A G Universal IPO GMP, Price, Dates & Allotment Details 2023
Introduction
The A G Universal IPO will open on April 11 and close on April 13, 2023. As per the DRHP filed with SEBI, the company intends to raise approximately ₹ 8.72 crores through this public offering, consisting of 14.54 lakhs shares with a face value of ₹ 10 each, which will be issued at a price of ₹ 60 per share.
About A G Universal Limited (“the Company”)
The company was incorporated in 2008. A G Universal Limited deals in trading various products including Stainless Steel Pipes, Mild Steel Pipes, ERW Black Pipes, GI Pipes, Hollow Sections, uPVC Pipes cPVC Pipes, TMT Bars, CR Coils and HR Coils. The company acts as a dealer for Surya Roshni Limited, Jindal Supreme (India) Private Limited, Swastik Pipe Limited, Ravindra Tubes Private Limited, SKS Ispat & Power Ltd, etc. The company has strengthened its position as one of the suppliers of high-end industrial MS Tubes, GI Pipes, and Hollow Sections.
The company deals mainly with
- ERW Pipes & Hollow Section Pipes
- MS Pipes
- Hot & Cold Rolled Strips & Sheets
- TMT/Beam/Channel/Angle
- cPVC Pipes & Fittings
- uPVC Plumbing Pipes and Fittings
Objects of the Issue,
The company proposes utilising the Fresh Issue’s net proceeds towards funding the following objects:
- To meet the working capital requirements of the company.
- General corporate purposes and issue expenses.
Financial Highlights (Restated Consolidated)
| Particulars | The period ended on 30th Nov. 2022 | FY 2021-22 | FY 2020-21 | FY 2019-20 |
|---|---|---|---|---|
| Net Worth | 676 | 262 | 191 | 176 |
| Total Assets | 2,643 | 1,856 | 1,435 | 1,524 |
| Total Borrowings | 950 | 943 | 945 | 784 |
| Total Revenue | 3,595 | 7,074 | 3,864 | 2,008 |
| Profit After Tax | 114 | 71 | 15 | 5 |
| Particulars | 30th Nov. 2022 | 31 March 2022 |
|---|---|---|
| Basic and Diluted EPS | ₹ 5.07 | ₹ 19.18 |
| Return on Net Worth (RONW) | 17.55% | 27.09% |
| Net Assets Value | ₹ 16.77 | – |
IPO details
As per the DRHP filed with SEBI, 14.54 lakh shares will be offered as part of the fresh issue on the NSE SME segment. The face value of the shares is ₹ 10. The market maker would receive 74,000 shares of the offering. While Share India Capital Services Private Limited will be the lead manager for the IPO, Skyline Financial Services Private Ltd will be the registrar. It will be a Fixed Price Issue IPO, so the price at which the securities are offered or allotted is known in advance to the investor.
| Issue Type | Fixed Price Issue IPO |
| IPO Price | ₹ 60 per share |
| Face Value | ₹ 10 per share |
| Market Lot | 2,000 shares |
| Issue Size | 1,454,000 shares (aggregating up to ₹ 8.72 crores) |
| Fresh Issue | 1,454,000 shares (aggregating up to ₹ 8.72 crores) |
| Retail Shares Offered | 50% of the net issue |
| Other Shares Offered | 50% of the net issue |
| Market Maker | Share India Securities Limited |
| Market maker portion | 74,000 shares |
| Listing At | NSE SME |
| Company Promoters | Ms Bharti Gupta and Mr Amit Gupta |
GMP: A G Universal IPO
A G Universal IPO GMP, or grey market premium, is available on this page. The IPO GMP is updated on a day-to-day basis during the running period of the IPO, due to which the GMP rates fluctuate and stabilise after some time. GMP rates are not 100% guaranteed. Please click here for GMP details.
