Retina Paints IPO GMP, Price, Dates & Allotment Details 2023
Introduction
The Retina Paints IPO will open on April 19 and close on April 24, 2023. As per the DRHP filed with SEBI, the company intends to raise approximately ₹ 11.10 crores through this public offering, consisting of 37 lakhs shares with a face value of ₹ 10 each, which will be issued at a price of ₹ 30 per share.
About Retina Paints Limited (“the Company”)
Retina Paints Limited was established in 2010 and has its headquarters in Hyderabad, Telangana. The company is into manufacturing decorative paints like distempers, primers, wall care products, emulsions, etc. and further selling them to different distributors. They source their raw materials at present indigenously for the manufacturing of Paints. Company Water-based paints are used for residential & commercial buildings. They have recently introduced tinting machines in their Company. The tinting machine comprises a plurality of colourant reservoirs containing a colourant, one or more cleaning fluid supply conduits and one or more dispenser heads for dispensing colourant into a paint container.
The company works on B2B Business Model, they sell our products to the dealers and distributors and then they sell to the end customers. The company have a huge network of Distributors in the markets of Telangana and Andhra Pradesh and they also have a presence in Odisha for selling Product. The company is having exposure to the markets of Telangana, Andhra Pradesh and Odissa, soon we will be expanding to other states as well.
Objects of the Issue,
The company proposes utilising the Fresh Issue’s net proceeds towards funding the following objects:
- Working Capital Requirements
- general corporate purposes.
Financial Highlights (Restated Consolidated)
| Particulars | The period ended on 30th Nov. 2022 | FY 2021-22 | FY 2020-21 | FY 2019-20 |
|---|---|---|---|---|
| Net Worth | 1,241 | 220 | 95 | 91 |
| Total Assets | 2,075 | 1,163 | 987 | 670 |
| Total Borrowings | 433 | 588 | 614 | 319 |
| Total Revenue | 534 | 647 | 686 | 681 |
| Profit After Tax | 40 | 11 | 5 | 5 |
| Particulars | The period ended on 30th Nov. 2022 | FY 2021-22 | FY 2020-21 | FY 2019-20 |
|---|---|---|---|---|
| Basic & Diluted EPS (Post Bonus) | 0.57 | 0.17 | 0.08 | 0.08 |
| Return on Net Worth (RONW) | 3.22% | 5.16% | 4.77% | 5.17% |
| Net Asset Value Per Share (₹) (Pre-Bonus) | 64.99 | 14.01 | 13.25 | 13.97 |
| Net Asset Value Per Share (₹) (Post-Bonus) | 17.65 | 3.29 | 1.63 | 1.57 |
IPO details
As per the DRHP filed with SEBI, 37 lakh shares will be offered as part of the fresh issue on the BSE SME segment. The face value of the shares is ₹ 10. The market maker would receive 188,000 shares of the offering. While Gretex Corporate Services Pvt Ltd will be the lead manager for the IPO, Bigshare Services Pvt 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 | ₹ 30 per share |
| Face Value | ₹ 10 per share |
| Market Lot | 4,000 shares |
| Issue Size | 3,700,000 shares (aggregating up to ₹ 11.10 crores) |
| Fresh Issue | 3,700,000 shares (aggregating up to ₹ 11.10 crores) |
| Retail Shares Offered | 50% of the net issue |
| Other Shares Offered | 50% of the net issue |
| Market Maker | Gretex Share Broking Pvt. Ltd. |
| Market maker portion | 188,000 shares |
| Listing At | BSE SME |
| Company Promoters | Mr Rakesh Dommati and Ms Rajitha Koyyada |
GMP: Retina Paints 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: Retina Paints IPO
The issue opens for subscription on April 19, 2023, and closes for subscription on April 24, 2023 (both days inclusive). The basis of allotment will be finalised on April 27th, 2023, and the refunds will be initiated on April 28, 2023. In addition, the demat credits are expected to happen on May 2, 2023, and the stock will list on May 3, 2023, on the BSE SME segment.
