The Archit Nuwood Industries Limited Initial Public Offering (IPO) is a significant event, providing investors an opportunity to buy shares in a leading manufacturer of MDF and HDF boards. With a fresh issue worth ₹168.48 crores, this IPO promises to attract significant interest from both retail and institutional investors. Below, you’ll find detailed information about the company, the IPO, key financials, and everything you need to know before investing.
About Archit Nuwood Industries Limited OPO
Founded in 2017, Archit Nuwood Industries Limited specializes in the production of Medium Density Fiberboard (MDF) and High-Density Fiberboard (HDF). The company has earned a strong reputation in the manufacturing industry by delivering a diverse product portfolio, including pre-laminated and plain boards in various designs. With a robust growth trajectory, Archit Nuwood Industries is poised to meet the growing demand in the real estate and construction sectors, making it an attractive option for investors.
Key Products:
- MDF Boards: Pre-laminated interior and exterior-grade materials, plain exterior-grade MDF, and plain interior-grade MDF.
- HDF Boards: Pre-laminated and plain HDF, California Air Resources Board (CARB) compliant panels.
- High-Pressure Laminate (HPL): Premium laminate boards for interior design applications.
As of April 26, 2024, Archit Nuwood Industries employs 149 personnel, including directors, to manage its growing operations.
IPO Details
The Archit Nuwood Industries IPO is a book-built issue amounting to ₹168.48 crores, with a fresh issue of 6,240,000 shares. The IPO price band has been set between ₹257 and ₹270 per share, offering investors a chance to own part of a rapidly growing company.
| IPO Parameter | Details |
|---|---|
| IPO Size | ₹168.48 crores |
| IPO Price Band | ₹257 to ₹270 per share |
| Issue Type | Book Built Issue |
| Shares Offered | 6,240,000 shares |
| Face Value of Each Share | ₹10 per share |
| Lot Size | 400 shares |
| Minimum Investment (Retail) | ₹108,000 |
| Minimum Investment (HNI) | ₹216,000 |
| Listing Exchange | BSE SME |
Key Dates
The IPO dates are yet to be announced. However, investors should stay updated to ensure they don’t miss out on this opportunity. The expected timeline for the key events related to the IPO is as follows:
| Event | Date |
|---|---|
| IPO Open Date | To Be Announced |
| IPO Close Date | To Be Announced |
| Allotment Date | To Be Announced |
| Listing Date | To Be Announced |
IPO Reservation
The Archit Nuwood Industries IPO is divided into various investor categories to ensure fair distribution among different types of investors. The reservation details are as follows:
| Investor Category | Shares Offered |
|---|---|
| Qualified Institutional Buyers (QIB) | Not more than 50.00% of the net offer |
| Retail Individual Investors (RII) | Not less than 35.00% of the offer |
| Non-Institutional Investors (NII/HNI) | Not less than 15.00% of the offer |
Lot Size and Investment Breakdown
Investors can bid for a minimum of 400 shares, and bids must be placed in multiples thereof. Below is a detailed breakdown of the investment required for retail and high-net-worth individuals (HNI):
| Investor Type | Lot Size | Shares | Investment (₹) |
|---|---|---|---|
| Retail (Min) | 1 lot | 400 | ₹108,000 |
| Retail (Max) | 1 lot | 400 | ₹108,000 |
| HNI (Min) | 2 lots | 800 | ₹216,000 |
Company Promoters and Shareholding
Archit Nuwood Industries Limited is promoted by Mr. Prem Chand, Mr. Vinod Kumar Singla, and Mr. Vineet Kumar. The promoters hold a significant stake in the company, which will be diluted following the IPO. Below is the shareholding breakdown before and after the issue:
| Shareholding | Pre-Issue (%) | Post-Issue (%) |
|---|---|---|
| Promoters | 93.92% | 69.15% |
| Public | 6.08% | 30.85% |
Financial Performance
Archit Nuwood Industries Limited has demonstrated strong financial growth over the years. Between FY 2023 and FY 2024, the company recorded a 21% increase in revenue and a 74% rise in profit after tax (PAT). The table below summarizes the company’s financial performance for the past four years:
