Archidply Industries Limited manufacturers of comprehensive engineered interior products which include Plywood, Block Board, Plain and Pre Laminated Particle Board, Decorative Laminates and Decorative Veneers, today announced a price band of Rs 70 to Rs 80 for its forthcoming Initial Public offer (IPO) of 66,15,720 equity shares of Rs 10 each for cash at a premium. The issue will constitute 30.07% of the fully diluted post issue paid up equity share capital of the company. The face value of equity shares of Rs. 10 and the floor price is seven times of the face value at the lower end of the price band and eight times at the upper end of the price band . The company will raise Rs.52.9 crores at the upper end of the price band.

ICRA has assigned a ICRA IPO Grade “3/5” (pronounced “three on five”) to the proposed initial public offering of Archidply Industries Limited.

The capital raised from the issue will be deployed to set up a new manufacturing facility of Plain Particle Board (PPB ), Pre Laminated Board (PLB) and decorative plywood at Chintamani in Karnataka. The capital will also be deployed to set up a new manufacturing capacity for medium density fibreboard (MDF) at Rudrapur in Uttarakhand. Also the proceeds will be deployed towards margin money for working capital.

Financials:

The Company’s total income for the financial year ending 2008 is Rs.142.82 crores compared to the corresponding period for the financial year ending 2007 Rs 100.62 Crores. The Company has achieved the profit after the tax for the financial year ending 2008 of Rs.14.98 crore as compared to the corresponding period for the financial year ending 2007 Rs.5.24 crore. The Company’s operational income has grown at a CAGR of 49.6% for the year 2007-2008. The company’s PAT has increased at a CAGR of 157% for the year 2007-2008.

Promoter:

The promoters have been present in this industry for more than 30 years and is engaged in the business of range of comprehensive engineered interior products. The company produces range of Plywoods Black Board and Flush Doors, Particle Boards, Decorative Laminates and Decorative Veneers. Mr. Deen Dayal Daga is the CMD and promoter of Archidply Industries. He has been conferred with several accolades which include a) the “Udyogapatra Award” from the Vice President of India in 1982 acknowledging his achievement as a self made industrialist, b) the “Swatantra Swarna Jayanti Udyog Vibhushan Award” from the Union Minister of Commerce in 1999 for his contribution to the economic development of the country and c) the “Melvin Jones” fellowship award by Lions Club recognizing his efforts towards social causes. He was the president of Assam Plywood Manufacturers. Association during the year 1995-1996 and was a commitee member of Federation of Indian Plywood Panel Industry.

Sourced From: Hanmer & Partners Communications Pvt. Ltd

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