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    Nurani Dyeing and Sweater LTD

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    SM Azahar
    Nurani Dyeing and Sweater Ltd. produces sweaters and dyed yarn. It has authorized capital of Taka 1,000 million and paid up capital of Taka 830 million. It plans to use proceeds from its IPO of Taka 430 million to acquire new machinery, expand property and equipment, repay loans, and construct steel structures. Key risks include credit, liquidity, interest rate, and exchange rate risks, but management believes various strategies can mitigate these risks. Historical financial data show growth in assets, sales, and profits in recent years.

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    Nurani Dyeing and Sweater LTD

    Uploaded by

    SM Azahar
    76 views22 pages
    Nurani Dyeing and Sweater Ltd. produces sweaters and dyed yarn. It has authorized capital of Taka 1,000 million and paid up capital of Taka 830 million. It plans to use proceeds from its IPO of Taka 430 million to acquire new machinery, expand property and equipment, repay loans, and construct steel structures. Key risks include credit, liquidity, interest rate, and exchange rate risks, but management believes various strategies can mitigate these risks. Historical financial data show growth in assets, sales, and profits in recent years.

    Original Description:

    Investment Banking IPO of a new company

    Original Title

    IB

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    Nurani Dyeing and Sweater Ltd. produces sweaters and dyed yarn. It has authorized capital of Taka 1,000 million and paid up capital of Taka 830 million. It plans to use proceeds from its IPO of Taka 430 million to acquire new machinery, expand property and equipment, repay loans, and construct steel structures. Key risks include credit, liquidity, interest rate, and exchange rate risks, but management believes various strategies can mitigate these risks. Historical financial data show growth in assets, sales, and profits in recent years.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    76 views22 pages

    Nurani Dyeing and Sweater LTD

    Uploaded by

    SM Azahar
    Nurani Dyeing and Sweater Ltd. produces sweaters and dyed yarn. It has authorized capital of Taka 1,000 million and paid up capital of Taka 830 million. It plans to use proceeds from its IPO of Taka 430 million to acquire new machinery, expand property and equipment, repay loans, and construct steel structures. Key risks include credit, liquidity, interest rate, and exchange rate risks, but management believes various strategies can mitigate these risks. Historical financial data show growth in assets, sales, and profits in recent years.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 22

    Nurani Dyeing and Sweater Ltd.

    Company Profile

     Nurani Dyeing and Sweater Ltd.


     Incorporated on 14th December, 2005
     Nature of Business
     Capital Structure, Debt to Equity .28
    Company Profile

    Two major products:


    1. Sweaters knitted from knitting section
    2. Dyed Yarn from dyeing section

    Lead Banker of IPO: Eastern Bank Ltd.


    Underwriter: AFC Capital Ltd. and EBL
    Investments Ltd.
    About the Issue

    Capital
    Authorized Capital 100,000,000 Ordinary 1,000,000,000
    Share of Tk.10.00 each
    Issued, Subscribed and Paid up Capital 400,000,000
    Before IPO, 40,000,000 Ordinary Shares of
    Taka 10.00 each

    Initial Public Offering through Fixed Price 430,000,000


    Method 43,000,000 Ordinary Shares of
    Taka 10.00 each
    Post IPO Paid up Capital 830,000,000
    About the Issue

    Securities to be entitled for each category of applicants

    Mutual Fund 10% 4,300,000


    Other Eligible 40% 17,200,000
    Investor
    NRBS 10% 4,300,000
    General Public 40% 17,200,000
    Total 100% 43,000,000
    Holding structure of different classes of
    securities before and after the issue
    Use of Proceeds from IPO
    Area of use Description Portion of IPO
    Proceeds

    Acquisition of brand new For increasing capacity for the coming 20.14%
    machinery three years

    Property Plant & Equipment Utilization of capacity 70-80% 56.58%


    addition

    Long term loan repayment BDT 46560000 loan and current portion 11.64%
    of 2017 will be paid in 2018 using the
    proceeds.

    Steel Structure and Civil BDT 116400000 11.64%


    Construction
    Lock-In status of the shareholders of NDSL:

    Sl. Name of Position No. of (%) BO ID Date of Lock-


    Shareholder Share 1st in
    acquisitio period
    n *
    1 Sk. NurulAlam MD & 8,540,000 21.35 120312006105 13-Dec-05 3 Yrs.
    Director % 5149
    2 Mrs. RehanaAlam Chairma 7,500,000 18.75 1203120061051 13-Dec-05 3 Yrs.
    n % 413
    3 Sk. Nur Mohammed Director 2,310,000 5.78 1203120061057 13-Dec-05 3 Yrs.
    Azger % 014
    4 Daudpur Rice Mills Director 13,000,00 32.50 1203120061073 31-Mar-08 3 Yrs.
    (Pvt) Ltd 0 % 583
    Daudpur Soya Sharehol 950,000 1203120061073 14-Dec-08 3 Yrs.
    5 Processing Ind. Ltd. der 2.6% 714
    90,000 7-May-15 1 Yr.
    Sharehol 5,000 0.24 1203120061074 14-Dec-08 3 Yrs.
    Markets for the Securities Being Offered