| Financial Metrics (₹ Lakhs) | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 | 31 Mar 2021 |
|---|---|---|---|---|
| Total Assets | 16,649.44 | 11,972.79 | 8,139.79 | 5,215.65 |
| Revenue | 18,540.13 | 15,368.58 | 13,432.03 | 3,963.77 |
| Profit After Tax (PAT) | 3,692.53 | 2,127.9 | 443.36 | 304.95 |
| Net Worth | [Value] | 3,633.95 | 1,551.33 | 1,107.97 |
| Reserves and Surplus | 7,488.68 | 2,465.56 | 382.94 | -60.42 |
| Total Borrowing | 576.91 | 1,472.79 | 1,785.58 | [Value] |
Key Financial Ratios (As of March 31, 2024)
| KPI | Values |
|---|---|
| Return on Equity (ROE) | 57.41% |
| Return on Capital Employed (ROCE) | 40.38% |
| Return on Net Worth (RoNW) | 57.41% |
| PAT Margin | 20.07% |
Peer Comparison
Compared to its industry peers, Archit Nuwood Industries demonstrates strong financials, with an EPS of ₹14.16 post-IPO and a price-to-earnings (P/E) ratio of 19.06x. Below is a comparison of pre- and post-IPO metrics:
| Metric | Pre-IPO | Post-IPO |
|---|---|---|
| Earnings Per Share (EPS) (₹) | 12.22 | 14.16 |
| Price-to-Earnings (P/E) Ratio | 22.1 | 19.06 |
Objectives of the IPO
The funds raised through the IPO will be utilized for the following purposes:
- Investment in Subsidiary: A portion of the proceeds will be invested in Archit Panels Private Limited (APPL), the wholly-owned subsidiary of the company, to enhance its production capacity and strengthen its operations.
- General Corporate Purposes: The remaining funds will be used for general corporate purposes, enabling the company to manage its working capital requirements and other operational expenses.
Why Invest in Archit Nuwood Industries IPO?
Archit Nuwood Industries Limited is well-positioned for growth in a booming market. The real estate sector, particularly in interior design and construction, has seen an uptick in demand for MDF, HDF, and laminates. The company’s robust financials and consistent growth in revenue and profits make this IPO an attractive option for investors looking for medium to long-term gains.
Reasons to Invest:
- Leading manufacturer in a high-demand sector.
- Impressive financial performance with substantial growth in revenue and profit.
- Expanding production capacity to meet future demand.
- Reasonable pricing based on FY 2024 earnings.
Risks Associated with the IPO
While Archit Nuwood Industries presents a compelling investment opportunity, there are inherent risks to consider:
- Market Volatility: Stock market fluctuations may affect share price performance post-listing.
- Regulatory Risks: Changes in government regulations related to manufacturing or environmental standards could impact operations.
- Competitive Landscape: Increased competition from new and established players in the MDF and HDF sectors could affect market share.
How to Apply for the Archit Nuwood Industries IPO
Investors can apply for the Archit Nuwood Industries IPO through the following methods:
- ASBA (Application Supported by Blocked Amount): Investors can apply through their net banking account.
- UPI (Unified Payments Interface): Retail investors can apply using UPI-linked bank accounts.
Step-by-Step Process:
- Log in to your net banking or broker platform.
- Navigate to the IPO section and select “Archit Nuwood Industries IPO.”
- Enter the number of shares and bid price within the set price band.
- Confirm the application using ASBA or UPI.
Post-Listing Share Performance
Once listed, investors can track the share price performance of Archit Nuwood Industries on the BSE SME exchange. Given the strong fundamentals and robust demand in the market, the stock is expected to generate interest among both retail and institutional investors.
Conclusion
Archit Nuwood Industries Limited is poised for significant growth in the coming years, driven by strong financial performance and increasing demand for MDF and HDF boards in the real estate sector. With a carefully planned expansion strategy and consistent profits, the company offers a promising investment opportunity for those looking to invest in a well-established player in the manufacturing industry.
For more detailed information, refer to the Red Herring Prospectus (RHP) of Archit Nuwood Industries Limited.
