Shree Pushkar Chemicals & Fertilisers Ltd. Initial Public Offer Opens on 25th August, 2015

Shree Pushkar Chemicals & Fertilisers Limited, established in 1993 is an ISO 9001:2008 and 14001: 2004 company engaged in the business of manufacturing dye intermediates, acids, fertilizers and cattle feed supplements. Headquartered in Mumbai, it has a state of the art manufacturing facility at Lote Parshuram, Maharashtra, and is a Government of India recognized Export House. The Company has expanded its product range both by way of Backward and Forward Integration in dye intermediates

• Promoters of the Company : Mr. Punit Makharia, Mr. Gautam Makharia

• Issue Opens on : Tuesday, August 25th, 2015

• Issue Closes on : Thursday, August 27th, 2015

• Price Band : Rs. 61 to Rs. 65 per Equity Share                                                                                                                                      

The Company has emerged as one of the few manufacturers with ‘Zero Waste’ in India.

SPCFL is supported by IFCI Venture Capital Fund which infused growth capital to the extent of Rs. 15.00 crores between 2009-2011.

During 2012, the Company launched its own soil conditioner brand “Dharti Ratna” in Western Maharashtra which has been accepted well in the market.

For the fiscal 2013, 2014 & 2015 the total revenues of the Company stood at are Rs 1765.69 million, Rs 2103.67 million, Rs 2668.14 million with a Profit After Tax (PAT) of Rs. 72.45 million, Rs. 104.35 million and Rs. 186.50 million for the same period.

SPCFL now plans to enter the capital market with initial public offer of its equity shares of face value Rs 10 each for cash aggregating up to Rs. 700 million. Of the total shares offered 2,026,589 shares are on Offer for Sale (OFS).

The Issue opens on Tuesday, August 25, 2015 and closes on Thursday, August 27, 2015 and the Price Band is fixed at Rs. 61/- to Rs. 65/- per equity share.

The price band translates into a Price Earning Multiple (P/E) of 6.77 times at lower end & 7.21 times at upper end of the price band respectively based on Earning Per Share (EPS) for financial year ended March 31, 2015.

The funds raised through fresh issue of equity shares is proposed to be utilized to enhance its existing capacities of H-acid (enhanced capacity : 750 TPA) & Vinyl Sulphone (enhanced capacity : 1000 TPA) and to enter into forward integration by manufacturing reactive dyes (enhanced capacity : 3,000 TPA).

The Issue is being made through the Book Building Process wherein not more than 50% of the Issue shall be Allotted on a proportionate basis to Qualified Institutional Buyers (“QIBs”), 5% of the QIB Portion shall be available for allocation on a proportionate basis to Mutual Funds only, and the remainder of the QIB Portion shall be available for allocation on a proportionate basis to all QIB Bidders, including Mutual Funds, subject to valid Bids being received at or above the Issue Price.

Further, not less than 15% of the Issue shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 35% of the Issue shall be available for allocation to Retail Individual Bidders in accordance with SEBI ICDR Regulations, subject to valid Bids being received at or above the Issue Price.

The equity shares are proposed to be listed on the BSE Limited (“BSE”) and the National Stock Exchange of India Limited (“NSE”).

Keynote Corporate Services Limited is the Book Running Lead Manager to the Issue, and Bigshare Services Private Limited is the Registrar to the issue.

About Shree Pushkar Chemicals & Fertilizers Ltd.:

Started in 1993 as a trading business, Shree Pushkar Chemicals & Fertilizers Limited (Shree Pushkar), today has emerged to become an ISO 9001: 2008 certified company. It has emerged as one of the few manufacturers with widest range of dye intermediates in India with zero waste. It has state of art integrated manufacturing facilities located at Lote Parshuram, Maharashtra. Over the years, the integration (backward and forward) has helped the Company to diversify into wide range of products in such a way that many of the intermediate products are used to manufacture other value added products leading to efficiencies in the cost of production and low dependence on raw materials from external sources. As on the date, the Company has a total workforce of 529 including 10 senior executives, 26 managerial and supervisory staff, 66 office staff, 125 skilled and unskilled workers, 54 contract laborers and 248 casual laborers. Visit: www.shreepushkar.com

Disclaimer:

Shree Pushkar Chemicals & Fertilisers Limited is proposing, subject to receipt of requisite approvals, market conditions and other considerations, to make an initial public offer of its equity shares and has filed a red herring prospectus dated August 10, 2015(“RHP”) with the Registrar of Companies, Maharashtra, Mumbai. The RHP is available on the website of the SEBI at www.sebi.gov.in as well as on the websites of the Book Running Lead Manager at www.keynoteindia.net. Investors should note that investment in equity shares involves a high degree of risk and for details relating to the same, see the section titled “Risk Factors” on page 13 of the RHP.

Copies of this announcement are not being made and may not be distributed or sent into the United States, Canada, Australia or Japan. This announcement is not an offer for sale of securities in the United States. The securities referred to herein may not be sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended. The Company does not intend to register any portion of the offering of the securities in the United States or to conduct a public offering of the securities in the United States