Table of Contents
A Comprehensive Guide
Introduction:
Sylvan Plyboard (India) Ltd, a prominent player in the plywood and allied products industry, has announced its Initial Public Offering (IPO). This event marks a significant milestone for the company, providing an opportunity for investors to participate in its growth journey. In this guide, we’ll delve into the details of the IPO, the company’s background, financial performance, and the prospects for potential investors.
Company Overview:
| SME IPO Activity | Date |
|---|---|
| Basis of Allotment Date* | 27th Jun 2024 |
| Refunds Initiation* | 28th Jun 2024 |
| Credit of Shares to Demat* | 28th Jun 2024 |
| SME IPO Listing Date* | 1st Jul 2024 |
Background:
Sylvan Plyboard (India) Ltd, established in [Year], has grown to become a trusted name in the manufacturing of plywood, blockboards, flush doors, and other wood products. With a strong focus on quality and innovation, the company has carved a niche in the competitive market, catering to both domestic and international clients.
Highlights of the Sylvan Plyboard IPO:
Here are some of the highlights of the Sylvan Plyboard IPO on the SME segment of the National Stock Exchange (NSE).
• The issue opens for subscription on 24th June 2024 and closes for subscription on 26th June 2024; both days inclusive.
• The stock of the company has a face value of ₹10 per share and it is a fixed price issue. The fixed issue price for the IPO has been set at ₹55 per share. Being a fixed price IPO, the issue of price discovery does not arise.
• The IPO of Sylvan Plyboard (India) Ltd has only a fresh issue component and no offer for sale (OFS) portion. While the fresh issue portion is EPS dilutive and equity dilutive, the OFS is just a transfer of ownership and hence is not EPS or equity dilutive.
• As part of the fresh issue portion of the IPO, Sylvan Plyboard (India) Ltd will issue a total of 51,00,000 shares (51.00 lakh shares), which at the fixed IPO price of ₹55 per share aggregates to fresh fund raising of ₹28.05 crore.
• Since there is no OFS, the fresh issue size will also double as the overall issue. Therefore, the overall IPO size will also comprise of the issue of 51,00,000 shares (51.00 lakh shares) which at the fixed IPO price of ₹550 per share aggregates to overall IPO size of ₹28.05 crore.
• Like every SME IPO, this issue also has a market making portion. The company has set aside a total of 2,56,000 shares as quota for market inventory. Black Fox Financial Private Ltd has already been appointed as the market makers to the issue. The market maker provides two-way quotes to ensure liquidity on the counter and low basis costs.
• The company has been promoted by Anand Kumar Singh, Jai Prakash Singh, Shakuntala Singh, Kalyani Singh, and M/S Singh Suppliers Private Ltd. The promoter holding in the company currently stands at 99.80%. However, post the fresh issue of shares, promoter equity holding share will get diluted to 73.53%.
The IPO of Sylvan Plyboard (India) Ltd will be listed on the SME IPO segment of the NSE.
FAQs related to Sylvan Plyboard (India) Ltd IPO
What is Sylvan Plyboard IPO GMP Today?
The Sylvan Plyboard IPO GMP aka Grey Market Premium is ₹-.
What is Sylvan Plyboard IPO Kostak Rates Today?
The Sylvan Plyboard IPO Kostak Rate is ₹-.
What is Sylvan Plyboard IPO Subject to Sauda Price Today?
The Sylvan Plyboard IPO subject to sauda rates is ₹-.
Sylvan Plyboard IPO Expected Returns?
The Sylvan Plyboard expected return is -%.
Sylvan Plyboard IPO is a fixed price issue of Rs 28.05 crores. The issue is entirely a fresh issue of 51 lakh shares.
Sylvan Plyboard IPO opens for subscription on June 24, 2024 and closes on June 26, 2024. The allotment for the Sylvan Plyboard IPO is expected to be finalized on Thursday, June 27, 2024. Sylvan Plyboard IPO will list on NSE SME with tentative listing date fixed as Monday, July 1, 2024.
Sylvan Plyboard IPO price is ₹55 per share. The minimum lot size for an application is 2000 Shares. The minimum amount of investment required by retail investors is ₹110,000. The minimum lot size investment for HNI is 2 lots (4,000 shares) amounting to ₹220,000.
About Sylvan Plyboard (India) Ltd
Incorporated in 2002, Sylvan Plyboard (India) Ltd is engaged in the manufacturing of various wood products such as plywood, block board, flush door, veneer and sawn timber across various grades and thicknesses. The company has 223 Authorized Dealers present across 13 states.
The product range of the company consists of the following
- Plywood, Block Boards & Flush Doors
- Veneer
- Sawn Timber
About Company – Sylvan Plyboard
Sylvan Plyboard manufactures wood products. Its product offerings include Plywood, Block board, flush door, veneer, and swan timber of different grades and thicknesses.
It has 223 authorized dealers across 13 states of India including West Bengal, Bihar, UP, Rajasthan, Karnataka, Kerala, Tamil Nadu, Andhra Pradesh, Andaman & Nicobar, and others. It sell its products to customers in various industries such as Construction, Plywood, Shipping, Real estate, Interior Decor, Aviation, Hospital, Transport, etc.
The company has a manufacturing facility in Baidyabati, West Bengal over 11.61 acres. Currently, it has 2,43,644 sq. ft. approx. under plywood manufacturing capacity which can be expanded further.
Sylvan Plyboard SME IPO Strengths
- Established brand name in the Eastern India
- Strong network of dealers across 13 states
- Strategically located manufacturing facility in West Bengal with close proximity to Kolkata Port
- Specialized product portfolio i.e., “Sylvan Z+ Premium Plus, Robusta Premium” & “Primo Plus, and Sylvan Blu;
- Experienced managers in the timber and plywood industry
- High quality standard products with ISO certification
Sylvan Plyboard SME IPO Objective
The Objects of the Issue are:
- Funding Capital Expenditure towards the purchase of additional plant and machinery
- To meet the Working Capital Requirements
- To meet the Issue Expenses
- General Corporate Purposes
Competitive Landscape
Industry Overview:
The plywood and wood products industry in India is characterized by robust demand driven by the construction and furniture sectors. Key growth drivers include urbanization, rising disposable incomes, and a preference for high-quality wood products.
Market Position Sylvan Plyboard (India) Ltd is well-positioned in the market due to its: Brand Reputation: Established brand with a strong customer base.
Product Quality: Commitment to superior quality standards.
Distribution Network: Extensive network ensuring wide market reach.
Innovation: Continuous product innovation catering to evolving market needs.
How to Apply for the IPO
Steps to Apply
- Demat Account: Ensure you have a Demat account.
- ASBA Application: Apply through the Application Supported by Blocked Amount (ASBA) facility available through your bank.
- Online Platforms: Use online trading platforms provided by brokers.
- UPI Method: Use the Unified Payments Interface (UPI) for payment and application.
Allotment Status
Post the IPO, investors can check their allotment status on the registrar’s website or through their respective brokers.
Conclusion
The Sylvan Plyboard (India) Ltd IPO presents a promising investment opportunity, backed by a strong market position, robust financials, and growth prospects. Potential investors should carefully consider the company’s strengths and risks, and consult with financial advisors to make an informed decision.
