Beruflich Dokumente
Kultur Dokumente
upto
atleast
atleast
upto
25,14,238 eq sh
35,19,934 eq sh
40,22,782 eq sh
4,50,000 eq sh
Face Value: Rs 10
Book value - Rs 90.98 (October 31, 2012)
Bid size: 100 equity shares and in multiples thereof
100% Book built Issue
Capital Structure:
Pre Issue Equity:
Post issue Equity:
Rs
Rs.
28.47 crs
38.98 crs
Grade:
3/5
Post issue
%
52.18
47.82
100.0
indicating
Rs. Lacs
Grand
S. No. Particulars
Amount Total
1 Term Loan for Doddaballapur Project from Canara Bank
6000.0
2 Term Loan for Kagal Project from Canara Bank
9000.0 15000.0
3 Public Issue of Equity Shares
*
4 Internal Accruals
*
Total
*
Cost of Project:
S. No. Particulars
Setting up of unit for Trouser manufacturing at Doddaballapur, Karnataka and Knitting & Fabric processing unit at
1. Kagal- Kolhapur, Maharashtra
a. Land & Site Development
b. Building and Civil Works
c. Machineries and Equipments
Retail Research
Rs. Lacs
Amount
1316.0
7286.4
17204.2
d.
e.
f.
2.
3.
4.
2612.5
1290.0
1168.7
1116.8
*
*
*
(Source: RHP)
SGLs strengths:
SGLs strategy:
BRFL have cross investments in the shares of its Companies and enjoy trade relationship with each other Also some of the
promoters & Promoter Group Companies of BRFL are shareholders/directors in few of its group companies.
Export revenue has contributed more than 90% of the total revenue in last few financial years. SGLs substantial portion of
sales revenue is concentrated in European Region. In the event of any economic turmoil in these regions its revenue would
be substantially impacted.
SGLs major portion of the sales in FY2011-12 was from top ten customers. Any loss of order from these customers may
decrease in the supply of raw materials could materially affect SGLs business.
If SGL is unable to obtain required approvals and licenses in timely manner, its business and operations may be adversely
affected.
The success of SGLs business largely depends on its ability to effectively implement and execute its business and growth
strategy.
Business is dependent on SGLs manufacturing facilities. The loss of or shutdown of operations at any of its manufacturing
facilities may have a material adverse effect on its business, financial condition and results of operations.
SGL has entered into related party transaction aggregating to Rs 54302.50 lacs during FY11-12. It cannot be assured that
such transactions will not have an adverse effect on its business,, financial conditions, results of operations and prospects.
SGL has experienced negative Operating Cash Flow in the Financial Year 2010-11 and 2007-08 and cannot rule out the
Retail Research
Competition from other domestic producers /unorganized sector may adversely affect SGLs competitive position and its
profitability.
Extract from grading rationale by CARE:
The ratings take into account the experienced promoter and management team, companys long and good operational track
record, established and long-standing relation with reputed clients spread across global markets, moderate capital structure,
comfortable debt coverage indicators and relatively stable margins. The ratings assigned, however, are constrained by Scotts
Garments Limiteds (SGLs) customer and business concentration risk with 50%-60% of the revenue being derived from a
single client and significant share of revenue derived from Europe which is faced with extended economic downturn, working
capital intensive nature of operation owing to high inventory days, project implementation risk on account of the significant
capex in next one year.
Going ahead, the ability of SGL to enhance its addressable market by adding new customers to its existing clientele base and
by penetrating into new geographies, managing its working capital efficiently and completion of the ongoing project within the
estimated time and cost would remain the key rating sensitivities.
Retail Research