer Period shall be one Working Day prior to the Bid/Offer Opening Date.

IPO Registrar and Book Running Lead Managers

Book running lead managers:

Hem Securities Limited

Registrar for the IPO is MUFG Intime India Private Limited

Business Model

The company earns its revenue by offering a wide range of sustainable packaging and promotional bags made out of cotton and jute.

Company Growth Trajectory

During the financial year 2023-24, their net revenue from operations decreased to ₹272.19 crore, compared to ₹303.66 crore in the previous financial year 2022-23, representing a 10.37% decrease. During FY 2023-24, their other income increased to ₹8.40 crores, as against ₹7.01 crores in FY 2022-23, representing 19.90% increase.

Company Market Position

During fiscal 2024, they exported their products to more than 25 countries. Their major export markets are the European Union, the USA, Japan, South East Asia, and Mexico etc.

How To Check Allotment Status of Ecoline Exim Limited IPO?

You can check the allotment status of shares either on the website of the National Stock Exchange (NSE) or on the website of the registrar MUFG Intime India Private Limited. To check the status on the NSE website:

• Visit the NSE website
• Click on “Investor Services” and choose “Application Status Check”
• Choose the issue type — Equity or Debt (Equity in this case)
• Select the Issue Name from the drop-down. The issue name is the company’s name, which is Ecoline Exim Limited
• Enter your application number or PAN number
• Check the box which says “I’m not a Robot” and click on “Search” to know the allotment status

Follow these steps to know the allotment status on the registrar’s website:

• Visit the MUFG Intime India Private Limited website
• Choose “Public Issues” from the “Investor Services” drop-down
• Select Ecoline Exim Limited from the drop-down
• Enter your PAN number or Application number
• Click on “Submit” to know the allotment status