IPO Details
Issue Date
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Price Range
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IPO Size
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Schedule of Raghuvir Exim Limited IPO
Start date
End date
Allotment of bids
Refund Initiation
Listing on exchange
Issue Highlights
Initial public offer of up to 18,500,000 equity shares of face value of Rs. 10 each (Equity Shares) of Raghuvir Exim Limited (Company or Issuer) for cash at a price of Rs. [] per equity share (including a share premium of Rs. [] per equity share) (Offer Price) aggregating up to Rs. [] crores comprising a fresh issue of up to 14,000,000 equity shares aggregating up to Rs. [] crores by the company (Fresh Issue) and an offer for sale of up to 4,500,000 equity shares aggregating up to Rs. [] crores by Sunil Agarwal (the Promoter Selling Shareholder) and such equity shares offered by the promoter selling shareholder (as defined hereinafter) (Offer for Sale). The offer would constitute []% of its post-offer paid-up equity share capital. The face value of equity shares is Rs. 10 each. The offer price is [*] times the face value of the equity shares, The price band and the minimum bid lot will be decided by the company.
About Raghuvir Exim Limited IPO
Raghuvir Exim Limited's IPO is an IPO of TBA. It consists of an offer for sale of up to 4,500,000 equity shares and a fresh issue of up to 14,000,000 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 Raghuvir Exim Limited IPO
- Funding capital expenditure requirements of the company towards the setting up of two stitching units in Ahmedabad, Gujarat (proposed facilities).
- General corporate purposes.
Raghuvir Exim Limited IPO Valuation
| Detail | Information |
|---|---|
Upper Price Band (₹) | TBA |
Existing Shares to be Sold | up to 4,500,000 equity shares |
Fresh Issue | up to 14,000,000 equity shares |
EPS (₹) For the year ended March 31, 2023 | 3.66 |
Raghuvir Exim Limited IPO Share offer and Subscription Details
QIBs Share Offered | Not more than 50% of the Issue |
Non-Institutional Bidders (NIBs) | Not less than 15% of the Issue |
Retail Individual Bidders | Not less than 35% of the Issue |
Industry Outlook
The Indian cotton industry has demonstrated remarkable resilience, bouncing back significantly after the disruptions caused by the pandemic. Cotton remains a crucial cash crop, contributing a substantial 21% to global fibre production. cotton yarn production increased by 12% in 9MFY24 as compared to 9MFY23. The market has a strong foundation built on robust domestic demand.
The Government of India has introduced the Product Linked Incentive (PLI) scheme in textile products to enhance India’s manufacturing capabilities and enhance exports. The The financial outlay of this scheme is Rs. 10,683 crores covering five years. The Indian government is actively promoting this goal through aggressive investment schemes like PLI, aiming to diversify the product portfolio and bolster exports.
Company Information
Raghuvir Exim Limited is engaged in the business of processing semi-finished fabrics into finished fabrics. They have been in existence for over three decades and manufacture home textile products such as bedsheets, pillowcases, duvet covers, comforters, quilts, curtains. These are sold to their customers in the form of pack sets. They are also involved in the trading of grey cloth and finished fabrics. Their products are made using a wide range of fabrics such as polyester, cotton, cotton/polyester blended, cotton modal, cotton tencel, and poly cotton.
Strengths of Raghuvir Exim Limited IPO
Diversified Customer Base
The company has a diversified customer base, both in India and overseas. They sell their products majorly through exports and they have a diversified market spread across the United States of America, Australia, Europe and Canada.
Experienced promoters and management team
The company attributes its growth to the experience of its promoters and senior management team. They believe that the experience of their management team and their in-depth knowledge of business will enable them to continue to take advantage of both current and future market opportunities. Their management team consists of professionals with several years of experience and knowledge in the industry and their respective fields such as sales, marketing, technical support, R&D, supply chain, production and finance.
Established Client Relationships
They have established long-standing relationships in the market from where they get orders on a continuous basis. Their existing relationships help them to get repeat business from their customers. As of September 30, 2023, they had more than 80 customers, and the share of the top 10 customers and the top 5 customers in the total revenue was 55.21% and 33.87%, respectively. Further, they have a wide network of suppliers across the country and internationally.
Risks of Raghuvir Exim Limited IPO
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A major portion of the company’s revenues is derived from exports to the United States of America, Canada, and other overseas regions. Any adverse developments in these markets or restrained economic or political relations of India with the United States of America or the international community could adversely affect our business.
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The company operates out of two manufacturing facilities, which are located at Ahmedabad, Gujarat. Any localized social unrest, natural disaster, breakdown of services, or any other natural disaster in and around Ahmedabad, Gujarat, or any disruption in production at, or shutdown of, our manufacturing facilities could have a material adverse effect on their business and financial condition.
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Any delay, interruption, or reduction in the supply of key raw materials such as grey fabrics, cotton yarn, finished fabrics, and packing material required to manufacture their products may adversely affect their business, results of operations, cash flows, and financial condition.