Tentative Dates: A G Universal IPO
The issue opens for subscription on April 11, 2023, and closes for subscription on April 13, 2023 (both days inclusive). The basis of allotment will be finalised on April 19th, 2023, and the refunds will be initiated on April 20, 2023. In addition, the demat credits are expected to happen on April 21, 2023, and the stock will list on April 24, 2023, on the NSE SME segment.
| Opening Date | April 11, 2023 |
| Closing Date | April 13, 2023 |
| Basis of Allotment | April 19, 2023 |
| Initiation of Refunds | April 20, 2023 |
| A credit of shares to Demat A/c | April 21, 2023 |
| Listing Date | April 24, 2023 |
Lot Size
The lot size of the A G Universal IPO is 2,000 shares. A retail-individual investor can apply for up to 1 lot, i.e. 2,000 shares of ₹ 120,000.
| Applications | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Minimum) | 1 | 2,000 | ₹ 120,000 |
| Retail (Maximum) | 1 | 2,000 | ₹ 120,000 |
| HNI (Minimum) | 2 | 4,000 | ₹ 240,000 |
Promoters Holdings
| Pre-issue Shares Holdings | 95.53% |
| Post-issue Shares Holdings | – |
SWOT Analysis
| STRENGTHS | WEAKNESSES |
|---|---|
| 1. Experienced Promoter and their Network in the Trading Community. 2. The company is constantly focused on building quality into the culture of the organization. 3. Existing client and supplier relationships. | 1. Company done our business with customer on purchase order basis and does not maintain relationship with its customer. 2. Substantial portion of company revenues has been dependent upon few clients. Top 10 clients accounted for 92.61% of total sales of the company. |
| OPPORTUNITIES | THREATS |
| 1. Focus on an increase in the volume of sales. 2. Increase its geographical presence. | 1. Competitions from organised and unorganised players 2. Government policies. 3. New entrants in the market. |
Review [Avoid]
A G Universal Ltd. (AGUL), originally incorporated as the style of Akshata Polymers Pvt. Ltd., became a public limited company in November 2022. The company engaged in the trading of metal pipes. The company acts as a dealer for Surya Roshni Limited, Jindal Supreme (India) Private Limited, Swastik Pipe Limited, Ravindra Tubes Private Limited, SKS Ispat & Power Ltd., etc.
The market in which our company operates is highly competitive and fragmented. For the last three financial years, A G Universal Ltd. has reported an average EPS of Rs. 9.18 and an average RoNW of 16.72%. The issue is priced at a P/BV of 3.58 based on its NAV of Rs. 16.77 as of November 30, 2022.
The company is offering its IPO at a price of ₹ 60 per share, which is very high. If we look at the revenue and profit of the company during FY22, the revenue was ₹ 7,074 lakhs and the company made a profit of only ₹ 71 lakhs, whereas, during FY23 till November, the company has already reported a profit of ₹ 114 lakhs on revenue of ₹ 3,595 lakhs. How is this possible in just one year? On the other hand, if we look at the revenue of FY21, it is ₹ 3,864 and the company made a profit of ₹ 15 lakhs only on this. The company has not properly disclosed its financial performance in the prospectus, which raises questions about this offer document. You can skip this confusing IPO.
Miscellaneous Information
| Download Prospectus (PDF) | IPO DRHP |
| Company Contact Information | A G Universal Limited F-1, 34/1, Vikas Apartments, East Punjabi Bagh, West Delhi, New Delhi – 110026 Phone: +91 9811100759 Email: [email protected] Website: https://aguniversal.co.in/ |
| IPO Registrar | Skyline Financial Services Private Ltd Phone: 02228511022 Email: [email protected] Website: https://www.skylinerta.com/ |
| IPO Lead Manager(s) | Share India Capital Services Private Limited |
FAQ’s
What is A G Universal IPO price?
The A G Universal IPO price is ₹ 60 per share.
What will be the A G Universal IPO lot size?
One lot of the A G Universal IPO contains 2,000 shares of ₹ 120,000.
What minimum lot size can retail investors subscribe to?
The minimum investment size is one lot for retail investors.
When will A G Universal IPO allotment be available?
The finalization of the basis of allotment for the A G Universal IPO will be done on April 19, 2023, and the allotted shares will be credited to your demat account by April 21, 2023. Check the A G Universal IPO allotment status.
When will A G Universal IPO list on exchanges?
The A G Universal IPO shares listing date is April 24, 2023.
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