The initial public offering (IPO) of Cool Caps Industries Limited (Cool Caps) received a solid response from the investors, despite the muted sentiments in the broader markets.
The issue was overall subscribed 7.5 times by the end of book building process on March 15, 2022. The allocation for HNI investors was subscribed 4.46 times whereas the retail portion fetched bids for 11.25 times.
The Rs 11.63 crore IPO of Cool Caps was open for subscription between March 10-15. Cool caps sold 30,60,000 equity shares with a single lot consisting of 3,000 equity shares.The company has fixed the price band between Rs 36-38 apiece. Company shares will list on emerge platform of national stock exchange of India ltd.
The net proceeds from the IPO will be utilized to meet working capital requirements and for general corporate purposes. The Lead Manager to the Issue is Holani Consultants Private Limited and The Registrar to the Issue is Link Intime India Private Limited.
Founded in 2015, Cool Caps is engaged in the business of manufacturing a wide range of plastic bottle caps and closures. It has a couple of units situated in Howrah in West Bengal and Kotdwar in Uttarakhand. The Kolkata headquartered company manufactures bottle caps and closures which include soda bottle caps, soft drink bottle caps, mineral water bottle caps, juice bottle caps and closures.
The company has established strong clients like Bisleri, Kingfisher, IRCTC, Patanjali, Clear, to supply plastic bottle caps.
The company is Promoted by Purv Flexipack Private Limited, Mr. Rajeev Goenka and Mr. Vanshay Goenka. They belong to the Goenka family of Sindharam Sawarmal, Dry Fruits, a well- known entity of Kolkata. The company is also into manufacturing N95 Face Masks from its unit situated in Howrah, West Bengal to help the community during the COVID-19 pandemic.
It is also involved in the manufacturing of shrink films through its subsidiary Purv Ecoplast Pvt Ltd. and trading of plastic granules to provide one-stop packaging solutions to its customers.
The consolidated Sales of the Company for the year ended on March 31, 2021 stood at Rs. 31.3 crore, with a net profit of Rs 2.91 crore.
For the last 3 financial years, financial year 2019-2021 company's Revenue has grown at a CAGR of 27.68 per cent while EBITDA and PAT have grown at a CAGR of 46.19 per cent and 45.99 per cent respectively.
Mr. Rajeev Goenka, Promoter, Chairman and Managing Director, Cool Caps said, "We were elated with the solid response in the IPO. This shows a lot of investors are willing to put their hard earned money in the company because they have faith in our growth. We will continue to do so and serve to the best of our potential. With our long-term relations with our clients and our capability we are in a very good position to capture the growth opportunity."
Mr. Ashok Holani director of holani consultants said, "We made our initial public offering (IPO) under the Indian market's difficult conditions. Whereas it was subscribed to by investors not only twice, but 7.5 times at the completion of the book building process on March 15, 2022. It was the outcome of the company's solid fundamentals, which were preserved throughout the process, and also that we are in a very strong position to capitalise on the growth opportunity due to our long-term relationships with our investors and our expertise."