     Stock Exchanges:

     Declaration about listing of shares


     Trading and settlement
    Description of Securities outstanding or being offered

     Dividend, voting and Preemption rights


     Conversion and liquidation rights
     Dividend Policy:
    -- Dividend will be provided as per contribution to the Paid-up capital
    --No dividend will be payable except out of profits
    --Management may pay the members interim dividend as in their judgment
    --There is no limitation on the payment of dividend
    SWOT Analysis

    Strength Weakness

    1.Strong Management: 1. Lack of skilled workers:

    2. Product line variety:

    3. Modern Machineries:
    4. Strong distribution
    channels:
    Opportunities Threats

    1. Government policy 1. Intense Competition:


    favoring the industry: 2. International Market
    Demand:
    2. Easy Bank Loan:
    4. Lack of Power Supply:
    3. Cheap Labor:
    5. Exchange Rate Fluctuation
    4. Tax incentives:
    Last 5 years Data
    Projected Statement of Financial Position:
    Property, Plant & Equipment 642,041,463 737,575,533 785,167,979 763,283,181
    Capital Work in Progress 30,138,216 20,045,000 50,045,000 -

    Inventory 448,952,933 464,302,860 568,164,320 591,947,819


    Account Receivable 391,968,937 425,840,705 513,195,130 562,066,698
    Advance 206,021,664 213,953,135 242,141,495 276,041,304
    Investments 1,871,349 7,768,154 8,544,969 10,253,963
    Cash $ Cash Equivalents 762,812 166,775,830 15,382,725 13,680,567
    Total Assets 1,721,757,374 2,036,261,217 2,182,641,618 2,217,273,532
    Equity and Reserve 400,000,000 830,000,000 830,000,000 830,000,000
    Share Capital 174,885,457 270,459,725 410,188,307 564,598,553
    Retained Earnings 419,752,924 149,450,110 109,394,160 81,917,360
    Non-current liabilities 419,752,924 149,450,110 109,394,160 81,917,360
    Term loan

    Current Liabilities
    152,302,814 55,093,251 40,055,950 27,476,800
    Current portion of term loan
    176,303,493 216,724,237 248,598,029 211,028,062
    A/C Payable
    Short term loan 378,518,331 483,464,241 500,738,208 454,074,430
    Liabilities for expenses 8,955,582 10,746,699 13,970,709 15,367,779
    Provision for income tax 11,038,773 20,322,954 29,696,255 32,810,548
    Total Equity and Liabilities 1,721,757,374 2,036,261,217 2,182,641,618 2,217,273,532
    Production Capacity and its Current Utilization

    Capacity Utilization
    Axis Title

    Dyeing Sweater
    2015 69.41% 68.10%
    2016 72.67% 64.72%
    Liquidity Ratios

    1.8
    1.6
    1.4
    1.2 2012
    1 2013
    0.8 2014
    0.6 2015
    0.4
    2016
    0.2
    0
    Current ratio Quick ratio Interest
    coverage ratio
    Operating Efficiency

    4
    3.44
    3.5
    3 2.57
    2.5 2.38 2.36
    2.14
    2 1.78 1.66 1.81
    1.5 1.45
    1.1 0.81
    0.73 0.68
    1 0.67
    0.54
    0.5
    0
    A/R Turnover Ratio Inventory Turnover Asset Turnover Ratio
    Ratio
    2012 2013 2014 2015 2016
    Profitability Ratios

    2012 2013 2014 2015 2016

    34.97%

    22.08%
    18.26%
    12.42%
    5.43% 5.47%
    1.52% 3.05%
    2.79% 4.58% 3.69% 4.44%
    0.62%

    -0.86% NPM ROE ROA


    -7.48%
    Earnings per share

    5.82

    4.63

    1.98 1.86

    -0.66

    2012 2013 2014 2015 2016


    Valuation

    Valuation Methods Value Per Share

    Net Asset Value (NAV) TK. 14.37

    Historical Earnings
    TK. 13.21
    Based

    Average Market Price of TK. 31.36


    Peer Companies
    Risks & Management
    Perceptions

    Internal Risk Factors Management Perception

    Credit Risk  No credit risk


     100% export oriented
    business
     Efficient working
    Liquidity Risk
    capital management
    Risks & Management
    Perceptions

    External Risk Factors Management Perception

    Interest Rate Risk  Repayment of Debt


    with IPO proceeds
     Automatic settlement
    Exchange Rate Risk of currency fluctuation
     Hedging strategy

    Industry & Economic  Prompt respond to


    Risks customers’ choices
    and tastes
    Thank You

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