Gravita India Ltd

8/8/2019 Gravita India Ltd

1/12

Gravita India Ltd.

Company History:

Incorporated on 04/08/1992 under the Companies Act, 1956 as Weldtech Private Limited vide

Certificate of Incorporation issued by the Registrar of Companies, Rajasthan, Jaipur. The Companychanged its name to Gravita India Private Limited w.e.f 02/08/1996. Subsequent on conversion intoPublic Limited the name was changed to Gravita India Limited vide fresh certificate of Incorporationdated 13/08/1996. The Corporate Identity Number of the Company is U29308RJ1992PLC006870 . Incorporated in 1992, Gravita India Ltd is engaged in the business of manufacturing of Lead Metal byRecycling & Smelting process & other lead products. Gravita India Ltd is flagship Company of theGravita Group which was established in the year 1992 and has manufacturing set up at Jaipur.Company carry out smelting of Lead Ore / Lead Concentrate / Lead Battery Scrap to produce primary& secondary Lead Metal, which is further transformed into Pure Lead, Specific Lead Alloy, LeadOxides (Lead Sub-Oxide, Red Lead, and Litharge) and Lead Products (Lead Sheets, Lead Pipes etc.)with proven technology and processes.

Gravita India manufacture multiple products related to lead which are mainly used in industries likebattery, glass, ceramic, pharmaceutical, paint, electronic. Their main products Pure/ Refined Lead,Lead Ingots, Lead Alloys, Grey Oxide, Red Lead and Litharge. The Group have 9 Lead manufacturingunits, out of which two are in Asia and five are in African continent. Apart from lead processing, theGravita Group is engaged in merchant trade of Lead scrap, Lead ore, Lead concentrates, Lead batteryscrap and Lead products.

The company has established subsidiaries and interests in Ghana, Senegal, Mozambique, Sri Lanka,Saudi Arabia, Zambia and Ethiopia. These cover the continents of Africa, Asia, Central America andCIS (Commonwealth of Independent States) countries. Gravita India has a wide spectrum of productsin the lead metal industry starting from basic product as remelted lead ingot from battery recyclingto high end value products such as pure lead, lead alloys, litharge, red lead, lead sub oxides, powder,

sheets etc.

Company has a subsidiary Gravita Exim Limited, a company specializing in providing turnkeysolutions and consultancy services on engineering and design for the secondary lead companies.They are specialize in producing high quality pure lead ingots with minimum purity level of 99.97%by weight.

P romoters of the Company:1.Dr. Mahaveer Prasad Agarwal, aged 75 years, did his M.B.B.S. in 1956 and then M.D. in GeneralMedicines.2. Mr. Rajat Agrawal, the main Founder Director, aged 42 years is a Technocrat (BE in Mechanical).

3. Mr. Rajeev Surana, the other Founder Promoter Director, aged 40 years; a professional (BE inMechanical)


2/12

In draft red herring prospectus, company has to mention various risk factors in the area of business, it is operating. So, accordingly Gravita India under various headings, hasmentioned various risk factors.1. Legal risks:-

Company has 2 lawsuits against it- one of revenue intelligence and one of labour

dispute, together accounting for, Rs.12 lakhs.One of the promoter has a criminal lawsuit pending against him for vehicle accidentcase.Four lawsuits against group companies or subsidiaries are pending, together amountingto around Rs. 9 lakhs.

2. Project related risk factors-Delay in projects, purchase of fixed assets, project appraisalby banks/NBFCs,

3. Internal Risk factors- Unprovisioned liabilities, cash-flows, utilization of capacity,assistance of management

4. External risk factors- impact of currency fluctuation, changes in price of raw materials(Lead in this case) in LME (London Metal Exchange), compliance with environmentallaws,etc.

Some facts:1. The net worth of Gravita as per its restated financial statement as at 31st March

2009 is Rs. 724.37 lacs.2. Book value per equity share of the Company as per its restated financial statement

as at 31st March 2009 is Rs. 28.60.3. The average cost of acquisition of the equity Shares of face value Rs.10/- by the

Promoters is Rs. 6.66 per equity share .

The company then talks about the industry analysis, it s own competitive strengths, why investorsshould invest in the company, capacity at different plants and products it manufactures.According to SEBI regulations, company has provided standalone and consolidated balance sheetsand profit and loss accounts.


3/12


4/12


5/12

B oard of Directors:


6/12

Issue management Team:-


7/12

S hare history of the company:-

S hareholding pattern of the company:


8/12

Objects of the issue:1. To set up additional manufacturing facilities at Jaipur and new facility at Wada, Maharashtra inIndia2. To invest in overseas ventures at- Sri Lanka- Navam Lanka Limited- Senegal - Pagrik Senegal SA- Honduras - Gravita Honduras SA3. To invest in setting up manufacturing facilities at Australia, Belarus, Chile and Mexico.

