Sylvan Plyboard (India) Ltd Plans for Rs. 28.05 Crore IPO; Public Issue open from June 24-26, 2024

Finance

Mumbai (Maharashtra) [India], June 22:  Hooghly, West Bengal-based Sylvan Plyboard (India) Ltd, manufactures of various wood products such as plywood, blockboard, and flush door etc, is planning to raise up to Rs. 28.05 crore from its SME public issue. The company has received approval to launch its public issue on the NSE Emerge platform of the National Stock Exchange of India Limited. The public issue will open for subscription on June 24, 2024 and close on June 26, 2024. The proceeds of the public issue will be utilized to fund the company’s expansion plans, including capital expenditure towards the purchase of additional plant and machinery, meeting working capital requirements, general corporate purposes, and issue-related expenses. Finshore Management Services Limited is the lead manager of the issue

The Company is planning to issue 51 lakh equity shares of face value of Rs. 10 each at a price of Rs. 55 per share. The shares will be listed on the NSE EMERGE platform of the National Stock Exchange (NSE).

The initial public offering of Rs. 28.05 crore comprises a fresh issue of 51 lakh equity shares of face value of Rs. 10 each at Rs. 55 per share. Out of the issue proceeds, the company will utilize Rs. 3.71 crore for the purchase of additional plant and machinery, Rs. 16.93 crore towards working capital requirements, Rs. 3.10 crore towards issue-related expenses, and Rs. 4.31 crore towards general corporate purposes. The minimum lot size for the application is 2,000 shares, which translates to an investment of Rs. 1,10,000 per application

The retail investor quota for the IPO is kept at 50% of the net offer. The Promoter and Promoter Group holding pre-issue stands at 99.80% and will become 73.53% post-issue.

Established in 2002, Sylvan Plyboard (India) Ltd is engaged in the manufacturing of various engineered wood products across various grades and thicknesses. The company has its roots tracing back more than 70 years, since 1951. The company has 223 authorized dealers present across 13 states. The company’s product range consists of plywood, block board, flush door, veneer, sawn timber, and others. The manufacturing facility of the company is situated in Hooghly, West Bengal. The products are supplied to industries such as shipping, construction, real estate, interior decor, furniture, aviation, education, hospitals, transport, banking, and government projects where plywood is needed for commercial and residential infrastructure.

The company’s products meet the quality standards of the Bureau of Indian Standards (BIS), including IS 303:1989, IS 710:2010, IS 2202:1999, IS 1659:2004, IS 5509:2021, and IS 10701:2012. Additionally, the company has received ISO 9001:2015 (Quality Management System), ISO 14001:2015 (Environmental Management System), and ISO 45001:2018 (Occupational Health & Safety Management System) certifications for manufacturing and supplying veneer, plywood, block board, and flush doors.

For the 9 months of FY23-24 ending in December 2023, the company reported a net profit of Rs. 4.48 crore and total revenue of Rs. 161.93 crore. This is compared to the full 12 months of FY22-23, during which the company reported a net profit of Rs. 3.53 crore and total revenue of Rs. 199.15 crore

As of December 31, 2023, the net worth of the company was reported at Rs. 94.57 crore, reserves & surplus at Rs. 80.29 crore, and the asset base at Rs. 217.26 crore. The Return on Equity (ROE) of the company was 4.9%, Return on Capital Employed (ROCE) was 7.56%, and Return on Net Worth (RONW) was 4.74%. The statement about the company’s shares being listed on NSE’s Emerge platform.

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