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A slowdown in their exports due to tariffs, trade barriers, and international sanctions could adversely affect their business, financial condition, and results of operations.
Raghuvir Exim Limited IPO Financials
Particulars (in Rs. crores)
Particulars (in Rs. crores)
Peers Comparison
| Parameter | Raghuvir EXIM Limited | KPR Mill Limited | Trident Limited |
|---|---|---|---|
Revenue From Operations for the year ended March 31, 2023 (₹ in crores) | 247.558 | 4739.550 | 6267.470 |
P/E | - | 44.91 | 43.87 |
EPS (Basic) | 3.66 | 18.57 | 0.84 |
Return on Average Net Worth (%) | 25.70% | 2.27% | 45.04% |
NAV per share | 16.10 | 869.35 | 8.24 |
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 manager: Unistone Capital Private Limited
Registrar for the IPO is Bigshare Services Private Limited
Business Model
The company earns its revenue through the following sources:
- Exporting home textile products such as bedsheets, pillowcases, duvet covers, comforters, quilts, and curtains.
- Trading of grey cloth, finished fabrics, printed & dyed fabrics, and job work of fabrics.
Company Growth Trajectory
The company’s revenue from operations has grown from ₹209.00 crores in fiscal 2021 to ₹247.56 crores in fiscal 2023, registering a CAGR of 5.81% in the last three fiscal years. For the period that ended on September 30, 2023, fiscal 2023, fiscal 2022, and fiscal 2021, their PAT was ₹11.96 crores, ₹19.24 crores, ₹7.05 crores, and ₹8.92 crores, respectively. Their PAT has grown from ₹8.92 crores in fiscal 2021 to ₹19.24 crores in fiscal 2023, registering a CAGR of 29.21% in the last three fiscal years. Further, their EBIDTA has grown from ₹21.50 crores in fiscal 2021 to ₹36.21 crores in fiscal 2023, registering a CAGR of 18.98% in three fiscal years.
Company Market Position
Raghuvir Exim Limited has been recognised as a “Star Export House” by the Directorate General of Foreign Trade, Ministry of Commerce and Industry in the year 2011 and “Two Star Export House” in the year 2021. In fiscals 2021, 2022, 2023, and for the six-month period that ended on September 30, 2023, their revenue from exports accounted for 94.89%, 97.38%, 81.07%, and 96.97%, respectively, of the total revenue from operations. In each of the last three fiscals, they have exported to more than 25 countries, with the majority of the export sales being sourced from the United States of America, Canada, the United Kingdom, Israel, and Australia.
Raghuvir Exim Limited Company Profit & Loss
| Parameter | FY21 | FY22 | FY23 |
|---|---|---|---|
Total Income (₹ crores) | 213.382 | 272.279 | 250.789 |
Profit Before Tax (₹ crores) | 11.708 | 9.242 | 25.878 |
Net profit / (loss) after tax attributable to equity shareholders (₹ crores) | 8.918 | 7.046 | 19.238 |
EBITDA (₹ crores) | 21.498 | 19.261 | 36.213 |
EPS (₹) | 1.7 | 1.34 | 3.66 |
Raghuvir Exim Limited Cash Flow
| Parameter | FY21 | FY22 | FY23 |
|---|---|---|---|
Profit before tax | 11.708 | 9.242 | 25.878 |
Net Cash from Operating Activities (₹ crores) | 1.934 | 1.631 | 32.604 |
Net Cash from Investing Activities (₹ crores) | -3.032 | -1.447 | -17.574 |
Net Cash from Financing Activities (₹ crores) | 0.107 | 7.957 | -16.835 |
Cash and Cash Equivalents (₹ crores) | 9.894 | 11.699 | 9.894 |
How To Check Allotment Status of Raghuvir Exim Limited IPO?
You can check the allotment status of shares either on the website of the Bombay Stock Exchange (BSE) or on the website of the registrar, Bigshare Services Private Limited. To check the status on the BSE website:
- Visit the BSE 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 Raghuvir 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 Bigshare Services Private Limited website
- Choose “Public Issues” from the “Investor Services” drop-down
- Select Raghuvir Exim Limited from the drop-down
- Enter your PAN number or Application number
- Click on “Submit” to know the allotment status
Raghuvir Exim Limited IPO FAQs
What is the Raghuvir Exim Limited IPO?
The Raghuvir Exim Limited IPO has an issue size of TBA. The IPO opens for subscription on TBA and closes on TBA.
Who is the Registrar for Raghuvir Exim Limited IPO?
Bigshare Services Private Limited is the registrar for this IPO.
Where can I read more about Raghuvir Exim Limited business?
You may read more about Raghuvir Exim Limited and its IPO from the company’s draft red herring prospectus (DRHP) here: (SEBI | Raghuvir Exim Limited - DRHP)