| Opening Date | April 19, 2023 |
| Closing Date | April 24, 2023 |
| Basis of Allotment | April 27, 2023 |
| Initiation of Refunds | April 28, 2023 |
| A credit of shares to Demat A/c | May 2, 2023 |
| Listing Date | May 3, 2023 |
Lot Size
The lot size of the Retina Paints IPO is 4,000 shares. A retail-individual investor can apply for up to 1 lot, i.e. 4,000 shares of ₹ 120,000.
| Applications | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Minimum) | 1 | 4,000 | ₹ 120,000 |
| Retail (Maximum) | 1 | 4,000 | ₹ 120,000 |
| HNI (Minimum) | 2 | 8,000 | ₹ 240,000 |
Promoters Holdings
| Pre-issue Shares Holdings | 80.70% |
| Post-issue Shares Holdings | 59.28% |
SWOT Analysis
| STRENGTHS | WEAKNESSES |
|---|---|
| 1. The company have an excellent market team. 2. Existing supplier relationships. 3. Providing high quality at local prices. | 1. company presence only in Telangana and Andhra Pradesh, 2. The company have only water-based products. |
| OPPORTUNITIES | THREATS |
| 1. Focus on an increase in the volume of sales. 2. Increase its geographical presence. 3. Expanding its product through oil-based products. 4. Sell products directly to customers. | 1. Competitions from organised and unorganised players. 2. Government policies. 3. New entrants in the market. 4. Changing Technology. |
Review [May apply]
Retina Paints Limited was established in 2010 and engaged in manufacturing decorative paints like distempers, primers, wall care products, emulsions, etc., and had a good distribution network in Telangana and Andhra Pradesh. Company Basket only has water-based products, and the company plans to expand its operation to include oil-based products. Strong relationships with existing suppliers act as a strength for the company.
If we analyze the financial performance of the company, it made a profit of only ₹ 11 lakhs during the last year, which is double as compared to the previous year. In the current year, the company has made a ₹ 40 lakh profit up to the 30th of November 2022, which is quite well. But the company’s excessive reliance on its own debt poses a risk.
For the last three fiscal years, Retina Paints Limited has reported an average EPS of ₹ 0.11 and an average RoNW of 5.03%.
The company is offering its IPO at a price of ₹ 30 per share, which is good. The company has strong operations in Telangana and Andhra Pradesh. If in the future the company expands its presence to different states of India and adds new products to its basket, as the company plans to add oil-based products to its offering, then the move will increase the future revenue and profit of the company. This will also help the company compete with its competitors.
Miscellaneous Information
| Download Prospectus (PDF) | IPO DRHP |
| Company Contact Information | Retina Paints Limited Block No 2, Floors 2 & 3, Survey No. 184 & 185, Opp Ganesh Kaman, Phase V, IDA, Cherlapally, Hyderabad – 500051, Rangareddi Phone: 7330641515 Email: [email protected] Website: http://www.retinapaints.com/ |
| IPO Registrar | Bigshare Services Pvt Ltd Phone: +91-22-6263 8200 Email: [email protected] Website: https://www.bigshareonline.com/ |
| IPO Lead Manager(s) | Gretex Corporate Services Pvt Ltd |
FAQ’s
What is Retina Paints IPO price?
The Retina Paints IPO price is ₹ 30 per share.
What will be the Retina Paints IPO lot size?
One lot of the Retina Paints IPO contains 4,000 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 Retina Paints IPO allotment be available?
The finalization of the basis of allotment for the Retina Paints IPO will be done on April 27, 2023, and the allotted shares will be credited to your demat account by May 2, 2023. Check the Retina Paints IPO allotment status.
When will Retina Paints IPO list on exchanges?
The Retina Paints IPO shares listing date is May 3, 2023.
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