IPO Details
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Schedule of Sellowrap Industries Ltd
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Allotment of bids
Refund Initiation
Listing on exchange
About Sellowrap Industries Ltd IPO
A 100% book-built offer, the IPO of Sellowrap Industries Ltd consists only of a fresh issue of up to 36,48,000 equity shares of face value of ₹10 each. There is no offer for sale in this IPO. The IPO opens on TBA and closes on TBA. The credit of shares to the demat account will take place on TBA. The allotment of shares will take place on TBA and the refunds will be initiated on TBA.
Objectives of Sellowrap Industries Ltd IPO
- Capital expenditure towards purchase of plant and machinery, infrastructure development and other auxiliary equipment
- Funding the working capital requirements of the company
- General corporate purposes
Sellowrap Industries Ltd IPO Valuation
Sellowrap Industries Ltd IPO Share Offer and Subscription Details
| Investor Category | Shares Offered |
|---|---|
QIBs | Not more than 50% of the offer |
Non-institutional Investors | Not less than 15% of the offer |
Retail Individual Investors | Not less than 35% of the offer |
Industry Outlook
The Indian automobile industry has historically been a good indicator of how well the economy is doing, as the automobile sector plays a key role in both macroeconomic expansion and technological advancement. The Indian passenger car market was valued at US$ 32.70 billion in 2021, and it is expected to reach a value of US$ 54.84 billion by 2027 while registering a CAGR of over 9% between 2022-27.
On the other hand, the electric vehicle (EV) market is estimated to reach US$ 7.09 billion in India by 2025. A report by the India Energy Storage Alliance estimated that the EV market in India is likely to increase at a CAGR of 36% until 2026. Also, India’s Plastic Moulding (PU) market was valued at USD 45.13 million in 2024 and is expected to reach USD 53.64 million by 2030 with a CAGR of 3.12% during the forecast period.
Company Information
Sellowrap Industries Ltd specialises in the production of customised components for the automotive and white goods industries. Operating in the B2B sector, it offers both adhesive and non-adhesive processed components, delivering solutions that emphasise quality, cost-efficiency, and maximum customer value.
With a digital presence, robust brand recall and a commitment to delivering value, Sellowrap Industries Ltd remains a partner in the global automotive supply chain, continuously driving innovation.
Sellowrap Industries Ltd Strengths
Focus on Quality Control, Safety and Zero Defects
The company’s focus on quality and safety has solidified its reputation in the automotive industry. To date, it takes immense pride in maintaining a track record of zero defects in its products and no customer complaints. This commitment to precision is the result of rigorous quality control measures and meticulous attention to every detail during the manufacturing process.
The company’s dedication to producing defect-free, reliable, and performance components underscores its role in ensuring customer satisfaction and trust. In recognition of its commitment to excellence, it has received several accolades. It was honoured with the prestigious "Quality - Zero Defect" Award for the year 2023-24 by Suzuki Motor Gujarat Private Ltd.
Comprehensive Portfolio of Components
Sellowrap takes pride in offering a comprehensive portfolio of performance components designed to meet the specific needs of both automotive and non-automotive industries.
Its product range includes innovative solutions such as Plastic Injection Moulded Parts, Polyurethane Foam Moulding (PU Foam), Foam Components, Stickers and Labels, Screen Sealing Parts, EPP Parts and other customised solutions. Each product is engineered for performance, durability, and functionality, addressing a variety of applications across diverse sectors.
Long-Term Relationships with Marquee Domestic and Global OEMs
Sellowrap has cultivated and maintained strong, long-term partnerships with some of the global original equipment manufacturers (OEMs), establishing themselves as a partner in the industry. These enduring relationships not only bolster its market position but also provide a consistent and robust demand for its products across various categories.
By aligning its capabilities with the specific needs and expectations of these OEMs, it ensures the integration of its solutions into their operations, further solidifying their trust in the company’s expertise.
Integrated Manufacturing Facility
The company’s manufacturing facilities are designed to meet the standards of quality, efficiency, and technological advancement, ensuring that it consistently delivers products to its customers. Spanning approx. 5 acres strategic automotive hubs in NCR, Maharashtra, Tamil Nadu, and Gujarat, its facilities are strategically located near major OEMs and Tier-1 customers, enhancing operational efficiency and reducing lead times.
These plants are equipped with machinery and technology, enabling precision production and meeting the stringent requirements of the automotive industry.
Risks of Sellowrap Industries Ltd IPO
- Dependent on the Performance of the Automotive Sector
The company manufactures automotive components, and its business is closely tied to the performance of the automobile industry, both in India and internationally. Since its major customers come from this sector, any changes in the market whether political, economic, social, or technological can have a direct impact on us.
Factors like quality, innovation, reliability, performance, and cost also play a crucial role in shaping demand. If the automotive sector faces challenges, it could significantly affect its business, financial health, and operations. A slowdown in demand or market conditions that make selling its components less viable could directly impact the company’s revenue and profitability.
- Dependence on Top 10 Customers for Revenues
The company derives a significant portion of its revenue from a concentrated group of top customers, with its top 10 customers contributing a major share of its gross sales during the six months period ended September 30, 2024, and the financial years ending March 31, 2024, March 31, 2023, and March 31, 2022.
This heavy reliance on a limited customer base presents a risk of revenue volatility. The loss of one or more of these key customers, or a reduction in the volume of business due to reasons such as non-renewal of arrangements, disputes, adverse economic conditions, changes in customer supply chain strategies, or a shift to competitors, could significantly impact its business operations, financial condition, and cash flows.
