Nandani Creation Limited Creation Limited Nandani IPO ON NSE EMERGE EXCHANGE LEAD MANAGERS REGISTRAR TO THE ISSUE Capital Advisors (P) Ltd India Overseas Bank Bigshare Services Pvt. Ltd.
Our Business Overview Overview: Our Company Nandani Creation Limited, incorporated in jaipur, in the year 2012, is engaged in manufacturing and marketing of women apparels like kurtis, sarees, ethnic tops, plazzo, patiala salwar suits, dupattas, quilted jackets, dress material, etc. We are popularly known and identified in apparel market by our brand name Jaipurkurti.com. Our brand is known for its ethnic wear, kurtis with traditional designs having wide range of colour, patterns and sizes. We distribute our products by following e-retail model and have developed a sustainable business model over a short span of time. Salient Features of the company: The Company is flexible in adopting changes per the market trends. The Company has its own design studio comprising of creative and energetic youth who maintains a niche in designing ethnic apparel. Trend Setter in ethnic wear Some of our acclaimed product includes Traditional Women Apparels suitable for all types: Stylish Kurtis, Kurtas and Kurta-Palazzo set fulfilling Modern India Demand. The evergreen Traditional Patiala Salwar Dupatta set as well as Patiala Dupatta Suit set. Western Quilted Jackets for match up with any Western Dress The availability of Draft Prospectus: Copies of the Draft Prospectus may be obtained from the Registered Office of our Company, Lead Managers to the Issue, Registrar to the Issue. The draft prospectus forms may also be downloaded from the website of NSE Limited i.e.www.nseindia.com.
Our Promoters-Pillars of Strength Mr. Anuj Mundra: Promoter & Director of our Company since incorporation. First generation entrepreneur and has experience in this industry for more than a decade. His rich experience and dedication has contributed immensely in the development of our Company. He is the key person in formulating and implementation of business strategy for growth & expansion and looks after overall business operations. Ms. Vandana Mundra: Promoter & Director of our Company having experience of about 4 (four) years in apparel industry. Constantly works towards the designing the products of our Company. Handles our designing department and keeps the team updated with the latest on-going trends. An IPO lead managed by Pantomath Capital Advisors (P) Limited
OUR COMPETITIVE STRENGTHS Focus on attaining highest level of customer satisfaction. Ability to address and exceed customer satisfaction. Changing consumer preferences and redesigning products by exploring new designs, styles, etc. Our qualitative and customer demand satisfying products helps us to achieve brand recall among our consumers which strengthens our brand equity. Recognized Brand Name and positive in-process of developing brand reputation- Desi Fusion Customer Centric Business Model Brand Equity Correlation with Desi Fusion India Pvt Ltd E-retailing and online distribution network Integrated business process for few products. Reduce Production cost due to adjoining premises. Reduce dependence on third party suppliers. Wider reach to consumers with reduced overheads such as lower logistics costs, elimination of dealer margins, increased brand recognition Strong and sustainable long-term relationship with our channel partners. Our Select Clientele
Financial Performance BALANCE SHEET (` In Lakhs) Particulars For the year ended March 31, 2016 2015 2014 2013 EQUITY AND LIABILITIES Shareholders Funds a. Share Capital 9.00 9.00 9.00 1.00 b. Reserves & Surplus 50.00 4.63 1.30 0.19 Non Current Liabilities a. Long Term Borrowings 111.86 62.57 27.82 0.50 b. Long Term Provisions 5.06 5.78 1.38 0.09 Current Liabilities a. Short Term Borrowings 128.15 18.31 26.13 - b. Trade Payables 198.34 100.17 85.75 30.27 c. Other Current Liabilities 13.90 5.22 0.95 0.69 d. Short Term Provisions 14.76 0.11 0.47 0.11 T O T A L 531.07 205.79 152.80 32.85 ASSETS Non Current Assets a. Fixed Assets i. Tangible Assets 24.39 4.67 3.74 0.12 Less: Accumulated Depreciation 3.91 1.57 0.36 - Net Block 20.48 3.10 3.38 0.12 b. Deferred Tax Assets (Net) 1.19 1.83 0.34 0.03 c. Long Term Loans & Advances 2.42 0.38 0.38 - Current Assets a. Inventories 147.36 56.72 69.51 11.04 b. Trade Receivables 349.17 137.96 76.39 18.58 c. Cash and Cash Equivalents 10.23 5.51 1.97 2.81 d. Short Term Loans & Advances 0.22 0.27 0.81 0.28 T O T A L 531.07 205.77 152.80 32.87 PROFIT AND LOSS ACCOUNT (` In Lakhs) Particulars For the year ended March 31, 2016 2015 2014 2013 INCOME Revenue from Operations 1,418.64 480.12 189.28 59.20 Other Income 1.18 2.37 0.44 - Total Income (A) 1,419.82 482.49 189.72 59.20 EXPENDITURE Cost of Material Consumed 320.68 172.03 60.22 32.08 Purchase of Stock in Trade 241.53 48.98 17.15 1.04 Changes in inventories of finished goods, traded goods and work-in-progress (97.96) (9.91) (19.52) (10.55) Employee benefit expenses 77.66 79.79 26.86 0.60 Finance costs 14.75 6.83 1.87 - Depreciation and amortisation expense 2.34 1.21 0.36 - Other Expenses 795.09 178.74 101.04 35.76 Total Expenses (B) 1,354.09 477.67 187.98 58.93 Profit before extraordinary items and tax 65.73 4.82 1.74 0.27 Extraordinary items - - - - Profit before tax 65.73 4.82 1.74 0.27 Tax expense : (i) Current tax 19.71 2.98 0.94 0.11 (ii) Deferred tax 0.65 (1.49) (0.31) (0.03) Total tax expense 20.36 1.49 0.63 0.08 Profit for the year (D-E) 45.37 3.33 1.11 0.19 Share capital* - Pre-issue share capital increased to ` 150.56 lakhs and pre-issue networth is ` 259.36 lakhs. An IPO lead managed by Pantomath Capital Advisors (P) Limited
