About the Company:
Galaxy Surfactants is one of India’s leading manufacturers of surfactants and other speciality ingredients for the personal care and home care industries.
Company’s products find application in a host of consumer-centric personal care and home care products, including, inter alia, skin care, oral care, hair care, cosmetics, toiletries and detergent products.
Since Company’s incorporation in 1986,they have significantly expanded and diversified their product profile, client base and geographical footprint.
Company’s customers include some of the leading multinational, regional and local players in the home and personal care industries.
Currently,Company’s product portfolio comprises over 200 product grades, which are marketed to more than 1,700 customers in over 70 countries.
Company had commenced their operations as a local supplier to FMCG companies in India and since then have significantly expanded and diversified their scale and scope of operations over the years so as to become a global supplier to FMCG companies across major geographies, such as Africa Middle East Turkey (AMET), Asia Pacific (APAC), Americas (North and South) and Europe.
Company’s Step-down Subsidiaries, coupled with our manufacturing facilities in Suez, Egypt, and New Hampshire, USA, enable them to service the international demand for their products.
Company has also set-up sales offices in India, Egypt and USA, and representative offices in Netherlands and Turkey so as to enable them to market the products as well as understand customer needs in these regions, and consequently, develop products to service such requirements.
At present, Company has 7 (seven) strategically-located manufacturing facilities, out of which 5 (five) are located in India and 2 (two) are located overseas.
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Company’s diversified customer base currently comprises multinational, regional and local FMCG companies including:
- Cavinkare Private Limited
- Colgate-Palmolive (India) Limited
- Dabur India Limited,
- Henkel Ltd
- Himalaya Ltd
- L’ORÉAL Ltd
- Procter & Gamble Home Products Private Limited
- Reckitt Benckiser Ltd
- Unilever Ltd
Geographical Breakdown of Total Product Sales (by volume):
Company’s products are organized into the following product groups:
Performance Surfactants:
- Company’s portfolio of performance surfactants comprises over 45 product grades, and includes anionic surfactants and non-ionic surfactants.
Speciality Care Products:
- Company’s Speciality Care Products group comprises over 155 product grades, and includes amphoteric surfactants, cationic surfactants, UV filters, preservatives, preservative blends and surfactant blends, speciality ingredients such as mild surfactants, syndet and transparent bathing bars and proteins, fatty alkanolamides and fatty acid esters, and other care products.
Management Team:
- Mr. Shekhar Ravindranath Warriar (Designation: Chairman and Non-Executive Independent Director)
- Mr. Unnathan Shekhar (Designation: Managing Director)
- Mr. Kasargod Ganesh Kamath (Designation: Executive Director (Finance) and Chief Financial Officer)
Special Thanks: We would like to thank the Management Team of Galaxy Surfactants Ltd for inviting Markets Guruji Team to the Listing ceremony.
Promoters Average Acquisition Cost:
| Name of the Promoter | No. of Shares held | Average Acquisition Cost (in Rs.) |
|---|---|---|
| Mr.Unnathan Shekhar | 4,226,740 | 6.39 |
| Mr.Gopalkrishnan Ramakrishnan | 2,362,758 | 5.37 |
| Mr.Sudhir Dattaram Patil | 4,145,290 | 4.41 |
| Mr. Shashikant Shanbhag | 4,097,684 | 4.13 |
Peer Group Comparison:
- There are no listed entities whose business portfolio is comparable with that of Galaxy Surfactants and comparable to company’s scale of operations. Hence we cannot make any comparison.
Objectives of Issue:
Offer For Sale (OFS): (Around Rs.937 crores)
Company will not receive any proceeds from the Offer for Sale by the Selling Shareholders.
Positives for the Company:
Established Global Supplier to Major FMCG Brands with Demonstrated Track Record:
- Over the years,Company has evolved from being a local supplier to FMCG companies in India to being a global supplier to FMCG companies across major geographies, such as India, AMET, Asia Pacific (APAC), Americas (North and South) and Europe.
- In Fiscal 2017, 52% of the total revenues from operations were derived from multinational customers.This reflects on company’s ability to cater to the continual procurement needs of the multinational FMCG customers across diverse geographies.
Robust Product Portfolio Addressing Diverse Customer Needs:
- Company’s diverse product portfolio currently comprises over 200 product grades.The diversity in the product portfolio enables them to provide customized solutions to multinational FMCGs that market a host of products across diverse geographies.
Global Footprint:
- Currently, they market their products to more than 1,700 customers in over 70 countries and have set-up sales offices in India, Egypt and USA, and representative offices in Netherlands and Turkey.
