Archit Nuwood Industries Limited is coming up with an IPO with a fresh issue of 62,40,000 shares worth INR 168.48 crores. The company aims to invest in its subsidiary, Archit Panels, and cover general corporate expenses.
Archit Nuwood Industries IPO – Important Dates
| Archit Nuwood Industries Limited IPO Date | August 30, 2024 to September 3, 2024 |
| Archit Nuwood Industries Limited IPO Listing Date | September 6, 2024 |
| Archit Nuwood Industries Limited IPO Price | INR 257-270 per share |
| Archit Nuwood Industries Limited IPO Lot Size | 400 Shares |
| Archit Nuwood Industries Limited IPO Total Issue Size | INR 168.48 crores |
| Archit Nuwood Industries Limited IPO Basis of Allotment | September 4, 2024 |
| Archit Nuwood Industries Limited IPO Initiation of Refunds | September 5, 2024 |
| Archit Nuwood Industries Limited IPO Credit of Shares to Demat | September 5, 2024 |
| Archit Nuwood Industries Limited IPO Issue Type | Book Built Issue IPO |
| Archit Nuwood Industries Limited IPO Listing At | BSE SME |
Archit Nuwood Industries Limited IPO – Company Profile
Archit Nuwood Industries Limited, incorporated initially as a private company in 2017, was converted to a public company in 2023. It produces a Medium-Density Fibreboard (MDF) at its Haryana unit, which has a capacity of 300 tonnes/day.
The company operates a state-of-the-art factory in Tohana, producing 3600 CBM of MDF and HDF boards daily. Their pre-laminated sheets come in various textures, offering solid, wood grain, fabric, and stone décor options.
The company emphasizes eco-friendly manufacturing processes. It specializes in interior and exterior-grade MDF and HDF boards. Its products are designed for durability and versatility, catering to various residential and commercial project applications.
Archit Nuwood Industries Ltd IPO Fundamental Analysis
Archit Nuwood Industries Limited’s financial analysis reveals a mixed performance. Revenue shows consistent growth, improved profitability, higher earnings per share, and increased return on net worth despite liquidity and current ratio challenges.
- Revenue Trend: The revenue increased from ₹13,425.48 lakhs in March 2022 to ₹15,232.79 lakhs in March 2023. The revenue for the current year’s 12-month period ending March 2024 is INR 18,396.09 lakhs.
- Equity and Liabilities: Equity has shown a consistent increase over the periods, reflecting potential growth and expansion. However, the debt-equity ratio has decreased, indicating reduced reliance on debt financing.
- Profitability: The profit after tax (PAT) has significantly increased from ₹443.36 lakhs in March 2022 to ₹3,692.53 lakhs by March 2024. This improvement in profitability could be a source of confidence among investors.
- Earnings per Share (EPS): The diluted EPS has risen from ₹2.55 in March 2022 to ₹22.57 by March 2024, reflecting higher earnings per share for investors.
- Return on Net Worth (RoNW): The RoNW has risen from 33.34% to 57.41%, indicating an increase in the company’s ability to generate returns on shareholder equity.
- Financial Position: Total assets have increased, suggesting potential business growth. However, the current ratio has decreased, indicating weakening liquidity and potential challenges in meeting short-term obligations.
- Inventory Turnover Ratio: There’s a significant increase in the Inventory Turnover Ratio, which might suggest stronger sales or efficient inventory management.
Archit Nuwood Industries IPO Financial Analysis
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 31 March 2024 |
| Revenue (₹ in lakhs) | 13,425.48 | 15,232.79 | 18,396.09 |
| Equity (₹ in lakhs) | 1,551.33 | 3,633.95 | 9,230.22 |
| Expenses (₹ in lakhs) | 12,941.10 | 12,520.38 | 13,575.05 |
| Profit and Loss After Tax (₹ in lakhs) | 443.36 | 2,127.90 | 3,692.53 |
| Diluted EPS only (₹) | 2.55 | 12.22 | 22.57 |
| Return on Net Worth (%) | 33.34 | 82.07 | 57.41 |
| NAV per Equity Share (₹) | 13.28 | 31.10 | 53.00 |
| Total Assets (in lakhs) | 8,139.8 | 11,972.78 | 16,649.44 |
| Total Liabilities (in lakhs) | 6,588.47 | 8,338.83 | 7,419.22 |
| Debt Equity Ratio | 0.95 | 0.16 | 0.37 |
| Current Ratio (in times) | 0.94 | 0.96 | 1.66 |
| Inventory Turnover Ratio | 10.48 | 3.24 | 1.65 |
Archit Nuwood Industries Limited IPO Peer Comparison
Archit Nuwood Industries Limited has a lower market capitalization and operating margins than Rushil Décor Limited and Century Plyboards (India) Limited, indicating room for growth. However, it competes in a challenging market.
| Company | Total Income (₹ in lakhs) | Face Value per Equity Share (₹) | P/E Ratio | EPS (Basic & Diluted) (₹) | RoNW (%) | Book Value (₹ in lakhs) |
| Archit Nuwood Industries Limited | 15,142.17 | 10 | – | 7.09 | 33.27 | 21.30 |
| Rushil Décor Limited | 83,977.00 | 10 | 16.37 | 17.96 | 23.9 | 168.46 |
| Century Plyboards (India) Limited | 3,66,578.00 | 1 | 38.53 | 16.27 | 22.8 | 86.16 |
Archit Nuwood Industries Ltd IPO Objective
The main objective of Archit Nuwood Industries Limited is to invest in its wholly-owned subsidiary company.
