Sahaj Fashions IPO

Sahaj Fashions IPO

Is coming up with an IPO worth INR 13.96 crores. The offer consists of both fresh issue and offer for sale. The company is issuing 44,76,000 fresh equity shares worth INR 13.42 crores. The existing shareholders are selling 1,76,000 shares worth INR 0.52 crores. 

Sahaj Fashions IPO  – Important Details

Sahaj Fashions Limited IPO Date 25th August to 29th August 2023
Sahaj Fashions LimitedIPO Listing Date 6th September 2023
Sahaj Fashions LimitedIPO Price INR 30 per share
Sahaj Fashions LimitedIPO Lot Size 4000 Shares
Sahaj Fashions Limited IPO Total Issue Size INR 298-308 crores
Sahaj Fashions Limited IPO Basis of Allotment 1st September 2023
Sahaj Fashions Limited IPO Initiation of Refunds 4th September 2023
Sahaj Fashions Limited IPO Credit of Shares to Demat 5th September 2023
Sahaj Fashions LimitedIPO Issue Type Fixed Price IPO
Sahaj Fashions Limited IPO Listing At NSE SME

Sahaj Fashions IPO – Company Profile

Incorporated in 2011, the company is into manufacturing of high standard fabrics which is used for various purposes such as garments, home furnishings, industrial applications, etc. The company has expertise in manufacturing primarily cotton suiting fabric and cotton shirting fabric apart from polyester-based and cotton-polyester blended fabrics. 

The company has two manufacturing units in Kishangarh, Rajasthan. One unit is predominantly used for weaving, and the other unit is used for sizing garments. 

Sahaj Fashions Limited IPO Fundamental Analysis

Revenue Growth:

Revenue has been growing steadily, from ₹7,470.44 lakhs to ₹9,097.58 lakhs.

Profitability:

Profit After Tax (PAT) saw a significant jump by February 2023 to ₹288.71 lakhs from ₹42.64 lakhs in March 2022, which is a positive sign.

Return on Net Worth (RoNW):

The RoNW has shown a slight improvement from 2.29% to 2.97%, but the data for February 2023 is missing, which requires further investigation.

Earnings Per Share (EPS):

The diluted EPS has significantly increased to ₹3.90 by February 2023, indicating better earnings per share.

Net Asset Value (NAV) per Equity Share:

The NAV per equity share has increased steadily, indicating a growth in the company’s intrinsic value.

Asset and Liability Management:

Total assets have been growing steadily, while liabilities have remained relatively stable, which is a good sign.

Summary:

The financials of Sahaj Fashions Limited depict a positive growth trajectory and a significant improvement in profitability by February 2023. However, the relatively low RoNW and the missing data for RoNW in February 2023 could be areas of concern. Investing in an IPO involves risks and should be based on a comprehensive analysis of the company’s financials, the industry it operates in, and the broader economic environment. It’s advisable to consult with a financial advisor to understand the risks and rewards better before making an investment decision in the IPO.

Sahaj Fashions Limited IPO Financial Information

Particular As at 31 March 2021 As at 31 March 2022 As at 28 February 2023
Revenue (₹ in lakhs) 7,470.44 8,695.75 9,097.58
Equity (₹ in lakhs) 1,393.54 1,435.78 1724.07
Expenses (₹ in lakhs) 6,917.46 8,143.49 8,289.62
Profit and Loss After Tax (₹ in lakhs) 31.90 42.64 288.71
RoNW (%) 2.29% 2.97% NA
Diluted EPS only (₹) 0.43 0.58 3.90
NAV per Equity Share (₹) 18.80 19.37 23.26
Total Assets (in lakhs) 6,711.73 6,998.59 7,179.34
Total Liabilities (in lakhs) 5,318.19 5,562.81 5,455.27

Sahaj Fashions IPO Peer Comparison

Sahaj Fashions has the lowest total income among peers, yet a competitive P/E ratio of 7.69. Its RoNW at 16.75% is higher than others, indicating efficient equity use. However, its EPS and NAV per share are lower, suggesting lesser earnings and asset value per share.

Company Total Income (₹ in lakhs) Face Value per Equity Share (₹) P/E EPS (Basic) (₹) EPS (Diluted) (₹) RoNW (%) NAV per Equity Share (Basic) (₹)
Sahaj Fashions Limited 9,101.07 10 7.69 3.90 3.90 16.75% 23.26
Arvind Limited 8,42,700.00 10 9.26 15.51 15.49 12.35% 127.94
RSWM Limited 3,88,034.00 10 5.95 31.52 31.52 9.33% 279.61
Vardhman Textiles Limited 10,32,944.00 2 12.34 27.96 27.95 9.40% 299.22

Sahaj Fashions Limited IPO Objective

Sahaj Fashions Limited aims to allocate INR 6.68 crores from its IPO towards meeting working capital needs due to its capital-intensive business and INR 4.20 crores for repaying existing borrowings from various financial entities.