- We believe that company’s diversified footprint, in both mature and emerging geographies, enables them to observe, analyse and adapt to evolving consumer preferences.
Strong Presence in High Growth Markets of India and AMET Region:
- Between Fiscals 2014 and 2017, the total revenues of Galaxy Chemicals (Egypt) S.A.E. have grown at a CAGR of 22.31%, which reflects the growth in company’s market presence in the AMET region.
- Further, as the facility is located in the Free Zone Area, it benefits from a concessional tax regime, and is exempt from all direct and indirect taxes and this benefit will enable them to leverage the expected growth in the AMET region in the years to come.
Financials of the Company:
| (in Crores) | FY 13 | FY 14 | FY 15 | FY 16 | FY 17 | 30th Sept 17 |
|---|---|---|---|---|---|---|
| Revenue | 1582.26 | 1701.57 | 1876.02 | 1808.75 | 2171.7 | 1197.27 |
| Net Profit | 0.27 | 75.9 | 67.4 | 102.72 | 146.3 | 75.16 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 29th January 2018 |
| Issue Closes on:. | 31st January 2018 |
| Issue Price | Rs.1470 – 1480 |
| Face Value | Rs.10 |
| Minimum Lot | 10 |
| Minimum Investment | Rs.14,800 |
| Retail Allocation | 35% |
| Issue Constitutes | 17.85% |
| Issue Size | Rs.937.08 cr ($147.09 million) |
| Market Cap | Rs.5247.30 cr ($823.7 million) |
| Listing at | NSE & BSE |
| Total Equity Shares Offered (OFS) | 63,31,674 |
| Equity Shares Prior to the Issue | 3,54,54,752 |
| Equity Shares after the Issue | 3,54,54,752 |
Important Dates:
| Finalization of Basis of Allotment | on or Before 5th February 2018 |
| Initiation of Refunds | on or Before 6th February 2018 |
| Credit of Equity Shares: | on or Before 7th February 2018 |
| Listing Date: | on or Before 8th February 2018 |
Subscription Details:
| (Subscription-Category-Wise (no. of times) Till time : 06:00 PM) | Shares Offered | Day-1 | Day-2 | Day-3 |
|---|---|---|---|---|
| QIB | 12,66,336 | 2.72 | 10.96 | 54.24 |
| NII | 9,49,752 | 0.008 | 0.184 | 6.97 |
| Retail | 22,16,086 | 0.45 | 1.96 | 5.97 |
| Employee | ———— | —– | —– | —- |
| TOTAL | 44,32,174 | 1.01 | 4.13 | 19.99 |
Anchor Investor Participation Update:
- Galaxy Surfactants Ltd raised Rs.281.13 crore by selling shares to Anchor Investors.
- Shares were allocated to 33 anchor investors at Rs.1480 per share.
- Prominent names that participated in the anchor book allocation include HDFC Equity Savings Fund, ICICI Prudential Equity Fund,Abu Dhabi Investment Authority, HSBC Global Investment Fund, SBI Equity Opportunity Fund, SBI Small and Midcap Fund, DSP Black Rock and kotak Funds.
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 41.27 | 35.86 | 28.68 | 161.51 |
Markets Guruji Opinion:
| IPO View | Apply For: | Expected listing Gain: |
|---|---|---|
| Subscribe | Long Term | 40% |
Grey Market Premium :
| Date | IPO | Price Band | Grey Market premium | Kostak Rates |
|---|---|---|---|---|
| 07/02/18 | Galaxy Surfactants Ltd | Rs.1470 – 1480 | 77 – 81 | 1100 – 1250 |
| Check IPO Allotment Status: |
|---|
Link InTime Website (Click on the below Link)https://linkintime.co.in/PublicIssue/ |
| Company Contact Info: |
|---|
| Galaxy Surfactants Limited C-49/2, TTC Industrial Area Pawne, Navi Mumbai – 400 703 Maharashtra, India Tel: +91 22 2761 6666 Fax: +91 22 2768 6523 Email: investorservices@galaxysurfactants.com Website: www.galaxysurfactants.com |
| IPO Registrar Info: |
|---|
| Link Intime India Private Limited C-101, 247 Park, Lal Bahadur Shastri Marg, Vikhroli West, Mumbai 400 083 Maharashtra, India Tel: +91 (22) 4918 6200 Fax: +91 (22) 4918 6195 E-mail: galaxy.ipo@linkintime.co.in Grievance E-mail: galaxy.ipo@linkintime.co.in Website: www.linkintime.co.in |