- To invest in its wholly owned subsidiary, Archit Panels Private Limited (“APPL”): The company intends to utilize INR 173.58 crores to establish a new MDF and HDF manufacturing unit on leased land, strengthening its subsidiary’s capabilities while securing significant tax benefits and cost savings.
- General Corporate Expenses: The company will deploy the balance of funds for general corporate purposes, including investing in its subsidiary for plant setup, construction, and working capital, with flexibility for future reallocation.
Archit Nuwood Industries IPO Risks And Challenges
Archit Nuwood Industries Limited’s risk includes potential impacts from ongoing legal proceedings, unregistered trademarks exposing the business to counterfeiting, and delays in obtaining a Factory License, which may affect profitability, reputation, and financial performance.
- Ongoing legal proceedings involving their company, Promoters, Directors, and Subsidiaries may impact their profitability and reputation. Adverse outcomes could significantly affect their financial condition and operational results.
- Unregistered trademarks expose the business to potential counterfeiting, reputation damage, and legal challenges, which could negatively impact business operations, financial performance, and the effectiveness of intellectual property protection efforts.
- Archit Panels Private Limited has not yet received approval for a factory license despite applying for one. Although no regulatory notices have been issued, potential future actions could adversely affect operations and financial performance.
Archit Nuwood Industries Ltd IPO – Industry & Market Potential
The global MDF market, valued at USD 39.76 billion in 2022, is projected to exceed USD 72.48 billion by 2031, growing at a CAGR of 6.9%. MDF is made from various fibers that are exposed to heat and pressure.
MDF is gaining market acceptance over plywood. Globally, the MDF market was 105.16 million CBM (USD 50.2 billion) in 2021 and is expected to grow at 9.6% CAGR. In India, it’s projected to grow from Rs. 3000 crores in 2021 to Rs. 6000 crores by 2026.
The Decorative High-Pressure Laminates market, valued at USD 11.5 billion in 2022, is projected to grow to USD 15.7 billion by 2032 at a CAGR of 3.53%, driven by their attractiveness and cost-effectiveness in construction.
Archit Nuwood Industries Limited IPO – Type of Offer
Archit Nuwood Industries Limited is coming up with an IPO with a fresh issue of 62,40,000 shares worth INR 168.48 crores. The company aims to invest in its subsidiary, Archit Panels, and cover general corporate expenses.
Archit Nuwood Industries IPO Offer Size
The offer size of Archit Nuwood Industries Limited is INR 168.48 crores, consisting of a fresh issue of 62,40,000 shares. The company seeks funds to invest in its subsidiary, Archit Panels, and cover general corporate expenses.
Archit Nuwood Industries Limited IPO Allotment Structure
Archit Nuwood Industries Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) according to SEBI regulations.
● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.
How to apply for Archit Nuwood Industries IPO?
To apply for the Archit Nuwood Industries Limited IPO through Alice Blue, follow these steps:
Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.
- Check for IPO Details: Once your account is active, you can check for the Archit Nuwood Industries Limited IPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for the Archit Nuwood Industries Limited IPO at Alice Blue in just a few clicks!
Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How do you check Archit Nuwood Industries IPO Allotment Status?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
- Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
- Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
- Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
- Select the Archit Nuwood Industries Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Archit Nuwood Industries Limited IPO.
- Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, we request you to reach out to our customer support team at Alice Blue for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Archit Nuwood Industries Limited IPO:
● Registrar’s Website: Visit the website of Maashitla Securities Private Limited, the registrar of the Archit Nuwood Industries Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
● BSE SME: You can also check the allotment status on the official websites of the Bombay Stock Exchange (BSE) Small Medium Exchange (SME). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.
Archit Nuwood Industries Ltd IPO Offer Registrar
The registrar for the Archit Nuwood Industries Limited IPO is Maashitla Securities Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
MAASHITLA SECURITIES PVT. LIMITED
451, Krishna Apra Business Square,
Netaji Subhash Place,
Pitampura, Delhi, 110034
Tel No: +91-11-45121795-96;
Email: [email protected]
Website: www.maashitla.com
Archit Nuwood Industries IPO – FAQs
1. What is the allotment date of the Archit Nuwood Industries IPO?
The allotment date of the Archit Nuwood Industries Limited IPO is September 4, 2024.
2. What is the price band of the Archit Nuwood Industries IPO?
The price band of the issue is INR 257-270 per share.
3. What is the size of the Archit Nuwood Industries IPO?
The offer size of Archit Nuwood Industries Limited is INR 168.48 crores, consisting of a fresh issue of 62,40,000 shares. The company seeks funds to invest in its subsidiary, Archit Panels, and cover general corporate expenses.
4. What is the listing date of the Archit Nuwood Industries IPO?
The listing date of Archit Nuwood Industries Limited’s IPO is September 6, 2024.