Financial Performance Statement of Profit and Losses (As Restated) (`in Lakhs ) Particulars For the year ended March 31, 2014 2015 2016 Total Revenue 189.72 482.49 1419.82 Total Expenses 187.98 477.67 1354.09 EBIDTA 3.97 12.86 82.82 Profit/(Loss) for the period 1.11 3.33 45.37 Earning per equity share EPS Basic& Diluted 0.24 0.62 8.40 Revenue (`in Lakhs') PAT (` in Lakhs') 1500 1419.82 60 45.37 1000 500 59.2 189.72 482.49 40 20 0.19 1.11 3.33 0 0 2013 2014 2015 2016 2013 2014 2015 2016 EBIDTA (` in Lakhs') RONW (%) 100 80 60 40 20 0 0.27 3.97 12.86 82.82 80 60 40 20 0 15.97 10.78 24.43 76.9 2013 2014 2015 2016 2013 2014 2015 2016 Highlights Average return on Networth of more than 48% Pre Issue Debt equity ratio lower than 1. Attractive P/e ratio of 3.33 on basic EPS of FY 15-16
Industry Overview THE SECTOR HAS BEEN POSTING STRONG GROWTH OVER THE YEARS Textile plays a major role in the Indian economy It contributes 14% to industrial production and 4% to GDP With over 45 million people, the industry is one of the largest source of employment generation in the country The industry accounts for nearly 13% of total exports The size of India s textile market in 2014 was USD99.0 billion which is expected to touch USD226 billion market by 2023 at a CAGR of 8.7% between 2009-23E 70 India s textile market size(usd billion) 78 CAGR: 8.7% 89 99 2009 2010 2011 2014 108.5 2015E 226 2023E Source: Technopak, Make in India, News articles, Ministry of Textiles, TechSci Research Notes: CAGR - Compound Annual Growth Rate, E - Estimated, EXPORT MARKET SHARE 40% 60% Textiles Apparels Source: Technopak, TechSci Research Note: NIFT - National Institute of Fashion Technology In 2014, textiles had a share of 60% of the export market; apparels contributed the remaining 40% To improve technical skills in apparel industry government established 75 apparel training and design centres across India National Institute of Fashion Technologies played pioneering role in growth of apparel industry and exports To promote apparel exports 12 locations have been approved by the government to set up apparel parks for exports An IPO lead managed by Pantomath Capital Advisors (P) Limited
IPO Details *Issue Opening Date: September 28, 2016 Issue Closing Date: October 03, 2016 Issue Price Rs. 28 Lot Size: 4,000 Equity Shares & in Multiple Thereof Issue Size Rs. 404.32 Lakhs Issue Size (No. of Shares) 14,44,000 Post Issue Valuation of company Rs. 825.89 Lakhs Book Value (as at March 16) Rs. 10.93 Lead Managers: Pantomath Capital Advisors (P) Limited Indian Overseas Bank Issue Objects: Working Capital requirements General Corporate Purpose Registrar to the Issue: Bigshare Services Comparison with Peers Manufacturing of ethnic and designer apparel faces competition from various domestic and internationalplayers. The Company competes with many peers on the basis of product quality, price and reliability. However, most of them are in unlisted space. Companies CMP Basic & Diluted EPS PE Ratio RONW% NAV (Per Share) Face Value Total Income (` in Crore) Nandani Creation Limited 28.00 8.40 3.33 76.90% 10.93 10 14.20 Peer Group Bella Casa Fashion Retail Ltd. 28.00 1.76 15.91 11.63% 12.95 10 85.30 * CMP for our Company is considered as Issue Price and is the closing price of relevant scrip as on August 26, 2016. Note: Industry Composite comprises only Bella Casa Fashion Retail Limited. We believe none other listed companies in India are focused exclusively on the segment in which we operate. Further the Companies which operate in the apparel segment are too huge in terms of turnover to be considered as of comparable size. Investor Rationale: Fairly priced share in terms of P/E ration and Return on Net Worth as compared to Listed peers in terms E-retail its products on Major e-commerce platforms like Myntra, Jabong, Amazone etc. Young and dynamic management team with rationale presence in industry Fully integrated process for Kurtis The manufacturing process is managed by our subsidiary Desi Fusion Pvt Ltd thereby reducing dependence on third party suppliers For further details, please feel free to contact: Ms. Madhu Lunawat, Executive Director Pantomath Capital Advisors (P) Limited (Lead Manager to the issue) Email id: info@pantomathgroup.com; Tel: +91 022 61946700 Mr. Anuj Mundra, Managing Director Nandani Creation Limited Email id: anuj@jaipurkurti.com; Tel. No.: 98298 66969 Disclaimer: This document has been prepared for information purpose only and is prepared based on the information available in the Draft Prospectus filed with NSE for getting its Equity Shares listed on NSE Emerge Platform. It is to be distinctly understood that the same should not in any way be deemed or construed that the Offer Document has been cleared or approved by NSE nor doesn t certify the correctness or completeness of any content of the Offer Document. The investors are advised to refer to the Offer Document for the full text of the Disclaimer Clause of NSE. Investments in equity and equity-related securities involve a degree of risk and investors should not invest any funds in this Issue unless they can afford to take the risk of losingtheir investment. Investors are advised to read the risk factors carefully before taking an investment decision in this Issue. For taking an investment decision, investors must rely ontheir own examination of the Issuer and this Issue, including the risks involved.