- Counterparty Credit Risk
The company is exposed to counterparty credit risk, as a significant portion of its operations involves extending credit to customers for the sale of products. Delays in receiving payments or non-receipt of payments could adversely impact its financial performance.
Due to industry practices, the company often faces high levels of outstanding receivables, and there is no assurance that it will be able to accurately assess the creditworthiness of its customers.
All Financial Information about Sellowrap Industries
Particulars (in Rs. crores)
Particulars (in Rs. crores)
Comparison with peers
| Company Name | Revenue from Operations (in ₹ crores) | EPS in ₹ | Return on Net Worth (in %) | NAV in ₹ |
|---|---|---|---|---|
Sellowrap Industries Ltd | 138.0240 | 6.26 | 18.04 | 34.73 |
Machino Plastics Ltd | 337.7393 | 6.02 | 7.00 | 88.95 |
PPAP Automotive Ltd | 503.8622 | (3.34) | (1.48) | 223.57 |
Anchor Investor Bidding Date TBA
IPO Registrar and Book Running Lead Manager
- IPO Registrar: Purva Sharegistry (India) Pvt Ltd
- Book Running Lead Manager: Gretex Corporate Services Ltd
Business Model
Headquartered in Mumbai, Sellowrap Industries Ltd’s diverse product range includes:
- Plastic Injection Moulding Parts (Interior & Exterior Parts)
- PU-Foam-Moulding
- Foam / Label & Stickers Products
- Screen Sealing Parts
- EPP Moulding
The company’s diverse product line-up reinforces its reputation for providing versatile, reliable and sustainable solutions to its customers.
Company Growth Trajectory
Sellowrap’s total revenue jumped from ₹77.9064 crores in FY 22 to ₹138.0240 crores in FY 24. Its percentage of revenue from main products increased from 84.72% in FY 22 to 94.26% in FY 24. The company’s number of clients jumped from 85 in FY 22 to 130 in FY 24. This financial performance stems from economies of scale, enhanced operational efficiencies and strategic cost management.
Market Position
With manufacturing facilities operating at Gurugram, Ranipet, Kancheepuram, and Pune spread across approx. 5 acres of cumulative production area, on the domestic front, Sellowrap has made significant inroads into various states and has a customer base in the 15 states earning the highest revenue from Haryana, Karnataka, Maharashtra and Tamil Nadu.
The company has established a presence in the international market too with its global footprint extending in countries like Brazil, China, Germany, Poland and the UK.
Sellowrap Industries Ltd Profit and Loss
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Total Income (in ₹ crores) | 139.0924 | 133.4259 | 78.6864 |
Profit / (Loss) for the Period (in ₹ crores) | 5.9452 | 2.8591 | (1.1409) |
EPS in ₹ | 6.26 | 3.01 | (1.20) |
Sellowrap Industries Ltd Balance Sheet
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Profit / (Loss) for the Period (in ₹ crores) | 5.9452 | 2.8591 | (1.1409) |
Net Cash Generated/ (Used in) from Operating Activities (in ₹ crores) | 10.8902 | 1.9931 | (1.4015) |
Net Cash Used in Investing Activities (in ₹ crores) | (9.3742) | (6.0932) | (4.8650) |
Net Cash Used in Financing Activities (in ₹ crores) | (1.5951) | 4.0835 | 5.7142 |
Cash and Cash Equivalents at the End of the Year (in ₹ crores) | 0.0798 | 0.1589 | 0.1762 |
How to Check Allotment Status of Sellowrap Industries Ltd IPO?
1. Visit the Registrar’s Website
- Visit the website of Purva Sharegistry (India) Pvt Ltd
- Choose ‘IPO Allotment Query’ from ‘Investor Service’ dropdown
- Select ‘Company Name’, put your ‘Application Number’ or ‘PAN’ and click on ‘Submit’ to know the status
2. Verify on National Stock Exchange Website
The National Stock Exchange (NSE) has an IPO Bid Verification module. You can use it to check the status of Sellowrap Industries Ltd IPO. Go to www.nseindia.com and find the 'Invest' tab. Click on 'Verify IPO Bids' under 'Resources & Tools'. On the NSE IPO Bid Verification page, enter:
- Company name from dropdown
- Application number
- PAN
Then click 'Submit' to know the allotment status.
How to Apply for Sellowrap Industries Ltd IPO?
- Log in to your Kotak Securities Demat account - Log in to your Demat account to access IPO investments. Next, select the current IPO section.
- Specify IPO details - Enter the number of lots and the price you wish to apply for.
- Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.
- Mandate Notification - Your UPI app will receive a mandate notification to block funds.
- Approve Request - Your funds will be blocked once you approve the mandate request on your UPI.
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.
Sellowrap Industries Ltd IPO FAQs
What is the Sellowrap Industries Ltd IPO?
The IPO of Sellowrap Industries Ltd comprises a fresh issue of up to 36,48,000 equity shares of ₹ 10 each. It’s a 100% book-built issue.
When will the IPO of Sellowrap Industries Ltd go live?
The exact dates of the IPO are yet to be announced.
Who is the MD of Sellowrap Industries Ltd?
Saurabh Poddar is the MD of Sellowrap Industries Ltd.
From where can I read more about the IPO of Sellowrap Industries Ltd?
You can read more about the IPO of Sellowrap Industries Ltd from the company’s draft red herring prospectus here.