4. To provide margin money for working capital requirement5. For general corporate purposes6. To meet the expenses of the issue.7. To list the equity shares on the Stock Exchanges

BAS IS FOR ISSUE P RICE

Q UA LITA TIVE FA CTORS

1. Presence in Global market: Besides having manufacturing facility in India, the Company hassuccessfully established subsidiaries and interests in Ghana, Senegal, Mozambique, Sri Lanka, SaudiArabia, Zambia and Ethiopia. These cover the continents of Africa, Asia and GCC. Its global presence

helps to cater multi location demand and creates brand awareness in different countries.2. Access to raw material world wide: The global presence with an established base in differentparts of the world gives the Company access to the local raw materials in the respective countries atcompetitive freight cost.3. Environment friendly: We are ISO 14001:2004 certified Company confirming our environmentfriendly recycling operations as per international standards. We are a registered manufacturer underMinistry of Environment and Forest for lead processing and recycling. The Company lays a lot of stress on recycling and continuing to deploy environment friendly technology.4. Versatile product mix: We have a wide spectrum of products in the lead metal industry startingfrom the basic product as remelted lead ingot from battery recycling to high end value products suchas pure lead, lead alloys, litharge, red lead, lead sub oxides, powder, sheets etc. Our manufacturingoperations conform to ISO 9001:2000.

5. Strong Brand Name: We have built a strong brand name of quality products through ourmanufacturing and marketing presence in different parts of the world. Our products are widelyaccepted and conform to all technical specifications prevailing in the international market. We alsoparticipate in all major conferences relating to lead industry worldwide.6. Relationship with customers: We have built robust relationship and confidence with customersthrough our ability to provide them the entire range of lead products with quality control checksglobally. We have been awarded as Star Export House by the Government of India.7. Strong management Team: The promoter and the senior management team of the Companyhave substantial experience in the metal industry and have been instrumental in the consistent


9/12

growth of the Company. The management team has also wide knowledge of global lead marketshaving established operations globally.8. Complete solution under single roof: We are one of the few players with a global presenceoffering a complete solution right from setting up of turnkey plants (through our subsidiary GravitaExim Limited) to manufacturing the wide range of lead products. Our ability to source raw materialsand market our products in different parts of the world gives us a cutting edge in the lead industry.

Q UAN TITA TIVE FA CTORS

Information presented in this section is derived from the restated financial statements certified bythe Statutory Auditors of the Company


10/12

A bout Issue:Public issue of 36,00,000 equity shares of face value Rs. 10 each at an issue price of Rs. 125 pershare, face value of Rs. 10 each, and a share premium of Rs. 115 per share.The IPO of the Company has been awarded BWR IPO Grade 3 grading from Brickwork Ratings IndiaPvt. Ltd. indicating Average fundamentals vide their letter dated November 05, 2009 and September22, 2010.Bid/Issue opened on: Monday, 1 st November, 2010.

Bid/issue closed on: Wednesday, 3rd

November, 2010.

The Issue:Public Issue aggregating to Rs.45 lakhs:Equity Shares offered- 3600000 shares of face value of Rs.10 eachEmployee reservation portion- 50000 shares of Rs. 10 eachNet issue to the public- 3550000 shares of Rs. 10 eachQIB Portion- At least 50% of net issue i.e. 17, 75,000 equity shares, should be available for allocationonly to Qualified Institutional Buyers (QIBs) on net proportionate basis. Of which 5% i.e. 88750equity shares shall be available for allocation only to mutual funds on proportionate basis.Non-Institutional Portion- 15% of net issue of Rs. 10 each i.e.532500 equity shares shall be availablefor allotment to non-institutional buyers only on net proportionate basis.

Retail Portion- 35% of net issue of Rs.10 each i.e. 1242500 equity shares shall be available forallotment to retail individual bidders on a proportionate basis.Equity shares outstanding prior to issue- 1, 00, 20,000 equity shares of face value Rs.10 eachEquity shares outstanding post-issue 1, 36, 20,000 equity shares of face value of Rs. 10 eachName of the underwriters- Keynote Corporate Services Ltd.

Keynote Capitals Ltd.HEM Securities Ltd.


11/12

B idding S tatus (I P O subscription detail):

Number of Times Issue is Subscribed (BSE + NSE)

As on Date & Time

QualifiedInstitutiona

l Buyers(QIBs)

NonInstitutiona

l Investors

RetailIndividualInvestors

(RIIs)

EmployeeReservation

s

Total

Shares Offered / Reserved 1,775,000 532,5001,242,500

50,000

3,600,000

Day 1 - Nov 01, 2010 17:00IST

1.0100 0.1900 0.9700 0.9300 0.8700

Day 2 - Nov 02, 2010 17:00IST

1.0100 0.1900 3.9700 1.0600 1.9100

Day 3 - Nov 03, 2010 17:00IST

6.0400 182.5200 37.3400 1.1700 42.8800

Relative Valuations with respect to other companies


12/12

Shareholding Pattern

Details of the issue

Gravita India Ltd

Documents

Transcript of Gravita India Ltd