Fine Organics to enter IPO market on June 20

One of the largest manufacturers of oleochemical-based additives in India, Fine Organics Industries Ltd (FOIL), is going to hit the IPO market at the price of Rs 780-783. The offer will open for subscription on June 20 and close on June 22.

The company has a range of 387 different products under its brand. Through the IPO, the company is raising Rs Rs 600 crore. The offer will constitute 25 per cent of the post-issue paid-up equity share capital of the company, assuming the issue is subscribed at the upper end of the price band. The company is offering 0.76 crore shares that are being sold by promoters. Prakash Damodar Kamat, Mukesh Maganlal Shah, Jyotsna Ramesh Shah, Jayen Ramesh Shah, Tushar Ramesh Shah and Bimal Mukesh Shah form the promoter group of the company. The money raised through the offer will not go to the company. The net revenue of the company has grown at CAGR 13.52 per cent over FY15-17, due to capacity expansion at Ambernath facility in the year 2015 and other factors. The company had reported growth in profit after tax at CAGR 21 per cent during FY15-17. FOIL had 631 direct customers and 127 distributors (who sell to more than 5,000 customers).

According to Angel Broking, the Indian and global plastic additive market is expected to grow to Rs 55-60 billion (at a CAGR of 8-10 per cent) and USD 30 billion (at a CAGR of 6 per cent) over FY16-21 respectively. FOIL is one of the sixth and fifth global players in food and plastic additive industry respectively. The company has 64,300 TPA installed capacity and intends to almost double the same in the next three-four years.