  • Meeting the working capital requirement: The company’s business is capital intensive. Apart from internal accruals, the company plans to utilize INR 6.68 crores towards meeting the working capital needs of the company. 
  • Repayment of borrowings: The company has entered into various borrowing arrangements with banks and financial institutions, including borrowings in the form of term loans and fund-based and non-fund-based working capital facilities. The company intends to utilize INR 4.20 crores towards repayment of their borrowings. 

Sahaj Fashions Limited IPO Risks And Challenges

Sahaj Fashions faces risks from increased production costs due to fluctuating yarn prices affecting margins and dependency risk as 56% of revenue comes from its top 10 customers, making it vulnerable to demand shifts and competition.

  • Increased cost of production: The company uses yarn of different qualities for manufacturing products, including cotton shirting, cotton suiting, fancy fabric, yarn-dyed fabrics, and blended fabric polyester. The price of the products fluctuates, and this affects their margin ratios. 
  • Dependency Risk: As of 28 February 2023, almost 56% of the revenue was generated from the top 10 customers of the company. Any decline in the quality standards, growing competition, and any change in the demand for the products by these customers may adversely affect our ability to retain them.

Sahaj Fashions IPO –  Industry & Market Potential

Global Textiles and Apparel trade witnessed a sharp recovery in 2021 to US$ 867 billion, registering a growth of ~12% on a pandemic-induced low base of US$ 775 billion in 2020. The overall textiles trade is expected to reach US$ 1 trillion by 2025, and apparel, with a major share, alone is expected to reach US$ 600 billion by 2025 with a CAGR growth of 4% & 5%, respectively, on a 2021 base year.

The size of India’s textile market stood at US$ 223 billion in 2021, growing at a CAGR of 10.23% from 2016. The Indian textiles market will be worth over US$ 209 billion by 2029. India is the world’s second-largest producer of textiles and garments. It is also the sixth-largest textile exporter of apparel, home, and technical products. Total textile exports are expected to reach US$ 65 billion by FY26.

Sahaj Fashions Limited IPO – Type of Offer

Sahaj Fashions’ IPO, totaling INR 13.96 crores, comprises a fresh issue of 44,76,000 shares worth INR 13.42 crores for working capital and debt repayment, and an Offer For Sale (OFS) of 1,76,000 shares worth INR 0.52 crores by existing shareholders.

  • Fresh Issue: The company will issue 44,76,000 fresh equity shares worth INR 13.42 crores. The funds raised will be used to meet the working capital requirement and to repay the borrowings of the company. 
  • Offer For Sale (OFS): The existing shareholders are selling 1,76,000 shares worth INR 0.52 crores. 

The total issue size of Sahaj Fashions Limited is INR 13.96 crores. 

Sahaj Fashions IPO Offer Size

Sahaj Fashions Limited is coming up with an IPO worth INR 13.96 crores. The offer consists of both fresh issue and offer for sale. The company is issuing 44,76,000 fresh equity shares worth INR 13.42 crores. The existing shareholders are selling 1,76,000 shares worth INR 0.52 crores.

Sahaj Fashions Limited IPO Allotment Structure

Sahaj Fashions’ Fixed Price IPO has a 50-50 allotment structure for Retail Individual Investors (RIIs) and other investors, with application sizes of 4000 shares. A firm allotment of 2,36,000 shares is reserved for the market maker.

Retail Individual Investors (RII): 50% of the shares will be allotted to retail investors. Minimum and Maximum application size for RIIs is 4000 equity shares. These individual investors apply for shares with a total value of less than Rs. 2 lakhs.

Other than Retail Individual Investors: 50% of the shares will be allotted to other than retail investors. Such number of Equity Shares in multiples of 4,000 Equity Shares not exceeding the size of the Offer, subject to limits as applicable to the Applicant.

Market Maker Reservation: Application size shall be 2,36,000 equity shares since there is firm allotment.

How to apply for a Sahaj FashionsIPO through Alice Blue?

To apply for the Sahaj Fashions IPO through Alice Blue, you would typically follow these steps:

Open a Demat and Trading Account: If you don’t have one already, you would need to open a Demat and trading account with Alice Blue.

  1. Check for IPO Details: Once your account is active, you can check for the Sahaj FashionsIPO details in the IPO section of the Alice Blue platform.
  2. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
  3. Submit the Application: Confirm all your details and submit your application.

 You can apply for the Vishnu Prakash IPO at Alice Blue in just a few clicks!

 Check Allotment Status: Post 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 to Check Sahaj FashionsIPO Allotment Status on Alice Blue?

 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 their trading app.

  1. 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.
  2. 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.
  3. Select the Sahaj FashionsIPO